Economics of agro-processing industries in Jammu & Kashmir

For horticultural products, the Union Territory of Jammu and Kashmir has already established a market. It comes naturally for the cultivation of horticulture and other high-value food and non-food products due to the diversity of agro-climatic conditions. However, little investment, weak marketing ties, and inadequate infrastructure capacity limit the expansion of these high-value commodities. These valuable crops’ full potential is currently being underutilized and underexploited. This study analyses the state’s agricultural processing facilities and evaluates their effectiveness, inclusivity, and growth potential. While different statistical approaches are utilized to quantify the associated data from the agro-processing sectors, the Cobb-Douglas method is employed to assess the marginal productivity of labour and capital. The results demonstrate that the agro-processing industry is labour-intensive, dominated by small-scale businesses, and lacking in capital investment and market connections. To offer the necessary incentives to push the industry to reach its full potential, it is necessary to attract investment, upskill the labour force, and enhance the marketing infrastructure in the area.