Karnataka has supported more than 10,500 micro food processing units through various government initiatives, helping generate employment for an estimated 80,000 to one lakh people, according to the Karnataka Agro Processing and Export Corporation (KAPPEC).
Speaking at the conference on ‘Reimagining Agro-Food Processing: The AI & Robotics Revolution’, organised by the Bangalore Chamber of Industry and Commerce (BCIC), KAPPEC Managing Director CN Shiva Prakash said the state has made substantial progress in strengthening the food processing ecosystem by supporting entrepreneurs, producer groups and small enterprises through the Prime Minister’s Formalisation of Micro Food Processing Enterprises (PMFME) scheme.
Prakash also highlighted Karnataka’s emergence as a key millet-processing hub, with more than 3,500 millet manufacturing and processing units operating across the state. He noted that while artificial intelligence and advanced technologies are expected to transform the sector, they should also contribute toward employment creation alongside productivity gains.
The conference brought together policymakers, industry leaders, agri-entrepreneurs and technology experts to examine how AI, robotics and automation could reshape India’s agro-food processing landscape.
Delivering the keynote address, former Nestlé India Chairman and Managing Director Suresh Narayanan said India’s food processing industry, currently valued at more than $300 billion, is expected to reach $535 billion by 2025-26. However, he pointed out that only around 10% of agricultural output in India is processed compared with nearly 80% in developed economies, indicating significant untapped opportunities for value addition and rural employment.
Narayanan said policy support, including budget allocations of Rs 4,064 crore, production-linked incentive schemes and private investments exceeding Rs 9,227 crore, has helped create a foundation for future growth. He added that the next phase of expansion would depend heavily on innovation, healthier food portfolios, compliance and emerging categories such as millet-based products, nutraceuticals and sustainable packaging.
BCIC President Prashant Gokhale said India needs to move beyond food self-sufficiency and position itself as a dependable global food supplier. He noted that although the country produces nearly 350 million tonnes of food grains annually, nearly 30% of output continues to be lost due to wastage. According to him, AI-enabled technologies and modern food processing systems can play a critical role in reducing losses and improving value addition.
Ankur Bhaumik, Chairman of BCIC’s Agro and Food Processing Expert Committee and Chief Operating Officer at Orkla India, said future growth in the sector would require greater emphasis on quality standards, compliance and international competitiveness. He added that with agriculture contributing nearly 15% to India’s GDP and supporting close to 45% of the population, improving farmer incomes remains central to broader economic development.
During the event, BCIC also released a white paper on AI and automation in agro-food processing, outlining the role of emerging technologies in enhancing quality assessment, traceability, price discovery, market access and direct payments to farmers. The report also examined challenges related to ensuring wider farmer participation in an increasingly technology-driven ecosystem.