Growth of Agro-Industry and its Inter-Relationship with Agriculture

This all-India level study examines the growth of agro-industry and Interrelationship between agro-industry and agriculture. Further, it attempts to explain growth of agro-industry in terms of its relationship with agriculture. It indicated that within agricultural sector only plantation and commercial crops gets substantially processed by agro-industry. Within agro-industries, oilseed processing, sugarcane processing and raw hide and skin processing industries have strong backward linkages showing their capacity to influence agricultural growth through induced demand However, relationship between agriculture and agro-industry gets weakened by the fact that out of 21 agroindustries only ten are primary processing. Only these are likely to be directly affected by changes in the output of agricultural sector.