By Prof. Dr. P. K. Jena,

India has achieved significant agricultural, industrial and socio-economic developments since Independence. But, considering the resources and opportunities available, the developments could have been much more to achieve the status of a developed nation.

India is rich in natural resources including minerals, soil, water, marine, forest and human resources. Though substantial developments had taken place in the areas of mineral based industries and agricultural production, yet about one third of its population are living below poverty line and similar numbers of people are practically uneducated. Better economic conditions of the people could have improved the literacy, public health as well as other social habits.

The resources are abundant for further development of agriculture, fisheries, mineral based industries etc., and in addition there is a great scope to develop various types of Agro Industries thereby providing self employment opportunities to nearly most of the rural people in the country. It is reported that, while about 14% of the total work force in developed countries are engaged in Agro Industrial Sectors, in India only about 3% of the work force find employment in this vital sector.

The agro processing is defined as the techno economic processes applied for conservation and processing of agricultural produce to make value added products such as processed food, fibers, fuel, furniture, building materials etc. During 1960s, through five year plans, India has started the ‘Green Revolution’ in different parts of the country particularly in Punjab, Haryana, and Western U.P. As a result, agricultural output per hectare increased significantly particularly due to large number of canals and better irrigation facilities, use of new and improved seed varieties, fertilizers and pesticides.

India is the largest producer of wheat which is about 72 Million Tons (MT) which is 15% of global wheat production, largest producer of pulses(15 MT), largest producer of milk (90 MT), largest producer of tea (21% global tea production), and second largest producer of rice (92 MT, 22% global rice production), second largest producer of fruits (50 MT) and vegetables (10 MT) and also second largest producer of sugarcane (296 MT, 21% global sugarcane production).

In spite of all these, about one-third of our population are living below poverty label and about 25 to 30 percent of people are unemployed. These are mainly due to the facts that, the fruits of economic growth have not been properly distributed among different sections of Indian society. It is widely realized that, poverty alleviation providing employment and effecting economic development in rural areas, for most of the farmers, Agro Industries are essential.

Problems in development of Agro Industries

The agro based industries in India are facing several problems like want of proper infrastructure, skilled personnel, appropriate technology, financial assistance, markets, proper incentives etc. Most of the educated youths of India because of financial problems, and complicated official procedures do not dare to start any agro industries. Further, they are completely unaware of the market situation to sell their products in time in nearby areas and very often need the assistance of government and other private agencies. The smaller agro industries also face stiff competition for marketing their products particularly when bigger industries come into picture. The infrastructural facilities including land, water, electricity, proper equipments, suitable transportation system are not adequate.

Steps for Promoting Agro Industries

It has been reported that, in many cases like rice, wheat, sugarcane, milk, the production in the country in recent years, has been quite satisfactory. However, on account of poor post harvest management, the losses in agricultural produce in India is very high. It has been estimated that, the post production losses in food commodities are to the tune of 75 to 100 thousands crores of rupees per annum. These losses are caused during storage, handling and transportation etc. The extent of losses can be brought down to less than 50% of the existing level by adopting agro processing technology and proper transfer system. The rest 50% can be also saved by developing infrastructural facilities like proper grain storage structures, cold stores and processing systems.

In order to facilitate the development of agro industries, conducive atmosphere with respect to financial assistance, supply of proper raw materials, development of infrastructures, appropriate technology, skilled manpower, prompt transportation and marketing of finished goods are essential. In village or panchayat level, the unemployed persons should be identified and trained to be employed in the proposed agro industries which are to be developed in the area. The government should take active part in developing a transparent mechanism to facilitate the development of these industries keeping in view the problems of the agro industries.

For each specific agro industry unit, “Package Deal” at a single door delivery by the government may go a long way in promoting these industries in a successful manner. The ‘Package Deal’ should comprise necessary permission for land, infrastructural facilities, finance, water, electricity, provisions for timely, supply of raw materials and appropriate technology for production of finished goods and their prompt marketing. This would help considerably the small entrepreneurs to be encouraged to start the industries in a minimum period. Besides providing market facilities to these industries both in India and abroad, the government should provide the most recent technology in respective areas and extend quality control facilities.

It is unfortunate that, the Agro Industries of India unlike other developed and developing countries have not got much boost. As a result, farmers’ family mostly depend only on one agricultural product at the end of the year. Due to decrease in soil fertility, wastage of agro products due to lack of storing and market facilities, the farmers suffer heavily in poverty. In addition, the poor performance of the few agro Industries bring retardation in employment opportunity and socio economic developments of the rural mass in most parts of the country.

It is high time to give top priority in the following areas not only to make the country a leading and advanced Agro industries promoter in the world but also a leading exporter of quality products of Agro Industries, while bringing prosperous living to the farmers families in rural India.

 Development of proper infrastructure specially roads, transport, power and water.
 Greater investment and application of better technology for increasing agricultural production, adoption of scientific post harvest practices, proper preservation, and developing agro industries for production of quality goods.
 Promotion of small entrepreneurs and development of skilled man power and
 Introduction of “package deal” system including land, provision of infrastructure, water, electricity, finance, raw materials and market at a single window to cut down the gestation period of the agro industries.

The Government of India as well as the state governments should give high priority for improving the socio economic conditions of farmers in rural India by developing various infrastructures including facilities like roads and better transport system, development of water bodies in barren and low lying areas with rain water harvesting, developing solar and wind energy for lift irrigation, as well as for cooking and lighting the houses, constructing cold storages and above all setting up agro industries producing value added products based on local agricultural produce. In this way, the farmers and their family members will not only get enough employment opportunities but also lead healthy and prosperous lives.

Prof Jena is former director general, Council of Scientific & Industrial Research.