MAJOR AGRO-BASED INDUSTRIES

103

CHAPTER V

MAJOR AGRO-BASED INDUSTRIES

“The subject of agro-based industries relationship being current has

drawn the attention of agronomists, industrialists, and planners and needs

to be studied sympathetically by Geographers. Ghaziabad district is

predominant agricultural. Both Geographical factor and agricultural

factor play vital role. The geographical factors like topography, climate,

soil, natural human resources, and cultural activities are essential as these

factors play a very important role in influencing, establishing and

developing both agriculture and agro-based industries.”1

‘Basic to an objective study of the role of the agro-based industries for

prosperity of an economy is an understanding of the term “agro-based

industries”. Unless the connotation of the term is clear, it will not be

possible to appreciate the true purpose and potential of agro-based

industries or assess their relevance to development”.2 Industries

manufacturing “input” for agriculture or agricultural “output” or those

industries which are supported by agricultural products are classified as

“Agro-based Industries”.3 First of all, the agro-based industries provide

the essential input and secondly they function as an outlet for agricultural

output. At present this constitutes the backbone of a developing economy

in this district.

“Urban centres within Ghaziabad district serve as collecting, distribution

and marketing center of agricultural ‘input’ and ‘output’ products and

play a significant role in the development of agro-based industries”4. Any

technological improvement in either agriculture or in agro-based

industries has a simultaneous impact on each other on one side and opens

104

up new areas of development within the area on the other. The growth of

tubewell irrigation in Ghaziabad district during first three plans is not

only agriculture which has become independent from monsoon but has

also increased the number of Sugar Industries, Rice Mills and Oil Mills.

Similarly the increases in the acreage of Wheat, Rice, Cane and fodder

crops have resulted in simultaneous growth of Flour Mills, Rice Mill,

Sugar Mill and Dairy Industry. Service centers both big and small has

played a dominant role in this achievement by providing an infra-

structure for the development of agriculture and agro-based industries.

Perhaps the prosperity of agro-based industries in this district is due to

following facts.

1. The use of rural labour in the industry.

2. Engagement of farmers themselves when free from agriculture;

3. An impetus to the farmers to grow industrial crops; and

4. Quick returns both to the farmers and industrialists.

5.1 Distribution of Major Agro-based Industries

“Ghaziabad the biggest Industrial center of upper Ganga Yamuna Doab,

which is the most prosperous and progressive agricultural region in whole

of U.P, enjoys a high reputation in respect of a few of the agro-based

industries such as Sugar Industry, Oil Mills, Flour Industry, Khandsari,

Gur and Jaggery Industry, breweries, and hand-loom”5 . There are 1604

(2006-07) registered industries in the district, in which only 560 are the

working industries at present and the yearly production of these industries

are 144294348 (Rs. in Thousand) in Ghaziabad. Out of the total

registered employment of 63070 (2006-07) persons in the district, agro-

based group of industries accounts for 34.16% share. This group of

industries constitutes the largest single group at Modi Nagar, Pilkhuwa,

Ghaziabad, Simbhaoli and Garhmukteshwar. The important agro-based

105

industries as illustrated in the table No. 1 are cotton, textile, sugar,

breweries, Flour Industry, oil mills etc. Cotton Textile and Sugar Industry

are the largest industries of this group, which dominates the scene of

industrials activity at Modi Nagar accounting for 75% of the total

registered employment of this industry in the district.

Next in importance is sugar industry which is largely concentrated at

Simbhaoli, Brijnathpur, and Modi Nagar. Other main industries of this

group such as breweries, Flour Industry, oil mills are found at Ghaziabad

but the total share of agro-based industries in the city represent only 10 %

of the district’s total as against 34% share of the district as a whole in the

total registered employment of the district.

Spatially the greatest connection of agro-based industries in the district is

found at Modi Nagar which accounts for about 59% share of these

industries in the district. Next in importance is Ghaziabad city accounting

for 28% share. Together these two centers account for more than 85%

share of agro-based industries in district Simbhaoli and Pilkhuwa jointly

account for more than 10% share and the rest is represented by Hapur,

Garhmukteshwar and Loni.

At Ghaziabad, the main mode of agro-based industries exists at Mohan

Nagar and Loni road industrial area, which together contains about 2/3rd

of the total registered employment of agro-based industries in the city.

The following table No. 5.1 explains the functional pattern of industries

& diagram No.5.1.

106

Table No. 5.1 Functional Pattern of Agro-based Industries at Ghaziabad City

S. No

Name of the Industry

No. of Regd. Units

No. of Employment

Percentage of agro-based industries with total

Employment in the district 1 Cotton Textile 15 2831 7.50

2 Breweries 1 1452 3.85

3 Fruit Products 2 235 .62

4 Hydrogenated Oil 3 781 2.07

5 Tobacco Products 2 545 1.44

6 Cereal Products 5 180 .48

7 Oil Mills and soap 1 600 1.59

8 Jute Products 1 31 .08

Total 30 6655 17.63

Source- Figures tabulated with the help of the list of factories (2001) obtained from Inspector of factories office and field survey.

“Another area where agro-based industries hold an important place is

Bulandshahr road industrial area where important agro-based unit include

M/s Hindustan Lever Ltd., M/s Amrit Vanaspati Co. Ltd., Webbing and

belting factory and M/s Kailash Textiles. On Meerut road industrial area,

there exist two important agro-based industrial units viz M/s. Jain Shudh

Vanaspati Ltd., and International Tobacco Company which employ 318

and 494 persons respectively”6. Following table No.5.2 & 5.3 shows

major agro based industries & diagram No.5.2, 5.3 and 5.4.

Table No.5.2 Major Agro-based Industries (2010-11)

Type of Industries No. of Units Sugar Industries 3 Cotton textiles 21

Flour Industries 7 Oil Industries 6

Source- District Industrial Center &Field Survey 2010-11

107

Table- 5.3 Distribution of Agro-based Industries

S. No Name of the Industrial Centre

No. of Regd.Units

No. of Employment

Percentage of agro-based industries with total

Employment in the district 1 Ghaziabad City 36 6655 28.26 2 Modi Nagar 12 13782 58.26 3 Simbhaoli 2 1647 6.99 4 Pilkhuwa 17 331 1.42 5 Hapur 7 172 .73 6 Garhmukteshwar 3 124 .53 7 Loni 5 154 .23 Total 82 22765 96.42

Source- Figures tabulated with the help of the list of factories (2001) obtained from Inspector of factories office www.justdial.com and field survey.

“Cotton textile holds the most important place accounting for a little less

than 50 % of the total registered in agro-based industries units at

Ghaziabad. It is also one of the important industries of the city holding

third place after electronics, and transport equipments. Next in

importance is a brewery for which Ghaziabad enjoys a nationwide

market. Other important industries at Ghaziabad belonging to this group

include hydrogenated oil, edible oils and soap and tobacco products

which account for 1.6 and 1.5% share in the total registered employment

of the city. Other relatively less important industries of this group are

fruits products, cereal products and jute products, all of which represent

less than 1% share in the total registered employment of the city”7.

The followings are the major Agro-based Industries remaining in the

District and will be discussed scientifically and systematically:

Sugar Industry

Cotton Textile

Oil mill

Flour Industry

108

5.1.1 Sugar Industries

“India is the home of sugarcane, and the production of Gur and Khandsari

was known to be the Indians as early as 5000 B.C”8.The industry received

an impetus after independence. Even through most of the sugar acreage is

concentrated in Ganga Plains, the majority of mills during the British rule

was uneconomic. The quality and quantity of the cane, output per acre are

much lower in the Ganga plains than in peninsular India. The problem of

low yield low sucrose contents, low percent of recovery low per capita

income and consumption and high cost of production are faced by sugar

mills. As the domestic mascot of the sugar is ever expending with the

spread of urbanization and industrialisation, the future of sugar industry

seems bright.

“In Atharva Veda, which dates back to the period 5000 B.C to 1000B.C

there are account of cane cultivation and the production of Gur and

Khandsari. The indigenous variety of cane of Ganga plains is established

on physiological and botanical evidence, to be natural hybridization

between the wild and tropical varieties”9. It is evident that in the early of

6th centaury AD the sugar cane was introduced and grown under irrigable

conditions into Iran from India. The Arabs took the sugar cane to Europe,

Europeans, to North America and thus sugar cane spread from India to

the rest of the world.

The Sugarcane area in U.P. is expected to reduce by 6% in crushing

season 2009-10. However, in spite of decrease in cane acreage, cane yield

is likely to increase by 15 to 20% in 2009-10. The sugar production in the

country is expected to be 17.5-18.5 million tons in the season 2009-10

against the production of 14.5 million tons in 2008-09. After two

109

consecutive year of decline in sugar production is said to recover in

marketing year 2009-10.

The sugar industry has been categorised as under

1. Major sugar Industries –M/s Simbhaoli Sugar Mills Ltd, M/s Brijnathpur Sugar Mills, M/s Modi Sugar Mills

2. Medium Sugar Industry- Khandsari

3. Small Sugar Industry Gur, Jaggery

M/s Simbhaoli Sugar Mills Ltd.

“The Simbhaoli Sugar Mills has an eight-decade record of producing top

quality sugars. Established in 1933 by Sardar Raghubir Sandhanwalia,

Simbhaoli Sugar Mills was amongst the first sugar plants to be set up in

North India. Today we have evolved into a professionally-run,

technology-driven 1500 cr organisation.”10 Three sugar complexes -

Simbhaoli (western Uttar Pradesh), Chilwaria (eastern Uttar Pradesh) and

Brijnathpur (western Uttar Pradesh) have an aggregate crushing capacity

of 20,100 TCD. Simbhaoli has worked hard to earn the trust of its

stakeholders for close to 80-years.

“Simbhaoli started as a partnership firm in 1933 by Sardar Raghubir

Singh Sandhanwalia, with a seed capital of Rs. 10 lakhs. The other three

partners were Col. Buta Singh, Col. Nau Nihal Singh and Joginder Singh

Mann. Sardar Raghubir Singh Sandhanwalia was the dominant partner

with an 82% share. In 1936, Simbhaoli was incorporated as a private

limited company with an authorized capital of Rs. 12 lakhs (1200 shares

of Rs. 1000 each) and a paid up capital of Rs. 9.6 lakhs. Since 1933,

Simbhaoli has played a key role in making life a little sweeter on a daily

basis.”11

110

“The Simbhaoli sugar Mills Ltd. has expanded its aggregate crushing

capacity to 20, 100 TCD, which have capability to produce 3.0 Lakhs MT

white sugar per annum. Sugar production for 2007-08 is estimated at

170.3 m mtrv, against 166 m mtrv in 2006-07. World sugar consumption

in 2007-08 is likely to grow by 2.5 %, but even with this increase, 2007-

08 production is expected to result in the edition to stocks of more than

mtrv of sugar”12.Details are given in table No. 5.4.

Table No. 5.4

Details of Simbhaoli Sugar Mills Ltd.

Unit Period Ended Simbhaoli Sugar Mills September 30, 07 March 31 2006 Sugarcane Consumed MT 14,69,776 10,69,281

Sugar Recovery % 9.34 9.27 Raw Sugar Consumed

MT 12,383 21,355

Sugar Produced (including conversion of raw sugar )

MT 1,47,405 1,13,284

Gross Season Days 196 183 Date of closure (for the season 2006-07) 15.05.2007 13.04..2006

Source- Balance Sheet of Simbhaoli Sugar Mills Ltd.

Simbhaoli Sugars is a technology company with a business mix that

spans refined (sulpherless) sugar, specialty sugars, quality liquor, co-

generated power, extra neutral alcohol (ENA), ethanol, bio-manure and

technology consultancy. “As India's largest integrated sugar refinery, the

Company has pioneered path-breaking innovations in sugar refining

(Defeco Remelt Phosphotation and Ion Exchange technology), high

value, niche products (specialty sugars) and clean energy

(ethanol)”13.Details for the year of 2009 and 2010 are discussed in table

No.5.5and 5.6.

111

Table 5.5 Details of Simbhaoli Sugar Mills Ltd.

Manufacturing Facilities Units Simbhaoli


*Including conversion of raw and below grade white sugar, into refined sugar.

*Recoveries have been adversely affected an account of short crushing period.

Table 5.6

Business Description Operating Capacities

Factories Cane Sugar* Raw Sugar Processing

Alcohol /Ethanol (KLD)

Surplus Power

(MWH)

Manure MMT/day

Simbhaoli (Western U.P )

9500 850 90 18 17


*Out of the raw processing capacities, 1450 TPD is Sulphar less refined cabakle to produce EC grade 45 ICUMSA Sugar.

M/s Brijnathpur Sugar Mills: -

This is a unit of M/s SIMBHAOLI SUGARS MILLS LTD, and has a

capacity of 4000 TCD (Tones Crushed per Day), expandable to 5000

TCD. It will have a co-generation power plant with exportable power of

3MWHr per day during crushing season and 8MWHr in the off-season.

It is supported by a distillery for greater profits and efficiency. Details of

the Mill may be seen in the following table.5.7 and 5.8.

Sugar Facilities Sept 30, 2010 Sept 30, 2009

Sugarcane Consumed MT 1,019,463 7,91,488

Sugar Recovery** % 9.23 9.14

Raw/below grade sugar refined MT 1,038,603 89,983

White Sugar Produced * MT 977,818 155,115

Surplus Power Exported KW (Lacs) 394.4 379.52

Grows Season Days 138 133

Date of Closure of Plant 09.04.2010 23.03.2009

112

Table No. 5.7 Details of Brijnathpur Sugar Mills

Manufacturing Facilities Units Brijnathpur


*Including conversion of raw and below grade white sugar, into refined sugar.

*Recoveries have been adversely affected an account of short crushing period.

Table 5.8

Business Description Operating Capacities

Factories Cane

Sugar* Raw Sugar Processing

Alcohol /Ethanol (KLD)

Surplus Power (MWH)

Manure MMT/day

Brijnathpur (Western U.P )

4000 600 60 - 9


*Out of the raw processing capacities, 1450 TPD is Sulphar less refined cabakle to produce EC grade 45 ICUMSA Sugar.

M/s Modi Sugar Mills:

The foundation of the Modi Empire was laid by Rai Bahadur Gujar Mal

Modi in 1932 with the opening of Modi Sugar Mills at Modi Nagar.

Located in the heart of the sugarcane belt of western Uttar Pradesh, Modi

Sugar Mills had an initial capacity of 500 tons of cane crushing per day

(TCD) to manufacture “Plantation White Sugar” or crystal sugar, as is

popularly known. The capacity of this mill stands at 5000 TCD at present.

“In 2001, a 30 ton-per-day (TPD) state-of-the-art sugar refinery was

commissioned to manufacture premium quality, Pharma grade refined

sugar conforming to Indian and British Pharmacopoeia standards. The

refinery capacity has further been enhanced to 200 TPD to cater to the

quality conscious institutional and retail markets. The company has also

Sugar Facilities Sept 30, 2010 Sept 30, 2009 Sugarcane Consumed MT 3,95,683 3,51,847

Sugar Recovery** % 9.27 8.51 Raw/below grade sugar refined MT 58,386 12,706

White Sugar Produced * MT 91,429 42,036 Surplus Power Exported KW (Lacs)

Grows Season Days 136 142 Date of Closure of Plant 07.04.2010 29.03.2009

113

established a plant to produce 'Refined Candy Sugar', the only

company in India to do so”14.

Moving ahead, Modi Sugar Mills has started producing a wide array of

new and innovative specialty sugar products. The product basket includes

Low Calorie Sugar Sweetener, Coffee Sugar, Quick Dissolve Sugar,

Pharmaceutical Grade Sugar, Candy Sugar, Sugar Cubes, Icing Sugar,

Flavoured Sugar for Tea and Flavoured Sugar for Milk.

“Renowned as one of the most efficient sugar plants in Northern India,

Modi Sugar Mills has achieved the prestigious ISO 9000:2001

certification. The plant has been completely modernized and automated,

producing 90,000 tons of plantation white sugar. Modi Sugar Mills is the

first company in India to have drug license to manufacture sugar as

per the IP standards.”15

“Since its inception in 1932, Modi Sugar has been in the business of bulk

sugar, which is “Plantation White Sugar” or crystal sugar, as it is

popularly known. The crystal sugar manufactured in Modi Sugar Mills at

Modi Nagar and SBEC Sugar Ltd. is of three grades namely, [Large (L)

Grade, Medium (M) Grade and Small (S) Grade] of 100 acumsa or less.

The sugar comes in 100 Kg gunny bags to meet varied customer

requirements The combined annual production of both the plants amounts

to 2,30,000 tone.”16 Details are given in the following table No. 5.9.

114

Table 5.9 Details of Modi Sugar Mills Ltd.

Manufacturing Facilities Units Modinagar

Source- Balance Sheet of Modi Sugar Mills Ltd.

Khandsari, Gur and Jaggery Industry

Khandsari Industries: -

Khandsari Industries are the most important agro-based industries in

Ghaziabad District. This Industry holds II position in consuming raw

sugar cane. Khandsari industry stands side by side to the sugar mills and

is subsidiary industry. Its development depends upon the supply of raw

materials and the crusting capacity of the existing sugar mills. At present

there are 130 Khandsari industries in district Ghaziabad.

Khandsari units used open pan in place of vacuum pans for concentration

and the sugar obtained is of lower quality compared to white sugar from

mills. Sugar recovery in Khandsari is much lower.

“There units depend on grid supply diesel generators for mechanical/

electrical power or both when grid power supply is erratic and diesel

genets are kept as standby power sources. This increases the cost of

production of Khandsari. Bagasse tops, dry leaves and molasses are by-

production.”17 Modern sugar mills with co-generation meet their entire

energy needs, both thermal and electro mechanical from these bagasse

fired boilers-steam turbine units. They feed extra power to grid or save

Sugar Facilities Sept 30, 2010 Sept 30, 2009

Sugarcane Consumed MT 8,132,542 6,41,368

Sugar Recovery** % 7.13 6.18

Raw/below grade sugar refined MT 3,038,65 269,753

White Sugar Produced * MT 90,000 78,585

Surplus Power Exported KW (Lakh) 244.4 199.72

Grows Season Days 128 129

Date of Closure of Plant 11.04.2010 2.05.2009

115

15-20% bagasse for the use as feedstock or paper making. Jaggery

promotional and regulatory measures have been taken by the government

to improve quality and production. Large number of sugar mills is using

outdated processes and equipment. Some of them not only use entire

bagasse but also use wood. Full details of Regd.units,working

units,production are given in table No.5.10

Production of Gur and Jaggery

“People in rural areas from the very beginning of agricultural practices

prepared gur from sugarcane by boiling its juice in open pans and there

by satisfied their needs for sugar. According to the district (source), there

are nearly 75 units engaged in preparation of indigenous sugar”18. Their

distribution is uniform throughout the area because the farmers consume

mainly this sugar except at ceremonial occasions. Even in the area of

sugar mills, farmers utilise a portion of their sugarcane production in the

manufacture of indigenous sugar.

The Indigenous Production from Sugarcane is Khandsari Gur and

Jaggery. At present there about 26 registered Gur making units in the

district. The total investment in this industry has been Rs. 27,45,983/-.

The total production was valued Rs. 879845 and 3658 persons are

employed. Ghaziabad district about 16 Jaggery making units are on the

record having total investment of Rs. 397236 The value of Jaggery and

1435 persons are employed. This industry is an old an indigenous. By

product such as molasses and bagasse are exported to distilleries, tobacco

manufacturing units and paper mills (Straw Board) respectively to the

inside or adjacent units of the region. Paper mills of the region gets

bagasse from sugar manufacturing units and consume them as their raw

116

materials besides other grasses. A considerable amount of bagasses is

consumed as fuel by Gur making units.

“As sugarcane is cultivated all over India. There is immense scope for the

development of the gur and Khandsari industry. The gur and Khandsari

industry under Khadi and Village Industries Commission helps to ensure

full utilization of sugarcane”.19

Gur is a product which is used as a sweet instead of sugar, mostly in rural

areas; the entrepreneur can receive 10-15% of the production value as

profit. Gur and Khandsari can be sold at local hats and shops because of

high demand in the rural area. Details are given in table No.5.10 and

diagram No. 5.5.

Table 5.10 District Ghaziabad Numbers of Units & Production of Khandsari and Gur

Year Registered

Units

Working

Units

Production of Khandsari in lakhs Quintal

Production of Gur in Lakhs

Quintal

Production of Rus

kut/Gur baddha

Production of Rab

2006-07 18 09 04 44 08 33

2007-08 18 07 02 32 07 12

2008-09 18 06 02 31 07 13

2009-10 18 07 03 24 06 12

2010-11 18 07 02 18 01 08

Source-Assistant Cane Commissioner. Meerut

Cotton Textile

As a single industry manufacture of cotton textile hold an important place

in the industrial structure of Ghaziabad city. It is the 3rd most important

industry after electronics, and transport equipments, with 7.5% share in

city’s total registered employment. However, the city’s share in the total

registered employment of this industry in the district represents only

about 20% while Modi Nagar which is one of the leading textile centers

of Northern India accounts for more than 75% share. Number of

117

registered units & employment is given in following table No. 5.11 &

diagram No. 5.6.

Table No. 5.11

Distribution of Cotton Textile units at different centers

Name of Center No. of regd. Units No. of Employment Ghaziabad 15 2831

Modi Nagar 3 12031 Pilkhuwa 15 331

Loni 2 54 Total 35 15247

Source- Figures tabulated with the help of the list of factories obtained from Inspector of factories office and field survey.

In the present context, discussion on cotton textile industry is mainly

concerned with the development and distribution of cotton textile

occurred in the decade ending in 1971 as is evident from Table 5.12. The

astounding progress of cotton textile industry in this period was only a

part of the vast industrial expansion made possible because of the

development of a number of new industrial areas under the auspices of

Ghaziabad Master Plan.

“The vast complex of Cotton Textile Units along Loni road (M/s Ajanta

Textile Pvt. Ltd, Alps Textiles Pvt. Ltd and L.N. Gadodia & Sons Pvt.

Ltd.) is the outcome of industrial expansion signifying this period. The

textile units located at site 4 industrial areas e.g. M/s Old Village

Industries Ltd, and Enter Craft Pvt. Ltd were established during the

decade ending in 1981.”20 Except during sixtees the cotton textile industry

of the city has witnessed only a moderate growth throughout. The

relatively slower rate of growth of this industry can be attributed partly to

the intense competition with the metal consuming units of the city and

partly to the external competition with the large scale textile mills of

Delhi and Ghaziabad The industry has averted its decline only by

adapting its textile manufacture to the specific needs of the area.

118

Table 5.12 Growth of Cotton Textile Industries

Year No. of regd. Units

No. of. Employment

Percentage Increase in terms of. Employment

Percentage share in the total employment

1951 1 171 6.69 1969 3 217 26.90 3.32 1971 9 1591 633.17 6.99 1981 15 2831 77.93 7.50 1991 17 3135 78.83 8.03 2001 19 3521 80.04 9.50 2011 21 3739 82.06 10.00

Source- Figures tabulated with the help of the list of factories obtained from Inspector of factories office, wwww.justdial.com and field survey.

“The only handicap for cotton textile units in the city is that of district

raw material, but this is the case with many of the fast-growing industries

belonging to metal bases group as well other physical and economic

factors such as those of availability of branches of the industry. Except

M/s. Webbing and Belting Factory Pvt. Ltd. All the other important

textile units have found locations in the trans-Hindan area, a fact which

further emphasizes the nearness of large urban market as being vital for

the success of this industry. M/s. Alps Textiles Pvt. Ltd., L.N. Gadodia &

Sons, Ajanta Textile Ltd., Enter Craft Pvt. Ltd. And Old Village

Industries Ltd. Are some of the reputed cotton textile units. Not only does

the proximity to Delhi ensures large urban market for the specialized

cotton textile manufacture of the city, but it also facilitates attending to

the various formalities required in connection with the export of the

furnishing fabrics produced at Ghaziabad’s factories viz. M/s. Webbing

& Belting Factory Pvt. Ltd., and Alps Textiles Pvt. Ltd.”21

Another area where textile units appear somewhat important is the S. E.

Industrial zone which represents 9.57% share in the total registered

employment of the industry. Except M/s. Webbing & Belting Factory

Pvt. Ltd which employs 199 persons, all the other four textile units of the

area are small-scale factories employing less than 50 persons. One of

119

these four smaller factories viz. M/s Jai Prabha Textile Pvt. Ltd.

manufactures canvass cloth and the remaining three produce various

types of furnishing fabrics. Table No.5.13 explain in details the name of

units & their manufacturing products

Table No.5.13 Major Cotton Textile

S. No Name of cotton Textile Manufacturing 1. Bhavna Fabrics, Vijay Mandi, Muradnagar

(Ghaziabad) Cotton Fabric, linen Fabric, linen strips, Glace cotton Fabric.

2. Vaibhav Trading Company Sahibabad Ghaziabad Cotton 3. Shri Ram and Sons Pilakhuwa, Ghaziabad Handloom, Cotton. 4. Sai Enterprises, Loni, Ghaziabad Cotton Tape Manufacture 5. Versa Tile Enterprises Pvt. Ltd. Mohan Nagar,

Ghaziabad Textile, Fabric, Shoe Fabric

6. ALPS Industrial Ltd. Sahibabad, Ghaziabad Textile Fabric, Home Furnishing Fabric, Automotive Fabric

7. Pratap Jute Company, Bulandshahr Road, Ghaziabad Hessian Cloth, Jute Bag 8. Rafia Industrial, Bulandshahr Road, Ghaziabad Fabric, Textile 9 Unique Polycoaters, Vaishali, Ghaziabad Fabric, Textile

10. Jai Prabha Textiles, Kavi Nagar, Ghaziabad Woven Fabric, Nonwoven Fabric, Durt Collocation Bags.

11. Crepes n Cottons, Kaushmbi, Ghaziabad. Ladies Suits, Ladies Clothing Fabric, Crepes n Cottons

12. Gaurav Cotton Waste Industries, Ghaziabad Cotton Yarn, Cotton Wart, Cotton Rags

Thus while concluding my discussion on the cotton textile industry of the

city, I shall once again emphasize that this industry has not been going

through an easy period right from its beginning in 1947. It signifies an

industry which has struggled hard to grow and to maintain itself. The

adaptation of this industry to the specific needs of the area has been the

major motivating factor for its substance. It has grow from within and

sets a living example of a dynamic industry in the growing industrial

structure of the city.

Oil Industries

Mustard is a well-known oil seed and an annual crop. It has round stem

with long inter-modes, simple, alternate and very soft yellowish green

leaves. The fruit is a pod containing seeds. Dry mustard seeds are small,

round and darkish-brown or grayish-brown in colour. They have no

120

smell, but when pounded and moisture with water, they emit a peculiar

strong smell.

“Mustard oil is of vegetable origin and is obtained from seeds of the

black and white (Sinapis Alba) mustard plants. In the crude state, black

mustard oil (Brassica nigra, light color) has a spicy odor and a strong

taste. When refined it is neutral in odor and taste. White mustard oil

(yellow color) has a bitingly pungent taste due to the allyl mustard oil it

contains.” 22

India is the fourth largest oilseed producing country in the world. Mustard

seeds, rope seeds, lint seeds, soya seeds and palms are the main sources

of edible oils. Oils are extracted from these seeds. Mustard oil is a well

known oil seeds as well chief edible oil.

Mustard oil is the largest edible oil produced in the world after Soy oil

and Palm oil. At a production level of 13 - 14 million tons, it accounts for

about 12 % of the total World's edible oil production. Mustard oil is

composed mostly of the fatty acids oleic acid, linoleic acid and erucic

acid. At 5%, mustard seed oil has the lowest saturated fat content of the

edible oils. Numbers of heavy & small scale industries are given blow in

table No. 5.14 & diagram No. 5.7.

Table No. 5.14 Number of Oil Industries

Type of Industries Number of Units

Total manufacturing Industries on small & cottage scale. 138

Heavy Industries 6

Expeller 119

Source- District Industrial Center of Ghaziabad & www.justdial.com

The edible oils of vegetable origin are the most important sources of

cooking oil. The district produced nearly 2483 Mt. (2001-02) oil

121

mustard seeds. Mustard seed is the only oil seed crop and popular

cooking oil of the district. Natural unrefined mustard oil extracted

through cold process is quit pungent. The consumers of traditional

product prefer pungent oil. Till now the extraction of pungent oil

could be possible only by Rotary Ghani due to mustard seed moisture

range of 10-12 %, low temperature of extraction in wooden bowl

wherein the pungent principal- allyl isothiacyanate does not evaporate.

However, the expeller made of metallic components and high

compression ratio raises the seed temperature up to 80-100°C resulting

in loss of pungent principles. The "Modern" oil expeller provides high

pungency mustard oil by low temperature crushing through

incorporation of a water cooled chamber and processing at critical

moisture levels of oilseed. The six large scale oil industries are given

in the following table No. 5.15. Table No.5.15

Large Scale Oil Mills

Large Scale Oil Mills Manufacturing Bharat Oil Mills, Bhagwan Ganj Mandi, Modi Nagar, Ghaziabad

Soyabeen,Sesame, Mustard oil.

M.R. Oil Mills Pvt. Ltd, Lower Market, Main Market Modi Nagar Ghaziabad

Soyabeen, Mustard oil

Bunge India Pvt. Ltd. B-16, Site I, Bulandshahr Road, Industrial Area Ghaziabad

Mustard oil manufactures

N.M Agro Pvt. Ltd. 2nd A 17 Nahru Nagar, Near Jain Mandir Phatk Bulandshahr Road Ghaziabad


Ch. Ishwar DAS & Co. 132, Ramte Ram Road Ghaziabad. Mustard oil manufactures Shyama Trading Company 376, Kriana Mandi, Ram Nagar, Ghaziabad.


Source: Office of Oil Mills, Ghaziabad

Flour Industry

Wheat is a major crop of the district Ghaziabad. In year 2001-02 the

district produced 24885 M.Ton wheat, in 2002-03 255201 M. Ton that

increased 2.55 % while in the year 2008-09 the production was 306071

M.Ton. The district has emerged as the second largest producer of this

cereal crop that is 53.02 % (2009-10) of the total cultivation. Wheat

122

contains 12 % bran, 3% embryo and 85% flour. It is mainly processed for

flour, Maida, suji and Dalia. In last 50 years, harvest and post harvest

technology of wheat has advanced substantially. The most significant

development has been the use of self propelled harvester combines used

for harvesting and threshing of wheat. Several factors are currently

slowing the rate of district expansion of wheat production. Population

growth rates are falling while wheat yields continue to rise and the better

economic profitability of other crops such as sugarcane, linked with

investment genetic technologies, has promoted shifted to other crops.

The industry could grow on account of R &D input starting from the

design and development of a Varity of threshing machines. Mud pins,

wooden plank and mud plastered bins, gunny bags and metal bins have

been in use by farmers for storage of wheat for food and for seed

purposes. The traders and government agencies use gunny bags and go

down type structures for storage of wheat. A number of commercial

organizations have been offering processing units for handling, cleaning,

grading, drying, storage, treatment and bagging of wheat for seed and

food applications. Wheat is now increasingly being used in the form of

bread, biscuits, suji and atta. Wheat is flakes and puffed wheat as

breakfast cereals has been gradually picking up. Traditionally used

smaller size atta chakkis may face problems of declining clientele. Better

mechanized chakkis (with lower pollution level and better energy

efficiency) are likely to increase in number. The number of roller flour

mills is also likely to increase steadily, however majority of the mills may

continue facing the problems of low capacity utilization and working

capital constraints. These units would need to function through vertical

integration of operations for sustaining profitability and achieve cost

reduction through appropriate automation and computerization. Increase

123

in demand is also expected in grain handling machinery, soil systems in

grain markets and seed processing machinery.

In the year 2001-02 there were about 1689 Atta Chakkis and 7 roller flour

mills in the district. See the following table No.5.16 & diagram No. 5.8.

Table 5.16 Flour Mills in District: Ghaziabad

Name & Address of Unit Products

1. Delhi Floor Mill Company, C-40, Meerut Road, Ghaziabad. Atta, Maida, Suji, Bran.

2. Bhawani Roller Floor Mill, 1/A, Ghaziabad. Atta, Maida, Suji, Bran.

3. Reliance Foods & Proteins Pvt. Ltd. C-231, Bulandshr Road, Ghaziabad

Atta, Maida, Suji, Bran.

4. Maheshwari Floor Mill Pvt. Ltd. A-3, Bulandshr Road Ghaziabad. Atta, Maida, Suji, Bran.

5. Ambey Floor Mills Pvt. Ltd. C-240, Bulandshr Road, Ghaziabad. Atta, Maida, Suji, Bran.

6. Goyal Food Industry, Hapur. Atta, Maida, Suji, Bran.

7. Jassu Pandit Flour Mill, E-1522 Rama Park extent Nanda Colony Sunday Bazar Futa Road Loni,(Ghaziabad)

Atta, Maida, Suji, Bran.

Source-District Industrial Center & www.justdial.com

5.2 -Growth of Major Agro- based Industries

“The Indian economy is predominantly agricultural and agricultural

products account for nearly 43% of the national product. Agriculture

plays a vital role in the industrialization of the country which can lead to

capital formation, higher per capita income and employment

generation.”23

Keeping in view the importance of agro- based industry; the government

of India has announced several policy measures including creation of a

full-fledged Agro- Based industry department. The fact that district

Ghaziabad produces a wide range of sugarcane, oilseeds, cotton, range of

fruits etc. Among the various types of industries, Textile, Sugar Mill,

Flour Mill, Rice Mill, edible oil and fats vegetables oil pressing etc., are

some of the industries that have grown faster in comparison to other

industries.

124

The nature of growth of agro-based industries in district Ghaziabad has

been similar to other region of Uttar Pradesh. Till 1932 agro-based

industries were few and did not utilize the resource base fully. After the

construction of upper Ganga Canal (with the provision of electricity and

transport facilities). Some spurt in the growth of agro-based industries

was witnessed. In 1933 the two large scale units established in

Ghaziabad district was The Simbhaoli Sugar Mills Ltd. And The Modi

Sugar Mills Ltd.

Most of the part of the district Ghaziabad is covered by fertile alluvium

soil. Agriculture provides the main sources of livelihood to rural areas but

n urban areas industrial development has rapidly taken place since

independence Agro-based industries like sugar have also developed on

account rich agricultural produce within the district. After 1932 a sudden

growth in the number of industries has been noticed. Growth of agro-

based industries in the district may be divided in to the following heads.

The Growth of Agro- based Industries before independence

There were only cottage industries in the district up to nineteenth century.

In the beginning of the twentieth century few crushers and Khandsari

units were established at the small scale in the district. Oil expellers and

ban making was also down on scale units in the villages and towns. The

cottage industries, however, dominated the industrial landscape of the

district up to 1932 before the establishment of the sugar mills in the

district. Before we take up the history of setting up of large scale or big

agro-based industries in the district, let us first the discuss the factors for

these units.

An industry is established in a particular area because of the two main

factors. These are the availability of raw material and that of cheap

125

labour. The district Ghaziabad fully satisfied these two main conditions

for the location of spinning mills in the district. Cheap skilled labour,

transport facilities and very large market for cotton yarn attracted the

entrepreneur to establish this unit in the district The district being a part

of sugarcane cultivation tract, has encouraged the industry in the district

Ghaziabad. The district till 1932 had no modern factory. But after the

protection given by Indian Tarrif Board in 1932, the industry was able to

locate itself in the Ghaziabad district with a rich harvest of sugarcane in

countryside. The year 1933 i.e. within a period of one year two large

scale industries were established namely, The Simbhaoli Sugar Mills Ltd.

(Simbhaoli) and The Modi Sugar Mills Ltd.(Modinagar) The third

important Sugar factory in the district is Brijnathpur Sugar Mills

(Brijnathpur), established in 2004. This is a unit of The Simbhaoli Sugar

Mills Ltd

The Growth of Agro-based Industries after Independence

“The first five year plane of U.P. was launched on April 1951. The planed

aimed to provide larger irrigation facilities to increase the agricultural

production therefore the generation of power by Ganga grid system were

extended. During the second plan of the second plan of the state, the

emphasis was given to the industrialization.”24 The growth of perennial

agro-based industrial units was significant in district Ghaziabad during

this period. The blow table No.5.17 shows that in 1950 there were two

sugar factories in Ghaziabad and provided employment 2647.

Table No. 5.17

Growth of Sugar Industries

(1950)

No. of units

workers (1991)

No. of units

Workers (2004)

No. of units

Workers % of

Growth

2 2647 2 2456 3 3213 50%

Source: Balance Sheet of Simbhaoli Sugar Mills Ltd.

126

In 1975 there were 32 agro-based industries. Rest of 20 factories is

operating on small scale and manufacture Gur and Khandsari. In 1975

there was few plants were found in the newly created district Ghaziabad.

Four edible oil units, one flower mill, and four cold storage units are set

up during 1970-80 period in Ghaziabad.

The growth of agro-based industries at large scale was stagnant in

Ghaziabad during the period 1970-80. A large scale unit of vegetable oil,

vanaspati ghee and solvent extraction plant was established in private

sector which encouraged the oil seeds growers in the district. The raw

material availability in large amount nearby state Haryana, Ghaziabad has

a leading position in vegetable ghee and vanaspati Production in U.P. one

edible oil unit , three spinning and weaving units, two cold storage units

and dozens of Dal and Flour units were established in Ghaziabad district

during eight decades. The growth of large scale units was significantly

high during this period in Ghaziabad district. See the following table No.

5.18 & diagram No. 5.9.

Table 5.18 Number of Industries in District Ghaziabad

Name of

industrial center No. of units

(1991)

No. of Employment

No. of units

(2008-09)

No. of Employment

%Growth of industries

Ghaziabad city 21 3452 30 6655 42.85% Modinagar 5 11654 8 13782 60% Simbhaoli 2 1265 2 1647 0% Pilkhuwa 11 213 15 331 36.36%

Hapur 3 132 4 172 33.33% Garhmukteshwar 2 118 2 124 0

Loni 2 60 2 54 0 Source- District Industrial Center Ghaziabad.

127

5.3- Impact of Major Agro-based Industries on Socio-economic

Development on society

For an all around economic development of the district a balanced

development of natural resources is essential only one means of

occupation neither can provide satisfactory employment conditions nor

can ensure a sound economic background to a district. “Along with

agriculture and some other industrial activities, utilizing, as far as

possible, the local natural resources have also to be developed. One of the

means of utilizing natural resources and releasing the pressure from

agrarian economy is industry.”25 Industries provide employment to

technical as well as non-technical labour. Thus on the one hand they help

in the solution of employment problem while, on the other they provide

opportunity for the utilization of human as well as natural resources both

from within and outside the district. This way, the industries from a part

of the much broader process of economic development which involve the

raising of standard of living through steady increases in the efficiency of

factors of production. The pattern of living is considerably changed

through the actual process of industrialization. For planning new and

balanced socio-economic development of agro resource in future, a

critical study of industrial situation is thus essential.

“The economic development of an area is a complex task. Being an

agriculture district, it has vast potentialities for economic development

through agro- based industries which is a process of building up the

capacity of the area to process the agro- based raw materials and then to

manufacture goods either for consumption or for future production.”26

Today agro-based industries constitute the backbone of developing

economy. The agro-based industries have become an invaluable weapon

in bringing into existence a harmoniously balanced integrated socio-

128

economic order. “The role of agro-based industries is most significant

both in respect of employment and value added by manufacture, not only

in the developing economies but also in the highly developed economies

of the world.”27

Friedrich List 28 in the 19th century postulated a process of development

proceeding from an agricultural stage through an agricultural stage to an

agricultural-industrial-commercial stage. “Without industrial

development economic progress has a relatively low ceiling. A consensus

has arisen among development theorists and planners that for most

countries, economic development must be viewed primarily in terms of

industrialization.”29

Broadly defined, industrialsation is, “a process in which changes of a

series of strategical production functions are taking place. It involves

those basic changes that accompany the mechanisation of an enterprise,

the building of new industry, the opening of new market and the

exploitation of new territory. This is, in a way, process of ‘deepening’ as

well as ‘widening’ of capital”.30 Industrialisation is a basis of

transformation. This transformation results in a series of interactions

between the pre-existing agricultural society and the compulsions of

industrialisation process. It touches upon behavior patterns, value

systems, religious beliefs, structure of social groupings and economic

arrangements”.31The productivity of workers in industry tends to be

considerably greater than in agriculture.

“Agro-based industries generate the possibilities of co-operative societies.

Development of agro-based industries in the co-operative sector is

important. They help to strengthen other co-operative services such as

supply of agricultural credit, marketing etc. In a subsistence economy of

129

Ghaziabad district, integration of co-operative services with agro-bases

industries is vitally important, if the farmers have to grow vigorously and

steadily important, The agriculturists and the processing units have

mutual interests in more and better production of agricultural produce.

The agro-based industries have created not only the economic

opportunity but also the much needed self confidence in the community

of farmers. It has provided a good integration and combination of rural

and urban economics”.32 Agriculture and agro-based industrial

development are mutually interdependent and the development of the one

can hardly be conceived without the development of the other. But in the

scheme the agricultural development should precede agro-industrial

development so that the surplus income secured in agriculture could find

investment channels in agro-based industries.

As it has been said earlier that the role of agro-based industries in the

economic development of Ghaziabad district is very vital. It generates the

possibility and prosperity of socio-economic and cultural development. It

is the agro-based industries, mainly sugar industry which provides a great

potential of sugar cane and other agricultural raw materials. If the sugar

manufacturing industries were not established in the district, the

cultivation of sugar cane cannot be placed at first rank. This is the case

with wheat cultivation which ranks second. Sugar cane is the chief cash

crop of the area. It has been found that the agro-based industries are

serving the area in its economic development in the following ways:

1. Introduction of latest means of science and technology and

agricultural implements;

2. Establishment of Educational and recreational centres;

3. Provide employment;

4. Improvement in purchasing capacity;

130

5. Mutual Cultural exchange

6. Good yield in quality and quantity both;

7. Development of means of transport and communication.

Before the introduction and establishment of agro-based industries in

Ghaziabad district, the people were bound to draw their livelihood from

the agriculture only which was not sufficient. Some of them were

compelled to run outside in search of livelihood to feed their families. But

now a day, the area is in commanding position to employ their own

people as well as to attract other skilled and unskilled people from the

neighbouring areas and elsewhere. Agro-based industries have generated

double employment (i) agricultural labour, and (ii) industrial labour. The

crops producing raw to agro-based industries, require maximum amount

of manual labour for their cultivation. The cultivation of sugar cane and

rice pioneer among cultivation. The cultivation of sugar cane and rice

pioneer among them require maximum labour for their sowing, weeding,

irrigation and harvesting. A considerable amount of labour is involved in

transportation of produce from field to respective mills, and crushes.

Besides, sugar mills, cotton Textiles, flour industries have provided much

employment.

Table No.5.19

No. of Employment except Agricultural Labour and Individual Weavers

S. No Units No. of Employment

1. Sugar Mills 3456

2. Cane Crushers 2435

3. Flour Mills 776

4. Rice Mills 536

5. Cotton Textile 4257

6. Oil Mills 567

Source- District Industrial Centre & Field Survey.

131

Secondly, the agro-based industries led the farmers to increase their

yields in quality and quantity both. In sugar cane yield quantity dominates

over quality because it is sold on weight basis instead of percentage of

sucrose contents. The farmers have adopted the latest techniques to grow

improved and disease resistant varieties of seeds. They have learnt the

latest means of cultivation, developed and improved means of irrigation,

use of chemical manures as per requirement, chemical examination of

soil etc. “Now farmers are in a position to enjoy latest researches, and

advice aired through mass media and agricultural universities i.e.

Pantnagar and I.A.R.I. New Delhi. The protection and prevention of

crops from insects and pests and the use of insecticides and pesticides to

improve yield are very common. All these above methods have improved

the yield in the area, mainly producing raw materials and hence

developed the socio-economic condition.”33

A suitable cultural exchange of tradition and customs is the fruitful result

of agro-industrialisation in Ghaziabad district. The multi-cornered people

with different tradition, customs and religion and belief, are enjoying the

benefits secured from agro-industries, mainly sugar mills, cotton textiles,

distillery, infant milk food factory, flour and other mills. The full culture

diversity has firmly established itself as a way of life in this plain.

Besides above, the agro-industrial development has put multi-

dimensional development in the economy of the district. Agro-industries

have been a boon to this plain. The inertia and conservatives of the

farmers have dwindled. Farmers of Ghaziabad district are much more

enlightened. The development of tubeweels, tubeweel irrigation, the

growth and availability of more hydro-thermal power, the intensification

of agriculture, the introduction of new service and marketing centres, the

use of mass-media (Radio and T.V) and the generation of transport

132

activity and infra-structure, the availability of capital (finance and

machinery) through banks, the introduction of farm insurance facilities,

the growth of truck farming, have all given a new life to Ghaziabad plain.

This is a process through which we can transform the simple farmer from

an unskilled worker to a highly skilled technical worker fit for absorption

into high sophisticated industries (which is need of hour) through this

means we prepare him mentally and physically to bear the responsibility

of highly developed machine age-the way of life given by modern

civilization.

133

REFRENCES

1. Singh, R.L.(Ed.1971), India: A Regional Geography, NGSI, Varanasi, p.181.

2. Iqbal, B.A. (1981), Agro – based Industries:: Performance and prospects, Alighar, p.1.

3. Ibid., p.1.

4. Mishra, P.L (1994) “Agro Industrial Development in India”, Mohit Publication New Delhi p.

203

5. Books.google.com.in

6. Ibid.

7. Ibid

8. Sinha,op.cit.,p.2

9. .Ibid p.96.

10. http://www.simbhaolisugars.com.

11. Ibid

12. Ibid

13. Ibid

14. http://www.Modiisugars.com

15. Ibid

16. Ibid

17. http://www. agricoop.nic.in.

18. Singh R.P, “Regional Planning in India” p.140

19. http://www.wikimapia.orggur/khandsari.nic.in

20. Books.google.com.in

21. Ibid

22. http://www.en.wikipedia.org/wiki/mustard oil

23. Draft outline of Govt. of India, 1988-89.

24. “Industrial Landscape within National Capital Region of UP”. (1991) By Bimlesh Kumari.

25. Op. cit. Ref.18p.129-130.

26. Kaur, K(1981), “Structure of Industries in India”, New Delhi,p.18

27. . Op. cit. Ref.1p.1

28. Op. cit. Ref.25p.17.

29. Ibid.,p.17

30. Pei-kang change, “Agriculture and Industrialisation”, Cambridge, Massachusets, Harverd University Press, 1849,p 69.

31. Op. cit. Ref.25p.18.

32. Op. cit. Ref.4p.268..

33. Ibid., p. 271.

Documents

MAJOR AGRO-BASED INDUSTRIES