RESOURCE BASED

Agro based

Forest based

A.H. and Poultry based

Mineral based

Marine based

Miscellaneous

Agro-based

Agro-produce Processing

units

Agro-produce Manufacturing

units

Agro-input Manufacturing

units

Agro-serviceunits

Those industries which have either direct or

indirect link with agriculture.

Industries which are based on agricultural

produce and industries which support

agriculture come under agro-based

industries.

Agro-produce processing units: These industrial

units simply process the agriculture produce .

They do not manufacture any new product. The

bulkiness of the produce is reduced.

They simply process the raw material so that it

can be preserved or transported .

Eg.. Rice mills, Dall mills, G.N. Decorticating units.

These units manufacture entirely new

products based on agricultural produce as

main raw material .

The finished goods will be entirely different

when compared to its original raw material.

Sugar factories, textile mills, paper mills etc.

These industrial units produce goods either for

mechanisation of agriculture or for increasing

productivity of agriculture.

These units are directly linked with agriculture ,

as they support agriculture at various stages.

Eg., Industries manufacturing fertilizers,

pesticides, all types of agril. implements, pump

sets etc.,

These are the workshops and service centers

which are engaged in repairing and servicing

of agricultural implements and machinery.

Eg : Servicing centers of pump sets, tractors,

diesel engines,

Establishment of Agro-based industries at a particular place is based on the availability of raw material.

As such agro-based industries have to be set up in rural areas where raw material may be available in plenty.

Establishment of agro-industries in rural areas helps in the up-liftment of rural economy.

Agro-industries provide employment

opportunities to rural population.

Setting up of agro-based industries in rural

areas will generate income thereby improving

the economic conditions of the people , which

in turn create the potential for demand based

industries.

Establishment of Agro-based industries in

rural areas will help in

Dispersal of industries.

Reducing exploitation of producers by

middlemen.

Assuring a better price to producers.

Bringing more areas under different crops,

Reducing transporting costs of produce and

thereby price of the finished products.

Reducing wastage of perishable

agricultural commodities.

Increasing the incomes of farmers.

Development of backward areas.

Preventing in the migration of people

from rural areas to urban areas.

They are suitable to rural areas as they are

raw material oriented.

The up-liftment of rural economy is

possible.

They provide employment opportunities to

rural people, solving the problem of

underemployment and disguised

unemployment.

Improve the purchasing power of rural

people through income generation .

This creates potential for demand

based industries and improves the

standard of living of people.

Decentralisation and dispersal of

industries is possible through

establishment of agro-industries in rural

areas.

To bring rural economy on par with

urban economy ,rural industrialisation

is important.

To achieve a balanced growth of

industry and agriculture , Agro-

industries should be encouraged.

To solve the problem of exploitation of

farmers by middlemen.

Transportation cost of agricultural

produce can be reduced by processing

them at the place of production.

Infrastructural facilities can be

improved in rural areas and create

potential for the establishment of

other industries in rural areas.

Backward areas can be

developed.

They curb the migration of people

from rural areas to urban areas.

Industry and agriculture are closely

inter-related.

Improvement in the productivity of

agriculture is one of the most

important means of promoting

industrialisation.

Unless agriculture is modernised ,

industrialisation in under developed

countries is not possible.

Higher purchasing power in the hands of

people create demand for other goods.

Industrial development helps in the

modernisation of agriculture and provide

a technical base for agriculture.

Industry and agriculture in the initial

stages may look competitive but in the

long run they complement each other.

There should be a balanced growth

between agriculture and industry.

It supplies raw material to industry.

Provides sustenance to people

engaged in industry.

Provides purchasing power to

agriculture community to purchase

industrial goods.

Accumulation of money in agriculture

may become capital investment to

industry.

Consumption of more manufactured

commodities and services and less food

products is a consequence of higher

incomes and a sign of high standard of

living.

Ministry of Agriculture deals with rice mills, Ministry of Agriculture deals with rice mills,

sugar mills, bakeries, cold storages.sugar mills, bakeries, cold storages.

Khadi and Village Industries Commission

(KVIC) looks after the traditional agro-based

industries like “Gur” and Khandasari

Director General of Trade and Development

looks after the industries engaged in the

manufacture of tractors , power tillers,

diesel engines, pump sets etc.,

Agro-industries Development Corporation

(AGROS) in each state mainly supply

agricultural machinery, inputs and

agricultural advisory to farmers.

Some of the corporations have also

undertaken certain manufacturing

activities

Small Industries Development

Organisation (SIDO) deals with

hosiery, processing of food products,

beverages, food and fruit

preservation, agricultural

implements , pesticide formulations

etc.,

Agricultural and Processed Food Products

Development Authority (APEDA) helps in

setting up of fruit and vegetable processing

units and export of raw fruits and vegetables.

They prepare project reports and help in

setting of these units in the country and

export of the processed products.

Assessment of the agricultural resource

potential in the area.

Quantification of the output.

Present utilisation of resources by the

existing units.

Surplus produce left out.

Preserving requirements of the resources.

Selection of certain items of

considerable importance.

Growth centre approach for actual

location of the units.

Preparation of industrial profiles and

feasibility studies.

Identification of entrepreneurs.

Selecting appropriate technology and

imparting suitable training.

Arranging finance.

Marketing assistance.

No-availability of raw material

throughout the year.

Under-utlilisation of the capacity of the

unit.

Changing cropping patterns make the

units defunct.

Failure of monsoon may hit the supply

of raw material.

Units may have to diversify to utilise

different varieties of the same

product. Proper guidance of entrepreneurs is not available.

Certain agro-based units are capital intensive

and financing by institutions is a difficulty.

Promotional activities by Govt. departments is

inadequate.

Uncertainty about market demand.

Absence of information about the market.

Absence of proper integration among various

agencies of development in the district.

Coordination between Agro-industries

Corporations and Research institutions.

Study of existing units before setting up of

new units.

Growth centre approach to locate units.

Identification of entrepreneurs and imparting

training.

Establishment of a cell of technical

officers for technical guidance.

Proper institutional set up to achieve

integration among various agencies of

development in the district.