From farm to plate. How small businesses form the backbone of India’s food industry

Have you ever wondered about the origin  of the chapati on your plate? How did it evolve from a humble grain of wheat on the farm to a healthy food on your table? Behind every meal is a complex web of supply chains, from the farmers who grow the crop to the small businesses that process it and then to the hardware that sells it to us. This ecosystem of small and medium enterprises (SMEs) and food processing units forms the backbone of the Indian food industry. This ecosystem not only ensures domestic food supply in the country but also facilitates the food export ecosystem. 

Besides creating jobs 

  According to the government’s estimate, SMEs provide employment to almost a fifth of the country’s population. But the role of SMEs and processing units goes far beyond job creation. In a country as diverse as ours,  food availability is paramount. SMEs play an important role in ensuring the availability of nutritious food  at an affordable price.  

 Small businesses are also a source of communication between consumers and producers. Processors and processors can translate market demands back to farmers. Simply put, these companies act as an informal feedback loop, helping small businesses democratize food production. Everything we eat, including  grains, fruits, vegetables and animal products, is grown, processed, traded and marketed by small businesses. The food industry has many big players, but it also depends on small businesses that grow, process and sell food. According to experts, almost 72 to 83 percent of the total food consumed in India is in the hands of SMEs. In addition, most of our food exports are handled by small and medium-sized farmers and traders.

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