Introduction
Agro-food processing industries have been chosen as one of the Technology Mission Areas for more reasons than one. The share of the agricultural sector in the Gross Domestic Product (GDP) in ht Indian economy declined from nearly 5 5per cent in 1951/52 to 28 per cent in 1993/94.
However, this structural change in output has not been accompanied by corresponding change in the occupational structure of the country’s labour force. Nearly 74 per cent of the country’s population live in rural areas.
A little over 60 per cent of the total labour force is still engaged in the agricultural sector.
The rural economy has so far been unable to absorb the increasing rural labour force in production activities and this has been a big constraint for reducing the incidence of rural poverty.

Agro-food processing industries have the potential to generate directly significant employment in production activities and also indirect employment through its forward and backward linkages. This employment will be in rural areas where these industries have to be located near the source of raws materials, especially perishable agricultural products.
These industries would help in reducing post-harvest losses and wastes as well as in using byproducts more efficiently.
This can increase farmers’ income by getting them better prices and also consumer welfare by increasing the availability of agricultural consumer goods. The available vast potential in our country could be sufficiently exploited through:

(a) selection of appropriate scale and technology of production;
(b) upgradation of technology of existing units:
(c) establishment of suitable linkages between products and consumers at home and abroad; and
(d) establishment of suitable institutional arrangements.