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Council on Energy, Environment and Water Integrated | International | Independent
Report

Can Small Horticulture Processors Enhance Rural Incomes?

Wase Khalid, Shruti Jindal, and Abhishek Jain
October 2022 | Energy Access

Suggested citation: Khalid Wase, Shruti Jindal and Abhishek Jain. 2022. Can Small Horticulture Processors Enhance Rural Incomes? New Delhi: Council on Energy, Environment and Water.

Overview

This Powering Livelihoods market research report analyses the value chain, market segmentation, and policy associated with small horticulture processors. The report aims to boost sectoral growth by providing insights to entrepreneurs, investors, and policymakers targeting decentralised horticulture processing.

Powering Livelihoods, a USD 3 million (INR 21 crores) initiative by CEEW and Villgro, is mainstreaming clean energy-based solutions in India’s rural economy. It provides capital, technical, and sectoral growth support to help social enterprises deploy many clean energy-based livelihood solutions in a gender-inclusive manner.

Key Highlights

  • The total available market (TAM) for machines enabling decentralised processing of fruits and vegetables is USD 954 million (INR 7,533 crore). This translates to more than 627,000 machines, impacting 1.3 million livelihoods.
  • The serviceable available market (SAM) for small horticulture processors (SHPs) is USD 830 million (INR 6,561 crore). This means around 550,000 machines, impacting 1.1 million livelihoods.
  • USD 158 million (INR 1,252 crore) is the TAM for machines enabling decentralised processing of floricultural crops. This translates to more than 100,000 machines, impacting 200,000+ livelihoods.
  • For several fruits and vegetables, the market for processed products such as jams, candies, and juices is mature. However, entrepreneurs will have to develop and test value-added products for regional crops such as custard apple, jackfruit, and passion fruit to create a niche national and global market.
  • Processed food producers may explore supplier contracts with fast-moving consumer goods (FMCG) companies to provide processed raw materials. They can leverage government initiatives such as the Prime Minister’s Formalisation of Micro Food Processing Enterprise (PM FME) scheme and to tackle challenges such as financing, skilling, and common facilities.

District-wise distribution of market opportunity


Source: A complete list of districts is available here

The total available market for machines enabling decentralised processing of fruits and vegetables is USD 954 million (INR 7,533 crore). This translates to more than 627,000 machines, impacting 1.3 million livelihoods.

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