Indian Economy News

India is among the few nations evolving food systems for farmer-allied SMEs: Study

  • IBEF
  • January 17, 2023

As per a new World Economic Forum (WEF) Report, which has been prepared in collaboration with Bain and Company, India is among the few countries that have been able to evolve their food systems for a broader set of outcomes by unlocking the potential of small and medium-sized enterprises (SMEs). It further said that the countries tackling the food crisis can boost jobs, health, and nature and help meet the net zero goals better. The report listed India, Ghana, and Vietnam as the countries that have evolved their food systems by unlocking the potential of SMEs, particularly those that are farmer-allied and operating in local food chains.

The report stated that some of the world’s toughest problem, from climate change to resilient livelihood can be solved through transformed food systems. Furthermore, it said that in India, a multi-decade programme is established in order to support the smallholder farmers and dairy enterprises, has helped transform dairy into the country’s largest agricultural commodity, accounting for roughly one-third of rural incomes and 10% of the total calorie intake in 2019. This transformation began with public programmes supporting the formation of village-level cooperatives, extension services and credit, it said.

In India, dairy is the single largest agricultural commodity in India and accounts for around 5% of the gross domestic product (GDP). India is now the world's largest milk producer and 70% of its milk is produced by its 80 million smallholder farmers with herds of fewer than 10 animals. The sector's value addition has doubled to US$ 15 billion in 2020, between the period 2002-2021.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.