RESOURCE BASED

Agro based

Forest based

A.H. and Poultry based

Mineral based

Marine based

Miscellaneous

Agro-based

Agro-produce Processing units

Agro-produce Agro-input Agro-service Manufacturing Manufacturing units units units

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Those industries which have either direct or indirect link with agriculture.

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Industries which are based on agricultural produce and industries which support agriculture come under agro-based industries.

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Agro-produce processing units: These industrial units simply process the agriculture produce .

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They do not manufacture any new product. The bulkiness of the produce is reduced.

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They simply process the raw material so that it can be preserved or transported .

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

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These units manufacture entirely new products based on agricultural produce as main raw material .

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The finished goods will be entirely different when compared to its original raw material.

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Sugar factories, textile mills, paper mills etc.

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These industrial units produce goods either for mechanisation of agriculture or for increasing productivity of agriculture.

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These units are directly linked with agriculture , as they support agriculture at various stages.

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Eg., Industries manufacturing fertilizers, pesticides, all types of agril. implements, pump sets etc.,

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These are the workshops and service centers which are engaged in repairing and servicing of agricultural implements and machinery.

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Eg : Servicing centers of pump sets, tractors, diesel engines,

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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.

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Agro-industries provide employment opportunities to rural population.

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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.

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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 agroindustries 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 interrelated. Improvement in the productivity of agriculture is one of the most important means of promoting industrialisation.

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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. 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

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Small Industries Development Organisation (SIDO) deals with hosiery, processing of food products, beverages, food and fruit preservation, agricultural implements , pesticide formulations etc.,

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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.

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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.

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No-availability of raw material throughout the year.

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Under-utlilisation of the capacity of the unit. Changing cropping patterns make the units defunct.

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Failure of monsoon may hit the supply of raw material.

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Units may have to diversify to utilise different varieties of the same product. Proper guidance of entrepreneurs is not available.

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Certain agro-based units are capital intensive and financing by institutions is a difficulty.

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Promotional activities by Govt. departments is inadequate.

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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.

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Establishment of a cell of technical officers for technical guidance.

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Proper institutional set up to achieve integration among various agencies of development in the district.