Union Minister for Finance and Corporate Affairs, Nirmala Sitharaman, recently highlighted the transformative potential of agro-processing centers. She emphasized that these units are crucial for empowering farmers to secure better prices for their produce and streamlining agricultural marketing and connectivity.
Her remarks came during the inauguration of a Farmers Training and General Facility Centre for Agro-Processing in Jawalgera village, Sindhanur taluk, Raichur district, a significant step forward for the region’s agricultural community.
Blessed with fertile lands between the Krishna and Tungabhadra rivers, Raichur district boasts an impressive annual yield of approximately 80,000 tonnes of red gram and 34,000 tonnes of chickpeas. Given this substantial output, an estimated 40 such processing units would be ideal to effectively manage and maximize the value of its agricultural bounty.
Ms. Sitharaman elaborated on the tangible benefits of these processing units, explaining that farmers can command significantly higher prices by processing their raw produce into packaged goods or other value-added forms, rather than selling them unprocessed directly to intermediaries.
Recognizing this potential, the Union government has actively been setting up farmers’ training and general facility centers for agro-processing across all districts of the Kalyan Karnataka region. The latest addition in Raichur district underscores this commitment.
The Finance Minister urged farmers to fully utilize these modern agro-processing units. She praised the National Bank for Agriculture and Rural Development (NABARD) for its collaboration in establishing these facilities, highlighting it as a synergistic effort with the Union government’s numerous farmer-centric empowerment schemes.
Ms. Sitharaman then outlined several key government initiatives and their benefits: over 24.74 crore Kisan cards issued, 8,000 crore soil tests performed, a substantial ₹93,000 crore grant allocated for irrigation under the Krishi Sinchai Yojana, and ₹1.74 lakh crore disbursed as compensation through the Pradhan Mantri Fasal Bima Yojana. Furthermore, the Kisan Samman Nidhi provided an annual grant of ₹6,000 to each farmer, totaling ₹3.69 lakh crore.
Highlighting significant policy changes, she noted that the Union government has boosted the support price for red gram by 85% starting from 2025-26. This means the price, which was merely ₹4,300 per hectare in 2013-14, has now climbed to ₹8,000 per hectare. Similarly, the support price for green gram has seen a rise from ₹4,500 to an impressive ₹8,800 per hectare.
The Minister also assured comprehensive development in sectors identified by NITI Aayog, which has designated Raichur and Yadgir as ‘aspirational districts’. She proudly mentioned that Maski taluk, as per the 2022-23 survey, achieved the top ranking in South India.
Adding to the discourse, K.V. Shaji, Chairman of NABARD, stressed the importance of establishing even more agro-processing units. His vision is to transform farmers into successful entrepreneurs, thereby enhancing their livelihoods and curbing rural migration.
Mr. Shaji asserted that the new processing unit is a clear demonstration of their dedication to rural development and empowering farmers. He affirmed NABARD and Farmers Produce Organisations’ (FPOs) eagerness to establish more such units, leveraging schemes like the Agriculture Infrastructure Fund (AIF), especially since the Union government has already allocated significant funds for agricultural infrastructure. He concluded by stating that NABARD would diligently work to set up these units under the Finance Minister’s guidance.
Sanjeev Puri, Managing Director of ITC Limited, noted the consistent allocation of substantial funds in the Union budget towards farmer-centric programs, agriculture, and agricultural technology. He highlighted that these crucial sectors are poised for remarkable growth through collaborative scheme implementation involving NABARD and ITC.
Nagaraj, Secretary of the Department of Financial Services, Ministry of Finance, Government of India, detailed that the new unit was developed at a cost of ₹2.54 crore. This funding was sourced from the Union Finance Minister’s MP Fund, in partnership with NABARD, and through the MP Local Area Development Scheme.
The inauguration ceremony was graced by several dignitaries, including Deputy Commissioner Nitish K., Zilla Panchayat CEO Eshwar Kandu, Superintendent of Police G. Puttamadaiah, former MP K. Veerupaksgappa, former MLA Venkatarao Nadagouda, Jawalagera Gram Panchayat chairman Nagalinga Yamanurappa, alongside numerous enthusiastic farmers and community members.