CHAPTER - 1

An Over view of the Economy of

East Godavari District
 East Godavari district is selected for a detailed study of the theme chosen for
this research study, "Problems of women entrepreneurs". The emergence and
growth of entrepreneurship depends to a large ertent, among several other factors,
on the opportunities available for the development of enterprise, business or
industry. The emergence and growth of an enterprise, in its turn, depends
primarily, among several other fadors;on the state of the economy of the region or
nation, as the case may be.

The extent and the process of growth of an economy which plays a pivotal role
in the development of entrepreneurshipin any region or country, as stated already,
is influenced by varied factors such as the location, topography, climate, rainfall,
soils, natural resources, such as water resources (includingsurface as well as ground
water resources), forest resources, mineral resources, human resources,
occupational distribution of working population, agriculture, cropping pattern, the
art of cultivation adopted, such as, farm mechanization, allied activities such as,
animal husbandy, daiy development, fisheries, sheep and goat rearing, piggeries,
poultry etc. horticulture, sericulture, the extent of the land available for industrial
purposes, availability of water, power, transport and communication facilities,
storage and marketing facilities and other inhastructural inputs, the size and
structure of industries, for example, large and medium scale industries, small scale
industries, other traditional industries such as hand looms and handicrafts etc. and
more than anything else the net work of banking and financial institutions etc,
which provide credit facilities and other necessaty assistance and guidance.

Apart from all these, the nature and extent of institutional support extended
also determines the process of entrep~neurshipdevelopment in a particular region
or country. There are various types of institutions in India, operating at national,
regional, district and local levels which are providing different types of assistance,
guidance, counselling, incentives, subsidies, rebates and relief etc. training facilities,
credit facilities, refinance facilities, technical, managerial etc. guidance, supplying
of raw materials, plant, machinery, equipment and auxiliaries and ancillaries,
renewals and replacements etc., marketing support, advertisement and publicity,
motivational support etc. A brief account of all the institutional support extended to
women entrepreneurs in East Godavari district is included in Chapter Four "
Institutional support to women entrepreneurs in East Godavari district". In this
chapter i.e. Chapter One it is only a brief account of the economy of East Godavari
district that is provided. It is the firm belief of the researcher that a really
meaningful, effective and an in-depth study of the "Problems of women
entrepreneurs in East Godavari district"can be undertaken, only, when we have a
fairly good perception of at least the broad contours of the economy of the East
Godavari district. It is with this purpose only that a separate chapter "Chapter One-
An over view of the economy of East Godavari district" is included in this thesis.

Location and administrative set up:

East Godavari district is situated on the North east of Andhra Pradesh

State. The district is bounded on the North by Visakhapatnarn district and the state
of Orissa on the East, by Bay of Bengal on the South and on the West by West
Godavari and Khammarn districts. The total geographical area of the district is
10810sq.krn. East Godavari District is one of the most important d i c t s of coastal
Andhra region due to its immense potentiality of agricultural resources, plenty of
most fertile delta lands and abundant water resources. It is one of the most
populous and densely populated distrids in Andhra Pradesh State. The district can
be divided in to four natural agro climatic zones viz., Central delta region w M
consists of 16 r
n w,eastern delta a Konaseema region which consists of 15
ma&, upland area which consists of 19 mandals and agency area 1 hilly area
which consist of 7 mandals.

For the sake of good administrative convenience, East Godavari &itrid is

divided into six Revenue divisions, viz. Rampachodavamm, Rajahmundry,
Peddapuram, Fakinacia, Ramachandrapuram and Arnalapuram divisions. There
are 5 municipalities in the district.

Climate and Rain fall:

The climate is comparatively equitable and it is very hot in the month of

May with a maximum temperature of 39c to 40c. The normal rainfall of the dishid
is 1159rnm. More than half of the rainfall is brought in by Southwest Monsoon,

while a large portion of the rest is received during the Northeast Monsoon period
i.e. in October and November.

Soils:

The main soils in the district are alluvial (clay loamy), red soils, sandy loam's clay.
There are mostly alluvial soils in Godavari delta area and sandy clay soils at the
tail end portion of Godavari river. There are red loamy soils in the uplands and
agency area of the district. Alluvial soils account for 15 per cent of the total area.

Forests:

In East Godavari district there are 798752 acres of land covered by forests.
Thick forestsare spread over the wn& area of 7 Revenue mandals in the district,
Bamboo, teak, eucalyptus, fuel wood, beedi leaves, etc., are grown over vast
otrotfheo of these forest lands. It is reported that 1021.61 hectares of forests are
under cultivation of bamboo, 3132 hectares of forests are under cultivation of teak
wood, 692.34 hectares of forests are under dtivation of beedi leaves, 6654
hedares of forests are under cultivation of other forest produce. Several highly
valuabk and useful raw materials are available in the forests of East Godavari
district for differentforest based industries. For example paper industry, eucalyptus
oil industry, beedi manufacturing industry, aromatic and medicinal plants industry,
cane furniture and teak wood furniture industries, honey collection and refining
process industries, fuel briquettes industry, basket making industnj etc. Of late, the
policy of the Government of Andhm Pradesh is not to disturb the ecological and
socioeconomic balance of these vast forest areas in the district. It has placed severe
restrictions on people other than tribal in the district to make use of these
forestlands for commercial purposes. It is only the tribal people that are encouraged
and trained to utilise the various forest products available in the district for
industrial purposes. A number of Government sponsored Agencies/Organizations
as weU as Private AgencieslVoluntary Organizations have launched upon varied
progammes for the exploitation and development of the forest produce, as well as
improwment of the economic conditions of tribal population living in these forests
in the district. NABARD (National Bank for Agriculture and Rural Development)
ITDA (Integrated Tribal Development Authority), AP Paper Mills, Department of
Forests, Government of AP. ITDA is encouraging cashew nut and mango
plantations in tribal areas as a part of the social forestry with the twin objectives of
providing tree cover in denuded areas and augmenting the income of the tribals.
Among the commercial spices the social forestry department of the Government of
Andhra Pmdesh encourages casuari& and the AP Papers are providing the
planting materials and td'mdogy for raising hard wood like eucalyptus and
casmina. While the Government of is providing subsidy and maintenance
to local Mbal communities for raising these plantations, several bankable
a~kxum~e
and economically viable schemes have been identified and credit assistance is
provided by NABARD Branch Mice at Kakinada (in East Godavari district) to
provide subsidiary occupation and supplemental means of income and lively hood
to the local tribal communities. There is very good potential for financing under

foreshy and Farm Forestry Scheme as nearly 30 per cent of the land in the
district is m r e d by forests and 80 per cent of the forests are in the Agency Areas.

Mineral resources:

East Godavari district has very good mineral resources. Graphite, fire day,
china day, laterite, and bauxite that areused extensively in several industries are
found in the district. There are several mineral-based industries set up in the d i d
already. Mangalore tiles, bricks, graphite crucibles chemical refractories are some of
the industries set up with the help of the mineral resources available in the district.
Apart from these, road metal, gavel and sand are also available in plenty in the
district. East Godavari district has a coastline of 114 krns as stated already. There
are 12500 acres of land on this coardine, particularly on the Kakinada and Yanam
road, where salt is manufactured. This provides immense potential for the
development of salt industries, washeries, and a number of salt-based chemical
industries in the district. The rich depwits of graphite, clay and fire clay, laterite in
the district provide immense scope for the setting up pencil grade graphite units;
grease, lubricants, electronic Qoods and ceramic based industries in the district. Oil
and Natural Gas Commission already made substantial efforts in the direction of
striking oil in Godavari basin of the district. It has already established that plenty of
gas Is avalkkbk in the met, P ~ C in ~the Ybmle region of Godavari basin.
finding of aMUabilib of huge d&osits of oil and gas in Godavad basin ha

catapulated Eaot Godavari d M d on the national and international scenario

because natural gas is going to be the foremost and abundantly available source for

power generation and energizing the industrial sector. When these huge deposits of
oil and natural gas are fully exploited the ever-growing problems of power
deficiency causing frequent power cuts and load shedding will be solved and the
pace of industrial development will be further accelerated.

Demographic features:

As per the latest information available there are 1,327 inhabited villages, and 22

towns in East Godavari dihict with a population of 48,73,000 spread over an area
of 10,807kms. East Godavari district is one of the most densely populated districts
in the State. The density of population is 451 per square kilometer. Out of the total
population, 24 per cent live in urban areas and the remaining 76 per cent in ruml
areas. The male population of the district is 24,46,000 and the female population is
24,27,000. Ruml population in the dishid is estimated at 34,60,418 and the urban
population at 14,12,582. The literacy rate in the district is computed at 57.73 per
cent. A large sedion of the working population (nearly two thirds) depends on
agriculture for their livelihood. There are 6. 521akhs scheduled caste people
(18.21%) and 1.75 labs scheduled hibes' people (3.8%). Around 2,77,926
families comprising 39-40 per cent of the population live under below the poverty
line (BPL). Tribal population is mostly concentrated in seven Agency mandals out
of 59 rnandals of the district (viz. Maredumilli, Rarnpachoda~mm,Gangavamm,
Y.Rarnavatam, Addateegala, Rajaommangi and Devipatnam.
Occupational Dirtributlon:

The main occupation of the people in the district is agriculture. 'fht is natural
because the dMd has fertile lands and most of the people are dependent on
agriculture dnd its allied activities in the district. Cultivators in the d i i c t are
estimated at 249094, who constitute 5.48 per cent of the population. Out of this,
251830 are males, who constitute 89 per cent of the total number of cultivators and
the remaining 27264 persons are females engaged in cultivation. There are 842372
persons working as agricultural labourers, who constitute 6.45per cent of the total
agticultural labourers and the remaining 274150 are females. Details of
occupational distribution (pattern) of the working population in East Godavari
district are furnished in Table No.l.1 given below:

Table Number 1.1

Occupational disMbution of working population in

East Godavari District

SI. No Occupation Males Females Total

01 Cultivators 568222 . 274150 842372

02 Agrl. Labourers 568222 274150 842372

Workers in Live Stock Foreshy, 41275 1820 43095
O3 F~hingetc.
Workers engaged in mining and 2S10 1079 3889
OQ
qwnying.
Workers engaged in mfg. And
05 processing in household 36973 17481 54454
Industry.
Workers engaged in mfg. And
06 prowssing in other household 80867 7091 87958
Industry.
07 Workers engaged in 1616 18120
construction +60504
S1. No OccwpaUon , Males Females Total

O8 wodB. em
corn-
'"we" 121020 16572 137602
in banspat,
O9 storage and communications
49734 . 726 50460
Workers engaged in other
lo 143413 40838 184251
services

11 Mar& workers , 7308 68774 76082

12 Non-workers 982996 1810849 2793845

Source: lndurtrlal potential sunrey- East Godavari District. Department of

Industries. Govt. of Andhra Radesh, Hyderabad 2002. -
It can be observed from Table Number 1.1 given above, that persons
engaged in agriculture and allied activities rank first, followed by the workers
engaged in other sewices, and workers engaged in trade and commerce, among
the different work groups in the population of the district. 61.5 per cent of the total
population in the diihict can be classified as non-workers. It is an indication of the
fact that most of the people are either not employed or not in the age group of
workers and people who are engaged in household activities.

- -
Agriculture lnigatfon facilities Cropping Pattern: -

The main occupation of the people in East Godavari District is Agriculture.

Agriculture is the backbone of the D i d ' s economy. The district has v e y good
agricultural resources and is one of the most developed districk in the Sate. East
Godavari D i c t is called the rice bowl of Andhm Pmdesh.

In the total geographical area of 10,81,842hectares, the net sown area in

the d i d is estimated at 4,57,069 hectares. The total net irrigated area in the
District is estimated at 2,73,963 hectares; through canals 1,89,874 hectares;
through web 29,060 hectares, through tanks 42,607 hectares; arid t h r w other
sources 12,422 hectares.

Paddy is the main crop grown in the district. Paddy is grown over 9,76,660acres of
land, which constitutes 75 per cent d the food &ins crops grown in the district. Along
with these, there are several other impartant crops grown in the diiict. For example jowar,
bajra, pulses like Mack gram, green gram and cash crops like sugarcane, chillies, cotton,
oilseeds etc. Details of the area under d i i e n t principle crops in the dish-ict are furnished in
Table No.1.2 given be&.

Table Number: 1.2

Area unda Principal Croaps in East Godavari Districtz

-
Source: - Industrial potential sunny report East Godavari District -
Department of Industries, Govt. of Andhra Pradesh, Hyderabad - 2002.
 The details of the yield of differentaops in b
t Godwari Mct are
furnishedin Tatk No. 1.3given below. '

Table Number 1.3

Yield of different crops in East Godavari District

- -
Source: Industrial potentid swrucy report East Godavari District -
Department of Industries, Gout. of Andhra Radesh, Hyderabad - 2002.

It can be observed from the data furnished in table No. 1.3given above that
more than 73.25 per cent of the total cropped area is used for cultivation of food
crops. Among several food mps grown in the district, paddy stands first with 54.75
per cent of the total cropped area, followed by black gram with 8.30 per cent of the
total cropped area. Among commercial aops,sugarcane stands first with 2.71 per
cent of the total cropped area. About 7.16 per cent of the total cropped area is
being used for production of oilseeds and 12.77 per cent of the total cropped area
is used for non-food crops. The net area sown is 57.69 per cent of the total cropped
area. This gives an over all indication of the fertility of the land in the district.

Ground water resources:

Utilization of ground water resources assumes critical importance for

improving the agricultural pl0du~ti0~
in the upland and tribal areas with no
potential for increasing the area under surface water irrigation. At present about
34,090 hectares of area is covered by ground water structures which is only 12.46
per cent of the net irrigated area and 7.46 per cent of the total net cropped area
and 4.57 lakh hectares in East Godavari district. It is therefore hardly necessary to
over emphasize the need for exploiting the ground water potential in the district.
The mandal wise ground water s u n q conducted recently indicated that the distrid
has a total utilizable ground water resource of 164492 ham. The potential for
minor irrigation through water exploitation is indeed substantial. The exploitable
potential ground water depends on the infrastructure available in the distrid viz.
facilitiesfor siting of wells, availabii of rigs, and most importantly the energisation
programmes of the APSEB (Andhra Pradesh State Electricity Board). The ground
water investigation and siting of well is mostly done by the State Ground Water
Development Institute (S.G.W.I.)
and APSIDC (AP State Inigation Development
Corporation). In addition to this National Resource Development Cooperative
Society (NRDCS) and about 10 private agencies are also engaged in this work.
Energisationof wells is the critical and most important input for the development of
ground water resources in the district. AP TRANSCO gives power connections in

the district for this purpose.

Farm mechaniration:

East Godavari is one of the high potential districts for mechanization of farm
operations due to high cropping intensity in the irrigated areas, coupled with
shortage of labour in peak seasons. Until recently farm mechanization has been
largely confined to the use of tractors and power tillers to some extent in the last
5.6years. The recent trends indicate. that the demand for mechanization of
harvesting operations through use of paddy thrashers has been increasing as the
time gap behveen harvesting of kharif paddy and tillage operations for rabi paddy
is hardly 10-15 days. As per the latest data available with the Department of
Agriculh~re,Government of Andhra Pradesh, there are 4052 tractors and
1100power tillers and 19725 sprayers and dusters in East Godavari district. There
is an ever-growing demand for tractors and power tillers in the district. There is also
a good demand for thrashers as it is one of the most important means of
agricultural operations.

Animal husbandry and dairy development:

Animal husbandry is the second largest a&vity in the district contributing to

13 per cent of the district's income and 4 per cent of the employment. Among the
animal husbandry activities, dairy and poultry are the main activities in the district.
The following table No 1.4 gives an idea of the cattle wealth in East Godavari
district.
 Table Number 1.4

Cattle wealth In Ead Godavari district .ason 31.3.2001

- -
Source : PMRY East Godavari district Industrial Potential Survey
-
Report and Project Profiles Commissioner of Industries Government -
of A.P. Hyderabad.

The total milk production in the district is estimated at 10.38 lakh litres per
day and the per capita availability is 224 m.1. per day. Even though the per capita
availability of milk in the district is higher than the state average, it is less than the
minimum availability of 250 m.1. per day /person, prescribed by ICMR (Indian
Council for Medical Research). There is there fore, great scope for increasing the
milk production in the district by encouraging daiy development programmes.
The increase in milk production has to be achieved mainly by improving the
productivity of cows and buffaloes. Rearing of milk yielding cows and buffaloes has
to be done in a larger measuFe. Similaiiy calf rearing centres, fodder cultivation
centres, bulk milk coolers, milk processing plants and private veterinary clinics have
to be set up in larger numbers through out the district. Milk products manufacturing
centres have atso to be set up in larger numbers in the d i d . There is very goof
scope for setting up a number of allied industries based on milk and milk produds
in the district in order to utilise profitably the availability of the valuable source of
raw material for these industries.

Poultry:

As per the latest information available there are 37.77 lakh poultry birds in

the district and poultry population has phenomenally increased at the rate of 137
per cent during the last five years. Based on the growth rate referred to, the present
population of layers and broilers also rose to 36.54 lakhs respectively. According to
the poultry Farmers Association and other private Agencies, the present population
of layers is around 95 IaWls and that of broilers is around 5 lakh birds. This activity
has witnessed a high growth rate during recent times. Although this sector has
witnessed a high growth during the last 2 3 years, the same growth rate could not
be sustained due to various factors like the frequent occumnce of cyclones and
diseases to the layers and chicks and increasing cost of poultry feed which has
correspondingly resulted in increasing prices of the eggs. This has made thii activity
to some extent uncertain and non-viable in the district. In spite of these drawbacks,
the poultry industry in the district is picking up by way of improved varieties of
chicks and the prices of eggs are also becoming remunerative when compared to its
prices 3-4 years back. The future of the poultry industry seems to be bright, taking
into consideration the increasing demand for poultry and its products, which are
being frequently used, by all sections of the public. Hence there is good scope for
this industry to take some more measures for further development. This will also
enable the development of industries based on poultry based products like egg
powder, and poultry feed etc; to come up in the district. Most of the infrastructure

14
required for pouttry rearing is provided by the private sector. Normally larqe
commercial firms have their own feed mixing plank according to their own
requirements. All feed ingredients are locally available. Smaller units purchase
mixer feed from private dealers. It is reported that there are already marketing
arrangements for eggs and meat in the diitrid. The d i d is also a net exporter of
eggs, which are sent to West Bengal, Orissa and Bihar regularly.

Sheep, Goats and Piggeries:

The upland and agency areas with large tacts of fallow lands are the most
suitable areas for sheep and goat rearing. The total area available for grazing
comprises of forests, uncultivable wasteland, permanent pastures. Fallows are
about 5.18 lakhs hectares, which is more than the net area sown in the district. The
population of sheep and goat as per the 1999 census is 61271 and 146402
respectively. The population of pigs is 47954. The potential for rearing pigs is
limited, as it is not a popular activity in the district. There are 55. Sheep breeders
cooperative societies in the d i i c t with total membership of 4624 and share capital
of Rs.7.7 lakhs. There is a great need to train sheep /goat farmers in scientific
techniques of rearing for which adequate number of extension centres have to be
set up in the district.

Fisheries:

East Godavari district occupies a very important place in the fisheries map
of Andhra Pradesh. It is endowed with rich fsheries resources in marine, inland and
brackish water areas. Fisheries is one of the major activities in East Godavari
d i e t because it has a vast coast line along with other sources like rivers, canals
and wells.

Marine fisheries:

East Godavari district has a coast line of 161 km and the area of continental
shelf is 7571 square kilo metres with an inshore fishable area of 1600 sq.km. Ar
per the latest information available, fishermen population in the diict is estimated
at 2,80,000 living in 90 fishing villages and 30 landing centres. There are 820
boats, equipped with diesel engines and 6525 non-mechanized traditional craft in
the district. The total number of nets in the district is estimated at 91,220 consisting
of 10,620 drag nets, 5400 grill nets, 600 trawl nets and 20500 cast nets and 6500
of other types. Many large trawlers are facing stiff competition from the Sona boats
which have almost equal voyage duration and the operational costs of Sona boats
is fairly low. The FRP catamarans are also operating profitably from various f ~ h
landing centres. The details of marine fish catch in East Godavari district are
furnished in Table Number 1.5given below.

Table Number 1.5

Marine fish catch in East Godavarl District

Mechadsed Non Mechanised Total in

Year Boats Tonnes
Boats
19981999 9,331 29,983 39,314

1999-2000 12,556 10,920 23,476

2000-2001 13,440 12,500 25,941

-I

Source: Base Potential Linked Credit Plan (2002-03) National Bank for
Agriculture and Rural Development, Regional Office. Hyderabad 2000 page 70
 There are 4661 ponds with a total water spread a m of 12,104 hedam
belonging to various Government departments, local bodies and private
individuals. Besides, there are 6 rese~oirswith a water spread area of 739 hectares
maximum and 215 minimum. There is vast scope for development of inland
fsheries in private ponds. According tb the Directory of Fsheries, Government of
Andhm Pradesh, an area of 2,403.25 hectares has been converted in to fshponds
in East Godavari distrid till the end of 1999-2000,The production of fish per
hectare in tanks and excavated ponds is 1000 kgs and 2500 kgs respectively. The
farmers who enable them to get additional production maintain the excavation
depth under inland fisheries at 8 to 10 feet. Many farmers are shifting from brackish
water shrimp culture to fresh water prawn culture. The farmers are getting
production of about 1000 kgs per hectare in a period of 8-9 months duration.

There are two fish seed production farms in the d i d under public sector
at Kadiam and Balabhadmpuram. Induced spawn of major crops is produced at
these two farms and supplied to the Government rearing farms at Vetlapalem,
Dwarapudi, Amalapurarn, Marnidikuduru, Razole, Kothapeta and Rajavommangi.
Besides these spawn is also sold to Fshermen Cooperative Societies and private
fish farmers, who in turn are stocking the spawn in nurseries, rearing them up to fry
and fingerlingings depending upon the demand and disposing them of for stocking
in f ~ ponds.
h The average prawn and fry production per year in the district is as
follows.

Major Crop prawn production- 800 lakhs.

Major Crop Fry Production - 109 lakhs to 120 lakhs.
Brackish water prawn culture:

Presently, approximately 60 per cent of the water area is under brackish

water prawn culture in East Godavari district. Only one crop is taken against two
crops, which were envisaged earliest. The monsoon crop is not taken as the climate
is prone to cyclone and floods.2185.22 hectares of agricultural land and 1465.38
hectares of mangroves are converted into shrimp fanning. The Fisheries
Department of AP State Government has set up the d i i diagnostic laboratories
at Kakinada. The farmers are taking advantage of testing the seed prior to stocking
them, which ensures better quality of stock. It is reported that the small and
medium farmers in the district are able to sustain production. The viral disease
though occurs at intervals is not very severe and the farmers are also trained to take
better care of their stock. The major constraint presently in shrimp culture is the
availability of breed stock for hatchety. Development in new areas has come to
stand still, due to frequent out break of viral disease affecting the viability of the
farms. Also the Coastal Regulation Zone (CRZ) discipline being enforced by the
Government places restrictions on brackish water prawn farming other than
traditional culture. The details of the extent of landlwater spread area developed in
East Godavari district arz furnishedin Table Number 1.6 given below.

Table Number 1.6

Extent of land water spread area developed in East Godavari district.
N u m b of Extent of land Watsr spread area
fannem (hectares) (hectares)
Extent of land 0 to 2 hectares 3559 4416.09 3531.95
Extent of land 2 to 5 hectares 737 1731.48 1339.59
Extent of land above5 hectares 118 1673.78 1350.56
Total . 4814 78213 6222.10

Source: Potential Linked W i t Plan (2002-03) Natlolul Bank for Asticulture and
Rural M o p m m t . Rpgiod Offiea. Hyderabad pago 72
 The i n m c k u e wailable in the d i i d for development of fsheries
comprises of a fishing harbour at Kakinada with a capacity to handle 410
mechanised boats, 15 large trawlers and 41 fsh loading centres at various places.
There are 25 ice plants and 2 cold storage units, 6 processing units with 26 tonnes
capacity, 2 refrigerated tnrds, 20 insulated vans, 4 boat building yards and 65 boat
repairing units, adequate number of net making and mending units and a shark
liver oil factory. There are 48 shrimp seed hatcheries with a capacity of 2366
million seeds a year. For the promotion of inland pisciculture there are 24 fsh seed
farms, both in public and private &or, supplying sufficient quality of f ~ seed.
h
About 90 per cent of the inland culture fish are bansported to Calcutta market.
Besides there are f~heriesresearch and training institutes sponsored by the central
and state Governments, located at Kakinada, which render the needed extension
support to fishermen and fish farms in East Godavari d i i d .

Horticulture:

The details of the area sown under various horticulture crops in East
Godavari district are furnished in Table Number 1.7 given below.
Table Number 1.7
Area sown under various horticulture crops in East Godavari district

Source: Department of Horticulbue, Govcmment of Andlua Radesh. Hyderabad.

 It can be observed from the data hrrnlshed In the Table Number 1.7 given
above that coconut, mango, cashew nut, bananas and tapioca are the principle
products of horticulture in East Godavari d i i c t . aft may be further observed that
cultivation of vegetables (9000 of hectares) is also of significance among several
activities of horticulture in East Godavari district. Floriculture (769 hectares) also
occupies an important place in horticuitukd activities in East Godavari district.

Full details of the annual production of horticulhval crops in East Godavari

district are furnished in Table Number 1.8given below.

Table Number 1.8

Annual production of horticultural crops in East Godavari district

S:- HOrfjcdhUC kparheat, Government of Andhra Pradesh. Hyderabad.

It can be obserwd from the data furnished in Table Number 1.8 cjven
above that a variety of fruits, vegetables and flowers are grown in East Godavari
district. h i n e n t among them aremangoes, oranges, coconuts, lemon, banana,
sweet orange, onion, cucumber, g o d s , beans, brinjals, Tomato, My,chamanthi,

marigold, mes and jasmine

There are hvo departmental nurseries in the district,one at central jail premises
at Rajahrnundry, and another at Tetagunta village in Tuni rnandal. In addition to
this, there are 210 private nurseries in the district. Mango grafts (75,000), cashew
grafts 50,000, guava gmfts 10,000 are supplied every year from nurseries in the
district, There are five cold stwage units in the district for preservation of the
horticuttuml produce. The details of the cold storage units for horticultural produce
available in the district arefurnished in Table number 1.9 given below.
 Table Number 1.9
Cold storage udtr for horticultural produce in East Godavari district.

Source Horticulture Department, Government of A.P, Hyderabad

The Horticultural Department of Government of Andhra Pradesh has

launched upon several programmes of development of horticulture in the d i d ,
some of which are quite innovative: programmes for cultivation of pineapple as an
inter crop in coconut orchards, growth of coconuts as inter crop in the coconut
orchards, mushroom cultivation; bee keepingsuitable in upland agency ams in the
district,and growth of non traditional plantations viz., amla, drumstick, soapnut etc.
Worts are also maid for the establishment of nutritional gardens in rural areas in
the d i i in recent times. It is reported that 5091 beneficiaries are covered under
this scheme so for. East Godavari district is a leader in Andhm Pradesh State in the
matter of development of hortidture and Qrowth of horticultural produce. With
this rich horticultural wealth, there is immense potential for the development of
agro based industries in the district.
 s e b h r e indushy is coneenhated in fwr areas in East Godavari
distric! viz. Cbbprolu, Sankavaram, P.Gannavaram and Rajavommangi. As per
the latest information available, an area of 450 acres is under mulberry cultivation
in the did. The Department of Senculture, Government of A.P. is providing
adequate n=-i facilities In the district for the overall development of
sericulhre. 3 technical service centres are established at the following places with
the n s c w s u m staff. 1.Chebrolu 2.P.Gannmmram 3.Rajavommangi.
These c e n b prwide extension support and technical guidance to the
seriarlluristr.

Apart from this, the Government of Andhra M e s h has set up a

Gawmment Gminage at Chebmlu, which produces commercial silk worms, eggs
and supplies them to the sericulturists through technical senrice centres. The
Government Grainage at Chebrolu has an annual production capacity of 6.00
lakhs 1.which is sufficient to cater b needs of 1200 benefiaaries spread cwer 1200
am.

There are 3 P1 seed farms established by the Government of

Andhra Pmdesh at Chebrolu, G.Rangarnpeta and Dontarnw to suppiy the
required quality of porent seed cocoons to Gowmment Dminage at Chebrolu.
There is one P2 seed farm established at Pedagaddada to supply parent seed to the
above P1 seed farm as well as to all the P1 seed farms in the 6 north coastal
d i i of Andhra M e s h . This ensures consumption of locally produced cocoons
with in the district and offers competitive prices for farmers' produce. They need
not go to far away pboa for marketing of their produoe. Detailed analysis of
demand or co~tsumptianmpadty of Non Fann Sector w.production of mulbeny
comma in on Fann Sector in East Godavaii d i i are provided in Table Number
1.10 ghren below.

Table Number 1.10

Coneumptlon capacity of cocoons in East Godavari District

meet demand (kg)

W n g units/acresin the d i c t 450
Demad&ope/Potential for extra units 200

Somw: Departtnent of Scriculture, Government of An& Pradesh.

Hyduabad.

The Technical Service Centre in Peddapumm established especially for

developing and monitoring non farm activities provides necessary technical
guidance and extension support to the entrepreneurs . Non farm activities
comprise reeling of silk from the cocoons purchased from the sericulturists, twisting
of silk and reeling to the silk weavers' co-operative societies. There is one Reelers'
Training Centre at the senculture complex, Chebrolu, to give training to the
interested private entrepreneurs in non farm activities like silk reeling and twisting
stc. Ttmr tm wemm' m t h r e societies functioning in East Godavari
dlsbrtd.~.~Pcddapursm~Irupaka,and~yviaages.Theymakeused
the entilre quantum d produdon of silk from the reeling units in the district.

In additkm to the above infmstructure facilities, the Department of

Sericulture is also implementing several progarnmes, such as those mentioned
below to educate the sericulturists in the application of new technologies.

1. Fanner Wshorttermtrainingprogrammes
2. Farmenr'meetings.
3. Roducthrttyaubs.
4. Study tours to traditional production centres.
5. Supply of tool kik.

With all the potential for huther development and infmstructuml inputs,
already d i d , there is a great scope for the development of sericultu~ein East

Godam d i d .

Storage and market Yards:

The averege annual out put of the agriadhd sector in East Godavari
district consists of 13.60 lakh tonnes of paddy ,l.l5 lakh tonnes of mangoes, 0.10
lakh tonnes of bananas, 0.55 lakh tonne of other fruits ,68.5 million coconuts and
7.50 lakh tonnes of vegetables. The fertilir consumption in the ditrict is estimated
at 1.20 lakh m. tonnes per annum. To handle aU these products, there are 14
asricultural market c o m m w (CIM.C.), 11 market yards, and 23 godowns w k
the Federatlan) with a total stmge corpadty of 10745
m.tonnes.in the dhPbtct, &rsides thsrP! aro a latgo number of private godaurns
belonging to rice mills, exporters, and others, the details of which are not available
readily in an authentic way. There is substantial improvement in the utilition of
the godowns by the fannersafter the introduction of Rythu Bandhu Pathakam by
th AP. State Gavemment. A d i n g to the Marketing Department of the AP State
Government, additional capacity of 500 m.tonnes is required in the d i d under
h e scheme, farmers get 75 per cent of the value of the production or Woo00
which ever is lower, per farmer for 90 days and the rate of interest varies from 6 per
cent to 10 per cent depending on the loan component. According to the opinion of
the experts in MARKFED, and Chamber of Commerce and Industry of East
Godavari d i d there is scope for creation of 10000 tonnes of storage capacity
every year during the next five years.

A major portion of the produce is marketed through private traders,

middlemen etc. With the introduction of Rythu Bazaars, on the pattern of "APNA
MANDIn IN Punjab the farmers are allowed to market their produce directly to the
consumers there by eliminating the middlemen. This concept has received wide
coverage and has become vey popul& in Andhm F'radesh State (where in East
Godavari d i d is situated).

As regards, cold storage facilities available in the district there are at present
5 units, with a total capacity of 11200 rn.tonnes against the total requirement of
20000m.tonnes. It is therefore estimated that 3000 m.tonnes of cold storage
capacity can be added evey year. The main produce stored are chiiies, tamarind,
potatoes, and jaggey. The Government of Andhm Pmdesh is exploring the
possibility of establishing cold storage units in all important market centres in the
district.
Land for hrdurtrjal we -Factory accommodation:

Adequate land with the needed facilities like power, water, work sheds,

toads and communication fadhies must be made available to an entrepreneur to

st up hislher entergrise as these are all essential infrastructud inputs or

fundamental prerequisites for starting any industrial venture. The Government of

Andhra Pradesh has established "Andhm Pradesh Industrial Infrastructure

Corporation" with the main objects of identifying the land for industrial use and
procure and develop h e land by providing all the requisite facilities like

construction of sheds, laying of roads, providing electricity and water and transport

and communication facilities. The state Government of AP is hopeful that these

developed plots will attract the entrepreneurs in a big way and they will come

forward to set up theii indudd units in these developed areas. The Government
of AP is hopeful that with the basic infrastructure provides by A.P.I.I.C. in the

Industrial Estates /Industrial Areas, entrepreneurs will start their indush-ial ventures

bringing in their own resources(financia1, technical, human etc.) The State

Government of A.P. wishes have been fulfilled to a large extent in East Godavari

distrid. All the industrial plots and sheds developed by A.P.I.I.C. are reported to be
fully -pied. ~ e t & of idustrial estates and 1.D.A.s (Industrial Development

Areas) developed by A.P.I.I.C. in East Godavari district have been furnished in

Table Number 1.11given below.

 Table Number 1.11
lndurttlrl estates and I.DA.Sdeveloped by A.P.I.I.C. in
East Godavari district

!Source: Andbra h d e r b Inda~MaIInfrastructure Corporation Hyderabad.

As stated already almost all the industrial plok and sheds developed by
A.P.I.I.C. are fully occupied. This reveals the extent of demand for ready made
industrial sheds and plok in the district. Encourdged by the this great response,
A.P.I.I.C. has received, it has pro@ to develop IDAS at Kadiyam, Vakalapudi,
Sarpavamm,and Peddapuram areas. It has proposed 440 plots and 92 sheds in
these industrial estates. A.P.I.I.C. has also acquired 62 acres of land for the
development of IDA at Kakinada (Phase 11), the mini industrial estates located at
Ramapumm with a view to allot the land to S.T. (ScheduledTribes) entrepreneurs.
Taking the due from the success of A.P.I.1.C and the encouragement being
provided by the A.P.State Government, many private enterprises are planning to
enter the field in a big way to develop industrial plok and lDAs on a commercial
bads. ' h venturer,
~ by private enterprlses have proved to be a big success in
Ram Reddy, Medak and Hyderabad & i d s . Thii process of setting up of
industrial estates by private enterprim, it is believed, will greatly help in the matter
of factory accommodation in East Godavari ditrid,.which in its turn, wiU directly as
well as indirectly encourage industrial entrepreneurs to start their venture in the
industrial areas.

Water (for industrial purposes):

East Godavari district has plenty of water as natures' gift. Apart from the
seacoast and the Godavari river covering most of the mandals of the district, the
d i d has also got immense potentiality for ground water resources which can be
adequately utilised for industrial purposes. The availability of abundant water in the
district will be very much helpful in many of the industries where water is one of the
principal ingredient for manufacturing like agro based indusbies, mined based
industries, leather based industries. There is immense potential for the development
of all these categories of industries in the d i d .

Power:

Power is one of the most important constituents for industrial development.

Electricity has become one of the most important components in human life. With
the increasing use of electricity for household and agricultural purposes, the
demand for power is ever inaeasing. Its importance has grown to such an extent
that 95 per cent of the indudrial establishments are dependent on electricity. It is
obsenred in several instances, that the industrialists (entrepreneurs)prefer to set up
their enterprises at places where there is adequate availability of power. It is
reported hat all he and towns in East Godavari district are provided with
e w t v . lhere are 44 sub +tations in t6e district, out of which the substations at
Bornmum, khabmm ~amapurarnand A.P.PaperMi are 220/132/133/K.V
and the rest are 33-11 KV. sub stations existing' at various local centres in the
district. The total capacity of these substations is 760 KVA. The details of power
consumption category wise in East Godavari district are provided in Table Number
1.12 given below.

Table Number 1.12

Power co~umptloncategory wise In East Godavari district

Source: A.P.Strte EltcMcity Board Hydembad.

 cplbe of all Power fadlitles avaikbk in & G&d &,jet, t h is

aa of hm in the distrkt As the of the

Of Andhra 10 priority to agrj&e over indusby,
mod of the Power a d a b l e in the district is supplied to agricultural sector (first
sector), there is not much left to the industrial sector in the district. Several
of the krge scale and medium scale industrial units in the district are facing the
P K , of~ acute shortage of power. Mast of them have set up their own power
generation sets to overcome their problems in the matten of power. Setting up
power generation sets is a capital intensive and costly proposition. Several of the
small-& sector industrial units are not able to set up their power generation units.
& a consequence, they are experiencing problems of frequent power cuts, load

shedding, and erratic supply of power. All these u n p h t trends in power sector
are not only hampering the production schedules of sewml industrial units, but also
causing frequent breakdowns of plant and machinery involving huge expenditure

on repairs, replacements, renewals and maintenance. Realiiing the gmvity of this

problem, the A.P. State Govemment in its 'Vision 2000" has prescribed subsidies
for all those industrial units which have invested on captive power generation
planbe A ~ Mfrom this, some of the small scale industrialists are forming into CO-

opemtive societies, pooling their resources, plans to set up captive power

genemtion sets to overcome the problems caused by power shortage and trequent
failureof power supply. AU these measures taken by the A.P.State Govemment and
the plmk enterpitses in the small-smle industrial sector haw not helped the
entrepreneurs to over come their problems completely. As a result, the A.P.State

Go-ment has opened up the power sector to Multinational Corporzltions in

order to mop UP the deflchc~of power supply. The Government of A.P. has
akaady several pr& for the puq&. Already two private sector gas based
power plants are coming up near Kakinada to generate power on a commercial

basis. Experts are of the opinion, that there is gr&t scope for generation of more
power by utilising the natural gas available in the district. The State Govemment of
AP is hopeful that all these measures will help the industrial sector in East Godavari

d i to overcome the problems of power shortage, very shortly.

Transport and Communications.

-
1) Railways: Railways play in important role as a means cheap and affordable
mwporbtion both for human beings and goods in our county. There is a very
good railway nehvork in East Godavari district. There is a network of 144kms of
raihuay lines in East Godavari d i d , connecting Kakinada and Rajahmundy, the
two important commercial centers in the district. There are 21 Railway stations in

the district. All the important and busy milways from Madras to Calcutta and other
places in eastern parts of India pass through the district. This helps in a big way
passenger and freight traffic to all leading marketing centers such as Rajahmundy,
Samalkot, and Kakinada etc. in the district, as well as neighbouring districts and
states l i i Tamilnadu, Orissa etc.

2) Roads:- Roads are the principal means of transport in East Godavari district.
East Godavari district has a great locational advantage in the matter of roads. One
of the most important highways in India the Madras - Calcutta national highway
passes through the d i i for about 126krns. The total length of the roads in the
district is 482lkms. As many as 1044 out of 1327 inhabited villages in the district
are well connected with all weather roads. Apart from this, there are Zilla Parishad
( p )roads, h r ~ Raia
M Parhhd roads that are connected to most of the villages
linking them to 0 t h places
~ of the district. The national highways are maintained
very well but the state highways and the ZP and'^^^ roads are not maintained
well. This is musing great inconvenience for the transportation of goods and
commutation of people from one place fo another. Poor maintenance of roads is
also resulting in damage to the vehicles and trouble to the commuters using these
roads. A.P.S.T.R.C (Andhm Radesh State Road Transport Corpotation) plays a

vital role in the district's hanqmrt network, with its wide network of buses covering
nook and comers of the d i d . It is operating the fleet with a network of eight

depots in the district.

3) Water Transport: - Water Transport is the principal means of transportation

available in the district, due to the location of a number of rivulets, canals and
resewoirs in the d i . Apart from thii, Kakinada is one of the minor ports in
India. It is an all weather shelter and therefore it is classified as an intermediate
port. The principal exports from thii port are Prawn, groundnut, cotton, Soyabeen,
grape seed, mango kemels, palm fibre, groundnut kernels, fruit jams and juices etc.
The port also imports fertilizers like D.A.P, N.A.P,Urea, Rock, Phosphate, Rice,
Wheat etc. Kakinada port is becoming one of the most important junctions for

water transportation. A deep-water port is under construction at Kakinada with the

assistance of World Bank. After completion of this work, Kakinada port is expected
to handle about 7.15million tonnes of traffic annually. A ship-breaking unit is also
established at Kakinada. This is helping in a large measure, in generating

employment opportunities and several mall-scale industrial units have come up in

rewnt years in and around Kakinada. All these units save as allied and ancillary
units ta the main ship breaking unit. There are a h a number of rivers, canals in
the dfsMd,which serve as means of inland water bansport, particularly Konaseema
area. In Konaseerna, a water logged area, the Cheap means of transportation is
through boats, and steam launches.

4) Air Transport:. There is an aerobrome at Madhurapudi near Rajahmndry

which connects Vijayawada, Hyderabad and V i a p a t n a m airports. The air
transport facilities available at Rajahmundry in the district are not yet used on a
wide scale for industrial purposes.

5) Communications: - In East Godavari distrid, the communication network is

developed by Posts and Telegraph Department (Governmentof India). There are
105 telephone exchanges, 27,729 telephone connections and 1047 public
telephones in the district. There are 8 Head Post Officesin the d i c t assisted by
158 subpost offices,and 687 branch post offices. Postal senrices cover almost all

the villages in the diict. In spite of all these developments, East Godavari d i i c t
is still lagging behind several other districts in A.P in the matter of communications.

Adequate measures are yet to be taken, in East Godavari district in the direction of
introduction of pager s e ~ c e sfax
, services, and mobile phone services in a big way,
as all these services are extensively used by the industrial units as their principal
means of communications with their counter parts within the district, as well as in
other districts, states and countries.
1) Medium and +W e industrim:

There are 61 medium and large scale industries in the diict. Among these 22
are food based industries, 7 textile based industries, 10 forest based i n d ~ a 7,
chemical based industries, 2 electrical .and electronic based industries and the
remaining belongs to miscellaneous group of industries. East Godavari district has
thus not only a large number but a h a variety of large and medium scale
indusMes, having immense potential for employment generation and growth of
allied and ancillary industries in the district. A variety of products are manufactured
from these large and medium industries in the district. All these large and medium
scale industries are sufficiently spread over the entire district and thus there is
enough geogmphicai mification of industridition in the d i d . It is true that
there is to some extent concentration of large and medium scale industries in and,
around Kakinada, because of the facilities for exports available at Kakinada port,
which is one of the important minor sea ports in India. Experts are of the opinion
that there is good mpe for setting up still a lare number of agro based, forest
based, mineral based industries in the district. According to the latest information
available from the Industries Department, Government of Andhm Pmdesh, 120
large and medium scale enterprises of different product groups are coming up in
the district and they are under various stages of implementation. The details of the
industries that are coming up and under different stages of implementation in East
Godavari district are furnished in Table Number 1.13given below.
 Table Number 1.13

CI.trsory tulro ilrt of large and medibm scale indwrMes under different
stages of Implementation in East Godavari district.

-
Source :Cornmissloner of Industries. Government of Andhra Pradesh
11) S d I Scale I ~ ~ As per.
* the latest information available, there are
12345 small seah industrial units in ~ a Godavari
g d i d , with a sufficiently wide

product diversification as well as geographical spread. The total amount of

investment in these small-xale industries is estimated at Rs.109.82crores. The
employment generation of these small-scale industrial units in the district is
estimated at 62895 persons. The deals of small-scale industries. product group
wise in East Godavari d i d are furnished in Table Number.l.14given below.

Table Number 1.14

Snrall scale industries, product group wise in East Godavari district.

Source :Commirsiw of Industries. Government of Andhra Pradesh

Handlooms Industry:
 East ~odavaridbhlct is an Important area of H a n d l m Industry in Andhra
h&h. is a b on cent ration of handloom ind- in East G o M
There are 14436 handlooms in co-operative sector and 5275 handlooms
~~sh.M.
in the private sector. Thus there are 19711 handl&ms in the distrid. There are 53
handloom weavers cqmative societies in East Godavari d i d consisting of
13,436 members and a paid up share capital of Rs.363.46lakhs, spread over 47
mandals in the district East Godavari district has a great reputation for the large
number of varieties of handloom industry products, for example Uppada Jarndani
sarees, ANGARA BWTA sarees, JAGANNATHAPURAM TIE and DIE sarees,
PANDALA PAKA KUPPADAM DHOTIES and UPPER Cloth, PEDDAPURAM S
ilk
sarees, Dhoties and shirtings, MORl 100 s and 120s shirtings and dhoties,
HANSABADA KALANKARI bedsheets and furnishing cloth, BANDARU LAM(A

and PULLFnKURRU big border sarees, ADDAMPU and SIVALA towels, and
bed* etc. The handloom varieties produced in East Godavari d i d have
good market potential not only through out Andhm Pradesh, but in several other
states also in our country. The production of handloom doth in the weavers'
coopemtiw societies in East Godavari district is valued at Rs.10 to 15 crores per
annwn. The weavers' cooperative societies are mostly dependent on APCO for
marketing their produrn. Government of India as well as Govemment of Andhra
Pradesh have launched up on several schemes for the development of handloom
industry and conferring varied benefits on the handloom weavers in East Godavari
district in recent times for example: i.) NABARD Refinance Scheme; ii) Handloom
Development Centre Scheme; iii) Quality Dying Unit Scheme; iv) Project Package
Scheme; v) Integrated HandloomVilage Development Scheme; vi) Centrally
Sponsored Work shed cum Housing Scheme; vii) Pilot Project Scheme for
handloom weawn, under private sectom; viii) Pilot Scheme of work shed cum
lor w e a m of outside cooperative fold (privatesector).

There are 31 Commercial Banks, one Regional Rural Bank and 1 Central
Cooperative Bank operating in East Godavari district. There is a total network of
365 bank branches working in the district, 304 among them belong to commercial
banks, 16 to Regional Rwal Bank, and 45 to Central Cooperative Bank. Among
these 141 branch offices of the different banks are situated in rural areas, 127 in

semi urban areas and the remaining 97 in urban areas. As on 31* March, 2000 the
total amount of deposik of all the banks operating in the diitrid was reported to be
Rs.2, 36,728 mres. The total amount of credit deployed by all the banks
operating in the d i d as on 31* March 2000 was reported to be Rs.1, 84,337
mres. The fdl details of the performance of the banks in East Godavari district are
provided in Table Numtxr.l.15given below.

Table Number.l.15

Performance of the Banking Sector in East Godavari districtas on

31" March,2000.
(Rs.in Crores)
Source: Annual Credit Plan 2001-2002 East Godavari district Andhra Bank.
LudW OCfice. Kakiruda.

Apart from Commercial Banks, Regional Ruml Bank, District Central

Cooperative Bank, there are a number of other banking and financial institutions

opemting in East Godavari district, which are providing credit support to

entrepreneunhip deveiopment for example, NABARD (National Bank for
Agriculture and Rural Development], East Godavari District Scheduled Castes
Cooperative society, Andhra Pradesh State Finance Corporation (APSFC)etc.
Added to these there are some private sector enterprises, voluntary Organisations,
Government sponsored Organisations /corporations to-operative societies etc also
which are extending varied types of support/ guidance/ counselling/trainingfacilities
to the women entrepreneurs in East Godavari dishid, under different
sche-mes fonnulated/designed by them. A detailed discussion on the
 33 4360
b t l W m d Mpport &ded by k e various organisations and the banking and
finmdal instltuhns for women entrepreneurs in East Godavari d i d is included
in chapter four "Institutional support for women entrepreneurs in East Godavari
dicta.

An earnest attempt has been made so far, to present a bird's eye view of the
economy of East Godavari district, highlighting the salient features of the various
factmthat haw an impact on the development of indusby and business in the
and also the manifold r m r c e s and opportunities, that are available to

women enhpreneurs to take up their entrepreneurial activities.

nn the chapter that fdlows, chapter two, the methodology adopted for this
research work has been dixused.