By Raju Kumar
BHOPAL: Madhya Pradesh is one of the leading states in food production in India. With fertile soil, diverse climatic conditions, and technological innovations, the state has excelled in the agricultural sector. It is among the top producers of wheat, chickpeas, soybeans, and spices. Additionally, it has a significant presence in organic farming. Due to these achievements, the state has been honoured with the ‘Krishi Karman Award’ seven times. However, despite these promising factors, investment in agriculture-based industries remains slow.
The recently held ‘Global Investors Summit 2025′ raised several concerns regarding the lack of investment in agriculture-based industries. The summit aimed to promote industrial development in the state and attract investors. However, the expected level of investment in agriculture-based industries did not materialize, signalling a need for the government to prioritize this sector.
During the summit, Union Agriculture Minister Shivraj Singh Chouhan highlighted various government initiatives. He mentioned that under the ‘One District-One Product’ scheme, 52 districts have been identified for their unique crops, with measures in place to promote their processing. Furthermore, comprehensive strategies have been adopted to boost agricultural exports. Despite these efforts, investor reluctance remains a major concern.
Considering Madhya Pradesh’s agricultural potential, it is crucial to understand why investors are not showing interest in agriculture-based industries. The state cultivates horticultural crops on 2.7 million hectares, with a target to expand this to 3.2 million hectares and increase production to 50 million tons within the next five years. Certain products, such as Rewa garlic and Sundarja mangoes, have gained recognition in global markets. Additionally, Madhya Pradesh accounts for more than 40 per cent of India’s organic farming. Despite these advantages, investor participation in this sector has been minimal, even though agriculture and agriculture-based industries were key focus areas of the summit.
To attract investment, the state government has implemented a single-window clearance system and introduced several policies. However, these measures have not effectively appealed to investors at the ground level. A significant reason for this is the lack of necessary infrastructure and facilities for investors. Other states offer better policies, incentives, and facilities, making them more attractive to investors, leaving Madhya Pradesh trailing in competition. To stay competitive, the state must refine its policies and create a more investment-friendly environment.
Another key challenge is the lack of coordination between farmers and industrialists. The process from crop production to processing and marketing involves multiple challenges, requiring the government to play a mediator’s role. Farmers need technical assistance, training, and financial support, while industrialists require incentives and encouragement.
Madhya Pradesh has implemented several schemes to promote innovation and modern technology in the agricultural sector. The government provides subsidies to farmers for agricultural mechanization, making farming more efficient and productive. Organic farming and the conservation of natural resources are also being emphasized. Additionally, the state is promoting the cultivation of medicinal and aromatic plants to enhance farmers’ income.
Despite these efforts, investor interest in agriculture-based industries remains low. The government must not only reassess its policies but also take concrete steps to attract investors. Providing better facilities, security, and awareness of the potential in agriculture-based industries is essential.
While the agricultural sector in the state is continuously improving, the lack of investment in agriculture-based industries is limiting its economic potential. Agriculture is a decentralized sector that employs a vast workforce at the village level, contributing to job creation. Promoting agriculture-based industries through cluster-based development could generate significant employment opportunities for rural youth.
The government must introduce special incentive schemes for investors and motivate them to invest in the state. Establishing new platforms to strengthen collaboration between farmers and entrepreneurs is crucial to balancing agricultural production and industrialization. Policy reforms, infrastructure development, a favourable investment environment, and improved coordination between farmers and industrialists are essential for the full utilization of the state’s agricultural potential and the creation of new employment opportunities. (IPA Service)
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