Government initiatives aim to improve farmer market access, strengthen food supply chains and create new opportunities for hospitality, food processing and agri-tourism sectors

New Delhi, July 28, 2026: The Government of India is strengthening the country’s agricultural marketing ecosystem through digital marketplaces, farmer collectives, storage infrastructure and food processing initiatives aimed at improving price discovery, reducing post-harvest losses and creating efficient supply chains.

The Ministry of Agriculture & Farmers Welfare highlighted that initiatives such as the National Agriculture Market (e-NAM), Farmer Producer Organisations (FPOs), Agriculture Infrastructure Fund (AIF), Mission for Integrated Development of Horticulture (MIDH) and food processing schemes are helping build a more integrated agricultural ecosystem.

The developments are expected to have a direct impact on the hospitality, food & beverage, retail, food processing and tourism sectors by improving access to quality farm produce, strengthening local sourcing models and enabling farm-to-table initiatives.

Key Highlights

• 1.89 crore farmers and 2.78 lakh traders registered on e-NAM as of June 30, 2026.
• Inter-State trade through e-NAM increased from 563 MT worth ₹37 lakh in 2018-19 to 2,984.3 MT valued at ₹14.28 crore in 2025-26.
• 10,000 Farmer Producer Organisations (FPOs) registered under the government’s FPO promotion scheme.
• FPOs have achieved a cumulative turnover of over ₹20,340 crore since the scheme’s launch in 2020.
• Agricultural Marketing Infrastructure (AMI) scheme supported 12,353 storage projects with a capacity of 369.18 lakh MT.
• Agriculture Infrastructure Fund supported 18,893 warehouses, 3,110 cold storage/cold chain projects and 2,105 processing units.
• MIDH enabled creation of around 1.76 lakh horticulture infrastructure units, including pack houses, refrigerated transport and processing facilities.
• Under PM Kisan SAMPADA Yojana (PMKSY), 1,256 food processing projects have been completed or operational, benefiting around 37.76 lakh farmers.
• World’s largest grain storage programme completed construction work in 313 PACS, creating 1.80 lakh metric tonnes (LMT) storage capacity.

e-NAM Expands Digital Agricultural Trading

The government’s flagship National Agriculture Market (e-NAM) platform has been designed to integrate physical Agricultural Produce Market Committees (APMCs) through a unified electronic trading system.

The platform enables farmers to access a wider network of buyers through transparent online bidding, better price discovery and direct transfer of sale proceeds into bank accounts.

The growth in inter-State trading indicates increasing participation of buyers beyond traditional markets. The average number of trader bids per lot has increased from 2.1 in 2016-17 to 2.8 in 2025-26, reflecting greater competition and improved market efficiency.

FPOs Strengthening Farmer Supply Chains

The formation and promotion of 10,000 Farmer Producer Organisations (FPOs) has created a collective marketing model where farmers can aggregate produce, improve bargaining power and access larger markets.

Since the launch of the scheme in 2020, FPOs have recorded a cumulative turnover exceeding ₹20,340 crore, helping farmers participate more effectively in organised agricultural value chains.

For hospitality and food businesses, stronger FPO networks can support direct procurement models, seasonal sourcing and partnerships with farmer communities.

Boost to Cold Chain, Storage and Food Processing Infrastructure

To address post-harvest challenges, the government has expanded investments in storage, logistics and processing infrastructure.

Under the Agricultural Marketing Infrastructure (AMI) Scheme, more than 12,000 storage infrastructure projects have been sanctioned over the last decade.

The Agriculture Infrastructure Fund (AIF) has supported:

• Warehousing facilities
• Cold storage and cold chain networks
• Integrated primary and secondary processing units

Meanwhile, the Mission for Integrated Development of Horticulture (MIDH) has created infrastructure such as:

• Pack houses
• Pre-cooling facilities
• Refrigerated vans
• Ripening chambers
• Processing units

These facilities are expected to strengthen the availability of fresh fruits, vegetables and processed food products throughout the year.

Hospitality & Tourism Impact: Strengthening Farm-to-Table Ecosystem

The expansion of agricultural marketing infrastructure has significant implications for India’s hospitality and tourism industry.

1. Better Access to Fresh Local Produce

Hotels, restaurants and catering businesses can benefit from improved supply chains connecting them directly with farmers and FPOs, supporting farm-fresh menus and regional cuisine experiences.

2. Growth of Farm-to-Fork Experiences

Improved agricultural infrastructure can encourage culinary tourism initiatives such as farm visits, rural food experiences and destination dining concepts.

3. Reduced Food Wastage

Cold chain facilities, storage systems and processing infrastructure can help reduce spoilage of perishable products used extensively by hotels, restaurants and food businesses.

4. Support for Regional Food Brands

FPO-led aggregation and food processing growth can help local products, indigenous ingredients and traditional food specialties reach wider hospitality markets.

5. Stronger Food Processing & Supply Chain Partnerships

The expansion of processing facilities under PMKSY creates opportunities for collaboration between food manufacturers, hotels, airlines, institutional kitchens and tourism businesses.

Government Focus on Integrated Agricultural Growth

The government stated that agriculture being a State subject, the Centre continues to support state governments through various Central Sector and Centrally Sponsored Schemes covering areas including:

• Agricultural infrastructure
• Digital agriculture
• Horticulture development
• Farmer collectives
• Irrigation
• Mechanisation
• Food processing
• Marketing reforms
• Organic and natural farming

The evaluation reports by NITI Aayog (2020 and 2025) recognised the Integrated Scheme for Agricultural Marketing (ISAM) as an important intervention in improving market infrastructure, encouraging FPO-led aggregation, supporting value addition and strengthening post-harvest systems.

Industry Outlook

India’s evolving agricultural marketing ecosystem is expected to play a crucial role in strengthening the country’s food economy. For the hospitality and tourism sector, improved farm connectivity, digital marketplaces and stronger supply chains can accelerate the adoption of local sourcing, sustainable dining, regional gastronomy and experiential tourism models.