Rs 2.19 crore NABARD-backed facility to process 480 tonnes of groundnuts annually, generate rural livelihoods, and position ‘Yadgir Groundnut’ as a value-added brand

In a significant push toward women-led rural entrepreneurship and agricultural value addition, Finance and Corporate Affairs Minister Nirmala Sitharaman inaugurated a women-operated agro-processing centre and Farmers’ Training and Common Facility Centre (FT-CFC) in Yadgir district, Karnataka, marking a new chapter in the region’s farm economy.

The facility, established at Baddepalli with a project investment of Rs 219.31 lakh, is the first agro-processing centre in the region to be fully owned and managed by women farmers. Operated by the Baddepalli Women Farmers Producer Company Limited, which comprises 727 women farmer-members, the centre is expected to generate an annual turnover of approximately Rs 4.72 crore, while creating new opportunities for income diversification and rural employment.

The centre represents the fifth FT-CFC established under a broader agricultural infrastructure initiative aimed at strengthening value chains across the Kalyana Karnataka region. Developed by NABARD using funds allocated under the Minister’s MPLADS programme, the project seeks to reduce post-harvest losses, improve market access and enable farmers to capture a larger share of value from agricultural produce.

At the heart of the initiative is groundnut processing—an important economic activity in Yadgir, where nearly 75 per cent of the district’s land area is under cultivation and annual groundnut production is estimated at around 22,500 metric tonnes.

The facility has the capacity to process 480 metric tonnes of groundnuts annually, converting raw produce into higher-value products including peanut butter, groundnut oil, roasted peanuts, salted peanuts and de-oiled cake. By shifting farmers away from selling raw commodities and toward branded value-added products, the project aims to improve farmgate realisations and strengthen local agribusiness ecosystems.

Addressing stakeholders at the inauguration, Sitharaman said the project demonstrates how targeted investments in rural infrastructure can simultaneously address poverty, improve incomes and enhance women’s participation in economic activity.

She noted that Yadgir, despite being one of Karnataka’s youngest districts, continues to face developmental challenges, including low female literacy levels and multidimensional poverty. According to her, women-led enterprises such as the Baddepalli facility can play a transformative role by generating local employment and creating sustainable livelihood opportunities.

She also urged stakeholders to leverage digital commerce channels to expand market access and encouraged efforts to establish “Yadgir Groundnut” as a recognised agricultural brand capable of competing alongside other successful regional food products.

For NABARD, the centre reflects a larger strategy of building farmer-owned enterprises capable of moving beyond production into processing, branding and market engagement.

Speaking at the event, Dr Shaji K.V., Chairman, NABARD, described the project as a scalable model that combines women’s entrepreneurship with agricultural value addition. He said the initiative aligns with the broader objective of creating sustainable rural livelihoods while strengthening the participation of women in economic activities.

Beyond processing, the facility has also been designed as a training and capacity-building centre for Farmer Producer Organisations (FPOs), Self-Help Groups (SHGs) and rural youth. The centre is expected to provide technical training, business development support and market linkage assistance, helping local communities move up the agricultural value chain.

To support product quality and food safety compliance, testing and certification services will be provided through the NABL-accredited laboratory of the University of Agricultural Sciences (UAS), Raichur, enabling products to meet regulatory and commercial standards required by modern retail markets.

A key component of the project is its market strategy. Alongside traditional retail and wholesale channels, the centre plans to utilise digital commerce platforms, including the Open Network for Digital Commerce (ONDC), while exploring partnerships with major e-commerce and quick-commerce companies. The approach reflects a growing shift among rural enterprises toward technology-enabled market access and direct-to-consumer sales models.

The Yadgir facility builds on four similar centres already established in Koppal, Raichur, Ballari and Vijayanagara, forming part of a larger effort to create decentralised agro-processing infrastructure across Karnataka’s agricultural heartland.

Industry observers view the project as more than a processing unit. By placing women farmers at the centre of ownership, governance and commercial decision-making, the initiative offers a practical model for inclusive rural industrialisation—one that links agricultural production with value addition, entrepreneurship and market integration.

As India seeks to strengthen rural incomes and reduce dependence on raw commodity sales, projects such as the Baddepalli centre illustrate how farmer-owned enterprises can evolve into commercially viable businesses, while simultaneously advancing financial inclusion, women’s empowerment and regional economic development.