Chandigarh/Fazilka, February 19, 2026 (Yes Punjab News)
In a landmark move to transform Punjab’s agricultural landscape, Chief Minister Bhagwant Singh Mann led Punjab Government has made a significant expansion in three processing units established to further strengthening the agro-processing sector and encouraging crop diversification.
Punjab Agriculture and Food Processing Minister Gurmeet Singh Khudian inaugurated the expanded three ambitious projects including Chilli Processing Unit, Citrus Processing Unit and High-Tech Protected Cultivation Nursery set up by the Punjab Agri Export Corporation Ltd. (PAGREXCO) at Alamgarh village in Fazilka district.
Punjab Agriculture and Farmers Welfare Minister Gurmeet Singh Khudian stated that these projects will not only boost farmer incomes but also position Punjab as a global hub for high-value processed food products.
In a major boost for the region’s chilli growers, Khudian shared that PAGREXCO is establishing a new state-of-the-art Chilli Processing Unit at its existing Fruits and Vegetables Processing Plant in Alamgarh. With a massive capacity of 3 Metric Tonnes per hour, this unit will catapult PAGREXCO’s total chilli processing capacity from 1 MT/hour to 4 MT/hour.
The facility will process both red and green chillies into high-quality fermented and unfermented chilli paste specifically for export markets. This initiative will directly benefit local farmers by providing a dedicated procurement channel for fresh produce, eliminating the traditional dependency on sun-drying.
By processing nearly 6,500 MT of chilli every season, the unit promises better price realisation and a drastic reduction in post-harvest losses, he added.
In a strategic move to maximise value from Punjab’s renowned Kinnow production, PAGREXCO has undertaken a major technological upgrade of its Citrus Processing Unit. The modernisation has introduced advanced machinery, including a Deacidification Unit, a specialised Citrus Peel Oil Extraction Unit and a Debittering Unit.
Khudian explained that this upgrade addresses the long-standing issue of delayed bitterness in Kinnow juice caused by natural compounds like limonin.
“By removing the bitterness and regulating acidity, we are ensuring that Punjab’s citrus concentrate meets global palatability standards. Furthermore, the Peel Oil Extraction Unit will turn what was once processing waste into a high-value product—essential oil rich in d-limonene—which is in high demand by the food flavouring, cosmetic and pharmaceutical industries. This is a true win-win, enhancing both taste and profitability,” he stated.
Revolutionising Vegetable Farming with High-Tech Nursery, S. Gurmeet Singh Khudian said that PAGREXCO is setting up a new High-Tech Protected Cultivation Nursery at Alamgarh. This project will significantly increase the corporation’s annual seedling production capacity from 16 lakh to a staggering 40 lakh seedlings.
By utilising precision sowing and climate-controlled polyhouses, the nursery will produce uniform, healthy, and robust vegetable seedlings. This technology-driven approach mitigates the high mortality rates associated with costly hybrid seeds in conventional systems. “We are making superior-quality planting material accessible to our farmers at affordable rates. This will lower their input costs and ensure better crop establishment, paving the way for higher productivity and profitability in vegetable cultivation,” the Food Processing Minister added.
“Under the visionary leadership of Chief Minister Bhagwant Singh Mann, our government is moving beyond traditional farming to build a robust ecosystem for value addition. These projects are a testament to our commitment to solving the challenges faced by our farmers—from post-harvest losses to price volatility—by creating direct market linkages and enhancing processing capabilities,” said Gurmeet Singh Khudian, while adding that PAGREXCO’s initiatives mark a turning point for Punjab’s agri-sector, paving the way for sustainable growth and cementing its position in global agri-markets.
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