Ahmedabad, June 10: South Asia has the potential to create millions of jobs, attract billions of dollars in investment, reduce food losses, and drive inclusive economic growth by transforming its food systems beyond farm production, the World Bank Group said during the SAPLING High-Level Policy Dialogue held in Ahmedabad, Gujarat.
The two-day regional dialogue, titled “Unlocking Value: Advancing Food Processing for Employment Generation and Sustainable Growth in South Asia,” was inaugurated on June 9 by the Ministry of Food Processing Industries (MoFPI), Government of India, in collaboration with the World Bank Group-led SAPLING initiative.
The event brought together nearly 200 participants, including policymakers, industry leaders, investors, development partners, researchers, innovators, startups, and representatives from South Asian countries to discuss strategies for strengthening food processing ecosystems and building resilient and sustainable food systems.
According to the World Bank Group, South Asia’s agriculture sector is valued at more than $700 billion annually and employs nearly 43 per cent of the region’s workforce. However, agriculture contributes only about 16 per cent of the region’s GDP, while more than 30 per cent of food produced in the region is lost or wasted each year—an amount sufficient to feed nearly 300 million people.
Speakers at the dialogue stressed that the next stage of agricultural transformation should focus on food processing, storage, logistics, marketing, and value addition rather than production alone. They noted that expanding these sectors could generate large-scale employment opportunities, reduce food losses, and increase farmers’ incomes.
Highlighting India’s progress, participants noted that food grain production has risen from 51 million tonnes in 1950-51 to over 330 million tonnes today. Processed food exports have more than doubled over the last decade, increasing from approximately $4.9 billion to over $10 billion. The food processing sector now contributes around 9 per cent of manufacturing value added and nearly 13 per cent of India’s exports.
The dialogue also cited government initiatives such as the Pradhan Mantri Kisan Sampada Yojana, the Pradhan Mantri Formalization of Micro Food Processing Enterprises (PMFME) Scheme, and the Production Linked Incentive (PLI) Scheme for Food Processing Industries as key drivers of infrastructure development, modernization, and investment in the sector.
Despite these gains, experts observed that a substantial share of agricultural produce remains unprocessed and that significant investment is needed in cold chains, warehousing, storage facilities, logistics networks, and market linkages to unlock greater value across food supply chains.
The World Bank Group emphasized that South Asia’s rapid urbanization, expanding middle class, rich agro-biodiversity, and growing demand for safe and high-quality processed foods position the region to emerge as a global leader in food systems development.
To support this transformation, the World Bank is advancing two major initiatives—AgriConnect and the South Asian Policy Leadership for Improved Nutrition and Growth (SAPLING).
AgriConnect aims to connect 300 million farmers to markets by 2030 through infrastructure investments, policy reforms, and mobilization of private capital. The initiative is already supporting projects and reforms in countries including India, Bangladesh, and Sri Lanka.
SAPLING serves as a regional platform bringing together governments, investors, development partners, and innovators to advance policy reforms, develop investment pipelines, and scale successful food systems solutions across South Asia.
Participants called for coordinated action among governments, businesses, investors, and international financial institutions. Recommendations included greater investment in cold chains, warehousing, logistics hubs, agro-industrial parks, and food processing clusters, along with wider adoption of digital technologies, improved food safety systems, stronger public-private partnerships, and a more investment-friendly business environment.
The dialogue concluded that transforming food systems from farm to market could play a pivotal role in generating employment, improving nutrition, strengthening exports, reducing food losses, and sustaining economic growth across South Asia in the coming decades.
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