RESOURCE

BASED

Agro Forest A.H. and Mineral Marine

Miscellaneous
based based Poultry based based based
 Agro-based

Agro-produce Agro-produce Agro-input

Agro-service
Processing Manufacturing Manufacturing
units units units units
 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,
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.