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Business Opportunities in Agro-Based Industry

Which factors make agro-based industries attractive?

1. They are easy to establish.

2. They provide income in rural areas with less investment.

3. They facilitate the effective utilization of raw materials.

4. They help in the transmission of industrial culture in rural areas.

5. They have tremendous export potential.

6. They ensure the participation of the people including farmers in the development process.

7. Rising demand, improvements in transportation, logistics, communication, technological innovations, adequate legal arrangements, etc. also offer scope for its growth.

How will agro-based industries make an impact?

1. Indian agriculture is characterized by average growth, stagnation of yields and instability of output.

2. Processing operations of agro based industries on agricultural raw materials produce marketable and usable products.

3. By diversifying and commercializing agriculture, it enhances the income of farmers and creates food surplus.

4. It is also an important part of the manufacturing sector in developing countries and the means for building industrial capacities.

What is the potential of agro-based industries? 

1. The food processing sector in India has the potential to attract investments and to generate employment.

2. Development of agro-based industries will improve the social and physical infrastructure of India.

3. The development of the agro-industry can stabilize agriculture more lucrative.

Why are FPOs beneficial?

1. Farmers Producer Organizations (FPOs) are a group of farmers’ organizations that promote and strengthen member-based institutions of farmers.

2. These were formed to overcome the problem of unorganized small farmers who lack access to resources and services.

3. FPOs work as an interface between small farmers and the external world by providing forward and backward linkages.

4. They give the farmers required voice, market access, information, bargaining power, economy of scale and better services.

Where to focus?

Stubble Burning

1. Burning the paddy straw in North Indian states has resulted in the problem of pollution.

2. Farmers switch to burning of paddy straw to save their time for next crop (wheat) plantation.

3. Paddy straw can be used for preparing compost.

4. Other uses of paddy straw include the fuel pallets for thermal power plants and other biomass processing, cardboard making, etc.

5. Stubble burning can be avoided through proper policy, institution and technology.

Business Venture in Soyabean

1. India can meet the import demand of soybean meal in East and South Asian countries.

2. Abundance of soybean, a cheap protein, could be means to fight malnutrition and securing nutritional security.

3. Processing plant of modern technology needs to be established for this.

4. Government of India needs to take appropriate actions in this direction.

Poppy Seed business 

1. Government of India should allow poppy cultivation on large scale after taking all necessary balance and checks in system of production and regulation of poppy.

2. This would help farmers in getting enhanced income from poppy farming.

A well-planned strategy for an agro-business based manufacturing operation is needed. This can then prove to be a profitable venture.