Agro and Food Processing Business Scope in Jammu and Kashmir

Food business in Jammu and Kashmir plays a major source of employment and revenue for the state. It plays a vital role in the food security of the people of the state. Food processing companies in Jammu and Kashmir provide employment to thousands of people.

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Jammu and Kashmir - Economic Status

Jammu and Kashmir has been traditionally a very poor state, but it has shown rapid growth in the past few years, as a result of sustained economic reforms.

●????Agro business occurs both on farm and off farm. On the farm, farmers raise livestock such as cattle, sheep, goats or buffalo for their meat, milk and other products.

●????Off farm, food processing companies produce packaged or shelf-stable food products that are produced in commercial quantities for sale to the public.

●????Food products can include both packaged food as well as fresh food.

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Related Business Plan: ?Food Processing and Agriculture Based Projects, Snack Food, Frozen Food, Agro Processing Technology, Processed Food, Instant Food, Food Industry, Food Preservation, Canned Food, Packed Food, Ready to Eat Food, Cereal Food, Pickle, Spices, Grain Milling, Value added products

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Forming a major source of foreign exchange, the agro business is one of the most important sectors in Jammu and Kashmir with a contribution of 4.48% to the state’s GDP in 2012. Agro business accounts for 60% of the employment in the state. It is an important part of the agriculture sector and is also a major source of foreign exchange.

?Profitable food businesses in Jammu and Kashmir

1. Apples

In Jammu and Kashmir , apples are known for being grown by Kashmiri farmers, especially in the Jammu region, where more than 80% of the world’s apples are produced by farmers in this region. As a result, Jammu and Kashmir produces the largest volume of apples in India. Jammu and Kashmir are the world’s largest supplier of apple exports and the world’s biggest supplier of marketable cherries, has led to the tag of “Apple State.”

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1. Saffron

J&K is the largest producer of saffron in the world and has been since the 16th century. Saffron is the dried stigmas of crocus flowers, harvested from the world's tallest flower, the saffron crocus, which grows in the Himalayan foothills, Western U.S., southwestern Canada, and in other mountainous regions.

1. Cherry

Jammu and Kashmir has an estimated range of 3,500-4,000 cherry fruit producers. 120 of them are in the state rural area, and 98 of these are dependent on small or medium size irrigation reservoirs.

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What makes Jammu and Kashmir best for Agro-processing sector?

1. Horticulture - It is taking as a fast paced growing sector and has a lot of business potential for processed food.
2. Growth in livestock sector is also favourable for processing of livestock products.
3. Suitable for temperate horticulture products as organic food products for export purpose.
4. The agro-climatic conditions provide support for agricultural produce.
5. Temperate fruits and other ancillary industries are likely to add value to the processing of niche commodities.?

?Opportunities for agro-food business in Jammu and Kashmir

1. The topographical limitations did not limit the industrialization in Jammu and Kashmir . The industrial policy 2016, promoted a rapid industrialization which benefitted the private sector.
2. There have been more investment of agro-based industries, and it is region specific depending on the availability of raw material in the region.
3. The aromatic and medicinal plant sector of the state has vast scope and has attractive market in our country and even overseas.
4. Apple has been utilized for making jellies, jams, squashes, RTS drinks and many other foods, which are not only in demand, but has vast scope as well.
5. Saffron, walnut, cherries and other fruits vastly grown in the state, can be branded for its high quality and expect better returns from their business as well.

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Conclusion

Diversifying activities and implementing more product lines are essential for the processing units to leverage scope economies. Furthermore, they must invest in promoting the brands of niche commodities such as walnut, apricot, and sea buckthorn. In addition, it is imperative to upgrade the technology and size of quality products, as well as to assist in the development of high-end products by establishing relationships with small-scale manufacturers.?

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