Rs 1,660 Crore initiative to boost sustainable Agro-processing and rural jobs

In a move set to bolster India’s agro-processing sector while emphasising sustainability, BL Agro has signed a Memorandum of Understanding (MoU) with the Ministry of Food Processing Industries (MoFPI) to establish a large-scale integrated agro-processing plant in Bareilly, Uttar Pradesh. The project, with an investment of Rs 1,660 crore (USD 200 million), will create over 3,500 direct and indirect jobs.

The greenfield initiative, announced on the second day of World Food India 2025 at Bharat Mandapam, will feature a fully automated rice milling unit for premium basmati varieties, a 500 TPD edible oil extraction and refining facility, advanced packaging lines, and 40,000 metric tonnes of grain storage. The project aims to strengthen food security and enhance export potential.

Speaking at the event, Ashish Khandelwal, Managing Director of BL Agro Industries, underlined the sustainability dimension of the venture. “Our collaboration with MoFPI reflects BL Agro’s commitment to developing world-class agro-processing infrastructure in India,” he said. “We will integrate circular economy practices into operations, including the use of by-products in cattle feed and renewable energy systems. This approach will set new benchmarks in sustainable food processing and generate lasting value for farmers and rural communities.”

Shri Preet Pal Singh, Joint Secretary of MoFPI, highlighted the government’s support for private investment in sustainable food processing. “This initiative demonstrates our focus on modern, environmentally responsible infrastructure,” he said. “It will facilitate stronger linkages with farmers, expand export opportunities, and reinforce India’s leadership in global agri-trade.”

The Ministry will assist BL Agro in securing statutory clearances to expedite project execution. Construction is scheduled to begin within six months, with Phase I completion expected by 2027.

The Bareilly project exemplifies a shift in India’s agro-processing landscape, marrying industrial scale with environmentally conscious practices. By integrating renewable energy systems, utilising by-products, and streamlining supply chains, BL Agro aims to set a precedent for sustainable industrial development in the sector, while contributing to rural employment and inclusive economic growth.