Preventing loss a key measure to perk up South Asian food economy: World Bank

More than 30 per cent of food produced in South Asia is lost or wasted every year, enough to feed nearly 300 million people, according to a World Bank report.

Prevention of food loss or waste is one of the key measures that holds the key to the future of South Asia's food economy beyond production alone, it says, adding that by transforming food systems from farm to market, the region can generate millions of jobs, reduce food loss, improve nutrition, attract investment and strengthen exports.

The report says South Asia's agriculture sector, valued at more than USD 700 billion annually, has the potential to unlock millions of jobs and billions in investments through food systems transformation, according to the World Bank.

With millions of young people entering the workforce every year, creating sustainable jobs has become one of the region's most pressing priorities. The World Bank says transforming food systems beyond the farm can unlock significant opportunities for employment, investment, economic growth and poverty reduction.

The report by the World Bank-led South Asian Policy Leadership for Improved Nutrition and Growth (SAPLING) was presented at a high-level regional policy dialogue in Ahmedabad today.

The region's agriculture sector employs nearly 43 per cent of the workforce. However, despite its scale, agriculture contributes only around 16 per cent of the region's GDP, the report says.

Experts emphasised that the next phase of agricultural transformation lies not merely in increasing production but in expanding food processing, storage, logistics, marketing and value addition. These activities can create millions of productive jobs while reducing food losses and increasing farmers' incomes, the report says.

According to the World Bank report, South Asia possesses strong fundamentals to emerge as a global leader in food systems. Rapid urbanisation, a growing middle class, rich agro-biodiversity and rising demand for safe and high-quality processed food are creating new opportunities for investment and innovation.

To accelerate this transformation, the World Bank Group is advancing a combined approach through AgriConnect and SAPLING.

AgriConnect, a global platform, aims to connect 300 million farmers to markets by 2030 through investments in infrastructure, policy reforms and private capital mobilisation. The initiative is already supporting projects and reforms across countries including India, Bangladesh and Sri Lanka.

SAPLING serves as a regional platform that brings together governments, investors, development partners and innovators to promote policy reforms, develop investment pipelines and scale successful solutions across the region.

Participants at the SAPLING High-Level Policy Dialogue highlighted the importance of coordinated action by governments, businesses, investors and development institutions in the region.

Investors were encouraged to support cold chains, warehousing, logistics hubs, processing clusters, agro-industrial parks and emerging agri-enterprises. Companies were urged to build integrated value chains, adopt digital technologies for traceability and quality assurance, and invest in workforce skills and capacity building.

The report suggests policymakers promote food processing zones, improve logistics infrastructure, simplify food safety and certification systems, strengthen public-private partnerships and create a more investment-friendly business environment.

It says international financial institutions can play a catalytic role by expanding blended finance mechanisms, supporting policy reforms linked to investment opportunities and reducing risks associated with private sector investments in food systems.

The two-day South Asian dialogue brings together around 200 participants, including policymakers, industry leaders, development partners, innovators, researchers, start-ups and representatives from South Asian countries, to deliberate on strengthening food processing ecosystems and building resilient, inclusive and sustainable food systems in the region.