potential of agro based industries employment and self employment by abhay and rashmi

Summer internship report

On

2011

Abhay Kumar Mandal & Rashmi Kumari

NIAM

6/30/2011

Potential of Agro based Industries Employment and Self Employment

Summer internship report-2011

NATIONAL INSTITUTE OF AGRICULTURAL MARKETING, JAIPUR 2

CERTIFICATE

This is to certify that Mr. Abhay Kumar Mandal and Miss Rashmi Kumari are bonafide

student of Post Graduate Diploma in Agri-Business Management (2010-2012), NIAM, Jaipur

participated as summer trainee in “Indigram Skill and Knowledge Initiatives Pvt. Ltd.”Company

for the period May- June 2011

They have successfully completed their summer project titled “Conducting a feasibility study

on potential of Agro Industries & Rural Service based Employment and Self Employment

in Gulbarga, Karnataka” towards the partial fulfillment of their course.

Date:

Mr. Mayuk Dasgupta

(Vice President)

Indigram Skill and Knowledge Initiatives Pvt. Ltd



CERTIFICATE

This is to certify that Mr. Abhay Kumar Mandal and Miss. Rashmi Kumari is bonafide

student of Post Graduate Diploma in Agri Business Management (2010-2012), NIAM, Jaipur

worked as Summer Trainee in Indigram Skill and Knowledge Initiatives Pvt. Ltd. Company for

the period May-June 2011.

They have successfully completed his Summer Project “Conducting a feasibility study on

potential of Agro Industries & Rural Service based Employment and Self Employment in

Gulbarga, Karnataka” towards the partial fulfillment of the course.

Date:

Dr.Kamal Mathur

Director, PGDABM

NIAM, Jaipur



DECLARATION

This is to declare that, we, Abhay Kumar Mandal and Rashmi Kumari student of Post

Graduate diploma in Agri-Business Management (2010-2012), NIAM, Jaipur have given original

data, information and maintained full confidentiality to the best of my knowledge in the project

report titled “Conducting a feasibility study on potential of Agro Industries & Rural Service

based Employment and Self Employment in Gulbarga, Karnataka.” and that, no part of this

information has been used for any other assignment but for the partial fulfillment of the

requirements towards the completion of the said project.

Date:


PGDABM (2010-12)

NIAM, Jaipur



ACKNOWLEDGEMENT

It is a matter of great pride for us to be associated with Indigram Skill and Knowledge Initiatives

Pvt. Ltd. We hereby would like to thank Indigram Skill and Knowledge Initiatives Pvt. Ltd. and

all its staff members whomever we came across, for their kind hospitality and co-operation

during our project work. We would like to extend my deepest gratitude to Mr. Alok Baraya,

CEO for giving us an opportunity to work with Indigram Skill and Knowledge Initiatives Pvt.

Ltd. as Summer Interns. This has been a pleasant and learning experience for us. We wish to

express my deep sense of gratitude to our Guide, Mr. Mayuk Dasgupta for his able guidance

and useful suggestions, which helped us in completion of the project work in time. He has been a

mentor and critic in the best of senses. We would also like to thank Mr. Premsingh Rathod

(ISAP) and Mr.Ramalingham(ISAP) for his valuable help during the project work. We extend

our thanks to Ms. Deepti Nigham for her kind co-operation and support throughout the project.

Our heartfelt gratitude and appreciation goes to all Farmers, Students, Dealers, Distributors,

Government officers and Industries whose patient answers to our queries formed the foundation

of project. We reverently express our special gratitude to Mr. Anurag Bhatnagar I.A.S

(Director General, NIAM), Dr. Kamal Mathur (Director, PGDABM, NIAM) for their valuable

suggestion and feedback time to time. My sincere thanks also goes to Dr. Hema Yadav, (Deputy

Director and Principal coordinator PGDABM, NIAM) for her guidance and moral support which

has always been with us. Finally, yet importantly, we would like to express our heartfelt

gratitude to our beloved family for their blessings.

Regards


PGDABM(2010-12)

NIAM, Jaipur



POTENTIAL OF AGRO BASED INDUSTRIES EMPLOYMENT

AND

SELF EMPLOYMENT FOR YOUTH

Executive Summary

Project titled “feasibility study on potential of Agro Industries & Rural Service based

Employment and Self Employment” was conducted in Gulbarga districts of Karnataka. Main

objective of this survey is to determine potential of skill development vocational center in and

around the identified areas of implementing the Skill development program. This survey

provides vital, direct and meaningful input that allows the professional to consider future

decision making actions with greater security and accuracy.

The project involved a face to face interaction with drop-out student, college student, major Agri

Industries, farmers in the area and the other Govt. institutes such as block development office,

district education office, Agriculture departments, village talukas and panchayats.

Both primary and secondary data collection has been collected to gather information. Different

set of questionnaire was developed for students, farmers and Agri Industries to know their

demand and requirements.

The analysis was drawn that large no. of youth is unemployed in surveyed areas and industries

also requires skilled employees with different kind of skills ranging from technical skill, job

related skills, managerial skills, communication skills etc. as per requirement of the industries.

Main thing is that majority of youth does not have technical education so they are forced to do a

labour job in industries or as Agriculture labour with very less wages, some of the youth who are

well educated also doing labour works as they don’t have any technical qualification.

So there is needed to start skill development programme in identified areas by considering the

requirements of the industry i.e. what type of trained people they want and also take care of the

potential of the rural youth.



Introduction

Unemployment is a major problem of India and presently more than 4.5 crores of youth are

unemployed in this country. Young people are a major human resource for development, key

agents for social change and driving force for economic development and technological

innovation. But harnessing these resources is a major challenge. The youth challenge is

considered as the most critical of the 21st century’s economic development challenge. Youth,

defined by the United Nations as persons between the ages of 15 and 24, is a transitional period

from childhood to adulthood, According to the Census of India 2001, nearly 40 per cent of the

population was in the age group of 13 to 35 years. The number of youth aged 15 to 24 years was

195.07 million, which accounted for 19.0 per cent of the whole population. India contributes

about 33 per cent of youth population in the developing Asian countries (ADB, 2008) The

unemployment was the highest in the age group of 20-24 years and at least 83% of the

unemployed belong to the age group of 15-29 years in each social group both in rural and urban

areas.

The critical aspects of the challenge are mostly related to labor market entry where young people

encounter difficulties in finding and maintaining a decent job. The growing large number of

unemployed youth is one of the most daunting problems faced by developed and developing

countries alike (ILO, 2004, 2005b). Failure to integrate young people into the labor market has

broader consequences for the future prosperity and development of countries.

Though the share of agriculture in the aggregate economy has declined rapidly during the

planned development of the country; it assumes a pivotal role in the rural economy. The NSS

surveys on employment show a decline in the share of agriculture and an increase in the share of

non-agricultural sector in aggregate employment. Such a structural shift though expected in a

developing economy, has been slower in the Indian economy. This process is even slower in the

rural economy. Nevertheless in rural India the growth rate of employment in the non-agricultural

sector has been far short of the increase in the rural workforce. As a consequence, the incidence

of rural unemployment on the basis of current daily status (CDS) is as high as seven percent in

the year 1999-00. There is no evidence to suggest improvement in the quality of rural

employment, which is generally associated with the structural changes of employment. In this



context employment in agriculture remains important. Agriculture is one of the

strongholds of the Indian economy and accounted for 14.2 per cent of the country's gross

domestic product (GDP) in 2010-11, according to the Central Statistical Organization’s (CSO)

estimates. Furthermore, the sector provided employment to 55 per cent of the work force which

account for 467 million labour forces.

Background of the study

Indigram skill and knowledge initiative pvt.ltd is an education and skill development company

working in agri-rural areas providing employability training in vocational skills including self

employment opportunities by training, placement and mentoring of rural youths. Knowledge and

skills of the national workforce are the key determinant for future economic growth. A massive

investment by the various government sectors in rural areas is expected to create huge

infrastructure and job opportunities for millions of rural youth. Indigram will act as an enabler

that will equip these youth with just the right kind of skills and be a part of this Endeavour.

Vision of Indigram is to be the largest skills and employability training provider for rural youth

in India. In the next ten years vision will be to provide appropriate training to over 2 million rural

youth and create gainful employment or self employment opportunities and sustainable

livelihood to equal number of families.

This report is framed around central questions.

How can the job skills and placement opportunities for unemployed vulnerable youth be

increased in India, with particular attention to the Gulbarga, Karnataka?

What are the entry points for youth in the local industries, and how do these points relate

to economic growth, employment generation, livelihood and labor policies in the

Gulbarga district of Karnataka?

What are the formal and non-formal education and training opportunities that can help in

preparing school dropout unemployed youth for working and engagement in civil

society?

What kinds of strategies and programs Indigram can consider to strengthen efforts to

meet the education, training, and employment of unemployed out-of-school youth?



Need for the study

The main goal of the report is to mesh current knowledge and information of India workforce

development into a coherent strategy that examines the three main components of the

assessment: the youth, the economic environment that shapes workforce demand, and the

institutional supply of workforce training. Because 175 million students enroll in class I every

year, Out of which only 20 million finish class XII; 55%student (96 Million) drop out up to class

VIII & 70% (122 Million) by class X. 152 million has no access to obtain Vocational Training.

What happens to those who do not finish school? Enter the employment / labor market and learn

while working. Take what are available menial jobs which normally fail to bring them above

poverty line or Remain unemployed.

OBJECTIVES OF THE STUDY

Identification of catchment areas for students in the target locations within an age group

of 18 ~ 30 yrs.

Sensitizing rural youths and their families on the need for skills training in various sectors

and potential analysis on various agri and rural services based training for income

generation.

Identifying industries that require skilled employees for entry level jobs

Understanding existing skill gaps for industries and their entry level requirements.

Market potential of vocational training in the target locations

Assessment report focuses on the challenges and opportunities for employment for out-

of-school Youth in Gulbarga.



Why Gulbarga?

The choice of the Gulbarga reflects initial investigations that showed clear potential for

economic growth in the geographical area. Further, Indigram already had a presence in these

regions, thus creating possibilities of synergy between current Indigram programming in

education and economic growth. Gulbarga has five most backward taluka out of eight talukas in

which large number of unemployed youth is present. Gulbarga has relatively more per capita

land holding but agriculture is only rain fed which does not give employment to farmers

throughout the year. Hence there is a need of vocational training which will provide them an

alternate source of income.

GULBARGA DISTRICT PROFILE

The district is one among the 30 districts of Karnataka State. It is located in the Northern part of

the state and lies between North latitude 170

10 and 170

45 and between east longitude 760

10 and

770

45.It is bounded on the west by Bijapur district of Karnataka and Solapur district of

Maharastra on the north by Bidar district of Karnataka and Zaheerabad district of Andhra

Pradesh and on the sotuh by Yadgir, a newly formed district of Karnataka. The district

constitutes 7 revenue blocks and 8 educational blocks, they are Afzalpur. Aland, Chincholi,

Chittapur, Gulbarga (North), Gulbarga (South), Jewargi and Sedam.

Socio-Economic Characteristics of Gulbarga

In recent years a High Power Committee was constituted by the govt. of Karnataka to look into

the problem of regional imbalances in the state. The committee (Popularly known as

Nanjundappa Committee) submitted its report in 2002. The committee, on the basis of various

socio-economic indicators assessed the development of 175 taluks in the state. The committee

has identified the committee has identified six taluks among the seven taluks in the Gulbarga

district as the most backward taluks.

MOST BACKWARD TALUKAS OF GULBARGA DISTRICT IN KARNATAKA STATE



TALUKA RANK IN STATE INDEX

SEDAM 155 0.72

CHITTAPUR 165 0.65

AFZALPUR 170 0.62

ALAND 172 0.61

CHINCHOLI 173 0.57

JEWARGI 174 0.57

During our survey we find that talukas which is backward, desire of student and farmer to

undergo vocational training is more as compared to develop talukas. Jewargi, Aland and

Afzalpur talukas are economically backward hence farmer and student of these talukas should be

targeted.

INDUSTRIAL AND EMPLOYMENT PROFILE

Gulbarga has 3 industrial areas and 3industrial estates. Gulbarga has an Industrial base for Agro

Based, Cements, and Chemicals industry etc. The recent investments in Cement by ACC,

Rajashree and India Cements make the District as an emerging destination for Cement industries.

The proposed Suvarna Karnataka Corridor envisages the creation of an Information Technology

zone, Bio Technology zone and a cement zone. There are 7 Large and Medium industries in the

district with an investment of Rs 1,683.95 Crore There are 129 factories in the district. There is a

proposal for a Textile Park in the district of Gulbarga. Gulbarga is the house of more than 300

pulse mill which provide employment to more than 3000 people. The district economy is mainly

an agricultural economy as agriculture contributes 31.7% of district income and provides

employment to 67% of the population.

Above mentioned data and interaction with student, farmers and industries gives us idea that

potential of skill development courses in Gulbarga is very high and Indigram can move ahead for

further expansion program.



Industry and industry employment in different talukas

Textiles Chemical Engineering Others Total Employment

Afzalpur --- 1 --- 1 2 3000

Aland 1 --- 1 2 4 400

Chincholi --- --- 1 --- 1 50

Chittapur --- --- 4 4 8 300

Gulbarga --- 3 9 47 59 3000

Jewargi --- --- 1 --- 1 50

Sedam --- --- --- 3 3 1500

District 1 4 16 57 78 8300

Gulbarga has large number of domesticated animals and birds and trend is also very encouraging

which creates demand of very large number of veterinary doctors which veterinary college are

not able to fulfill the increasing demand so this gap can be filled though trained Para-Vet

personal, Para-Vet can be the one of the course which Gulbarga centre can offer as short duration

certificate course.

Cattle population

Cattle 819620

Buffaloes 224109

Sheep 459515

Goats 562104

Poultry 733497

Other 152560

Total 2951405

Population of Gulbarga is 21.75 lakh and area is about 16,224 sq-km with population density of

129 person per square kilometer, which shows that per-capita land holding is large, means there

is sufficient land for cultivation but due to unaware about commercial use of uncultivable land

there source of income from these land is very low. If they will be trained for using these land

then they will generate extra income from the uncultivable land, for that farmer needs training



which Indigram can provide by this means farmer and Indigram both will be

benefitted. During our survey we also find that farmer are interested undergoing training which

increase their livelihood, particularly farmer of Afzalpur are interested undergoing poultry

training.

Land use Classification: (Unit: Area in Hectares)

Taluka

Area

under

Forest

Land Not available for

cultivation

Cultivable

waste

Uncultivated

land excluding

fallow land Fallow land

Land

put to

non

agri.uses

Barren &

uncultivable

land

Pmt.

Pastures

& other

grazing

land`

Mics.

Tree

cropes,

groves

Current

fallows

Other

fallow

land

1 2 3 4 5 6 7 8 9

Afzalpur 78 5819 2395 458 1322 4 15083

Aland 2854 3465 3142 974 3469 55 28504 2600

Chincholi 19622 3006 13003 2723 6516 857 8703 700

Chittapur 6150 9368 3689 4530 674 21 25591 1480

Gulbarga 4121 8150 4223 78 4322 39 24237 300

Jewargi 310 8317 1838 294 6486 60 3761 230

Sedam 2181 3295 6823 360 3066 50 3345 1475

TOTAL 35316 41420 35113 9417 25855 1086 109224 6785

Land distribution of Gulbarga (Unit: Area in Hectares)

Number Percentage Area

Marginal holding 112331 20.46 13463

Small

holdings 191271 34.86 281868

Semi

Medium 158492 28.87 435718

Medium 73750 13.45 435001

Large 12956 2.36 180220

Total 548808 100 1346270



Research Methodology

Methodology

After the objectives of the survey were well defined, the Descriptive Research design was taken

up. The research was of survey type and so immense importance was given on the technicalities

of sampling, method of constructing questionnaires, interviewing the respondents, editing,

coding, and tabulation of data and the statistical techniques to analyze data.

Type of Research Undertaken: - Descriptive type of research was undertaken as information

needed through this project was clearly defined. Descriptive research is preplanned and

structured. A formal research design specifies the method for selecting the sources of

information and collection of data from those sources.

Sampling and Data collection:

Field data collection through Questionnaire, Form student’s communities and Industries.

Exploratory method (personal interview) has been adopted for data collection and

executive opinion on specific subject.

Random sample method was selected for collection of data from field for students and

farmer communities like mandis, haats, Gram Panchayats, etc.

Sources of information:

Primary Data

Data collection from students available in various high schools, colleges and other

academic institutions like ITI.

Data collection from farmer communities like Mandis, Haats, Gram Panchayats, etc. by

direct interaction.

Data collected from industries in Agri and Rural services sector in the target market.



Secondary Data

Demographic details of the target location through data sources like govt. statistics,

district employment exchanges, and other data bases.

District agriculture dept, Rural Development offices, Block development office and other

sources.

Period of the study

Our field level study was for one month i.e. in the month of July

Area of study

Gulbarga district of Karnataka.

Catchment area of 40 ~ 100 kms from the target location

Catchment area for students:

For this project our main focus area was Gulbarga district of Karnataka and for making it

more effective and efficient we divided Gulbarga district into 8 educational blocks they

are

1. Gulbarga (North)

2. Gulbarga(South)

3. Afzalpur

4. Aland

5. Chincholi

6. Chittapur

7. Jewargi

8. Sedam

Number of school, college and coaching institute selected for survey



Sr. No. Name of block No of schools

selected for

study

No. of college

selected for

study

No of coaching

institute

selected for

study

1 Gulbarga (North) 7 12 8

2 Gulbarga(South) 4 10 5

3 Afzalpur. 3 5 -

4 Aland 2 2 -

5 Chincholi 2 5 -

6 Chittapur, 2 2 -

7 Jewargi 2 2 -

8 Sedam 2 2 -

Villages surveyed in different talukas of Gulbarga

Name the village

Industry selected for survey

Name the industry from database

Analysis:

The data collected has been analyzed and interpreted through MS Excel, MS Project, Google

Scholar, SPSS etc.



KEY FINDINGS & IMPACT ASSESSMENT

A) student’s key finding

Student’s response for vocational training (Total students surveyed – 212)

1. Interest of students in different sectors

Name of

the sector

Agriculture

based

Sales

and

service

Retail Healthcare Para vet. Others total

No. of

interested

students

58 40 34 32 28 20

212

percentage 27.36% 18.87% 16.04% 15.09% 13.21% 9.43% 100%

During our survey we interacted with students of school, college, private coaching institute and

drop-out individual. We find that Majority of students (27.36%) are interested in taking

agricultural based vocational training, main reason behind this is average land holding in

58

40

34

32

2820

No. of interested students in diffrent sector

Agriculture based

Sales and service

Retail

Healthcare

Para vet.

Others



Gulbarga is high and this sector has high potential of self employment. There is

great opportunity for rural drop-out student to start their own business as well as generate

employment for other unemployed youth in their village. It was good to notice that every

individual are interested for skill development course some for permanent job other for par time

job. Second interested sector is sales and service as expected because of very high demand of

these skilled personal. Poultry was one of the high demanded courses in Afzalpur talukas of

Gulbarga because of more Muslim population.

Model for poultry farming:

2. Student interest for job location

Job

destination

Job in own

village

Job in own

district

Job in

own state

Interstate

job

No. of

interested

students

24 102 60 27

0

20

40

60

80

100

120

No. of interested students



Inference –

Majority of students wants job in their own district, main reason behind this is socio

economic condition of student’s family. Student from economically backward number is

more in Gulbarga. Student wants to take a part time job by which they can earn money

without leaving school and college and also support their family financially.

Accountable number of students has shown interest in doing job in their own state. These

are the drop out students who left their studies and presently searching job, they are

ready to work in any part of Karnataka even any part of India.

3. Preferred salary choice of the students:

Amount

of salary

Rs.15000-

10000

8000-

10000

5000-8000 <5000

No. of

students

interested

89 69 39 13



Inference –

Large percentage of students wants higher level salary so that they can sustain in the job and

continue it for longer time.

4. Family background of rural youth

Family

background

Marginal

farmer

Small

farmer

Large

farmer

service business

No of

students

26 42 38 68 37

% of

students 12.32 19.91 18.00 32.22 17.45

0102030405060708090

No. of students interested

No. of students interested



Student surveyed were mostly from family with service background, large farmer, business etc.

5. Educational status of rural youth

Educational

qualification

<10 th pass 10th

pass 12th

pass Graduate

% of students 15.6 47.86 21.8 14.7

No of students 33 101 46 31

26

42

38

68

37

student's family background

Marginal farmer

Small farmer

Large farmer

service

business



During our survey we targeted only literate person because our objective was to find student and

farmer for vocational training courses. Prerequisite for doing this course is at least 8th

class

passed.

6. Do they want to continue their studies further?

wants to continue their further

study

yes 181

no 31

% of students

<10 th pass

10th pass

12th pass

Graduate



Maximum of surveyed student we interested in continuing his education further which

means maximum want to do part time job.

7. Willingness to pay for a training with confirmed job opportunity

willingness to pay for a training with confirmed job

opportunity

yes 208

no 3

208 students of 212 surveyed wants to pay for the course which provide confirmed job opportunity, this

data shows that maximum are interested in doing vocational courses.

0

50

100

150

200

yes no

wants to continue their further study

wants to continue their further study



Recommendations

Build a bridge of better communication and understanding on workforce development

between partnering institutions. Improved communication and understanding by the firms and

education and training institutions is a first step in changing traditional practices of training,

recruitment, hiring, and expectations. This communication leads to a “marriage” among the

private sector, the training institutions, and youth, and allows for the distinct actors to contribute

to the process.

Promote core employability skills and competencies. India is just now developing a system of

workforce skills and competencies that can be used by industry and education institutions. This

system creates a set of standards that is an alternative to the formal education credential. The

main priority is to develop simple and straightforward frameworks of skills and competencies

that enable private sector, training providers, and youth to be partners in the workforce

development process.

Support institutional transformation of technical education. Accompanying this process is

the reform and transformation of education and training institutions to be more oriented to the

workplace. This institutional change process happens at different speeds in the public and private

sectors. Throughout the NGO community, many new and small projects are currently developing

0

50

100

150

200

250

yes no

willingness to pay for a training with confirmed job oppurtunity

willingness to pay for a training with confirmed job oppurtunity



this workplace orientation. We recommend that Indigram assist in this institutional

strengthening, particularly with new institutions committed to youth workforce development.

Encourage active labor market programs for all skill levels of youth, but with particular

attention to rural and vulnerable youth. The main challenge of all employment training

programs is to establish working linkages between demanders and suppliers of training. India is

now at a crossroads for this change of attitude. We recommend that programs place priority on

active linkages among the private sector, programs and youth.

Limitations for study

Time was major limiting factor for this project because of random selection of students

and such a many school and colleges has to cover.

Direct interview method adopted for students and industries, so bias may appear due to

reasons like human exaggerating nature, social prestige, prejudices, suspicions etc.

With the consideration of all constraints and limitations, adequate efforts have taken to

minimize biasness and make these efforts more meaningful.

Directions for further Research

Bibliography

1. Youth Employment and Unemployment in India

By- S. Mahendra Dev and M. Venkatanarayana

Indira Gandhi Institute of Development Research, Mumbai

http://www.igidr.ac.in

2. Unemployment among youth in India:

Level, nature and policy implications

By- Pravin Visaria

Institute of Economic Growth

University of Delhi

3. Vocational Training in India

By- Dr. Ashok Kolaskar

India Knowledge Commission



4. Jobs for the 21st Century: India Assessment

A Report by- USDA

5. Socio-Economic Dimensions of Unemployment in India

By- S. Ray and Rattan Chand

6. Report on BACKWARD REGION GRANT FUND

District Planning Committee, Gulbarga

potential of agro based industries employment and self employment by abhay and rashmi

Documents