Moving beyond what the state produces to how much value it creates: A practical reader guide

Moving beyond what the state produces to how much value it creates: A practical reader guide

One morning in Amritsar, a small food entrepreneur packed a batch of popcorn for a journey far beyond Punjab. What began as a modest local enterprise had gradually acquired better equipment, improved packaging, formal systems and the confidence to approach international buyers. Its destination was Europe.

Agriculture and allied activities contribute 24.5% of Punjab’s Gross State Value Added ( GSVA), while agro-processing accounts for 34.5% of manufacturing Gross Value Added (GVA). That journey captures Punjab’s next food-processing opportunity: Moving beyond what the state produces to how much value it creates from that production. For decades, Punjab has been central to India’s food-security story. Punjab’s experience under the Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) scheme has reinforced an important lesson: Success cannot be measured only through sanctions and subsidy disbursement. The real test is whether an enterprise becomes sustainable, meets higher quality standards, builds a recognisable brand and accesses larger markets. This has encouraged a shift from a subsidy-led to an enterprise-led approach.Through Punjab Agricultural Marketing and Extension Training Institute ( PAMETI) and other capacity-building interventions, entrepreneurs are being supported beyond technical training, with capabilities in finance, credit, operations, food safety, human resources and business management. The journey of the Pradhan Mantri Formalisation of Micro food processing Enterprises (PMFME) scheme–supported enterprises accessing export markets demonstrates how formalisation, investment, capability building and market access can enable even a micro enterprise to think globally. The same philosophy underpins Business Bibaz, conceptualised in Punjab to support women who possess strong food-production skills but need a bridge from informal production to formal enterprise. A woman producing a quality product at home should have a clear pathway to formalise her business, access finance, improve packaging and branding and reach larger markets, creating a new generation of she-agripreneurs. This opportunity extends to Scheduled Caste entrepreneurs and enterprises across rural and semi-urban Punjab, making food processing a powerful pathway for broad-based entrepreneurship. Punjabi food is already enjoyed around the world. The ambition now should be to ensure that Punjab’s enterprises, brands, ingredients, processed products and economic value travel with that cuisine. Imagine an entrepreneur in Amritsar accessing buyers in Los Angeles, London, Dubai, Toronto or Singapore, supported by efficient cargo connectivity, cold chains, testing facilities, packaging support, export facilitation and logistics. Punjab helped build India’s food-security story. Its next opportunity is to build an equally compelling value- addition story, one where a farmer’s produce moves further up the value chain, a home-based producer becomes an entrepreneur, a micro enterprise becomes a professionally managed business, and a local product becomes a trusted brand.