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1
UNIT – I
INTRODUCTION, DESIGN OF THE STUDY AND AREA PROFILE
1.1 INTRODUCTION
Agro-based food industry is of enormous significance for India’s development
because of the vital linkages and synergies that it promotes between the two pillars of the
economy namely Industry and Agriculture1. Food processing covers a spectrum of
products from sub sector comprising agriculture horticulture, plantation animal husbandry
and fisheries. Agro based food industry involves the commercial movement of food from
field to fork.
Modernisation of agriculture alone can raise the consumption levels of agro
food items and boost agriculture exports. Agro- based food industries are expected to play
a major role in ensuring rural prosperity. But, they require a problem – free and highly
modernised agricultural sector.
The agro–based food industries are classified into three categories2.
i) Village Industries
It is owned and run by rural households with very little capital investment and
a high level of manual labour. Pickles, papad, banana and potato chips come under this
category.
ii) Small Scale Industries
It is characterized by medium investment and semi – automation. Edible oil,
rice mills, baking units and confectionaries come under this category.
2
iii) Large Scale Industries
It involves large investment and a high level of automation. Sugar mills, noodle
making and dairy products fall in this category.
1.2 MEANING – AGROBASED FOOD INDUSTRIES
Agro – based food industry includes processing, packing and marketing of
cereals, pulses, spices and masalas, noodles making, mini rice miling units, Indian sweet
making, bee keeping, fruits and vegetables processing, edible oil industry, processing of
maize and ragi, cashew processing, diary units, cattle feed., tea, coffee, animal feed
and so on.
1.3 CONCEPT OF AGRO BASED FOOD INDUSTRY
The perishable nature of food grains need condensing, canning preserving,
dehydrating, drying, smoking, pickling and similar other processes to make them available
throughout the year. To name a few, hulling of paddy into rice; grinding of wheat and
other grains to atta; pulse into dals; sugarcane after conversion into gut; khandsari and
sugar; oilseeds into oil; bottling of fruit juices; preparation of pickles, achar, chutneys,
juices, jams and jellies, dyhydration of pea, pinapple processing and citrus oil. These
could be developed in feed from the processing of citrus fruits areas of production of
specialized crops, vegetables and fruits3.
Besides, in the rice producing areas of East and South, there is further
possibility of setting up of industries for rice milling and rice bran oil. Likewise the
sugarcane producing areas may be developed into manufacturing units for molasses,
alcohol, methylated spirit.
3
1.4 NEED FOR AGRO-BASED FOOD INDUSTRY.
Large scale disguised unemployment is one of the main characteristics of most
of the densely populated under developed economy4. These economies suffer from the
problem of rural over-population, mainly dependent on agriculture as a means of
livelihood. With unchanged techniques of production a large part of the population
engaged in agriculture and allied activities may be removed without reducing the output.
This disguised rural unemployment is the main obstacle to economic development. A
solution for the problem lies in industrialisation of rural areas by starting more number of
agro-based food industries. These industries provide productive employment for the rural
population.
The concentration of industries in urban areas increases the disparities between
the rural and urban income levels. Starting of more agro-based food industries serves as
an effective means of reducing rural-urban disparities. It stops migration of people from
rural to urban areas and accelerates the process of rural development. In brief, agro-based
food industries play an effective role in rural transformation, generation of balanced socio-
economic development through an increase in gainful employment and a rise in income
levels of rural people engaged in agriculture.
Agro-based food industries need a special attention since their importance in
the Indian context gets further enhancement.
1.5 FEATURES OF AGRO-BASED FOOD INDUSTRY
Agro-based food industry is primarily based on the utilization of locally
available raw-material and skill with little capital outlay. India has been a land of villages
and agriculture is going to remain for years to come, the mainstay of its population.
Therefore, the agro-based food industries have the following features.
4
1) These industries should be such as can be conveniently taken up by the people in
the rural areas without any encroachment on their main occupation.
2) They should be simple so that they could be taken up by them with their own
labour and that of the labour of their families.
3) They should, as far as possible, involve small capital, and this should be
available from the financial institutions available locally.
4) They should be based on the regional facilities and comparative advantages of
particular district in regard to the supply of raw-materials, availability of nearby
market and the facilities of power.
5) These industries can be conveniently developed in different parts of the country.
6) There is diverse nature of markets ranging from local and regional to national
and international.
7) There are serious infrastructure constraints in the rural areas for the development
of agro-based food industries.
1.6 IMPORTANCE OF AGRO-BASED FOOD INDUSTRIES
The importance of agro-based food industries in our economy is stressed on the
basis of four arguments-employment, decentralisation, equality and latent resources. Agro
food industries are labour-intensive and are capable of generating more employment per
unit of capital employed. These industries have been the instrument in attaining self-
sufficiency by narrowing the gulf between demand and supply. These industries have
helped in increasing the national income and also in its equal distribution. Befitting the
national genius and temperament and requiring less investment, it has fulfilled the wants
of the lower class people.
5
Another note-worthy importance of this sector is that it takes the benefit of
industrialization to the interior areas and this helps in arresting the lopsided development
of different parts of the country5. The agro based food industries have tremendous export
potential. These industries produce eatables of common man.
Growing agri-business is one of the feasible means of injecting purchasing
power into the rural sector. Above all agro based food industries operate as catalytic
agents for development of infrastructure.
1.7 CLASSIFICATION OF AGRO BASED FOOD INDUSTRIES
The researcher for his study classified the entire agro based food industries of
Kanyakumari district into five major categories – Rice and Flour Mills, Cashew
Processing Units, Fruits and Vegetable Processing Units, Bread Making and
Confectionaries and Vegetables Oil Mills.
CHART – 1.1
CLASSIFICATION OF AGRO BASED FOOD INDUSTRIES
Agro food Industries
Rice and Flour Mills Bread making and
confectionaries
Cashew Processing Units Vegetable oil mills
Vegetable and fruits
processing units
6
1) Rice and Flour mills
Industries doing the operations such as hulling of paddy into rice, rice into
flour, grinding of wheat and other grains to atta, pulses into dals come under this
classification.
2) Cashew Processing units
The operation such as roasting of raw cashew nuts shelling, peeling, grading,
packing and marketing are done in cashew processing units.
3) Fruits and vegetable processing units
These units include bottling of fruit juices, preparation of pickles, and
preparation of snacks by using vegetables.
4) Bread making and confectionaries
Preparation of breads, fruit jams, sweets, biscuits, jellies, cakes, potato chips,
banana chips, tapioca chips, processed ground nuts, cashewnuts, pulses and grain come
under this classification.
5) Vegetable oil Mills
Vegetable oil mills include oils extracted from coconut, rice bran, gingely,
ground nut and pea.
1.8 STATEMENT OF THE PROBLEM
Kanyakumari District is one of the industrially backward districts in Tamil
Nadu, even though the district has adequate raw materials compared to other districts in
Tamil Nadu. The peculiarity of Kanyakumari District is its location, availability of raw
materials for agro-based food industries and its conducive atmospheres for starting
7
industries. Nearly 75 percent of the population of the district depends upon agriculture.
The district is one of the highly literate districts in Tamil Nadu and the skilled human
resources are also available in plenty. But the district is severely affected by
unemployment.
Further, the economy of the district is backward one because of the non -
development of industries especially agro-based food industries. The livelihood of the
rural people and their improvement of their standard of living depend on the extent of the
development of agro-based food industries. But the present number of agro-based food
industries and employment opportunities provided by such industries are low when
compared to its location and availability of raw materials.
On the basis of the above observation, the researcher has raised the following
research questions.
- Why are the existing agro based food industrial units in sickness?
- What are their production and financial problems?
- Are the agro – food industrial entrepreneurs able to market their products?
- Are the existing infrastructural facilities enough to organize the agro based food
industries?
- What are the steps taken by the government to promote such industries ?
- What are the prospects of agro based food industries in Kanyakumari District.
- What is the role of District Industries Centre in Kanyakumari District ?
8
Hence, the study is made to identity the real problems in the agro based
food industries in Kanyakumari District and to give suitable suggestions to overcome the
problems.
1.9 REVIEW OF LITEARTURE
Research studies in the field of agro-based food industries have been
undertaken by some individuals and government agencies. A review of the past studies
helps to define the scope of the present study and provides the frame work for analysis of
problems, drawing inferences and to suggest suitable remedies. Here an attempt is made to
review the studies undertaken in the area of agro based food industries both the studies
made within India and outside India.
Bhattacharya S.N. (1981) in his book “ Development of industries in
Backward Areas” studied economic growth and its problems in five backward district of
North Bengal and concluded that in order to achieve higher economic growth, the
potential for developing smaller and more disbursed agro related industries should be
systematically identified for each local area exploited to the fullest extent possible.1
Putaswamaiah K. (1981) in his book, “Micro plan for Employment. A
Comparative Study” favoured the establishment of those industries which are local
resources based. He points out that the aim should be to create more opportunity per unit
of output and investment.2
1 Battacharya, S.N. (1981), Development of Industries in Backward Areas”, New
Delhi, Metropohitan publishers.
2 Puttaswamaiah K. (1981), Micro Plan for Employment – A Comparative Study”,
New Delhi, Sterling Publishers.
9
Miltion M. Snodgrah and Wallace L.T. (1982) in their book, "Agricultural
Economics and Resource Management" stated that labour costs for marketing domestic
agro based food products account for about half of the marketing bill.3
Sandeep Singh (1995) in his article,” Advantages and structural weaknesses
of Rural Industries” revealed that the growth of rural industries helps in raising the
standard of living of the rural population by providing them more income, consumer
goods at cheaper rates and social economic overheads.4
Mohsin Khan M (1995) in his article, “ Agro – industries as a means of
Rural Development” stated that Rural industries save us from the evil effects of the
concentration of industries such as pollution, over urbanization, congestions and growth of
slums. The role of agro industries is immense in accelerating the process of
industrialization in rural areas in a developing country like India.5
Giriappa S (1996) in his book, “ Rural Industrialization in Backward
Areas”, has analysed the employment as well as income potential from fish as well as
cashew processing industries. He also mentioned that India is among the five major
producers of atleast dozen agricultural commodities in the world. Yet its contribution to
the international trade in farm products is less than 0.5 percent. Even in domestic market,
the agro- processing is not a strong activity. It is estimated that five percent increase in the
3 Milton.M, Snodgrass and Wallace L.T., 1982, Agriculturtal and Economics and
Resource management, Prentice Hall of New Delhi, Second Edition, pp.116-146.
4 Sandeep Singh, (1995), Advantages and Structural Weaknesses of Rural Industries,
Kurushetra, 15(13).
5 Mohsin Khan M. (1995), Agro Induatries as a means of Rural Development,
Kurushetra, 15(12).
10
processing of agricultural commodities can help in generating 65 million jobs for the rural
people.6
Kamta Prasad (2000) in his article, “Poverty Alleviation shift in Paradigms”,
stressed that there is a need for a occupational diversification, by increasing rural
industries and support so as to enable the weaker sections to derive maximum benefits.
The rural industries can compete with the modern large scale industries only through
development of infrastructural facilities and support system.7
Luh B.S and York G.K (2000) in their Book Commercial Vegetable Processing
stated that modern food processing technology has greatly expanded the farm produce
markets both at home and road. The increased need for processed foods has resulted from
increased standard of living, desire for a more diversified diet year – round, expanding
urbanization and an increase in population.8
Raghuramaiah B (2001) in his article, “Indian Food Regulations in the Global
context” described that effect of globalization of food trade on the Indian food regulatory
system are considered with respect to food safety, consumer protection, restrictive policies
on additives and pesticide residues, the definition of natural and artificial codex
alimentations commission rulings, FDA regulations and the need to improve both the
6 Giriappa S. (1996) Rural Industrialisation in Backward Areas, New Delhi; Daya
Publishers, pp. 18-19
7 Kamta Prasad (2000), Poverty alleviation shift in Paradigm, Kurushetra, 50(1).
8 Luh B.S. and York G.K. (2000), “ Commerical vegetable processing”, second
edition U.S. Dept. Agric. Handbook 66.
11
health of the Indian population (via improved drinking water, post harvest technologies)
and inward investment in the Indian Food industry.9
Reddy Y. G. (2001) in his article, “Role of melas in marketing Agro Industrial
products”, aimed at exploring the practical problem faced by the producers participating in
the mela and the customers who buy the products. The study observe that the melas were
considered as an effective strategy for marketing.10
Kiran Sankar Chakraborty (2001) in his article “Market and marketing channel
of Agricultural produces in Tripura” stated that the presence of the rice millers and their
active involvement in the marketing process are found in almost all the sample markets.
They not only buy, process or sell the paddy but sometimes even store it for future rise.11
David Heymann (2002) in his article “Food safety, An essential Public Health
Priority” mentioned that annual mortality on account of food and water borne infectious
diseases in developing countries amounts to the high 2.1 million deaths, mainly of infants
and children. In Industrial countries microbiological food borne illnesses affect upto 30
percent of the population.12
Ramanujam K (2003) in his article, “ Agro- processing industry in Economic
Development” revealed that the role played by agro- processing industries in our economy
has multiple facets and it changes the course of development. There is a vast scope for
9 Raghuramaiah. B.., “ Indian food Regulations in the Global Context” – Indian Food
Industry, Volume. 20, No.2,2001,pp.20-23.
10 Reddy Y.G. (2001), Role of Melas in marketing of Agro Industrial products,
Research Highlights, NIRD, Hyderabad, June 2001, p.70.
11 Kiran Sankar Chakraborty (2001), “ Market and marketing channel of Agricultural
produces in Tripura”, Southern Economist, August 15, pp. 11-13.
12 David Heymann, “ Food Safety, An Essential Public Health Priority” Global Forum
of food Safety Regulations, FAO 28-30, January 2002, p.p. 66-68.
12
development of agro- industries in India. India should develop agro- processing industry
as a sector of economy in a top priority.13
Nair B.C. and Oscar D. Medo (2007) in their article “Food Processing Industry:
A catalyst to Goa’s ailing Agricultural sector” reveals that there is a round the year poor
sales for bakery products, beverages, wine and liquor, packaged water, canned fish, fruits,
dairy products – milk, ice cream, butter, cheese, masalas. As per National Sample Survey
and 55th
round common expenditure survey, the average monthly per capita expenditure of
Goa is much higher than the national average. It is also pertinent to note that in Goa
people spend more on food items than non food items.14
Lakshmi A (2007) in her article "Indian Agriculture- agreement on agriculture"
some issues emphasized most of the developing countries have a persistent shortage of
foreign exchange. In this context, it may be wiser for these countries to have as much
domestic production of necessary food items as their land resources permit. It is desirable,
even if the domestic production is costly compared to the import of the food article.15
In a study by Sidhu and Kamal Ratta (2007), “Development experiences of
Indian Agriculture:. An appraisal of Post – Reform period”, stated that agricultural
developed states like Punjab, Haryana and Western Utterpradesh are facing the problem of
stagnations in agro food production and productivity.16
13
Ramanujan K.N. (2003), Agro- Processing industry in Economic Development,
Kisan world, 30(1).
14 Nair B. C. and Oscar D. Melo, 2007, “Food Processing Industry: A catalyst to Goa’s
ailing agricultural sector”. Southern economist, August.1, pp. 17 – 19.
15 Lakshmi. A, 2007, “Indian Agricultural Agreement on Agricultural: some issues”.
Southern Economist, December 1, pp. 20 – 22
16 M.S. Sidu and Kamal Vatta (2007), “ Development Experience of Indian
Agriculture: An Appraisal of post- Reform Period”- Southern Economist, October,
2007 pp. 9-14.
13
Ramachandran .R (2008) in his article “Indian’s position in Global and
Regional food production” stated that the agricultural sector has its influence on industrial
development which not only helps earning of foreign exchange, but also in satisfying the
basic needs of the population. Therefore, agriculture could assist in transforming a
traditional low –income economy to a modern high income one.17
Archana Skukla (2008) in her article ‘analysis of the problem of fruits and
vegetables processing industry in India’ stated that the country is the second largest
production of fruits and vegetables in the world. However, only 1.78 percent of the total
production is commercially processed which is below the level in comparison to many
developed and developing countries such as Malaysia, Philippines, Brazil and U.S.A18
Anjaiah. J (2008) in his article “Inter- Regional and Inter- State Disparities in
cultivation, production and productivity in food processing agricultural commodities in
Andra Pradesh” described that it is a common knowledge that lack of sufficient quantity
of agricultural material, uncertainities in the economy on account of dependence on
monsoon are the major bottlenecks for agro based units.19
Narsis.I (2008) in his article” Marketing of Agricultural products” stated that
the marketing of agricultural product is regarded as unique and deserving of special
attention due to the perishability and bulkiness of the products involved. Most farm
17
Ramachandran R (2008). Indian’s Position in Global and Regional Food Production,
Kisan world, February, pp. 7 – 9.
18 Archana Skukla (2008), Indian Journal of Agricultural Economics, September 2008,
Volume :63, p.p.387.
19 Anjaiah J., 2008 “ Inter Regional and Inter- state Disparities in cultivation,
production and productivity in food processing Agricultural commodifies in Andra
Pradesh”, Southern Economist, January15, pp. 15-16.
14
products are seasonally produced and are perishable. Storage, even when practicable, is
costly and needs complex organization.20
Murugan M (2008) in his article, “Food processing Industry in India” stressed
that the potential for the food processing industry remains untapped despite the huge
quantities of processable food items that the country produces.21
Shelke R.D and Degaonkar A.M (2008) in their study “Agro-Processing
Industries in India” found that even today hardly 2 percent of the total fruit and vegetables
are used for processing in our country as against 70 percent in Brazil, 78 percent in the
Phillippines, 83 percent in U.S.A.22
Satya Sundaram (2009) in his article “Agro industries : Importance, Problems
and Prospeets”, stated that agro – based food industries are expected to play a major role
in ensuring rural prospecirty but they require a problem – free and highly modernized
agricultural sector.23
Srinvasan (2009) in his article “Projects to standardize ethnic fermented food
stated that the primary products used for making the agro-based foods are selected based
on experience and not on scientific principles.24
20
Narsis I. 2008, “Marketing of Agricultural products”, Kisan world, April 1-15,
pp.18-19.
21 Murugan.M, 2008, “Food Processing Industry in India”, Kisan world, April 15-30,
pp.29-40.
22 Shelka.R.D and Degamkar A.M., 2008, “Agro Processing Industries in India”,
Kisan world, November, pp.,23-24.
23 Sathya Sundaram (2009), “Agro - industries; Imporatnce problems and prospects”,
Yogana,pp. 38-39.
24 Srinivasan (2009), Projects to standardise ethnic fermented food: The Hindu,
Thhiruvananthapuram Edition, dated September 2009, pp. 7.
15
Shinde M. N. (2009) in his article “ Indian Agriculture and Economic
Reforms” stated that in the year 2006 – 07 volume of food production in India is increased
more than 4 times as compared to the year 1950 – 51. But on average its growth rate has
declined to 2.48.25
Venkata Rao P and Ch. Thandava Krishna, (2009) in their articles, Food
security in India” stated that agro based food production increased from 55 million tonnes
in 1951 to 203 million tones in 1999, while the population also increased from 360 million
to 980 million during the same period. National Sample Survey data on hunger show that
the proportion of the rural house holds having two square meals a day of 81 percent in
1983 which rose to 88 percent in 1983 which rose to 88 present in 1991 and 93 percent in
1993.26
Swaminathan M. S. (2009) in his article, “Strengthen Food Security Based on
Home Grow Foods “ stated that increasing population leads to increased demand for agro
food and reduced percapita availability of land and irrigation water.27
Sitalakshmi. S (2009) in her article, “Towards Achieving a Second Green
Revolution – The Role of Radiation Technology in Food Processing Management” stated
that there is an urgent need for developing economies like India to utilize the technological
advances made by BRIT to revamp the food processing sector. Starting from deregulation
of the sector to investing in Research and Development facilities, to providing post harvest
25
M.N. Shinde. (2009), “ Indian agricultural and Economic Reforms”- Southern
Economist, January 1, 2009 pp. 8-12.
26 Dr. P. Venkata Rao and Dr. C.H. Thandava Krishna(2009), “Food Security in India”
Kisan World – June- 2009 pp. 7-8.
27 M.S. Swaminathan (2009), “Strengthening food security based on Home Grown
food”- Indian Journal of Agricultural Economics – volume.64, April – June pp. 179.
16
storage facilities and marketing infrastructure, to linking economic policies to investments
in agricultural extension services, a lot of ground has been cleared for the successful
implementation of radiation technology.28
Syed Alag Mujtaba (2009) in his article “ Agro based sugarcane Industries in
India” stated that the economy is yet to realize the full potential of agro- based food
industries. The domestic as well as global market is enormous. Only with mass
production aided by modern technology and intensive marketing can the domestic market
as well as the export market be exploited to the fullest extent.29
Major Kumar Sarma (2009) in his article “Productivity of growth of food
grains of India” stated that a sustainable agricultural system is one that indefinitely meets
mounting demand for agro-based food with the increase in population growth.30
Saraswathi and Durai Raj (2009) in their article “Emerging food Retail chains
in India” stated that to ensure food safety and maintain product integrity from the source to
the customer (farm to place) the food retailing companies have to establish a totally
integrated infrastructure and services package. This connects and maintains the flow of
food from the source of farmers and processes to the customer.31
28
Sitalakshmi S., “Towards achieving a second Green Revoluation- The role of
Radiation Technology in food processing Management”- Indian Journal of
Marketing, January, 2009 pp. 12-16.
29 Syed Alag Majabu Pankaj, “ Agro- based sugarcane Industries in India”, Southern
Economist, June, 15, 2009, pp 9-10.
30 Major Kumar Sarma, “ Productivity of Growth of food grains of India- An analysis”,
Southern Economist, May 15, 2009, pp.13-14.
31 Saraswathi and Devaraj, “Emerging Food Retail Chains in India”, Southern
Economist, July 15, 2009, pp-37-38.
17
Goenka S.P (2009) in his article “Look East for Food and Energy Security”
stated that investment in agro- industries can ease the pressure of the demands of growing
population by synergizing the national resources available in the Indo - China region with
the superior technology and manpower resources available in India.32
Sanjeeve Rao N. and Tulasi Das V in their article “Globalization and
Agricultural Marketing” expressed that the development of high yielding fertilizers, use of
plant production methods and use of modern agricultural implements helped in increasing
food production and generate marketable surplus.33
Yadav D.B, H.R.Shine and Dorage J.T. (2009) in their article “Export potential
of major fruits” stated that implementation of WTO results into lot of changes in agro-
food market in India and abroad. India is the second largest producer of fruits in the world
after China. There is an overall increase in the demand for fruits for consumption both in
the fresh and the processed form which has resulted in wide diversification on production
pattern globally.34
Kathirvel N (2009) in his article “ A Story on Satisfaction level of Farmers
Towards Production and Marketing of Agricultural products” stated that Indian farmers
are unable to secure a fair deal at the marketing and production stages of their produce and
an average farmer is denied the full fruits of his industry. The farmers need the services of
well-organised marketing system supported by marketing co-operatives, integrated means
of transport and scientific storage facilities.35
32
Goenka S.P. (2001) “Look East for Food & Energy Security”, The Hindu, September
6, p.14.
33 Sanjeeva Rao and V. Tulasi Das,(2009) “ Globalisation and Agricultural Marketing:
Some Strategies for Success”, Southern Economist, February 15, pp.16-18.
34 Yadav D.B., Shinde H.R., and Dorage J.T. (2009), Export potential of major fruits”,
Southern Economist, March pp. 13-14.
35 Kathitvel N. (2009), “ A Study on Satisfaction Level of Farmers Towards Production
and Marketing of Agricultural Products”, Indian Journal of Marketing, February,
2009 pp.41-54.
18
Nageswara Rao M and Srinivas Rao S (2009) in their article “ Direction of
Trade in Indian Agricultural Commodity Exports” stated that the share of agricultural
commodities in the total value of trade is dwindling very fast. Indian exporters are
required to improve their processing and packaging facilities to meet the international
quality standards.36
Perumalsamy R (2009) in his article “ Agricultural Marketing in India’s
Economy” stated that as we have a tradition of agricultural production, marketing and
allied commercial activities, now it is time for us to brainstorm and come out with new
ideas of value added services. These value added services will give the existing
agricultural engine a new dimension. The next logical step could be food processing
which not only could be another revenue generating area but also can provide lots of full
time employment to our youths.37
Maheskumar.S (2009) in his article “ Food Industry in India” stated that while
India has an abundant supply of food, the food processing industry is still nascent. The
food processing has been declared a priority sector with various government incentives.38
Seshaadri Kumar N. (2010) in his article "Food security for India” stated that
the percapita yearly food grain consumption of 144 kilogram for an Indian compared to
300 kilograms for a China reveals loudly the reason for Chinese on top and India at the
bottom of the Olympic Medal Tally.39
36
Nageswara Rao M. and Srinivas Rao S, 2009, “ Direction of Trade in Indian
agricultural Ecommodity Exports”, Southern Economist February1, pp.21-23.
37 Perumalswamy.R,. 2009, “Agricultural Marketing in India Economy”, Kisan world,
September, pp.31-32.
38 Maheshkumar S (2009)” Food Industry in India”, Kisan World, September pp. 15 – 17.
39 Seshadri Kumar.N., 2010, “Food Security for India”, Kisan world, Vol.37, April,
pp.11-15.
19
Ammananya K.K (2010) in his article “Union Budget – Primary to Agriculture
and Rural Development” quoted that increased funds is made available on development of
food processing industries by providing state of the art infrastructure. In addition to 10
mega food parks already being set up, the government has decided to set up 5 more such
parks. The government has also proposed major reduction in indirect taxes for agricultural
and food processing industries.40
1.10 OBJECTIVES OF THE STUDY
On the basis of the above research questions, the following are the specific
objectives of the study.
1. To find out the growth of agro-based food industries in India and Tamil Nadu.
2. To study the agro-based food industries in Kanyakumari District.
3. To find out the extent to which production problems of the agro based food
industries in Kanyakumari district affect their growth.
4. To find out the extent to which marketing problems of the agro based food
industries in Kanyakumari district affect their growth.
5. To find out the extent to which financial problems of the agro based food
industries in Kanyakumari district affect their growth.
6. To offer suitable suggestions on the basis of the findings in the study.
1.11 HYPOTHESIS
1. The production of different category of agro food industry is significantly
influenced by the problems of raw – material, machineries, power supply, labour
and mismanagement.
40
Ammannya K. K. 2010, “Union Budget Primary to Agriucltural and Rural
Development”, Southern Economics, Vol.48, March.15, pp.43-44.
20
2. The marketing of agro foods of different category of agro based food industry is
significantly influenced by the problems of poor market location, terms of selling,
poor sales promotion, impact of economic policies, low quantity products, poor
marketing operation, lack of technical developments and lack of facilitating
functions.
3. The finance of different category of agro based food industry is significantly
influenced by the problems of delay in getting loan, high rate of interest, difficult
procedure of borrowing, non prompt settlement, insufficient finance and diversion
of business finance.
4. The difference in annual income of each category of agro – based food industries is
not due to pure chance.
1.12 DEFINITION OF CONCEPTS
Agro based food industry is a pooled term from two words: one is agriculture
and the other is food industry
Agriculture
Agriculture is a term which refers to the work of converting the natural input
into output, essential for the survival of human beings in this world. The farmers in our
country are mostly uneducated. Due to lack of education and technological upgradation
they are unable to get effective information about processing of agricultural produce. The
selling of agricultural produce may be carried out directly by the farmers themselves or
through some agents.
21
Food Industry
India's agro based food processing industry covers rice and flour mills, fruits
and vegetables processing, meat and poultry, milk and milk products, alcoholic beverages,
fishing, grain processing and other consumer product groups like confectionary, bread and
sweet making, soy based products, protein foods, vegetable oil mills. The agro food
processing sectors in India are of the largest in terms of production, consumption, export
and growth prospects. Agro food industries produce major processed products from minor
agriculture produce. Most fruits and vegetables produced in India are still consumed fresh
except for a very small quantity going for manufacture of jam, jelly, juice, confectionaries
syrup, beverages, squash, wine, sauces, pickle, dehydration of aonla, karonda, custard
apple, tamarind and canning of foods.
1.13 METHODOLOGY
1.13.1 SOURCES OF DATA
The present study has been carried out on the basis of primary as well as
secondary data.
Primary data has been collected from the agro-food industrial entrepreneurs
who are at present primarily dependent on agro-food industrial activities as their primary
occupation. Data have been collected through interview schedules.
Secondary data related to production, sales, employment, earnings and exports
of agro-food industries in India were collected from the annual reports of the Ministry of
Industries and agro industrial units. Production, value, sales, employment and earnings of
agro food industries of Tamil Nadu were collected from the Annual Survey of Industries.
Secondary data concerning number of agro food industrial units, employment, production,
fixed investment, working capital for a period of 10 years (2000-2010) were collected
22
from the records, annual reports, and action plans of the District Industries Center.
Additional information was supplemented by Reports of Assistant Director of Statistries,
Nagercoil.
1.13.2 METHOD OF SAMPLE SELECTION
A field survey has been conducted covering 327 sample agro food industrial
units of the nine blocks and four municipalities of the district. The Proportionate Random
Sampling method has been used. Five categories of agro food industries namely flour
mills, cashew processing units, vegetable and fruits processing units, bread making and
confectionaries and vegetable oil mills are prominent in the district. Twenty five percent
of each of these category of food industries is taken for the study. Table 1.1 gives the
details of the sample selection of agro based food industries in Kanyakumari District.
TABLE 1.1
SAMPLE SELECTION OF AGRO-BASED FOOD INDUSTRIES
(25 Percent of each Category)
Sl. No Category of Industries Total Units Samples selected
1 Flour Mills 208 52
2 Cashew Processing Units 301 75
3 Vegetable and fruit Processing units 416 104
4 Bread making and Confectionaries 249 62
5 Vegetable oil mills 136 34
Total 1310 327
23
1.14 STATISTICAL TOOLS APPLIED FOR ANALYSIS
i) GARRETT RANKING
Garrett Ranking is applied to rank the various production, marketing and
financial problems of agro based food industries
ii) CHI – SQUARE TEST
Chi – Square test is applied to test the null hypothesis relating to various problems
of agro based food industries in Kanyakumari district
iii) RETURN ON CAPITAL EMPLOYED
Return on Capital Employed is applied to find out the rate of return of different
category of agro food industries for 10 years.
Return on Capital employed = Net Profit after tax + Interest
x 100Capital Employed
iv) ANOVA
ANNOVA is applied to find out the relationship existing between the profit
earned by each category of food industry and its year of operation.
1.15 STUDY AREA
As the topic of study is agro-based food industries, the researcher has covered
the agro-food industrial units of the nine blocks namely Agasteeswaram, Thovalai,
Rajakkamangalam, Kurunthencode, Thukalai, Thiruvattar, Munchirai, Killiyoor and
Melpuram and four municipalities of the district-namely Nagercoil, Colachel, Thuckalai
and Kuzhithurai.
24
1.16 LIMITATIONS OF THE STUDY
Though proper care is taken in the successful completion of the study, it is not
free from the following limitations and constraints.
The researcher encountered problems in obtaining empirical evidence from the
sample respondents on the various issues of the agro based food industries. In many cases
the data produced by the respondents were considered to be inadequate. Therefore, in
order to fill up the gaps the agro food industrial units were visited. In spite of the possible
efforts put in by the researcher, there are little data constraints where impact on
interpretations of the study is negligible as sufficient case has been taken to draw
meaningful conclusions.
The researcher experienced data constraints in the management of secondary
data too. The data published by different organizations on particular issues for a given
period of time are not been uniform. However, the researcher could overcome the gaps by
consulting experts in the field and using his own personal judgment without prejudice in
organizing the data.
1.17. PERIOD OF THE STUDY
The study is conducted for a period of two years (2009 and 2010) but the
particulars of production, sales, capital and profit of agro based food industries are taken
for a period of ten tears from 2000 to 2009.
25
1.18 THE PROFILE OF STUDY AREA
Kanyakumari district is named after the goddess “Kanyakumari”. It is
surrounded by majestic hills and fertile plains, bordered by colourful sea shores, fringed
with coconut trees and paddy fields and closely interwoven with temples, churches and
other edifices. The name of the district is spelled as “Kanyakumari” in official records
which is in tune with the spoken name of the district in Tamil language.
Kanyakumari district was reorganized and merged with Tamil Nadu on 1st
November 1956. This is the smallest district in Tamil Nadu. It ranks first in literacy among
other districts in Tamil Nadu. The district is bound by Tirunelveli district in the North
East, Kerala state in the North west and the confluence of Arabian and Indian Oceans in
the west and south.
1.18.1 ADMINSTRATIVE SET UP
Kanyakumari district comprises of four taluks – Agastesswaram, Thovalai,
Kalkulam and Vilavancode. The District has nine blocks comprising of 56 town
panchayats and 99 village panchayats. There are four municipalities, six assembly
constituencies and one parliamentary constituency.
1.18.2 POPULATION
Kanyakumari district is densely populated with 16,69,763 people which
includes 8,29,542 males and 8,40,221 females. The density of population is 992 per sq.km.
The block – wise details of the population are given in Table 3.1.
26
TABLE 1.2
AREA AND POPULATION OF THE BLOCKS AND MUNICIPALITIES
Name of the
Block. Municipality
Area (sq. Km) Population
(Persons)
Agastesswaram 143.26 1,32,413
Rajakamangalam 135.49 1,27,325
Thovalai 360.91 97.802
Kurunthencode 109.54 1,68,810
Thuckalay 127.41 1,62.019
Thiruvattar 88.37 1,59,182
Killiyoor 138.86 1,51,034
Munchirai 71.45 1,75,454
Melpuram 277.57 1,73,426
Municipalities
Nagercoil 19.37 1,90,084
Padmanabupuram 6.47 19,269
Colachel 5.18 24,305
Kuzhithurai 5.15 19,226
Source: District Credit plan, 2008 - 09
Table 1.2 indicates that Agasteeswaram block has the largest area
(143.26sqkm) and Munchirai block has the least area (71.45 sqkm). But the population is
the highest in Munchirai block (1,75,454 persons). The rural population (14,16,879) is
higher than the urban population (2,52,884)
27
1.18.3 LITERACY
The literacy rate is one of the important factors determining the socio-
economic development of a district and the number of literates in various blocks and
municipalities are given in Table 1.3.
TABLE 1.3
LITERATES OF BOLCKS AND MUNICIPALITIES
Name of the Block/
Municipality
Literates
Agastesswaram 85970
Rajakamangalam 92573
Thovalai 71075
Kurunthencode 119818
Thuckalay 109262
Killiyoor 105231
Munchirai 116522
Melpuram 120296
Municipalities
Nagercoil 152274
Padmanabapuram 14961
Colachel 16822
Kuzhithurai 14740
Source: District Credit Plan, 2008 - 09
Table 1.3 reveals that of the nine blocks, Kurunthencode has the highest
number of literates (1,19,818) and among the municipalities Nagercoil has the highest number
of literates (1,52, 274).
28
1.18.4 OCCUPATIONAL STRUCTURE OF LABOUR FORCE
People work in manufacturing, processing, servicing and repairing industries.
Transport, commerce, storage and communication play an important role in providing
employment opportunities to the labour force in the district. The employed labour of the
district (category wise) is given in Table 1.4.
TABLE 1.4
OCCUAPTIONAL STRUCTURE OF LABOUR FORCE IN KANYAKUMARI
DISTRICT
Category Number of
Laborers
Male Female
Cultivators 61,567 57,968
(94.15)
3,599
(5.84)
Agricultural labourers 1,77,410 1,59,305
(89.79)
18,105
(10.20)
Livestock, forestry, fishing, hunting,
plantation, orchards allied activities
manufacturing processing and servicing
33, 996 32,514
(98.5)
1,482
(1.4)
Repair (household)
Other than household industries
13,377
36,837
5177
(38.70)
23,435
(64.49)
8200
(61.30)
13,402
(35.51)
29
Mining and quarrying 928 829
(89.35)
99
(10.870)
Construction 20,524 20,46
(99.42)
118
(6)
Trade and commerce 38,601
34,998
(90.66)
3,603
(9.44)
Transport, storage & communication 16,404 15,964
(97.3)
140(2.7)
Other services (govt.Employees) 64,443 44,445
(97.3)
19998
(2.7)
Marginal workers (daily wages) 24,04,4 5,262
(21.88)
18,782
(78.12)
Child labour 116 84 32
Total worker 4,88,247 4,00,303
(81.99)
87,824
(57.99)
Source: Records of Statistical office. Nagercoil, Figures within parenthesis denote
percentage.
Table 1.4 reveals that, out of the total population of 16,69,763, total workers
constitute only 4,88,247 and the non –workers constitute 11,81,516. Out of the different
categories of workers, those employed in manufacturing (household industries and non-
household industries) are 50,214.
30
Out of the bulk of the labour force unemployed 1,75,869 persons have
registered in the District Employment Office. Details of registered graduates and technical
degree holders are given in the Table 1.5.
TABLE 1.5
REGISTERED EDUCATED UNEMPLOYED IN KANYAKUMARI DISTRICT
Category Number of Person registered
Below matriculates 10,993
Matriculates and higher Secondary 1, 18, 602
Graduates 21, 951
Diploma holders in Engineering, Civil,
mechanical and Electrial I. T. I holders
7, 388
Draughtsman, Welders, fitters, plumbers,
moulders
9, 850
Electroplaters, turners, Black smiths 547
Mechanics Wire men 6,538
Total 1,75,869
Source : Action plan, District Industries Centre, 2007.
Table 1.5 indicates that out of 1,75,869 unemployed persons who have
registered in the employment office, 2,323are technically qualified persons who can be
utilized by rural entrepreneurs of the district.
1.18.5 AGRICULTURAL RESOURCES
Kanyakumari district is predominantly an agricultural district having a total
geographical area 1,67,184 hectares. It is rich in various food and commercial crops.
Farmers in Kanyakumari district cultivate mainly plantation and horticulture crops. The
major plantation and horticulture crops are coconut, rubber, banana, cashew, mango, jack
fruits and pineapple. Coconut groves are concentrated in Agastesswaram,
Rajakamangalam, Thiruvattar, Munchirai and Killiyoor blocks. Rubber is cultivated
mostly in Kalkulam and Vilavancode Taluks. Banana is extensively cultivated in the
31
district. The particulars of the approximate area and the annual production of various crops
are given in Table 1.6
TABLE 1.6
AREA AND ANNUAL PRODUCTION OF CROPS
Name Area under cultivation
(in H.A)
Approximate Production
(in Tonnes)
Paddy 40,000 1,61,320
Pulses 4,000 1,760
Banana 7,250 28,500
Coconut 20,719 210 million nuts
Groundnut 145 203
Mango 1, 808 18,100
Jack 855 17,100
Cashew 2,376 2,400
Tapioca 11,402 1,71,030
Rubber 15,699 11,800
Pepper 360 180
Tamarind 1,817 18,870
Arecanut 801 13,000
Vegetables 144 125
Clove 834 630
Source : Action plan. 2008, DIC, Nagercoil.
32
Table 1.6 clearly reveals the existing production of the food and commercial
crops and also the avenue in industrial application.
Paddy serves as a source for the establishment of modern rice mills. Arecanut
is sent to Kumbakonam and Pudukotai for the manufacture of several kinds of secented
panuspari. Rubber in the form of sheets and latex offer ample scope for industrial
utilization. Major portion of raw rubber produced is used by rubber based industries for
the manufacture of rubber bands, balls, hand gloves, tubes, tyre and rubber roller. Banana
is made use of food industries for the manufacture of banana chips and banana powder.
Fresh and dry fruits are used by pickle making, jam making and fruit preservation
industries. Tapioca is the major tuber crop cultivated in this district. It is the raw material
for the manufacturing of Sagorice, liquid glucose and gum starch. Coconut is the major
plantation crop cultivated in extensive areas in this district. By utilizing the husks, about
5000 metric tonnes of white fibre and 1,800 metric tonnes of brown fibre are produced in
this district. Oil and Coir industries make use of coconut and fibre as raw materials for
their production. Palm and jaggery industries are started using sugar crop. Palmyrah is the
only sugar crop grown in this district.
1.18.6 MINERAL RESOURCES
Manavalakurichi a coastal is naturally blesses with rare earth minerals like
Brown Illmenite., Monazite, Rutile, Garet, Silumenite and Zicon. M/S Indian Rare Earth
Ltd. Manavalakurichi a Government of India Enterprise, is engaged in the separation of
these minerals. Some minerals are exported to Japan and other countries from the Colachel
coast. This has secured Kanyakumari district a place in the mineral map of the world.
There is demand for setting up a Titanium factory also.
33
The annual production and the end use of the major minerals of the district are
given in Table 1.7
TABLE 1.7
PRODUCTION, VALUE AND END USE OF MAJOR MINERALS
Name of the Mineral Production
(In Tonnes)
Value
(Rs In 000)
End use
Illuminate (Black
Sand)
90,700 23,808,75 Manufacture of
white paint
Monozite (radio
active material)
3,100 9,000 Atomic energy
Zircon 9,650 1,73,700 Atomic Energy
Rutile (Titan Oxide) 4,000 1,26,000 Welding electrodes
Garnet (Silicon
carbon)
6,540 16,350 Abrasives and
grinding wheels
Source : District Stastical Handbook.
Table 1.7 reveals that, five major minerals available in the District contribute to
the industrial development for they are used in the manufacture of white paints for atomic
energy, to produce welding electrodes and grinding wheels.
In addition to this lime shell is available in the coastal lagoons near
Thamaraikulam, Manakudy and Rajakamangalam. The lime shells available in these
regions amount to 0.96 million tonnes. This good quality shell is a raw material for the
manufacture of calcium carbide, coated cement, and bleaching power. It is also used in
chemical, paper and fertilizer industries. Pottery and stone carving are carried out as
cottage industries.
34
1.18.7 FOREST RESOURCES
Forests are an important renewable resources. They occupy a significant place
in the economy of the district and confer many benefits. They contribute to the industrial
development of the district. The total area under forests in the nine blocks of the district is
given in Table 1.8.
TABLE 1.8
AREA UNDER FORESTS IN THE STUDY AREA
Name of the Block Area Under Forests (in hectares)
Agastesswaram 795
Rajakamangalam -
Thovalai 20,856
Kurunthencode 813
Thuckalay 291
Thiruvattar 19,704
Munchirai -
Killyoor -
Melpuram 11,696
Total 54,155
Source : Action plan, DIC, Nagercoil.
Table 1.8 reveals that out of the total geographical area of the district, 54,155
hectares of land are covered under forests with rich resources of quality timber, spices,
creepers, bamboos and medicinal herbs. It is estimated that nearly 3,500 species are grown
35
in this region. Soft wood species like Elav, Alpicea, Perumaran, Malaivembu and
Manjakadambu are scarce now.
However, the available varieties of wood are used by wood – based industries
for the manufacturing of carved wooden furniture, splints and veneers, statues and wooden
electrical switch boxes in this sistrict.
The father of Siddha Medicines, saint Agasthiya is believed to have found that
Kanyakumari forest ranges are naturally blessed with rare plants of medicinal value. The
old Tamil system of medicine combined with modern technology and research offers
immense scope in the field of Siddha medical preparations.
1.18.8 LIVESTOCK RESOURCES
Kanyakumari district offers a good agro-climate condition for the development
of animal husbandry in conjunction with dairying offers a more stable base for sustained
income of the rural households in the district. The live stock population of the district is
furnished in Table 1.9
TABLE 1.9
LIVESTOCK POPULATION OF KANYAKUMARI DISTRICT IN 2008
Types of Livestock Numbers
Milch animal 1,36,520
Goat 62,484(7.28)
Poultry 6,48,598(75.58)
Sheep 1.570(0.18)
Pigs 3,642(0.42)
Ducks 5,385(0.63)
Total 8.58.195(100)
Source: Gazetters of India, Tamil Nadu State, Kanyakumari District.
36
Table 1.9 indicates that poultry constitutes 75.58 percent of the livestock
population followed by milk animals. Milk is used in the manufacturing of ice creams and
other milk based products. The animal bones and mutton tallow are good sources for
industries replication. The hides and skins available in this district are being utilized for
tanning in other districts of Tamilnadu. Kanya milk union collects milk from milk
producers cooperative society for processing it for further sales.
1.18.9 FLORICULTURE
Flowers such as Jasmine, Jathimalli, Mullai, Norium and Chrysanthemum are
mainly cultivated in Thovalai Taluk. Flowers like Cosandra and Markolundu are also
grown. The total area under flower cultivation is 185 hectares in the district. Hence scent
manufacturing industry can easily thrive here.
1.18.10 RAW MATERIALS AVAILABLE FOR INDUSTRIES IN
KANYAKUMARI DISTRICT
RUBBER
About 21, 128 hectares of land is under rubber cultivation and 22, 000 tonnes
of rubber latex is produced per annum. At present, 75 industries are engaged in the
manufactures of rubber based products like rubber gloves, rubber foams, rubber tread,
procured rubber, rubber tipped goods and rubber moulded good. The letter of intent from
the government was already given to TIDCO to start a project worth of 400 crores at
Chenbagaramanputhoor for manufacturing automobile Tyres and Tubes.
COCONUT
About 19,692 hectares of land is under cultivation of coconut and annual
production is estimated as 22 crores of nuts for the extraction of 16,000 tonnes of coconut
37
fibre per annum. Based on the above raw materials there are 240 coir based industries
functioning for the extraction of coccnut fibre, coir mat and mattings, and curled coir.
Only one medium scale industry which is 100 percent export oriented is functioning at
Ammandiviali for the manufacture of coir mat and mattings. The district is having further
scope to start coconut based industries like activated carbon coconut shell powder,
desicated coconut.
FRUITS AND VEGETABLES
The annual production of fruits in the district is estimated as 30 tonnes. At
present one fruit processing unit is functioning under cooperative sector engaged in the
manufacturing of fruit pulp and 130 cottage industries are engaged in the making of
pickles jam and juice. Tapioca is cultivated in about 10,200 hectares of land and annual
production is estimated as 1,05,000 tonns. There are 12 units, which are functioning in this
district for the utillisation of the above raw materials and there is still scope for starting
more industries for the manufacture of tapioca flour.
1.18.11 SPECIAL TYPE OF INDUSTRIES
A special feature of this is that a number of cashew nut industries are
functioning in the district with 251 units providing employment to 68,000 persons (90
percent of women workers). Ninety percent of the raw materials required for the above
industries is now being imported from foreign countries. In addition to this, 38 fishnet
units are also functioning in the district.
Twenty four industrial Co – operative Societies are functioning in this district
in the manufacturing activities of coir products, enegineering, printing, stone carving and
metals, providing the employment opportunity to about 1850 perosns. One co-operative
industrial Estate was recently established at Aralvoimozhi and 44 plots have been allotted
38
to new entrepreneurs. Under the control of Small Industries Development Corporation
(SIDCO) two industrial estates are functioning at Konam and Kappikadu and 43 units are
functioning in both the estates providing employment to 390 persons.
There are nine medium scale industries in Kanaykumari district. The details are
given in Table 1.10.
TABLE 1.10
MEDIUM SCALE INDUSTRIES IN KANIYAKUMARI DISTRICT
Name and Address Product name Production capacity
Kanyakumari Industrial Co – operative
Spinning Mill, Aralvoimozhi
Cotton Yarn 25,000 spindles
Nagammal Spinning Mill Nagercoil Cotton Yarn 2,41,160 Spindles
TAC Floor Co., Ammandivilai Coir Products 50,000sq.mts.
Indian Rare Earths Ktd.
Manavalakurichi
Rare Earth Soil 24,8000 M. T Per month
Coromonedel (Pvt. Ltd) Chemically treated
Rubber wood
500 M. T per month
Borax Morarji Ltd.,
Chenbagaramanputhur
Treated wood 12,000cub.m
Annaretnam Rubber Industries Sahaya
Nagar, vellamadam
Surgical gloves 24 crores
Pon Jesly Filaments Ltd., Sahaya
Nagar, Vellamadam
Nylon Mono
filament
180T
Vasantham Mono Filaments (Pvt Ltd)
Thammathukonam
Nylon Mono
Filament
180T.
Source : District industries Centre, Nagercoil.
39
3.18.12 INFRASTRUCTURAL FACILITIES
The district offers good infrastructural facilities conducive for the growth of
industries and the details are given in suitable table.
ROADS
Table 1.11 illustrates the details of roads available in the district.
TABLE 1.11
ROADS AVAILABLE IN KANYAKUMARI DISTRICT
Types of Roads Surfaced (Kms)
National Highways 77.60
State highways 50.66
Major District Roads 274.80
Other District 853.05
Union Roads 863.45
Panchayat Roads 210.60
From the Table 1.11 it is found that the existing roads link the District, State
and Nation. Commodities produced by rural industries functioning in the nine blocks are
marked within the locality and also reached out to the other municipal areas of the district
through roadways.
COMMUNICATION
Telephone, telegraph and postal network are very essential for industries
development of any region. It is available even in the village and hamlets of this district.
40
All the 27 telephone exchange in the district have been included in the Subscribers Trunk
Dialing (S.T.D) map of the Telephone Department.
Table 1.12 illustrates the effective net work of communication facilities
available in the district.
TABLE 1.12
COMMUNICATION NETWORK FACILITIES IN THE STUDY AREA
Details of Communication Number available
Post and Telegraph office 33
Telephone Exchanges 27
Public call offices 208
Head post offices 2
Sub post offices 106
Branch post offices 156
Letter Boxes 1316
Telephone connection 33,314
Source : Office of Telecom District Manager, Nagercoil and Office of Post Master, Head
Post Office, Nagercoil.
Table 1.12 clearly reveals the good network of communication available for the
rural industries. Through telephone and now through cell phone facility, the agro food
entrepreneurs can easily contact their suppliers of raw materials and the customers are able
41
to contact the entrepreneurs at short intervals. This reduces undue delay and promotes
prompt delivery of goods, contributing to the industrial development of the district.
ELECTRICITY
Electricity is one of the basic infrastructure facilities for industrial
development. As per the information available form the Tamil Nadu Electricity Board
(T.N.E.B), Nagercoil, all rural hamlets of Kanyakumari district are electrified. The agro
food enterpresneurs can get speedy supply. The available power generation through,
Hydro energy is shown in Table 1.13.
TABLE 1.13
DETAILS OF SUB – STATIONS, NUMBER OF TRANSFORMERS,
(Voltage Ratio and Installed Capacity)
Name of the Sub – Station Volatge Ratio No. of power Transformer
capacity
Nagercoil 110/11Kv 2x10MVA
Thuckalay 110/33Kv 1x16 MVA
Pechipparai 110/11Kv 1x5MVA
Kizhithurai 110/11Kv 1x10KVA
Kanyakumari 33/11Kv 1x3MVA
Vallan Kumaravilai 33/11Kv 1x5MVA
Mamavalakurichi 33/11Kv 1x5 MVA
Minchirai 110/11Kv 1x10MVA
Veeyanoor 110/11Kv 1x10MVA
Source : Office of the Superintending Engineer, TNEB, Kanyakumari Electricity
Distribution Circle , Nagercoil
42
HYDEL ENERGY
Further Hydro – electric power generation in the district is detailed in Table 1.14.
TABLE 1.14
POWER GENERATION THROUGH HYDEL ENERGY
Place Capacity Power generation
Kodayar I 1 x 60MW 145.027MW
KodayarII 1 x 40 MW 64.38 MV
Table 1.14 shows that hydel power is generated at Kodayar through two
projects. Besides, power is generated through non – conventional resources. The installed
and expected production capacity through windmill is 14,73,836 units through 406 fans.
1.18.13 FINANCIAL CORPORATION
TIIC AND SIPCOT
Tamil Nadu Industrial Investment Corporation (TIIC) is providing loan
facilities to agro based food industries. The maximum limits of term loans available from
TIIC and SIPCOT are given in Table 1.15
TABLE 1.15
EXTENT OF LOANS PROVIDED BY GOVT. FINANCIAL INSTITUTIONS FOR
A SINGLE PROJECT
Category Rupees in lakhs
TIIC Loans for partnership and sole
proprietorship concerns 30.00
SIPCOT (Loans for companies) 90.00
Source : Office of the Branch Manager, TIIC Ltd, Nagercoil.
43
TIIC grants financial assistance for setting up new industries, for expansion,
diversification, renovation and modernisation of existing Industries. It offers long and
medium term financial assistance. SIPCOT provides the following types of financial
assistance.
a) Term loan under IDBI Refinance scheme
b) IDBI’s seed capital scheme.
c) Underwriting the capital issues
d) Guarantee to loan from commercial banks
NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT (NABARD)
NABARD has entered into the field assistance of non – farm activities
especially to cottage rural and small scale industries. Under this scheme, composite loan
assistance both for capital and working capital investment up to rupees five lakhs (Rs. 5
lakhs) is available at an interest of 10 percent. The Kanyakumari District Central Co –
operative Bank and The Tamil Nadu Industrial Cooopeartive Bank implementing this
scheme under refinance from NABARD.
Table 3.16 shows that the amount of investment credit given to rural industries
of the District, is Rs. 385 lakhs. Out of the nine blocks the investment credit is the highest
in Rajakamangalam block.
KHADI VILLAGE INDUSTRIES COMMISSION MARGIN MONEY SCHEME
To generate rural employment through setting up of cottage and village
industries, KVIC has introduced Margin money scheme. The scheme enivisages that 25
percent of the project cost for projects up to Rs. 10.00 lakhs will be provided as margin
money (30 percent in the case of weaker section). For projects above Rs. 10 lakh plus 10
44
percent of the remaining cost of the project. Since 2000 the scheme has become popular
with bank branches in the district.
1.18.14 INDUSTRIAL ESTATES
Industrial estates are columns or group of industrial units is one premise.
Generally they are formed by the Government with the support of District Industries
Centre (DIC). The industrial estate provides Land and Buildings and all other infra
structural facilities such as road, communication, power, godown, security and water
supply to entrepreneurs. The cost of developing the industrial estates is shared by central
and state governments each taking up 50 percent of the cost.
1.18.15 BLOCK PROFILE
There are nine blocks in Kanyakumari District and the resource of the blocks
are analysed.
AGASTEESWARAM BLOCK
This block is the South east part of Kanyakumari District. The area of the
clock is 13693.03 ha. The average rainfall is 694m.m. Mixed typed of red and alluvial
soil occur in this block. Major crops in this block are paddy, banana and coconut. This
block has a coastal area of 12 kms. A fishing harbour is being constructed at
Chinnamuttam. Mylaudy is a famous place for stone querrying, carving idols, epitaphs
and other sculptural arts. Kanyakumari, one of the important spots of natural beauty in the
world is situated in the block and it is the only place in the country where one can
simultaneously view sun set and moon-rise. Circular Fort and Sucheendrum Temple are
other important tourist centres in the block.
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THOVALAI BLOCK
This block is in the south east of Kanyakumari District. The area of the block
is 36908ha. The average rainfall is 1015m.m. Mixed types of red and alluvial soil occur
in the block. Major crops in the area are paddy, groundnut, blakgram, coconut and
banana. Plantation crops such as rubber, cloves, pepper and cardamom are also available
in the block. Jasmine and chrysanthemum are grown in and around Thovalai and Aramboli
villages. There is a co-operative “KANYA” spinning mill at Aramboly. Keeriparai,
Kazhi-kesam and Olakkaruvi falls are the three important tourist centers in this block.
THUCKALAY BLOCK
This block is in the middle of Kanyakumari District. The area of the block is
1367ha. The average rainfall is 1215m.m. The block possesses laterite type of soil, Major
crops in this area are paddy, blackgram, tapioca, coconut and banana. Plantation crops
such as rubber, cloves and pepper are also available in this block. Padmanabhapuram
palace with area of seven acres is inside the block which is one of the rare archeological
museums.
RAJAKKAMANGALAM BLOCK
This block is in the southern part of Kanyakumari district. The area of the
block is 12297ha. The average rainfall is 700m.m. Mixed types of red and alluvial soil
occur in this block. Major crops in this area are paddy, banana and coconut. The block
has a costal length of approximately 15kms. and forms part of the famous “Wedge Bank”
which is one of the richest fishing grounds in the world.
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KURUNTHENCODE BLOCK
This block in the southern part of Kanyakumari district. The area of the block
is 10954ha. The average rainfall is 700m.m. Mixed soil types of red and alluvial soil
occur in this block. Major crops in this area are paddy, banana and coconut. The block
has a coastal length of approximately 10kms. A Mandaikadu Bagavathiamman Temple
and Colachel Fishing Harbour are the two important tourist centres in this block. Indian
Rare Earth factory at Manavalakurichi is in this block.
MELPURAM BLOCK
This block is in the northern part of Kanyakumari district. The area of the
block is 19295ha. The average rainfall is 101m.m. Mixed type of red and laterite soil
occur in the block. The major crops in this area are paddy, groundnut, black-gram, cocont,
tapioca and banana. Plantation crops such as rubber, cloves and pepper are also available
in this block.
THIRUVATTAR BLOCK
This block is in the northern part of Kanyakumari district. The area of the
block is 14486 ha. The average rainfall in 1310 m.m. The block possesses laterite type of
soils. Major crops in this area are paddy, blackgram, tapioca, coconut and bananas.
Plantation crops such as rubber, cloves, pepper and cardamom are available in this block.
Mathoor dam, the highest and longest dam in Asia is in this block. Thiruvattar Bee
Keepers co-operative Society is famous for the distribution of honey in this block.
Thiparappu falls, Pechiparai, Perunchani, Kodayar Hydro Electrical Projects and Chittar
Dam are the important tourist centres in this block.
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MUNCHIRAI BLOCK
This block is in the southern part of Kanyakumari district. The area of the
block is 7201 ha. The average rainfall is 650 m.m. Mixed soil types of red and alluvuial
soil occur in this block. The major crops in this area are paddy, banana, tapioca and
coconut. The block has a coastal length of approximately eight kilometers.
KILIYOOR BLOCK
This block is in the eastern part of Kanyakumari District. The area of the block
is 8039 ha. The average rainfall is 700 m.m. Mixed soil types of red and alluvial soil
occur in this block. The major crops in this area are paddy., banana, tapioca and coconut.
The block has a costal length of approximately Ten kilometers.
The area profile of the district and the block well reveal that they are endowed
with rich natural and material resources conducive for the growth of agro based food
industries.
1.19. CHAPTER SCHEME
The chapter scheme of the study is as follows.
1) The first chapter entitled “Introduction Design and Area Profile” of the study
deals with the definition of agro based food industry, its need, features,
importance and classification. It also covers the methodology of the study,
Review of Literature and profile of study area.
2) The second chapter entitled” Agro based food industries in India and Tamil
Nadu” deals with total number of agro-based food industries, its capital,
employment, production and export of various agro food from India and Tamil
Nadu.
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3) The third chapter entitled “Agro based food industries in Kanyakumari District”
deals with analysis of the profile of agro based food industries in Kanyakumari
District.
4) The fourth chapter entitled “Analysis of production problems of agro based food
industries" deals with various production problems of agro based food industries.
5) The fifth chapter entitled “Analysis of marketing problems of agro based food
industries" deals with various marketing problems of agro based food industries.
6) The sixth chapter entitled “Analysis of financial problems of agro based food
industries" deals with various capital related and profile related financial
problems of agro based food industries.
6) The last chapter entitled ‘conclusion’ deals with summary, findings and
suggestions of the study.
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Map – I.1
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REFERENCES
1. MAHESKUMAR S. (2009), “Food Industry in India”, Kisan World, September,
pp. 15 – 16
2. SATYA SUNDARAM I. (2009) “Agro – Industries: Importance, Problem and
prospects, kisan World, June, pp. 38 – 39
3. MAMORIA C. B. and TRIPATHI BB. (1991), Agricultural Problem of India”,
Kitab Mahal Publication, p. 732.
4. RAGNAR NURKSE (1984), Problem of capital formation in under developed
countries, New Delhi, Oxford university Press.
5. NAIDU K. M. (1969), Role of co – operation in promoting Rural Electricfication
Southern Economist, 7 (i).
6. SRIVASTAVA S. C, SINGH . K. V. and JAIN S. (2011). Value Added
Horticultural Products, Kisan World, February – 2011, Volume – 38, No. 2
7. MUTHU KUMAR P. and ASOK A. (2011) Agricultural Marketing, Kisan world
April – 2011, Volume38, No. 4.