Adding value is the cornerstone of secondary agricultural activities because it transforms raw agricultural products into finished goods, which makes them more appealing to customers. On one hand, this generates a multiplier effect. It involves the use of technology and various skills, and results in improved quality and appearance. On the other hand, research confirms that in India, a mere 1% rise in agricultural value added per hectare can result in a short-term reduction of 0.4% in poverty and, in the long term, a decrease of 1.9% due to indirect effects such as increased wages and lower food prices. In low-income countries globally, agricultural growth has been found to be more effective in reducing the poverty headcount than the growth in non-agricultural sectors.
But in India, less than 10% of agricultural and food items are processed despite India being a prominent global producer of these items. There is expected to be a surge in demand for processed food in India in the years ahead, which could lead to opportunities for higher value addition, reduced wastage and alternative employment. Based on corporate data analysis, food processing companies have been profitable, but there is a pressing need to increase the value addition component significantly.
In line with this, secondary agricultural activities have already been linked with the strategy of Doubling Farmers’ Income (DFI). The DFI report’s Volume No. 9 gave much space to farm-linked activities and secondary agriculture. It examined the need and scope to develop additional economic activities in the agricultural, rural economy. It also opined that secondary agriculture could be defined as an enterprise that serves as a cottage industry, contributing to the economic prosperity of a village. This level of agriculture utilises the surrounding area, its local resources and workforce to collect raw materials.
The report categorised secondary agriculture into three types: Type A, a value addition to primary agriculture production systems. Type B denotes alternative enterprises like beekeeping, poultry, agritourism, and off-farm enterprises. Type C represents enterprises that thrive on crop residues and waste materials of primary agriculture.
The report further emphasised that encouraging the development of secondary agriculture necessitates establishing a division dedicated to this level of activity in each of the three departments of the Ministry of Agriculture and Farmers Welfare. This division would provide support at the enterprise level and coordinate efforts through a structured platform.
To this end, the Karnataka government established a Directorate of Secondary Agriculture to take agriculture forward, with an aim of doubling farmers’ income. The Directorate has framed roles and functions like compiling data and assessing off-farm enterprises, providing skills and training for primary and secondary processing, etc.
Conversely, Leisa India magazine carried a story on how an NGO supported tribal communities to earn better income through secondary agriculture. The NGO, Self-Reliant Initiatives through Joint Action (SRIJAN), has empowered Sahariya tribal communities in Madhya Pradesh’s Shivpuri district by involving them in secondary agriculture activities. Partnering with women-led Self-Help Groups, SRIJAN strengthened the value chain of the Flame of Forest, also called Butea monosperma, a versatile tree which is a source of income for tribal villagers, who collect its gum and flowers during the non-agricultural season.
SRIJAN conducted an extensive study which revealed significant production and market potential for gum while also exposing exploitative practices by local intermediaries. By linking tribal farmers to established markets and refining extraction techniques, SRIJAN enabled a 20% to 30% increase in community income. Teaming up with experts from the Central Agroforestry Research Institute (CAFRI), the initiative imparted scientific gum extraction skills to women, resulting in a 30% rise in gum quantity and improved quality.
This success highlights the crucial role of secondary agriculture in enhancing farmers’ income and competitiveness. Further, to help it spread its wings, some avenues to strengthen secondary agriculture are:
a) Except for the Technical Advisory Committee on Secondary Agriculture Report 2008 and the DFI Report 2018, no other study has been conducted on secondary agriculture. The states have to constitute individual committees to study the importance of secondary agriculture and bridge the gap between the primary and secondary level.
b) Secondary agriculture can be given priority sector status to receive institutional credit.
c) Strengthening and expanding secondary agriculture and connecting it with primary agriculture is important. The relationship between research institutes, bioresource industries, financial institutions, and farmer-producer organisations must be reinforced.
d) Private-public partnerships (PPPs) should be promoted to ensure sufficient technology development, commercialisation, transfer and investment to advance secondary agriculture. The government should act as a facilitator rather than a controller, ensuring minimal bureaucratic obstacles. A single-window clearance system must be in place to enable this process.
e) Facilitating rural industrialisation is essential to connect farm and off-farm activities, which creates numerous opportunities for non-farm employment.
f) Providing capacity-building opportunities in secondary agriculture to progressive farmers can have a significant impact. As per NSSO data, most agricultural households seek technical advice from these progressive farmers more than any other source. So, they can be given the training, vocational programs, diplomas and certificate programs, thereby equipping them with the necessary skills and knowledge to secure employment in rural industries.
g) Establishing a central agency to coordinate all related activities to manage secondary agriculture effectively is crucial. Currently, the process involves multiple ministries in both the Central and state governments. Additionally, the curricula of State Agricultural Universities (SAUs) must integrate secondary agriculture, bioprocessing technologies, and agribusiness courses to ensure an adequate supply of qualified human resources for managing primary and secondary agriculture.
Dr S Sarath
Assistant Professor, NITTE School of Management, Bengaluru
(saraths1995@gmail.com)