Agro-based (Cottage Industries) Industries in India :

Development of agro-based industries depend on the raw material produced by the agricultural sector. These products are mainly for consumer goods. It is labour intensive industries. Agro-based industries may be cottage, Micro Small & Medium Enterprises (MSME), big industries (e.g. Sugar Mills) etc.

Criteria of Agro-based Industry in India :

1. Raw Material : locally produced
2. Labour : cheap labour (labour mainly from family members)
3. Factory : near the raw materials (Home based factory)
4. Power : low or no power requirements
5. Mechanisation : lower technological use.

Geographical Distribution of Agro-based Industries in India :

South India :
Tropical climate
Black soil
Humidity in atmosphere
Well developed Cotton Textile industry.

* Kerala :
High rainfall from south-west monsoon 
More leaching of top soil
Iron content exposed
Availability of raw materials for Tiles.

* Gujarat, Tuticorin
High insolation at tropic
Subsiding of air mass 
At coast, sea water evaporate at the high rate 
It is suitable for Salt Making.

* Karnataka :
Rainfall ~75cm
Dry deciduous forest
Suitable for Sandalwood tree
It is useful for producing Incense Sticks.

* Tamil Nadu :
Dry climate
High non-vegetarian population
Suitable for Poultry Farm.

North-East States :
High rainfall
Close to tropic
Growth of bamboo grassland
Tribes traditionally know about use of Bamboo.

Jharkhand, Bihar :
Rainfall 100 - 200cm
Presence of forest area
Cheap labour 
Growing of  Eri
Eri for Seri-culture development.

* Kashmir :
High latitude
Cold temperatures
Low rainfall
Pashmina goat
Cold climate demand for shawl
Make Pashmina shawl from goat wools.

Problems of Cottage Industries :

* Seasonal nature of availability of raw material.
* Lower competitive with modern industries.
* Lack of branding - lesser in demand
* Exploited by intermediaries
* Education, modernization, and westernization has led to the people quit it
* No organisational market provided by the government.
* More child labour
* Pull factors of urban centres and migration has led to the decline of cottage industry.
* Disguised Unemployment - more number of people involved in a less produced work.

Advantage of Agro-based Industries in India :

* More employment opportunities for rural people.
* Employment for Unskilled people 
* Women empowerment (employment of women).
* Community development.
* Low environmental impact (eco-friendly).
* More effective and efficient use of resources.
* Grassroot level of development.
* Appearing inclusive growth in the society.
* Villages become more prosperous and our country development lies in the development of villages.

Way Forward :

* Better cooperation between lower strata of Government and Panchayat.
* Encourage value addition product.
* Better transportation connectivity.
* e-market.
* Good governance.
* Well developed cooperative societies.

Summary :
Agro-based Industries are Sunrise industry in India.
Empowering people.
Reducing migration.
Rural region development.


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