Module - VIII

Agriculture & Business

Module overview
Role of Agriculture in Economic development Trends in agricultural production Agro based industries Dependence of Business on Agriculture Corporate India Initiatives

Importance of Agriculture
In heavily populated countries large nos. of people depend on their agriculture for their livelihood It also contributes a substantial part of national income in these countries The experience shows that without agricultural development industries cannot deliver the goods in large overpopulated countries

Role of Agriculture in Economic Development

Share in national income Largest employment providing sector Provision of food surplus to the expanding population Contribution to capital formation Providing raw material to industries

Role of Agriculture in Economic Development

Market for industrial products Importance in international trade Importance of agricultural products in consumption baskets

The Agro Based Industries

Jute industry Textile industry Food Processing industry Sugar industry Vegetable oil industry Tea & coffee Paper & Newsprint industry

Jute industry
Jute industry is one of the oldest in the country Area under jute was 1.4 million acres in 1950-51 output of raw jute in that yrs. stood at 3.3 million bales Globally , India is the largest producer & second largest exporter of jute Production of value added products as large area for non- traditional jute items , jute decorative & other jute specialities remain to be explored App. Steps will also have to be taken to increase the per hectare productivity of jute crop

Textile industry
It is the largest industry of modern India It adds abt. 14 % to the ireandustrial production & abt 4 % to GDP It provides 35 million persons The contribution of this industry to Indias gross export is abt. 16.6 % Manufacturers are able to upgrade their technology & meet the quality std. of textile exporting countries like China , Taiwan , South Korea etc. at relatively lower prices

Food processing industry

India is the third largest producer of raw food products in the world after China & USA Govt. of India set up the Food Processing Industries in july 1988 The Ministry acts as a catalyst for bringing in greater investment in this sector , encourage exports & create environment for healthy growth of the food processing industry

Types of food processing industry

Foodgrain milling industry Consumer food industries Fruit & vegetable processing industries

Sugar industry
The production of sugar is directly linked to production of sugarcane Major sugarcane growing states of the country are Maharashtra , Andhra Pradesh ,Karnataka ,Tamil Nadu , UP & Bihar The pricing of sugarcane is fixed by statutory min. price (SMP) done by Central govt. on the basis of cost of production The sugar industry was delicensed in Sep 1998

Vegetable oil industry

India is the 3rd largest edible oils economy in the world after USA & China The production of oilseeds in 2006-07 stood at 23.9 million tonnes It cultivates nine major oilseeds groundnut , mustard , soyabean , sunflower , safflower sesame & two non- edible oilseeds namely castor , linseed

Vegetable oil industry

It is administered through the following control / regulation orders (i) Vegetable Oils Products (Regulation) order , 1998 (ii) Edible oils packaging (Regulation) order , 1998 (iii) Solvent Extracted

Tea & Coffee

Provides direct employment to more than 1 million workers It is the major beverage consumed contributes 47 % Total area under tea crop was 6.0 lakh hectare in 2007-08 Indian coffee has created a niche for itself in the international market Total area under coffee in 2003-04 was 3.0 lakh hectares & output was 3 lakh tonnes

Paper Newsprint Industry

It has made steady progress & witnessed moderate production growth rate The industry in India is ranked among the top 15 global paper industries Its turnover is abt. Rs. 16,000 cr. , employing nearly 3 lacs people directly & 10 lacs people indirectly Major constraints are inadequate availability of good quality raw material & obsolete technology

Dependence of New Agricultural Strategy on business

Fertilizer Industry Pesticides Agricultural Machinery Village craftsmen Tiny & small scale industries Organised industries

Dependence of New Agricultural Strategy

Fertilizer industry Availability of fertilizer in the economy rose from mere 155 thousand tonnes in 1955- 56 to 1,688 thousnad tonnes in 1970-71 Five states Punjab , Haryana , Uttar Pradesh Andhra Pradesh & Tamil Nadu accounting for more than half of the total consumption The govt. has tried to push up the use of fertilizers among small & marginal farmers by making them available at highly subsidised prices

Dependence of New Agricultural Strategy

Pesticides India is one of the most dynamic generic pesticides manufacturer in the world Indian exports of agrochemical have shown an impressive over the last 5 yrs.the key exports destination are USA , UK , France , Belgium , Spain etc. IPM is an eco friendly approach aimed at min. use of chemical pesticides by employing alternative methods for pest control

Dependence of New Agricultural Strategy

Agricultural Machinery Agricultural machinery include use of tractors , power tillers , irrigation pumpsets & other power operated machines Village craftsmen Village artisans are the main source of supply , repair & maintenance of farm equipment . More than 80 % of hand tools & traditional implement are made by village artisans

Dependence of New Agricultural Strategy

Tiny & small scale industries These are reserved for manufacture by small scale units . It includes soil working tools (ploughs , disc plough & harrow ) , seeding & planting , khurpi, sprayers & dusters , diesel engines , irrigation pumps etc.

Dependence of New Agricultural Strategy

Organised industries Agricultural machinery manufactured by organised sector It includes diesel engines , electric motors , land development machinery , post harvest & processing machinery etc.

Indian Agricultural Policy

Technological measures Land reforms Cooperation & consolidation of holdings Institutional credit Procurement & support prices Input subsidies to agriculture Food seccurity system Rural employment prog.