Need for agro-processing industries


Only agriculture cannot sustain the 60 percent of country’s population.Hence, “structural change” in the Indian rural economy is compulsion.As we know that value addition activities have ample potential to absorb surplus labour force.This could be a better employment substitute for educated yet unemployed rural youth within theirs habitat.In the long run, it will help to strengthen the industrial base in the rural landscape.In this piece of writing “Rural development with agro-processing industries”I will prove that this is the only option that could help us to bail out entire rural community.

Surplus educated rural youth

The number of educated youths are growing rapidly and we need to employ them quickly. As per the government data, annually, more than 10 millions students are crossing the degree level education or becoming graduate. Out of this, 70 percent belong to rural areas.You cannot left them on the mercy of agriculture.These well educated youths need respected yet productive jobs so that they could live a frugal life. Today, the state of industrial base in the rural areas is negligible. Rural-urban migration has already crossed the range of tolerance.In this situation, we have to focus on “in situ” developmental strategy.

Great comparative advantage in rural areas

Rural areas have great comparative advantage over the urban centers. We know that there is no dearth of labour even skilled. Secondly,low wage rates are conspicuous reality. All MNCs are focusing at rural India for potential market. This points out that there is an assured market.Also,no need to find out raw materials, it is at the doorstep. Moreover, governments can offer great incentives to attract more players at the local level. Further, there is no need to prove that the rural areas have enormous yet promising industrial future and potential.

Inclusive growth strategy

The backbone of agriculture has already broken by erratic monsoon and price crash of commodities.Hereby,economic participation of 70 percent population is utmost important. Rural food processing industries have huge potential in India.

Truly, agro-processing industries have huge potential to achieve twin goals. One, remunerative price for commodities as a raw materials.

It will definitely prove as an insurance against price crash. And, second, it is capable to reap demographic dividend by absorbing surplus both skilled,as well as unskilled,labour force. Undoubtedly, we could ensure the national goal of inclusive growth provided that the initiative is implemented in spirit and deed.

Insurance against suicides

The major cause of suicide is stagnated income. And, we are aware about the causes of stagnated income. One, the low productivity and price crash are attributed to the falling income of farmers. Second, there is no hope due to lack of alternative to compensate loss.

Through suggested means, we could arrest both. There would be better remunerative price for commodities due to demand and value addition and second,better employment opportunities at the doorstep in the lean season.This could guard or act as a safety wall against vulnerability or fragility.

Boost economic growth

In the last decade, we observed that agricultural growth is continuously falling behind of other sectors such as services and industry. This means that there is no growth for half of population of nation.

Still, Indian economy is the one of the fastest growing economies in the world. Then, would you let me know what would happen when the agriculture sector will lead the growth?

Surely, India will lead the entire world in terms of growth. Most importantly,it could be a better example for others as well.

Base for future industrialization

Today,there is no base of industry in the rural areas. The industrial centres are rapidly mushrooming in the highly urbanized areas. Unlike to earlier period, urban centres are loosing comparative advantage duo to higher factors costs.

Hereafter, rural landscape could be the better option out of compulsion or necessity. This initiative could foster it further.

Certain bottlenecks 

1.Infrastructure development is really not good and it need to be improved. Load shedding in the rural areas looks permanent.Electricity generation,as well as consumption, is much lower compare to peers. Transportation facilities are also a cause of concern.

2.Quality of education isn’t hidden thing. Quality technical yet workable education is prerequisite for this initiative. Almost 60 percent of students are pursuing non technical education which highlights the non serious attitude of both state and citizens. Emphasis should be more on technical, relevant education.

3.Investment is also a serious issue. The capital formation rate in the rural households is negligible. Pumping financial resources through government is only option. Though it is risky, but nothing more than farmers suicide.

4.For begging, government intervention is essential to provide easy market for rising units. Once they get momentum, state can reduce its role. It is necessary due to MNCs penetration in the rural areas.

Though it is time taking process but looks good for all and there is no other option also.


No doubt, agro-processing industries in the rural areas could definitely be a game changer. Although, initially, it looks like hypothetical or imaginary, it has great potential to alter the developmental contours in favour of deprived, vulnerable portion of nation.

Mere painkillers in the form of price rise and loan waiver schemes will only aggravate the ongoing situation.If we need long lasting solution,then we are option less except “Rural development with agro-processing industries”.

Agrarian distress in India

Trade war benefits for India

As well as and both and

Adversative coordinating conjunctions