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BASE PAPER OF PANEL DISCUSSION ON

SCOPE OF AGRO-BASED INDUSTRY

IN

NORTH-EAST INDIA-

A MANAGERIAL PERSPECTIVE

PRESENTED BY-

K ISHORE K R. RIJONG (26/D/2009)

LAK HIMONI GOGOI (27/D/2009)

LAXMI TEWARI (28/D/2009)

MAHIUDDIN ANSARI (29/D/2009)

MAHUA CHATTERJEE (30/D/2009)



CONTENTS

Chapters Page no.

1. Objective of the Pan el D iscussi on

2. In tr od ucti on

3. S c op e of Ag r o- b a se d Ind ustry i n No rth -Ea ster n R e g i on

4. C r op s w ith Ma rket Po te n ti a l

5. Sp eci f ic hur d les of Ag r o- b a se d Ind ustry i n No rth -Ea ster n R e g i on

6. Ro le of Manag er .

7. Con clusi on



OBJECTIVE OF THE SEMINAR

The objective of the panel discussion -

To know the scope, potential and opportunities of agro-based industry and forest based

industry in north-eastern region.

The problems faced in grasping those opportunities.

The managerial perspective regarding these existing scope and problems.

INTRODUCTION TO AGRO-BASED INDUSTRY

The term 'agro' has stemmed from the Greek word 'agros' meaning field, which has led to its

current usage meaning anything that falls under the 'agricultural' category. The development of

agro-based industries commenced during pre-independence days. Cotton mills, sugar mills, jute

mills were fostered in the corporate sector. During the post-Independence days, with a view to

rendering more employment and using local resources, small scale and village industries were

favored.

Agro products are the life force, the very source of survival for the human kind. It is not only thatman breathes with the support of food but a major chunk of the world population is also

dependent on agriculture as their source of survival. An approximate 36% of the world's workers

are engaged in agriculture with India's 65% of the population being directly and indirectly

employed in this sector. 'Agro Products' embraces a broad all-inclusive category of products

related to AGRICULTURE. It includes a comprehensive range of raw and finished goods under

the classifications of plants, animals and other life forms. The agro industry is regarded as an

extended arm of agriculture. It mainly comprises of the post-harvest activities of processing and

preserving agricultural products for intermediate or final consumption.



The agro Industry is broadly categorized in the following types:

House Industries--Village Industries owned and run by rural households with very little

capital investment and a high level of manual labour; products include pickles, papad,

etc.

Small Scale Industry- Small scale industry characterized by medium investment and

semi-automation; products include edible oil, rice mills, etc.

Large Scale Industry-Large scale industry involving large investment and a high level

of automation; products include sugar, jute, cotton mills, etc.

SCOPE OF AGRO-BASED INDUSTRY IN NORTH-EASTERN

REGION

Potentials of Different Regions in Agro-based industry-

ASSAM-

Assam tea grown at sea level is well known for its body, briskness, malty

flavor, strong and bright color. Assam produces 55% of total TEA production.

The economic realization of the importance of tea in Assam is a foregone

conclusion.

Assam accounts for highest production of non-mulberry, muga and eri-silk for

which it is well known. Assam contributes 99% of the total non-mulberry,

Muga and eri silk production in the country

Assam has the highest concentration of Bamboo, having high potential for

commercialization. Assam has approximately 60% of total Bamboo of the

country.

Agro-climatic condition of Assam is condusive for growing a wide range of

vegetables, aromatic and medicinal plants, flowers,orchids, spices etc.



The food processing sector has the potential to grow with increasing demand in

processed food. The government of India has approved for setting up processed

food industrial park at Choygaon Park near Guwahati in Kamrup Dist.

The industrial policy 2008 recognized Plywood as a potential source for

income and employment generation in the state.

The agar wood oil of Assam enjoys international brand equity. This industry

has wide scope of growth.

ARUNACHAL-

Arunachal is blessed with favorable climatic condition and soil for growing crops like

tea, coffee and rubber. Agriculture is the basis of the economy of Arunachal Pradesh.

Nearly 75% of the state's total workforce is engaged in agriculture and allied activities.

The principal crops are rice, maize, millet, wheat, pulses. It has a vast potential, owing to

good agro-climatic conditions and topography, for the cultivation of various tropical, sub-

tropical and temperate fruits like apples, kiwi, passion fruit oranges and pineapples,

vegetables, spices, mushrooms, aromatic and medicinal plants.

The agro and horticulture based industries of Arunachal Pradesh are being developed on the

following product lines ±

y Fruit based alcoholic beverages

y Ginger processing/dehydration

y Apple cultivation and processing

y Processing of citrus fruits

y Tapioca production unit for production of sago and starch

y Cold storages

y Multipurpose fruit and vegetables processing; etc.

y CANE AND BAMBOO

The cane and bamboo industry of Arunachal Pradesh is of very high standard. It holds utmost

importance in meeting most of the domestic requirements of the people of the state. Different

sizes and shapes of hats, various kinds of baskets, cane vessels, a wide variety of cane belts,



elaborately woven brassier of cane and fiber, bamboo mugs with carvings. Out of these, the top

most attraction is the baskets of the state.

MANIPUR -

Throughout the state of Manipur handloom weaving is a popular industry and Manipuri fabrics

with picturesque and indigenous designs are extremely beautiful. Serious effort in this regard is

the need of the hour. The agro-climatic condition of this State makes it suitable for growing

almost all kinds of agricultural and horticultural crops and setting up of food processing

industries. Manipur produces sizeable quantity of paddy, wheat, maize, pulses, oilseeds (like

mustard, groundnut, soya beans and sunflower), fruits (like pineapple, lime, lemon, banana and

orange), and vegetables (like cauliflower, cabbage, tomato and peas). As a result, the food

processing sector plays a significant role in diversification and commercialization of agriculture,

horticulture, fisheries, poultry, animal husbandry and forestry. In view of the importance of the

industry, the State Government has established a 'Food Processing Training Centre' and 'Food

Processing Training Hall¶ at Imphal. A food Park is also being set up in the same place.

HANDICRAFT

The handicraft industry of Manipur occupies a unique place amongst various crafts of the

country and consists of cane and bamboo products as well as the pottery culture. The pottery

culture of thestate is very old and due to the abundant availability of cane and bamboo, basketry

has been a popular occupation of the people of Manipur. Besides, fishing equipments are also

made of cane and bamboo. All such products are in great demand from both domestic as well as

the international buyers.

MEGHALA

Meghalaya is famous for its wide variety of orchids.The potential for Agro-based industries in

the state of Meghalaya is very high. The state produces substantial quantities of oranges,

peaches, pineapples, pears, guavas, plums and bananas of superb variety. It also grows plenty of

potatoes, tapioca, bay leaves, ginger, maize and jackfruit. Meghalaya's turmeric, particularly the

variety that is grown in Shangpung in the Jaintia Hills, is considered the best in the world.

Plantation crops like coffee, rubber, black pepper and areca nut are also grown in Meghalaya. A

major breakthrough has also been made in tea cultivation and tea gardens have come up in



various parts of the State.These days strawberry is cultivation is done on commercial scale.

One of the areas in which there is tremendous potential for investment and development in

Meghalaya is the food processing sector. There is ample scope for setting up a large scale fruit

processing unit.

MIZORAM-

Mizoram has a number of areas for development like horticulture, fruit processing, agro-

based industries and tourism. A tea industry can be set up in the state as it has been

estimated that tea could be raised in four blocks over about 10,000 ha in ten years. The

state has the potential for raising about 5,000 ha of rubber plantations in three blocks. For

cash crop plantations there is scope for the establishment of nurseries. The annual income

of each nursery has been estimated at Rs.2.37 lakhs.

BAMBOO

Mizoram has an abundant reserve of bamboo forest contributing 14% of the all India

bamboo distribution. It has 20 bamboo species, of which Mautak is predominant and

occupies 95% of the bamboo afforested land in the State. The State Government of

Mizoram invites investors for setting up of industrial units in all these areas, either in

Joint Venture with Mizoram Bamboo Development Agency or with other localentrepreneurs.

TRIPURA-

Tripura is also the second largest producer of rubber in India. But only a fraction of that is

exported. Efforts must be made to boost trans border trade between Tripura and Bangladesh.

Agriculture is the mainstay of the people of Mizoram with about 80% of the total population

being engaged in it.

FOOD PROCESSING

The state government has identified food processing as a major thrust area and there is a vast



potential for setting up of food processing units in this state. The agro-climatic condition of

Tripura is ideally suited for production of a large variety of horticultural crops. The µQueen¶ and

µKew¶ varieties of pineapple, jampui oranges, lichis and cashew of Tripura are well known in the

rest of the country and are largely organic in nature.

NAGALAND

Nagaland is basically a land of agriculture, with about 70 per cent of the population depended on

it. In the interior of the State, which provide favorable conditions for growing different varieties

of tropical and sub-tropical fruits and vegetables. While the major vegetables are Ginger, Garlic,

Chilly, Tomato, Potato and Cabbage, the major fruits are Banana, Pineapple, Orange, Passion

Fruit, Pears, Plum and Sweet potato.

Floriculture can be another viable industry in the state of Nagaland.

Nagaland is rich in forest products such as timber, cane and bamboo, flora and fauna.

SIKKIM

Agriculture is the major economic activity practiced on the terraced fields of Sikkim. Maize,

rice, wheat, potato, large cardamom, ginger and turmeric are the principal crops while mandarin

orange, guava, mango and banana are the principal fruits grown. Also, due to the availability of

all the necessary raw materials, there is an enormous untapped potential for setting up various

agro-based industries in this state.

Source: - http://www.finer.in/profile.php

Website of Govt. of Assam



SPECIFIC HURDLES OF AGRO-BASED INDUSTRY IN NORTH-

EASTERN INDIA

Poor Infrastructure- Lack of infrastructure and markets is an important impediment in

realizing the potential of high-value agriculture in the region. Apart from thin local

markets for high value food commodities, transport, cold storage and processing

infrastructure is poor. Road network is poor in most of the States in the region. The road

density ranges between 168-490 km/1000 sq.km. except in Assam, Nagaland and Tripura

which have comparatively a much better road network

High Installation

Geographical location

Distant market

Ineffective work force

Poor marketing and distribution network- Rural markets for high-value commodities are thin

and marketed surplus of smallholders is usually too small to be economically trade in distant

urban markets due to high transportation costs. Production and market risks are also higher in

high-value crops. Thus, lack of economies of scale and limited access to markets. Most of high-

value commodities are perishable and need immediate transportation from production to

consumption centers and/or markets. appropriate post-harvest handling through proper

loading/unloading of commodities and promotion of pack house concept including storage,

processing and value addition, creation of adequate transportation infrastructure and organised

marketing system are necessary to reduce the post-harvest losses.

Unscientific management

Lack of planning

Lack of Financial Assistance- High-value agriculture requires more capital, improved

technologies, quality inputs and better support services. Lack of access to these may

constrain farm diversification.

Lack of knowledge and Research-

ROLES OF MANAGERS



y Objectives regarding, what the firms wants to achieve, where it wants to be?

Accordingly mobilizing the resources to achieve that particular goal. In one word

providing purposeful direction to the firm which in turn will help to make

strategic decisions.

y How in reference to the objectives problems can be solved in what way, how

resource should be allocated, what are the sources of resources? How maximum

utilization is possible? All the answers are to be addressed by a manager.

y Managers also have to undertake research to find out the present market scenario,

which will help to predict the future market scenario and help in turn to plan

accordingly. Research also helps to understand consumer behavior and adapting

to the market accordingly. Research has a major contribution towards success of

many organizations.

y Finance is the blood of a business. The financial managers have a fair idea which

will be the source of capital, what are the financial institutions to approach, how

to avail the subsidies of the govt., feasibility of the projects.

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