Hint:It is the combination of agriculture and industry. This industry includes the transformation of products originating from agriculture, forestry, and fisheries. This type of industry has a great potential to influence positive economic development through the enhancement of the economy of the farmers. This industry works based on the availability of raw materials.
The agro-based industry or agricultural industry implies industries related to textiles, sugar, paper, and vegetable oil. Agro-based industries imply raw materials of agricultural products. The Textile industry is one of the largest industries in the agro-based industry. The industries which are engaged in processing of products of raw materials or manufacturing them to finished products based on primary and secondary products of agriculture and forest are called agro-based industries. Agro-based industry includes the supply of agricultural inputs, the production, and transformation of agricultural products and their distribution. There are four types of agro-based industries such as agro-produce processing units, agro-produce manufacturing units, agro-inputs manufacturing units, and agro service centers
The Agriculture industry is one of the main generators of employment and income worldwide. The Establishment of agro-based industries is based on the availability of its raw materials. The importance of agro-based industry includes:
Agro-based industries are set up in rural areas where raw materials are easily available. It uplifts the rural economy.
1.Provide employment opportunities for the rural population.
2.Helps in income generation and improves the economic conditions of people.
3.Solve problems of exploitation of the farming community.
4.Increase agricultural production and improve the nation’s economy.
5.Helps to minimize the cost of finished goods.
6.Help backward areas by setting up agro-industries.
7.Prevents the migrations of people from rural to urban.
8.Helps in decentralization and dispersal of industries.
9.To reduce transportation costs.
Note:Agro-based industry gives away for poverty alleviation of rural farmers. Agro-based Industry helps in an equal distribution of industries, creating scope for equal development in the rural and urban areas. Growth of agro-based industry can be rationalized by the changing food habits of Indians of greater demand for packed and ready to eat foods. Agro-based industries create greater opportunities for industrial growth as well as the integration of the different sectors of the economy.