AGRO-BASED INDUSTRIES

Agricultural products are used in industries as raw materials to produce various goods whereas, industries provide agricultural tools and fertilisers, etc. for growing crops and for making processed items like jams and jellies, etc.

Amul The story of Amul started more than 70 yrs. ago in a small town of Gujarat, India. The exploitative trade practices followed by the local trade cartel triggered off the cooperative movement. When people approached Shri Sardar Vallabhbhai Patel for a solution, he advised them to get rid of the middlemen and form their own co-operative for procurement, processing and marketing. With the inspiration of Sardar Patel and under the guidance of Morarji Desai and Tribhuvandas Patel, farmers formed their own cooperative in 1946. This was known as Kaira District Co-operative Milk Producers Union Ltd. It began with just two village dairy co-operative societies and 247 lites of milk. Now this dairy is known as Amul Dairy. Dr. Verghese Kurien was appointed as the Chairman of the co-operative. The approach of Amul Dairy formed the basis of the National dairy Development Policy. Source – https://www.amul.com/m/about-us

Sugar industry

Sweet dishes and chocolates are loved by all. Festivals are awaited by all of us so that we can relish sweets. Even milk, tea and coffee taken every day have sugar in it. Gur is also used in many households everyday as a sweetener. It also holds a special place in some of our festivals and religious rituals. Do you know, India stands second in the world in producing sugar and first place in the production of gur and khandsari. The raw material used in the sugar industry is sugarcane which is a bulky raw material. The amount of sucrose present in sugarcane gets reduced during transportation. Therefore, the sugar mills to churn out sugarcane juice from sugarcane and to produce sugar, gur and khandsari are generally located near the sugarcane fields or where the raw material is produced.

Factors Responsible for Distribution of Sugar Industry in India

1. Raw Material (Sugarcane Availability)

• Sugarcane is a perishable crop, and sucrose content starts declining soon after harvest.
• Therefore, sugar mills are concentrated near sugarcane-growing regions to reduce transport cost and prevent sucrose loss.
• Two main belts:
  • Sub-Tropical Region: Uttar Pradesh, Bihar, Punjab, Haryana.
  • Tropical Region: Maharashtra, Gujarat, Tamil Nadu, Andhra Pradesh, Karnataka.

2. Agro-Climatic Conditions

• Tropical Region: Provides higher yield due to better temperature, sunshine, and longer growing period.
• Sub-Tropical Region: Traditionally dominant, but productivity is relatively lower.
• Post-1950s, tropical regions expanded rapidly; now subtropical regions (especially Uttar Pradesh) are regaining importance due to high irrigation and fertile soils.

3. Water Availability

• Sugarcane is a water-intensive crop.
• Tropical region states like Maharashtra face frequent droughts and water scarcity, limiting expansion.
• Sub-tropical belt (e.g., Uttar Pradesh) has high water table, fertile alluvial soil, and assured irrigation from canals and tube wells, making it suitable for future growth.

4. Proximity to Markets and Consumption

• India has a huge domestic demand for sugar and related products (jaggery, khandsari, ethanol).
• Mills are located close to major consumption centres in northern, western, and southern India to reduce transport costs.

5. Labour Availability

• Sugarcane cultivation and sugar mills require seasonal labour for harvesting, crushing, and processing.
• States like UP, Bihar, and Maharashtra have abundant rural labour supply.

6. Transport Facilities

• Sugarcane is bulky → efficient road and rail networks near cane fields support mill location.
• Uttar Pradesh and Maharashtra have relatively good connectivity for movement of cane and sugar.

7. Government Policies

• Post-1950s, government planning emphasized expansion of sugar industry in tropical regions.
• Minimum Support Price (MSP) for sugarcane and subsidies for sugar mills influenced regional distribution.

8. Production Cycles

• The industry experiences cyclical fluctuations: 3–4 years of over-production followed by 1–2 years of low output.
• Despite fluctuations, cane remains attractive due to its sturdiness and relatively low input needs—often termed the “lazy crop”.