EMPOWERING WOMEN IN INDIA’S VALUE-ADDED AGRICULTURE SECTOR

 India’s agricultural landscape is undergoing a transformative shift, one that’s not just about crops and commodities, but about innovation, entrepreneurship, and empowerment. At the heart of this change is a powerful force: women. From rural farms to bustling MSME’s and start-ups, women are redefining value addition in agriculture and driving inclusive economic growth. Startups are, in fact, a vital part of the transformation in India’s agricultural landscape. While MSMEs (Micro, Small & Medium Enterprises) represent established small-scale businesses, startups bring fresh energy, disruptive innovation, and scalable tech-driven solutions.

What Is Value Addition in Agriculture?

Value addition refers to enhancing the economic worth of agricultural products through processing, packaging, branding, and diversification. For example: mangoes turned into jams, millets into health mixes, or turmeric into wellness capsules. This transformation boosts farmer incomes, reduces waste, and opens doors to domestic and global markets.

Why Value Addition Matters

• Income Boost: Farmers earn more by selling processed goods than raw produce.
• Job Creation: MSMEs and food processing units generate employment, especially in rural areas.
• Women Empowerment: Women-led enterprises are bridging gender gaps and reshaping local economies.
• Export Growth: Value-added products like organic spices and dairy sweets are gaining traction globally.
• Food Security: Processing reduces post-harvest losses and extends shelf life.

Women: The Backbone of Agro-Entrepreneurship

Did you know that 85% of rural women are engaged in agriculture? Many are now stepping into roles as processors, marketers, and business owners. As of 2024, women own 39% of India’s MSMEs, with a strong presence in food processing, textiles, and handicrafts. But the momentum doesn’t stop there, women-led startups are rapidly gaining ground. According to the Department for Promotion of Industry and Internal Trade (DPIIT), over 75,935 startups in India now include at least one woman director, many of which are innovating in agri-tech, organic food, and rural supply chains. Government initiatives have played a key role in this surge. The Startup India Seed Fund Scheme (SISFS) has approved ₹227.12 crore in funding for 1,278 women-led startups, while the Alternative Investment Fund (AIF) has facilitated over ₹3,107 crore in investments across 149 women-led ventures. Additionally, the Credit Guarantee Scheme for Startups (CGSS) has extended ₹24.6 crore in loan guarantees to women entrepreneurs since April 2023.These startups are not only transforming traditional farming practices but also creating scalable, tech-driven solutions that enhance value addition, reduce waste, and open new market opportunities. Their contributions are positioning India as a global leader in smart and sustainable agriculture.

Their Impact Includes:

• Integrating traditional knowledge into modern value chains.
• Innovating in packaging and product diversification.
• Targeting niche markets like organic foods and handmade textiles.

Strategies to Empower Women in Value Addition

1. Skill Development: Training in food processing, branding, and digital marketing.
2. Access to Finance: Schemes like MUDRA and Stand-Up India offer collateral-free loans.
3. Technology Adoption: Promoting smart agriculture and e-commerce platforms.
4. Policy Support: Government initiatives like PMFME and Make in India provide infrastructure and incentives.

Safe Workspaces: Women-only industrial parks and childcare support in manufacturing hubs.

India vs. Global Giants: Competing with China

(Source: WTO Global Agricultural Trade Report 2025, FAO Global Agricultural Outlook 2025, USDA Foreign Agricultural Service 2025, Ministry of Commerce & Industry, Government of India 2025)

China leads global manufacturing with over 30% output. India, contributing 2.9%, is catching up, thanks to MSMEs, policy reforms, and women entrepreneurs. To compete globally, India must:

• Expand domestic manufacturing.
• Strengthen export logistics.
• Promote women-led innovation in value-added sectors.

Tamil Nadu: A Rising Star in Agro-Based Value Addition

Tamil Nadu is leading the charge with:

• Mega Food Parks in Perambalur, Theni, and Tuticorin.
• Women-led enterprises in millets, turmeric, coconut, and banana processing.
• Export hubs linked to ports like Chennai and Tuticorin.

Top Value-Added Commodities:

• Millets: Health mixes, cookies, flour.
• Turmeric: Capsules, oils, cosmetics.
• Coconut: Virgin oil, chips, coir products.
• Banana: Chips, fiber textiles.

Spices & Flowers: Essential oils, spice mixes.

Union Budget & Policy Highlights (2025–26)

The 2025–26 budget reflects a strategic push toward modernizing agriculture and fostering inclusivity. Announced by the Union Government of India, this central budget includes a 12% increase in agriculture allocations, prioritizing climate-smart farming and promoting women-led Farmer Producer Organizations (FPOs). Investments are being channelled into cold chain infrastructure and digital agriculture to enhance efficiency and reduce post-harvest losses. Despite these advancements, gaps remain in research and development funding and in ensuring accessible credit for smallholder farmers, which are critical areas for sustained growth.

The Road Ahead

Empowering women in value-added agriculture is more than a social initiative; it’s a transformative economic strategy. With targeted support and inclusive policies, India has the potential to boost its GDP by up to 30%, as projected by the IMF. Strengthening women’s roles in agro-processing and entrepreneurship can position India as a global leader in processed agri-exports. This approach also aligns with the Sustainable Development Goals (SDGs), paving the way for equitable and resilient growth across rural and urban landscapes.

  

Paul Mansingh J, Professor & HOD 

Department of Agricultural Extension & Economics,

VIT School of Agricultural Innovations and Advanced Learning (VAIAL),

Vellore Institute of Technology,

Vellore 632014

E PRIYAVADHANA

Ph.D. Scholar, Department of Agricultural Extension, 

Faculty of Agriculture, Annamalai University, 

Chidambaram, Tamil Nadu 608002