Agroindustry have been given significant priority in economic development in India. Mahatma Gandhi’s emphasis on developing village-based agroindustry in the movement for independence marked the beginning. Is the priority given to agroindustry justified today? The agroindustrial sector in India contributes a large share of overall employment in industry as well as value addition and income generation. Managerially, one of the major challenges lies in organizing sustained production and procurement from large numbers of small farmers. A partnering approach appears to be most promising in overcoming multiple constraints. It can be implemented either through building cooperative organizations or by building confidence and trust through a mutually beneficial business relationship involving private enterprise and farmers. In both cases, and with other successful models, the government must play a facilitating role through enabling policies, regulations, financing options, and research and development.
It requires long-term commitment and financial strength with limited scope for affecting large numbers of rural poor. It is critical that alternative agroindustrial models are encouraged to emerge and receive strong government backing, especially those models that contribute positively to rural employment, poverty alleviation.
Dr. Sreenath, Principal Consultant and an Agriculturist.
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