Profitable Business of Agro-Food Processing In Rajasthan

Agro-food business in Rajasthan. Agro-food business is a multi-billion-dollar industry in the Rajasthan region. This sector contributes to the livelihoods of both farmers and farm laborers in Rajasthan as well as small and medium-sized businesses.

In addition, it creates jobs and stimulates the local economy in rural areas. The agro-food business in Rajasthan is estimated to account for approximately 40% of the total agro-food business in India. It contributes 39% of the total value of goods and services and employs 24% of the total workforce.

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Which food business is profitable in Rajasthan?

• Rajasthan produces a wide variety of fenugreek, mustard, bajra, cumin, coriander, etc., in several forms. In addition, producers in the state process most of these seeds into flour, which they use to bake bread, biscuits, cakes, and pastries. Moreover, this value-added processing supports local industries and boosts rural livelihoods. They also extract fenugreek seed oil. 

• In addition, Rajasthan’s farmers grow large quantities of chana and masoor dal, which they process into a variety of products. Moreover, these processed goods contribute significantly to the local economy. Furthermore, the diversification of agricultural output enhances both food security and market opportunities.

• The largest producer of dal in India is from Rajasthan. The state is also a major producer of both red and whole masoor rice, which is used in traditional dishes such as rajma (red kidney bean) and halva.
• Rajasthan is also the leading producer of milk in North India. Saras Milk, the brand of Rajasthan Cooperative Milk Producer Union, has outlets in Jodhpur, Jaipur, New Delhi, and other major cities.

  In addition, smaller dairies across the state produce various milk-based products like butter, yogurt, and cheese. Notably, the most well-known cheese is ‘Rajasthan’, a yellowish cheese with a strong aroma. Moreover, these dairy products contribute to both local consumption and commercial distribution, supporting the state’s agro-food economy.

Government initiative to promote agri-business in Rajasthan

1. The government has taken a step to make agro-business flourish and help farmers increase their income. In order to do so, the state launched the ‘Rajasthan Agro-Market Exposition & Fairs’ in October 2016. This was the first time that an exhibition was organized by any government in the country.

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     2. Rajasthan Agro-processing, Agri-business & Agro-export Promotion Policy, 2019 –

This policy has been formulated to promote the agro-processing industry in the state, including the production, processing, and marketing of agricultural products. Additionally, it aims to support the agri-business industry, which focuses on crop production, as well as the agro-export industry, which targets the export of these crops.

1. Food parks -Food parks offer a unique way to experience Rajasthan’s local cuisine and culture. Located in distinctive settings such as lakeside restaurants, heritage sites, and even shopping malls, they provide diverse dining experiences. Moreover, food parks serve high-quality meals at more affordable prices than traditional restaurants, making them both appealing and accessible.

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Reasons to invest in Rajasthan Agro-Food Business

1. They have 6 food parks, and one mega Food Park, which is located in Ajmer.
2. 2 zones for agro-export
3. Has 8 inland container depots
4. Excellent network of roadways and railways for easy transportation of products.
5. Rajasthan has the highest rank in the Stand-Alone Export Preparedness Index 2020 among the landlocked states.

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Frequently Asked Questions

1. Why should I consider starting an agro-food business in Rajasthan?

Rajasthan’s agro-food sector is a multi-billion-dollar industry contributing around 40% to India’s total agro-food business. It supports farmers, small and medium-sized enterprises, and creates rural employment, making it a strong foundation for agro-based entrepreneurship.

2. Which food businesses are most profitable in Rajasthan?

Profitable segments include:

• Oilseeds and pulses: Fenugreek, mustard, bajra, cumin, coriander, chana, and masoor dal
• Processed food products: Flour, baked goods, fenugreek oil, dal-based products
• Dairy products: Milk, butter, yogurt, cheese (e.g., the famous yellowish ‘Rajasthan’ cheese)

Rajasthan is the largest dal producer in India and a key supplier of both red and whole masoor rice.

3. What government initiatives support agro-business in Rajasthan?

• Rajasthan Agro-Market Exposition & Fairs (2016) – Promotes agro-business and farmer income
• Rajasthan Agro-processing, Agri-business & Agro-export Promotion Policy (2019) – Supports production, processing, marketing, and exports of agricultural products

4. What are food parks, and how do they support the agro-food industry?

Food parks in Rajasthan offer diverse dining experiences at lakeside spots, heritage sites, and malls. They help promote local cuisine at affordable prices, boosting both tourism and the local food industry.

5. What makes Rajasthan attractive for agro-food investment?

• 6 food parks and 1 mega food park (Ajmer)
• 2 agro-export zones
• 8 inland container depots
• Strong road and rail connectivity
• Top rank in the Stand-Alone Export Preparedness Index 2020 (landlocked states)