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Journal of Regional Development and Planning, Vol. 3, No.2, 2014 37
INPUT-OUTPUT ANALYSIS FOR RURAL INDUSTRIAL DEVELOPMENT OF
PATNA REGION
Rashmi Kumari1 and V. Devadas
2 Rural industries have a major aspect in Indian economy due to scarcity of capital; increasing
unemployment; regional imbalances and disparities; inequalities in the distribution of income and
wealth; and un-utilization and/or under-utilization of rural resources. This study analyses the
potential of rural industrialization and their impact using the system approach, based on resource
availability, in the untapped areas of Patna region. This study aims at analyzing the present
scenario and forecasting the production and demand in the future using input-output model.
Based on these analyses, the location and type of rural industries have been identified on the map
of the Patna region. This study proposes planning model to ensure sustainable development in the
system by imparting rural industrialization in the study area.
INTRODUCTION
Introduction
Patna region, blessed with rich soil, adequate rainfall, propitious hydrological profile, water
resources, and composite climatic conditions, has the high agricultural production potential.
However, its agricultural productivity and processing is very low, resulting in higher degrees of
poverty, unemployment, and absolute deprivation in the region. In fact, the Patna region, India,
can be called as the spirit of the great Indo-Gangetic Plains, one of the most fertile plains of the
world. It is inexplicable that the Patna region has been a wealthy region inhabited by the deprived
people. Hence, the untapped resource reservoir of the region needed to be harnessed judiciously to
liberate the region from its socioeconomic and ecological caliginosity, and trigger the process of
strengthening of the human resource further. It has been widely acknowledged that agriculture
sector is the precursor of the economic growth process. Hence, It is needed to bring another farm
revolution and agro-industrial development for the overall development of the Patna region.
Rural industrialization is an effective mean to achieve balanced development between the rural
and the urban system of any country. Industrialization is the means to advance the sustainable
economic development by creating productive employment and generating value added income,
and hence contributes to the poverty reduction more significantly. Channel of development in the
rural system takes place due to rural industrialization. An increase in the agricultural productivity
releases raw material for manufacturing sector and thus contributes towards growth of the
manufacturing sector. A higher income raises the demand for manufacturing products.
Furthermore, it accelerates the savings increase which is used in financing the industries.
Sustained industrial growth has been extensively known as an engine of economic and social
development. The development of the rural industry can help stabilize and make agriculture more
profitable and create employment opportunities in different stages of production and marketing.
Rural Industries can be categorized as resource based industries, demand based industries & need
based industries. Further rural Industries are can also be categorized on the basis of investment
1 PhD Scholar, Department of Architecture and Planning, IIT Roorkee, Roorkee, Uttarakhand 247667, India.
Email: [email protected] 2 Professor, Department of Architecture and Planning, IIT Roorkee, Uttarakhand 247667, India. Email:
38 JOURNAL OF REGIONAL DEVELOPMENT AND PLANNING
scale in the following types: (a) Run by rural households characterized by very little capital
investment, less mechanisation and high manual labour; products include Ghee, Papad, Pickles,
Bangles etc. (b) Small scale industry which make use of medium investment and semi-automation;
products include flour mills, rice mills, edible oil etc. (c) Large scale industry which requires large
investment and a high level of automation; products include jute, sugar, cotton mills etc.
One of the major issues of the agricultural economy is the huge wastage of fruits and vegetables
due to lack of processing and inadequate storage capacity. Food processing industry requires
addressing the key issues of wastage and value addition for attracting new investment in the
sector. Global experiences indicate that agricultural development in the region can be given a big
boost by developing agro-based and food processing industries in the rural system itself. The role
of agriculture in economic development is a widely discussed issue since long time (Sharma,
2007). The need of positive linkages between agriculture and industrialization has been
emphasised in the literatures (Runge, 2006). The agro-industry has a direct link to both agriculture
and industry, thereby plays major role in connecting the two sectors. The agro-industry can be
referred as the part of manufacturing sector that processes raw materials and intermediate products
derived from the agricultural and allied sectors. Along with the agriculture, the allied industry
includes horticulture and its allied sectors (fruits, vegetables, flowers, plantation crops, spices,
aromatic and medicinal plants); fishery; animal husbandry and livestock; and sericulture. The
agro-industries procure products generated from agriculture and allied sectors, and process them
into packed food, beverages, fruit juice, dairy products, meat, textile and clothing, leather, wood
and rubber products etc.
Agriculture and allied sectors is the mainstay of the Indian economy as they contribute nearly 22
per cent of Gross Domestic Product (GDP) of India. About 65-70 per cent of the population is
dependent on agriculture for their livelihood. They are the important source of raw material; as
well as generate demand for many industrial products, such as fertilizers, pesticides, agricultural
implements etc. Thus, the policy initiatives aiming at maximization of agricultural output in the
region need to be emphasized on checking decline in net and gross sown area on one hand and
enhanced use of yield augmenting inputs like irrigation, fertilizer and HYV seeds with more
pronounced support from institutional finance on the other. Efficient and balanced use of modern
technologies becomes all the more imperative to sustain the development process. Consolidation
of land holdings, providing legal status to tenancy cultivation, opening up institutional finance to
lease cultivators and promotion/propagation of technologies suitable in local conditions with
adequate R&D support would further accelerate the growth process.
The Patna region, possessed with a long hiatus in socioeconomic history till the independence,
today displays all degree of unevenness in inter-regional and intra-regional economic development
pattern. The Patna region with a geographical area of 16.96 thousand square km is divided by river
‘Sone’ into two unequal parts and lies in the south Bihar alluvial plains of India, Agro-Climatic
Zone III (based on soil characteristics, rainfall, temperature and terrain) of Bihar. River Ganges
creates a boundary on the North side of the region, which flows from the West to the East. The
total population of the study area is 14,448,392 (Census of India, 2001) with a sex ratio of 900
females per 1000 males. The total literacy rate varies from 53.2 per cent to 62.9 per cent in
different districts of Patna region. The percentage of the working population employed in
Journal of Regional Development and Planning, Vol. 3, No.2, 2014 39
agricultural operations in the region is estimated to be 85 per cent, which is much higher than the
national average.
About 42 per cent of GDP of the state (2004-05) has been from the accrued agriculture sector
(including forestry and fishing). The growth rate of Bihar’s GSDP was 11.03 per cent during
2004-09, which made it the second fastest growing state in India, just behind Gujarat state (growth
rate-11.05 per cent). This growth rate is needed to be maintained or increased for achieving the
development goals of the region. Two-third of the total land area of Patna region is used for
agricultural purpose, and is one of the leading producers of agro-products, and still, the region is
struggling with the problems of underdevelopment, unemployment, lack of infrastructure in terms
of quality and quantity and absence of plausible government policies. The major crops produced in
the region are paddy, wheat, pulses, potato, sugarcane and oil seeds. The Fruits like, Mango,
Guava, & Lichi, and vegetable production are good in terms of quantity and quality. Sudha, a
dairy cooperative, lies in the region, and one of the most successful enterprises of its kind in India.
The region has abundance of water-bodies, thus, it has very high potential for fisheries and
aquaculture which has not been realized completely. The livestock is also a major resource in this
region. The lack of processing and inadequate storage of perishable agricultural resources results
into huge wastages. The high concentration of population, largely dependent on agriculture along
with low agro-industrial development, is the main reason for the high poverty ratio in the region.
There is a great pressure on other urban centres of the nation due to migration of human resource
from this region for better employment opportunities as there is a negligible industrial
development within the region. The available resources in the region can be judiciously utilized
for production purposes within the region, which will not only save transportation cost,
preservation cost and time, but also generate employment opportunities and income earning
opportunities in the system (Please see Figure 1, Figure 2 and Figure 3).
There is need of agro-industrial development of the region to minimizing the huge wastage of
agricultural products and employment generation within the region which will not only ensure
proper utilization of the region’s resources but also help in minimizing the pressure on other urban
centres, which lie outside the region, have their own acute problems of traffic congestion, in
migration, housing shortage, slum formation, water scarcity etc. The agricultural productivity in
Bihar was much better among all the states in India, in the fifties, which is now much below the
national average. In the last two years, there has been an appreciable growth due to improved
seeds, technologies and other inputs, but the state has to go miles to achieve regional balance in
terms of agriculture and agro-based industrial development. This would require infrastructure,
technology and other inputs. R&D has a vital role to play.
METHODOLOGY
The study area of Patna region has been selected for the present research. This region is the
administrative geographic unit of Bihar, India. Few homogeneous characteristics were taken into
consideration, while delineation of the study area. The region is least prone to flood hazard, has
same soil type: Gangetic alluvial plane, agro-climatic conditions are same, comes in same agro-
climatic zone (zone-iii). Similar kind of agricultural production, similar language, socioeconomic
condition and demographic condition persist in the region.
40 JOURNAL OF REGIONAL DEVELOPMENT AND PLANNING
Data have been collected from literatures, case studies, observations and by conducting a primary
survey at the grassroots level. Both secondary and primary data have been analyzed to obtain the
inferences and do the forecast. Pre-testing the Schedule on site after Preparing the Schedule was
done. Consequently, revision of the schedule, then identification of areas and samples of survey
has been identified. After conducting the survey, data vetting and data feeding in the Ms excel
sheet has been done for tabulation and generating diagrams. Statistical techniques have been
employed to analyze the data and draw the findings. Input-output analysis, population projection
techniques, and system approach have been applied. Finally, recommendations have been made
based on these findings.
DATA, TOOLS & TECHNIQUES
Data required for the research are collected from secondary and primary sources. The random
sample technique was employed for conducting the primary surveys and opinion polls at the
grassroots level. Secondary sources of data including government documents are also considered.
The survey schedule, questionnaire, and the random sampling technique were employed for
conducting the survey at grassroots level. Data vetting, data feeding, graph generation for
analyzing the data has been done by using MS Excel software; map digitization was done by using
AutoCAD and the proposed rural industrial locations were identified using the same software.
FORECASTING
Projections have been done in order to arrive at the real situation in the future, i.e., optimal and
feasible solution for 2031 AD. Forecasting the demand & supply of resources & products
respectively and finding the gaps for future have been done for industrial development in the study
area.
Population Projection has been done to decide the demand for future. According to the future
demand, planning for the rural industrial location has been done. The methods employed for
population projection are: Arithmetic method, Geometric Method, Exponential method,
Population Projection by Curve fitting method.
The average of the three populations projected using arithmetic method; geometric method; and
exponential method has been calculated, which is 27 million, has been considered for the present
study.
APPLICATION OF THEORIES/ MODELS/ TECHNIQUES
To understand the real life situation different theories were employed and a model is also
generated. They are, trend analysis, growth pole theory, location theory and Input-Output model.
System approach has been considered while analyzing the rural system, and thus, the region is
considered as a system. The subsystems of the system which include physical subsystem; social
subsystem; economic subsystem; ecological subsystem; environmental subsystem; Infrastructure
subsystem and institutional subsystem, are considered. These subsystems are interconnected and
interdependent to each other and they function as a whole.
Journal of Regional Development and Planning, Vol. 3, No.2, 2014 41
Table 1 Input-Output table: Wheat & Paddy (In x 1000,000 Rs.) (Base year: 2001)
Inputs to
Economic Activity
Agriculture Manufacturing
Tra
nspo
rt
Ser
vice
s
Ene
rgy
Lab
our
Tax
es
Exp
ort
Fin
al D
eman
d
Tot
al O
utpu
t
Whe
at
Ric
e/ p
addy
Straw
/Hus
k/
Bra
n
Flo
ur
Bea
ten
Ric
e
Pac
ked
food
Sna
cks
Fod
der
xi1 xi2 xi3 xi4 xi5 xi6 xi7 xi8 xi9 xi10 xi11 xi12 xi13 xi14 Yi Xi
Agr
icul
ture
Whe
at
x1j
683.
2
0.0
100.
5
1057
1.9
0.0
0.0
1.1
0.1
106.
8
0.1
0.6
0.6
0.1
11.9
0.0
1147
6.9
Ric
e/pa
ddy
x2j 0.0
1310
.3
161.
4
14.5
115.
6
115.
6
1.0
0.2
84.9
0.1
0.8
0.8
0.1
30.0
1008
0.0
1191
5.2
Straw
/Hu
sk/B
ran
x3j 0.2
0.2
0.0
0.0
0.0
0.0
0.0
246.
5
0.9
0.0
1.3
0.1
0.0
20.2
2.5
271.
9
Man
ufac
turing
Flo
ur
x4j 0.0
0.0
0.0
0.0
0.0
132.
9
575.
0
0.0
50.7
1.2
0.0
11.5
1.2
187.
0
1932
0.0
2027
9.4
Bea
ten
Ric
e
x5j 0.0
0.0
0.0
0.0
0.0
75.4
75.4
0.6
0.7
0.3
0.0
3.6
0.6
3.5
186.
6
346.
8
Pac
ked
food
x6j 0.0
0.0
0.0
0.0
0.0
0.0
0.0
1.5
1.5
1.5
0.0
1.5
1.5
423.
7
1501
.7
1932
.9
Sna
cks
x7j 0.0
0.0
0.0
0.0
0.0
0.0
0.0
1.0
5.3
4.0
0.0
2.0
10.0
1020
.2
4241
.1
5283
.6
Fod
der
x8j 0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
7.3
0.0
0.0
0.0
0.0
4.7
1960
.0
1972
.0
Tra
nspo
rt
x9j 0.5
0.5
0.0
0.5
0.1
0.1
0.1
0.1
5.0
0.5
0.1
0.0
5.0
5.0
261.
9
279.
2
serv
ices
x10j 0.5
0.5
0.0
0.5
0.1
0.1
0.1
0.1
0.5
0.1
0.1
0.0
0.5
0.1
9.9
12.8
Ene
rgy
x11j 0.5
0.5
0.0
0.5
0.1
0.1
0.1
0.1
0.1
0.0
0.1
0.0
0.1
0.1
5.9
7.9
Lab
our
x12j 5.0
5.0
0.0
0.5
0.1
0.1
0.1
0.1
0.1
0.1
0.1
0.5
0.0
0.1
14.3
25.7
Tax
es
x13j 0.5
0.5
0.0
0.5
0.1
0.1
0.1
0.1
0.5
0.0
0.1
0.0
0.0
0.1
21.7
24.0
Impo
rt
x14j 0.5
0.5
0.0
0.5
0.1
0.1
0.1
0.1
15.0
5.0
5.0
5.0
5.0
0.0
663.
4
700.
1
Tot
al
690.
9
1318
.0
262.
1
1058
9.3
115.
9
324.
3
652.
8
250.
2
279.
2
12.8
7.9
25.7
24.0
1706
.4
3826
8.9
5452
8.3
Source: Planning for Rural Industrial Development of Patna Region, 2011, A Dissertation Report, Rashmi Kumari, IIT Roorkee.
42 JOURNAL OF REGIONAL DEVELOPMENT AND PLANNING
Table 2 Matrix of Input-Output coefficients: Wheat & Paddy (Base year: 2001)
Inputs to
Economic Activity
Agriculture Manufacturing
Tra
nsp
ort
Ser
vic
es
Ener
gy
Lab
our
Tax
es
Export
Whea
t
Ric
e/
pad
dy
Str
aw/H
us
k/
Bra
n
Flo
ur
Bea
ten
Ric
e
Pac
ked
fo
od
Sn
acks
Fo
dder
αi1 αi2 αi3 αi4 αi5 αi6 αi7 αi8 αi9 αi10 αi11 αi12 αi13 αi14
Agri
cult
ure
Whea
t α1j
595.3
0.0
3695.9
5213.1
0.0
0.0
2.1
0.5
3824.9
84.4
758.9
233.2
25.0
170.2
Ric
e/pad
dy
α2j
0.0
1099.7
5936.3
7.1
3333.3
598.0
1.9
0.9
3040.1
78.2
1011.9
311.0
33.3
428.0
Str
aw/
Husk
/ B
ran α3j
0.2
0.2
0.0
0.0
0.0
0.1
0.0
1250.0
32.5
2.0
1581.1
48.6
5.2
288.2
Man
ufa
ctu
ring
Flo
ur
α4j
0.0
0.0
0.0
0.0
0.0
687.7
1088.3
0.1
1815.6
899.0
0.0
4470.0
479.4
2670.6
Bea
ten
Ric
e α5j
0.0
0.0
0.0
0.0
0.0
390.2
142.7
3.0
24.7
234.5
0.0
1399
.3
250.1
50.4
Pac
ked
fo
od α6j
0.0
0.0
0.0
0.0
0.0
0.0
0.0
7.6
55.1
1172.6
0.0
583.0
625.3
6051.7
Snac
ks α7j
0.0
0.0
0.0
0.0
0.0
0.0
0.0
5.1
189.2
3127.0
0.0
777.4
4168.5
14573
.0
Fodd
er
α8j
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
259
.6
15.6
0.0
7.8
0.8
67.8
Tra
nsp
ort
α9j
0.4
0.4
0.9
0.2
1.4
0.3
0.1
0.3
179
.1
390
.9
63
.2
1.9
208
4.2
71
.4
Ser
vic
es
α10j
0.4
0.4
0.9
0.2
1.4
0.3
0.1
0.3
17
.9
39
.1
63
.2
1.9
208
.4
0.7
En
ergy
α11j
0.4
0.4
0.9
0.2
1.4
0.3
0.1
0.3
4.3
3.9
63.2
1.9
20.8
0.7
Lab
ou
r
α12j
4.4
4.2
0.9
0.2
1.4
0.3
0.1
0.3
1.8
39.1
63.2
194.3
2.1
0.7
Tax
es
α13j
0.4
0.4
0.9
0.2
1.4
0.3
0.1
0.3
17
.9
3.9
63
.2
1.9
0.0
0.7
Import
α14j
0.4
0.4
0.9
0.2
1.4
0.3
0.1
0.3
53
7.2
390
8.8
632
4.3
194
3.5
208
4.2
0.1
Source: Planning for Rural Industrial Development of Patna Region, 2011, A Dissertation Report by Rashmi Kumari, IIT Roorkee.
Note: Coefficients are in 10-4 format
Journal of Regional Development and Planning, Vol. 3, No.2, 2014 43
The Input-output model has been generated for quantitative analysis of the structure and the
function of the rural industrial system in the Patna region, which can be used to study synthetically
the quantitative relations between the natural reproduction, the economic reproduction of
agriculture, the structure and the function of an economic system and social system and their
relationships. The optimum potentiality of rural industries in the region has been established by
employing the input-output model for industries based on Wheat, Paddy, Sugarcane, Mango and
Dairy. The forecasting of output of commodities for the year 2031 is done on the basis of the
model generated. In the following table the Input-Output model for Wheat and Paddy has been
shown and the forecasting has been done using the validated model results (Refer to Tables 1, 2, 3
& 4). Similarly, the Input-Output models have been generated for the Sugarcane industry; Mango
based industry; and Dairy industry. The projected output of commodities has been calculated for
analyzing the future demand and supply scenario, based on which the surplus can be used to
generate capital by selling them in the market within and outside the region.
Table 3 Final Demand in 2031
Sl. No. Economic Activity Yi
(in `, base year 2001)
1.
Agriculture
Wheat 331559220
2. Rice/paddy 55259870000
3. Straw/Husk/Bran 276299350
4.
Manufacturing
Flour (Ata, Maida) 44484195350
5. Beaten Rice (Chuda) 16578000000
6. Packed food 414449025000
7. Snacks 552598700000
8. Fodder 110519740
9. Transport (10 per cent increase) 288138950
10. services (10 per cent increase) 10902980
11. Energy (10 per cent increase) 6491100
12. Labour (10 per cent increase) 15726700
13. Taxes (10 per cent increase) 23819950
14. Import (10 per cent increase) 729679500.00
15. Total
1085162927840
Source: Planning for Rural Industrial Development of Patna Region, 2011, A Dissertation Report by Rashmi Kumari, IIT Roorkee.
Note: Unit: In Rs., base year 2001
We get the equation,
where (i=1, 2, 3, …….., 14 & n=14)
Here, X1, X2, X3, X4, X5, X6, X7, X8, X9, X10, X11, X12, X13 & X14 represents the output of
wheat, rice, straw, flour, beaten rice, packed food, snacks, fodder, transport, services, energy,
labour, taxes and imports respectively. Using the above equation, the required outputs of products
in 2031 have been calculated.
44 JOURNAL OF REGIONAL DEVELOPMENT AND PLANNING
Table 4 Required Output in 2031
Sl. No. Name of Items Symbols Output in `̀̀̀/Year (Base
Year 2001)
Output in
Kg/Year
1. Wheat X1 23549843720 1962486977
2. Rice/paddy X2 36807917394 1840395870
3. Straw/Husk/Bran X3 42103977 168415908
4. Flour (Ata, Meda) X4 88896390207 3865060444
5. Beaten Rice (Chuda) X5 24067270480 401121175
6. Packed food X6 446938870 2979593
7. Snacks X7 1083428530 5417143
8. Fodder X8 12457333 6228667
9. Total
174906350511 8252105777
Source: Planning for Rural Industrial Development of Patna Region, 2011, A Dissertation Report by Rashmi Kumari, IIT Roorkee.
RESULTS AND DISCUSSION
Input-output analysis has been done for industrial development in the study area. Demand
projection has been done for the year 2031. The required output for the projected demand has been
calculated using input output coefficients. Output feasibility has been analyzed according to yield
capacity. Thus, future output has been derived (Refer to Table 5). The land area required for a
particular amount of manufacturing good’s output has been calculated. Then locations for
concentration of rural industries based on resource availability, transportation facility, labour
availability, demand (market) availability has been suggested in the proposal. Area boundaries
have been defined which will provide resources for different industrial concentration (Please see
Figure 5). According to growth pole theory the concentrated industrial location would work as
poles, and secondary growth poles will be generated in the region by the influence of the poles
automatically. Thus, the industrial development would take place in the region and this would give
a boost to the development of all the subsystems of the regional system.
In support of these industries, market areas should also be identified. It has been recommended to
strengthen the post harvest infrastructure, to meet the present level of production as well as the
anticipated increased production, like: Collection Centres, Multi Product Processing Unit, Cold
Storage (for perishable food products), Rural Mandi (Marketing and Storage Facilities).
The main focus of the agro-processing industries should be on meeting the present as well as
projected future domestic market need of the region.
Potential in agro-based projects are processing of major and minor crops (wheat, paddy, pulses,
sugarcane and maize, processing of fruits and vegetables (vegetables, potato, mango and litchi),
processing of crop and agro industrial residue (straw, husk, bagasses, press mud, bran, corn shuck,
corn cobs and fodder), poultry and animal husbandry & dairy and milk processing.
Journal of Regional Development and Planning, Vol. 3, No.2, 2014 45
Figure 5 Map showing Proposed Agro-Industrial Centres in the Patna region
A strategic approach is needed to enhance the agricultural income. The farmers have small land
holdings, thus, the agriculture productivity growth is highly essential to sustain. The sustainable
development of agricultural economy needs conservation of agricultural resources. The concepts
of organic farming and integrated farming can help in achieving the sustainable agriculture.
Organic farming uses organic fertilisers instead of harmful chemical fertilisers. Integrated farming
uses a combination of agriculture, horticulture, livestock, fisheries, apiculture, sericulture,
vermiculture along with multiple uses.
Potential in other small scale and cottage industries, like Matchstick, carpentry, pottery, stone
cutting and crushing, handmade paper, soft toys, Bindi (a forehead decorative product), beauty
products, handloom etc.; Bamboo products: furniture, baskets, musical instrument (bansuri),
vessels, decorative objects, are good in the study area. Art and handicraft materials (e.g.,
Madhubani Painting, lac work, bronze metal work etc.) may also contribute to the industrial
products in the study area.
Many R&D Works in the field of agro-processing has been carried out in India during the last five
decades. Some research work has also been done in the area of processing forest produce such as
collection and processing of resins, oil extraction from oil bearing materials, and production of
natural dyes, Ayurvedic medicinal products etc. Due to high export potential, R&D work on pre-
cooling, packaging, and transport of cut flowers and low cost designs of greenhouses has been
initiated in the field of floriculture at some centres. The Agro-processing models developed for
some of the agro-climatic regions for the development of tools and techniques for harvesting, pre-
46 JOURNAL OF REGIONAL DEVELOPMENT AND PLANNING
cooling of freshly harvested produce; minimal processing cost; controlled ripening; juice
extraction; storage etc.
SUMMARY
The results of the SWOT analysis in the study area are as follows:
Strength
Two-third of the total land area of Patna region is used for agricultural purposes. The vast amount
of agricultural land availability is one of the major strengths for rural industrialization in the
region. The working population of the region which are facing persistent unemployment can be
considered as strength, as they would provide human resource for the industries. The favourable
agro-climatic conditions are also the strength of the region. The available water resource due to
the presence of Ganga and Sone rivers in the region is one of the most important factors required
for agricultural development. Patna region is very well connected with other regions of the country
by railways, roads and waterways. So, connectivity forms strength in industrialization. Rural
industries have always been in tradition in the region, so people are aware and have adequate skill
in rural industrial work. The agro-industrial products are basically commodities of basic needs. So,
the demand will never decrease. There is a vast domestic and global market for these products.
Weakness
The small size of land holding in the study area is a major weakness in terms of agricultural and
agro-industrial development. Lack of the infrastructure facility in terms of electricity and
sanitation in the rural areas of Patna region is another weak point. There is a lack of proper supply
chain in the region. This is one of the major constraints in rural industrialization. There is no
marketing management system within the study area. Least use of technology in agriculture is one
of the major reasons of less agricultural production. Industrial infancy and lack of industrial
training are also weaknesses. The lack of processing and inadequate storage of fruits and
vegetables result in huge wastages.
Opportunities
There is much scope of increase in crop yield by the employing new technologies, improved
HYVC seeds, fertilizers, pesticides, and other inputs. Patna region lies on the Indo-Gangetic
plains, one of the most fertile plains of the world. There is availability of rare varieties of crops in
this fertile region, which are in demand. There is an insured irrigation facility due to the canals.
The most part of Bihar is facing the curse of floods. Patna region is an exception, as it is less prone
to the flood hazards. Commercialization of milk products has been already done in a proper
manner and needed to develop it more in future. There is a vast increase in R/D works in the
region since 2005. Rajendra Agricultural University in Pusa is doing well in the research field.
Threats
The law and order situation in the region is very volatile and needed to be improved. The
credit/deposit ratio is very less in the region as compared to the other regions of the country. There
is a lack of collective strength in the region. People are not willing to do collective effort for any
kind of development. There is very poor investment climate. Migration is also a major issue.
There is a lack of information technology and awareness due to the faulty information system.
There is no control over prices of agricultural goods, which makes the farmers insecure in terms of
Journal of Regional Development and Planning, Vol. 3, No.2, 2014 47
economy (Need of Minimum Support Price). There is persistent unemployment which leads to
poverty, crime, starvation, and other social ills.
The impact of the agro-industrialization in support of the region will be positive. There will be a
situation of total gain for the people and government both. There will be gain of intellectual and
financial wealth in the organization of many small-scale producers. The wealth creation will lead
to more socially secure rural communities, and people will be better able to fulfil their basic needs
and desires which include food, clothes, shelter, and education, also they will be able to plan for a
secure future from the additional employment and incomes that will result from the investments
brought by industries and the profit generated due to value addition. There will also gains for the
environment as most of the agro-industries are eco-friendly. People will become less exploitive
and more responsible in the long-term issues of socioeconomic security. It will improve the
socioeconomic condition and give away to come across the regional imbalance and inequality
prevailing since long time.
Evolving set of Policy Guidelines
Plausible policies and guidelines can be evolved for the sustainable industrial development in the
study area based on the findings. Priorities should be the general agricultural development and
development of sectors in support of agriculture. Proposed measures should be taken in support of
general agro-industrial development includes: Improved use and service delivery of important
agricultural inputs. Investment in agricultural research and development (R&D) should be done.
Restoring, protecting and developing arable land and making it more productive. Setting minimum
support prices by the government for agricultural products is needed to ensure farmer’s goodwill.
Actual and potential yield gap should be minimized. Area under fruit crops like mango and litchi
should be extended. The production of green vegetables, spices, potato, and onion should be
increased. The experience of ‘Sudha Dairy’ should be multiplied. Near stagnation of poultry
development should be given a boost. Storage and transportation facility should be improved by
providing facilities at the proper location. Stores for food grains need to be equipped with
adequate facilities for materials handling, fumigation and aeration. Credit support by financial
institution should be ensured by helping the banking system in the recovery of loans. Law and
order should be improved to increase the investment climate. Improvement in supply chain has
been suggested.
CONCLUSION
The world’s economy is poised to achieve a high growth rate. Against this, the Patna region can be
termed as a sleeping giant of Indian agriculture based economy among the regions of India.
Though the study area has an enormous amount of potential for the development of industries, is
totally neglected, the available resources are not utilized properly. As a consequence, the study
area became backward in terms of socioeconomic condition. In this present investigation, at the
outset, an attempt has been made to have a thorough understanding about the socioeconomic
condition of the system. Subsequently, the available resources were quantified towards imparting
industries in the system, and recommendations are made.
The study concluded with plausible recommendations for imparting rural industrialization in the
study area. It is anticipated that, if the proposed plan model is implemented successfully in the
study area, it will ensure sustainable development in the system, definitely.
48 JOURNAL OF REGIONAL DEVELOPMENT AND PLANNING
________________________________
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