| South Asia stands at a critical moment in its development journey. The World Bank Group highlighted that transforming food systems beyond the farm can unlock significant opportunities for employment, investment, economic growth and poverty reduction. The region's agriculture sector is valued at over $700 billion annually and employs nearly 43 % of the workforce. However, despite its scale, agriculture contributes only around 16 % of the region's GDP. More than 30 % of food produced in South Asia is lost or wasted every year'enough to feed nearly 300 million people. The next phase of agricultural transformation lies in increasing production, expanding food processing, storage, logistics, marketing and value addition. These activities can create millions of productive jobs while reducing food losses and increasing farmer's incomes. In India, food grain production increased to more than 330 million tonnes today from 51 million tonnes in 1950-51. Processed food exports have also more than doubled over the past decade, rising to over 10 billion USD from approximately $4.9 billion. The food processing sector currently contributes around 9 % of manufacturing value added and nearly 13 % of India's exports. India's experience reveals how strategic policy interventions can transform agricultural value chains. Key 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 have strengthened infrastructure, modernized enterprises, attracted investments and improved competitiveness. Food processing currently accounts for only a small share of total employment and a large proportion of agricultural produce still remains unprocessed. Strengthening cold chains, storage facilities, logistics networks and market linkages can substantially increase value creation across the sector. To accelerate this transformation, the World Bank Group is advancing a combined approach through AgriConnect and SAPLING. AgriConnect, a global platform, aims to connect 300 million farmers to markets by 2030 through investments in infrastructure, policy reforms, and private capital mobilization. The initiative is already supporting projects and reforms across countries including India, Bangladesh, and Sri Lanka. The South Asian Policy Leadership for Improved Nutrition and Growth (SAPLING) serves as a regional platform that brings together governments, investors, development partners, and innovators to promote policy reforms, develop investment pipelines, and scale successful solutions across the region. Participants at the SAPLING High-Level Policy Dialogue highlighted the importance of coordinated action by governments, businesses, investors, and development institutions. Investors were encouraged to support cold chains, warehousing, logistics hubs, processing clusters, agro-industrial parks, and emerging agri-enterprises. Companies were urged to build integrated value chains, adopt digital technologies for traceability and quality assurance, and invest in workforce skills and capacity building. Policymakers can accelerate progress by promoting food processing zones, improving logistics infrastructure, simplifying food safety and certification systems, strengthening public-private partnerships, and creating a more investment-friendly business environment. Powered by Capital Market - Live News |