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Generally, agricultural processing industry (API) refers to
the subset of manufacturing that process raw materials and intermediate
products obtained from the agricultural sector. Actually, the lion’s share of
agricultural production undergoes some degree of transformation between
harvesting and final use.
agriculture, fishery and forestry products as raw materials. They range from
drying to production by modern capital intensive processing such as textiles,
papers and rubbers
developing countries, agricultural processing is considered an avenue through
which rural income and employment can be augmented. The potential for growth of
API is also high. It is expected that the demand for the value added food
products would increase manifold in future with the increase in per capita
income due to economic growth. In addition, there is a huge potential in the
agricultural processing industries can be classified into food and non-food industries.
In food industries,
processing usually involves more of preserving than other. However, in non-food
industries, processing is done in various stages for a variety of end users.
Apart from forward
links such as processing and marketing agricultural industries help create
backward links by furnishing credit input and other services to primary
agricultural processing sector helps develop the agricultural sector by opening
new vistas. Actually, through backward and forward links, agricultural
processing adds value to farmers, increases their income and motivates them for
better productivity and diversities the crop mix.
between the growers and processors is important for expediting development
activities of the agricultural processing centers. The development of this
sector is essential to reduce poverty, create employment opportunities, and
generate demand for industrial goods for earning foreign exchange and for
reducing regional disparities.