They merely process the raw material so that it can be preserved and transported at cheaper cost. There are four types of agro-based industries. Industries which are based on agricultural produce and industries which support agriculture come under agro-based industries. Agro-based industries are those industries which have either direct / indirect link with agriculture. Prevent migration of people from rural to urban areas.Īgain the resource based industries are divided into agro-based, forest based, animal husbandry and poultry based, mineral based, marine based, etc.

Help to develop backward areas based on their suitability for setting up agro-industries. Transportation cost of agricultural products can be minimized – thereby help to minimize cost of finished goods.Īvoid wastage of perishable agricultural products. Solve the problem of exploitation of farming community by traders and middlemen.įarmers could be assured of better price for their produce.Įncourage to bring more and more areas under various crops – increase agricultural production and improve nation’s economy. Provide an opportunity for the dispersal of industries instead of concentrating at a particular place. Generate income and thereby improve economic condition of people – which in turn creates potential for demand based industries. Provide rural population an opportunity for employment. Establishment of agro-based industries is based on the availability of raw material.Īgro-based industries have to set up at rural areas where raw material may be available in plenty – helps in the up-liftment of the rural economy.

Ng ranga notes pdf