Agro-Based Industries in India

Agriculture is providing the major source of livelihood and income in India. According to recent research, around 58% of people earn their income using agriculture or agro based industries in India. The question arises – what are the agro-based industries. If simply expanded the agro-based industries, indicate the Agriculture based industries in India. Agriculture is a vast sector. It includes the development of many commodities such as food, textiles, fibers, etc. The industries which buy and use the agricultural products directly as their raw materials are known as the agro-based industries. Some examples of agro based in India are – the sugar industry, the textile industry, jute industries, etc. 

Agriculture and agro-based industries are highly dependent on each other. They could not survive without each other. Agriculture provides raw materials to the industries, and the agro based companies in India provide money and employment to the farm sector. 

Agro based companies in India act as the connecting link between the farm and non-farm sectors of the country. There may be two types of agriculture based industries in India – the food processing Industry and the non-food processing industry. Food processing industries mainly involve the processing of raw edibles into packaged and preserved foods. However, the non-food processing industries mainly include textiles, fibers, etc.

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Importance of Agro-Based Industries 

A large number of people in India depend on the agriculture sector. They produce the products and sell them. However, if there is no buyer, then they won’t survive. Moreover, the agro-based industries help in producing food products for general customers. They make value-added products for the general public. They act as the connecting link between farmers and consumers. The following points depict the importance of agro based industries in India: -

• It helps in generating employment opportunities, especially in rural areas. The scope of advanced industries is lower in the rural areas in India. Moreover, most people prefer agriculture in rural areas due to the availability of land and labor.

• The investment in agro-based industries is lower than in other industries. If the items are graded and sorted perfectly, then the returns can significantly increase. 

• Some of the agricultural products cannot be used in raw forms. For example, the jute fibers or cotton fibers. They require proper processing before the common people can use them. Also, several other main crops such as paddy and wheat cannot be eaten raw. 

• If the agro-based industries take the raw materials directly from the farmers, then their income increases. This is because there is no involvement of a middleman. Therefore, the farmers get a fair share of the price for their products. It improves their standard of living. 

• Setting up an agro-based industry is very useful in the areas where the raw materials are available in bulk. For example, if an area produces a huge amount of sugarcane, then it is profitable to have a sugar-based industry in that area. This reduces the cost of transportation to other regions or states. Moreover, the returns improve greatly. There is no requirement for a middleman.

• The agriculture-based industries in India help in balancing the growth and expansion of both agriculture and industry. 

• The list of agro-based industries in India is huge. Without these industries, the agriculture sector may collapse in some places. 

• The textile industry in India ranks on top among the list of major agro-based industries in India. The sugar industry is the second largest agro-based industry in India and follows the textile industry. These industries employ a huge number of people. 

Major Agro-Based Industries in India

There are several agro-based industries in India. The industries can be broadly divided into a few major groups. The list of major agro based industries in India is given below: -

1. The Textile Industry 

It ranks as the largest agro-based industry in India. Also, it has a significant contribution to the industrial sector of India. It contributes about 14 percent to the Industrial sector of India. It employs about 30 million people in India. It is the second-largest source of income next to agriculture. Moreover, it offers good support to the GDP by earning a good amount of foreign exchange. The textile industry contributes about 4 percent to the total GDP of India.

The raw materials used can be plant-based or animal-based. Jute, cotton, and other fiber crops such as coconut (coir) give fiber to produce eco-friendly bags. India produces a huge amount of Jute and is the largest producer of Jute. 

Animal-based textiles such as silk, mohair, pashmina, wool also form a major part of the textile industry. It offers jobs to a significant percentage of the population. 

2. Sugar Industry

Next to the Textile industry comes the sugar industry. Sugarcane stands as one of the highly produced cash crops in India. Therefore, the importance of the sugar industry is undeniable in India. You might be astonished to know that the Sugar industry is the second largest agro based industry in India among the agricultural industries. India stands at the top position in the production of Jaggery (Gur) and Khandsari. Some of India's major producers of sugarcane are Uttar Pradesh, Maharashtra, Madhya Pradesh, and Andhra Pradesh. 

The sucrose content of sugarcane grown in Southern and western states such as Maharashtra is very high. Therefore, the sugar industry is one of the major industries in the list of agro based industries in Maharashtra. Moreover, the cooler climate helps increase the shelf life, which gives a longer crushing time. 

3. Food Processing Industry

We all consume food in one way or the other. But most of our edibles are present in processed forms such as cereals, pulses, preserved food, and many more. Here, the agro-based industries play a major role. Maharashtra is one of the famous States for its food and beverages. Therefore, the food industry in Maharashtra is one of the most crucial industries among the list of agro based industries in Maharashtra.

The northwestern states of India are also famous for the expansion of food processing industries in their state. There are several reasons for the expansion and localization of the agro based food processing industry in northwest India. 

• The cooler climate in these regions helps in longer storage.

• Higher productivity of raw materials makes the agro based food processing industry in North-West India economically feasible and more profitable.

• This region is near New Delhi and the NCR region, which provides a suitable market for selling processed products.

4. Livestock Industry 

The management of livestock such as cattle, fishes, or poultry is an age-old practice in India. These practices also come under the agriculture sector and are mostly integrated with the cultivation of crops. 

The agro based companies in India can earn a huge profit with the help of livestock. It is mainly due to the value-addition to the raw materials. For example, the dairy industry in India. It is one of the best examples of agro based industries in India. Milk is a raw product. Processing it in the agro based industries will help to increase the price of the product. 

Some other examples of agro based industries in India dependent on livestock are – fish industry, poultry farming, meat industry, etc. They give better returns than the other industries. Therefore, they are very useful in maintaining the economy of a place.

Agriculture is a very important aspect of our country and helps in strengthening our economy. The agro-based countries are a good source of employment for several people. Moreover, they help in providing income to the farmers. The agro based companies in India are the prime foundation of the development of our country. Moreover, they contribute significantly to our GDP. Therefore, these industries are very important.