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Constraints facing Agroindustry

Inadequate supply of raw materials from agriculture.

Relation between Agricultural


Production & Agricultural industrial o/p
FOODINDX = a+b1*AGRPROX
+b2*GDPFC +e
FOODINDX = c+d1*AGRPROX
+d2*NNPCAP +f

Where
Foodindx = index of production of
food
products industry
Agrprox = index of agricultural
production
Gdpfc
= GDP at factor costs in
constant
prices
Nnpcap
= Net national product per
capita
in constant prices.

Agroindustry Models in India


1. Cooperative Organization Model : Amul

Organized in 3 tier structure

Primary Co-operative at village level


Buy the produce from the farmers.
Co-operative Union at district level
Transport and processes the product.
Co-operative Federation at state level
Markets the final product and handles strategic planning.

Governed by a rotating board of farmers elected


representatives & run by a team of professional
managers.
Benefitted by committed suppliers because of low
intermediate i/p cost.
Benefits the members with employment & income from
primary production.
Problem faced:- Need for qualified committed
leadership