REVIEW OF LITEARTURE

Research studies in the field of agro-based food industries have been undertaken by some
individuals and government agencies. A review of the past studies helps to define the scope of
the present study and provides the frame work for analysis of problems, drawing inferences and
to suggest suitable remedies. Here an attempt is made to review the studies undertaken in the
area of agro based food industries both the studies made within India and outside India.
Bhattacharya S.N. (1981)1 in his book “ Development of industries in Backward Areas” studied
economic growth and its problems in five backward district of North Bengal and concluded that
in order to achieve higher economic growth, the potential for developing smaller and more
disbursed agro related industries should be systematically identified for each local area exploited
to the fullest extent possible.
Putaswamaiah K. (1981)2 in his book, “Micro plan for Employment. A Comparative Study”
favoured the establishment of those industries which are local resources based. He points out that
the aim should be to create more opportunity per unit of output and investment.
Miltion M. Snodgrah and Wallace L.T. (1982)3 in their book, "Agricultural Economics and
Resource Management" stated that labour costs for marketing domestic agro based food products
account for about half of the marketing bill.
Sandeep Singh (1995)4 in his article,” Advantages and structural weaknesses of Rural Industries”
revealed that the growth of rural industries helps in raising the standard of living of the rural
population by providing them more income, consumer goods at cheaper rates and social
economic overheads.
Mohsin Khan M (1995)5 in his article, “Agro – industries as a means of Rural Development”
stated that rural industries save us from the evil effects of the concentration of industries such as
pollution, over urbanization, congestions and growth of slums. The role of agro industries is
immense in accelerating the process of industrialization in rural areas in a developing country
like India.
Giriappa S (1996)6 in his book, “Rural Industrialization in Backward Areas”, has analysed the
employment as well as income potential from fish as well as cashew processing industries. He
1
Battacharya, S.N. (1981), Development of Industries in Backward Areas”, New Delhi,
Metropohitan publishers.
2
Puttaswamaiah K. (1981), Micro Plan for Employment – A Comparative Study”, New Delhi,
Sterling Publishers.
3
Milton.M, Snodgrass and Wallace L.T., 1982, Agriculturtal and Economics and Resource
management, Prentice Hall of New Delhi, Second Edition, pp.116-146.
4
Sandeep Singh, (1995), Advantages and Structural Weaknesses of Rural Industries, Kurushetra,
15(13).
5
Mohsin Khan M. (1995), Agro Induatries as a means of Rural Development, Kurushetra,
15(12).
6
Giriappa S. (1996) Rural Industrialisation in Backward Areas, New Delhi; Daya
Publishers, pp. 18-19.
also mentioned that India is among the five major producers of at least dozen agricultural
commodities in the world. Yet its contribution to the international trade in farm products is less
than 0.5 percent. Even in domestic market, the agro- processing is not a strong activity. It is
estimated that five percent increase in the processing of agricultural commodities can help in
generating 65 million jobs for the rural people.
Kamta Prasad (2000)7 in his article, “Poverty Alleviation shift in Paradigms”, stressed that there
is a need for an occupational diversification, by increasing rural industries and support so as to
enable the weaker sections to derive maximum benefits. The rural industries can compete with
the modern large scale industries only through development of infrastructural facilities and
support system.
Luh B.S and York G.K (2000)8 in their Book Commercial Vegetable Processing stated that
modern food processing technology has greatly expanded the farm produce markets both at
home and road. The increased need for processed foods has resulted from increased standard of
living, desire for a more diversified diet year – round, expanding urbanization and an increase in
population.
Raghuramaiah B (2001)9 in his article, “Indian Food Regulations in the Global context”
described that effect of globalization of food trade on the Indian food regulatory system are
considered with respect to food safety, consumer protection, restrictive policies on additives and
pesticide residues, the definition of natural and artificial codex alimentations commission
rulings, FDA regulations and the need to improve both the health of the Indian population (via
improved drinking water, post-harvest technologies) and inward investment in the Indian Food
industry.
Reddy Y. G. (2001)10 in his article, “Role of melas in marketing Agro Industrial products”,
aimed at exploring the practical problem faced by the producers participating in the mela and the
customers who buy the products. The study observe that the melas were considered as an
effective strategy for marketing.
Kiran Sankar Chakraborty (2001)11 in his article “Market and marketing channel of Agricultural
produces in Tripura” stated that the presence of the rice millers and their active involvement in
the marketing process are found in almost all the sample markets. They not only buy, process or
sell the paddy but sometimes even store it for future rise.

7
Kamta Prasad (2000), Poverty alleviation shift in Paradigm, Kurushetra, 50(1).
8
Luh B.S. and York G.K. (2000), “ Commerical vegetable processing”, second edition U.S.
Dept. Agric. Handbook 66.
9
Raghuramaiah. B.., “ Indian food Regulations in the Global Context” – Indian Food Industry,
Volume. 20, No.2,2001,pp.20-23.
10
Reddy Y.G. (2001), Role of Melas in marketing of Agro Industrial products, Research
Highlights, NIRD, Hyderabad, June 2001, p.70.
11
Kiran Sankar Chakraborty (2001), “ Market and marketing channel of Agricultural
produces in Tripura”, Southern Economist, August 15, pp. 11-13.
David Heymann (2002)12 in his article “Food safety, an essential Public Health Priority”
mentioned that annual mortality on account of food and water borne infectious diseases in
developing countries amounts to the high 2.1 million deaths, mainly of infants and children. In
Industrial countries microbiological food borne illnesses affect upto 30 percent of the population.
Ramanujam K (2003)13 in his article, “ Agro- processing industry in Economic Development”
revealed that the role played by agro- processing industries in our economy has multiple facets
and it changes the course of development. There is a vast scope for development of agro-
industries in India. India should develop agro- processing industry as a sector of economy in a
top priority.
Nair B.C. and Oscar D. Medo (2007)14 in their article “Food Processing Industry: A catalyst to
Goa’s ailing Agricultural sector” reveals that there is a round the year poor sales for bakery
products, beverages, wine and liquor, packaged water, canned fish, fruits, dairy products – milk,
ice cream, butter, cheese, masalas. As per National Sample Survey and 55th round common
expenditure survey, the average monthly per capita expenditure of Goa is much higher than the
national average. It is also pertinent to note that in Goa people spend more on food items than
non food items.
Lakshmi A (2007)15 in her article "Indian Agriculture- agreement on agriculture" some issues
emphasized most of the developing countries have a persistent shortage of foreign exchange. In
this context, it may be wiser for these countries to have as much domestic production of
necessary food items as their land resources permit. It is desirable, even if the domestic
production is costly compared to the import of the food article.
In a study by Sidhu and Kamal Ratta (2007)16, “Development experiences of Indian Agriculture:.
An appraisal of Post – Reform period”, stated that agricultural developed states like Punjab,
Haryana and Western Utterpradesh are facing the problem of stagnations in agro food production
and productivity.
Ramachandran .R (2008)17 in his article “Indian’s position in Global and Regional food
production” stated that the agricultural sector has its influence on industrial development which
not only helps earning of foreign exchange, but also in satisfying the basic needs of the
12
David Heymann, “ Food Safety, An Essential Public Health Priority” Global Forum
of food Safety Regulations, FAO 28-30, January 2002, p.p. 66-68.
13
Ramanujan K.N. (2003), Agro- Processing industry in Economic Development, Kisan world,
30(1).
14
Nair B. C. and Oscar D. Melo, 2007, “Food Processing Industry: A catalyst to Goa’sailing
agricultural sector”. Southern economist, August.1, pp. 17 – 19.
15
Lakshmi. A, 2007, “Indian Agricultural Agreement on Agricultural: some issues”.
Southern Economist, December 1, pp. 20 – 22.
16
M.S. Sidu and Kamal Vatta (2007), “ Development Experience of Indian
Agriculture: An Appraisal of post- Reform Period”- Southern Economist, October,
2007 pp. 9-14.
17
Ramachandran R (2008). Indian’s Position in Global and Regional Food Production, Kisan
world, February, pp. 7 – 9.
population. Therefore, agriculture could assist in transforming a traditional low –income
economy to a modern high income one.
Archana Skukla (2008)18 in her article ‘analysis of the problem of fruits and vegetables
processing industry in India’ stated that the country is the second largest production of fruits and
vegetables in the world. However, only 1.78 percent of the total production is commercially
processed which is below the level in comparison to many developed and developing countries
such as Malaysia, Philippines, Brazil and U.S.A.
Anjaiah. J (2008)19 in his article “Inter- Regional and Inter- State Disparities in cultivation,
production and productivity in food processing agricultural commodities in Andra Pradesh”
described that it is a common knowledge that lack of sufficient quantity of agricultural material,
uncertainities in the economy on account of dependence on monsoon are the major bottlenecks
for agro based units.
Narsis.I (2008)20in his article” Marketing of Agricultural products” stated that the marketing of
agricultural product is regarded as unique and deserving of special attention due to the
perishability and bulkiness of the products involved. Most farm products are seasonally produced
and are perishable. Storage, even when practicable, is costly and needs complex organization.
Murugan M (2008)21 in his article, “Food processing Industry in India” stressed that the potential
for the food processing industry remains untapped despite the huge quantities of processable
food items that the country produces.
Shelke R.D and Degaonkar A.M (2008)22 in their study “Agro-Processing Industries in India”
found that even today hardly 2 percent of the total fruit and vegetables are used for processing in
our country as against 70 percent in Brazil, 78 percent in the Phillippines, 83 percent in U.S.A.
Satya Sundaram (2009)23 in his article “Agro industries : Importance, Problems and Prospeets”,
stated that agro – based food industries are expected to play a major role in ensuring rural
prospecirty but they require a problem – free and highly modernized agricultural sector.

18
Archana Skukla (2008), Indian Journal of Agricultural Economics, September 2008,
Volume :63, p.p.387.
19
Anjaiah J., 2008 “ Inter Regional and Inter- state Disparities in cultivation, production and
productivity in food processing Agricultural commodifies in Andra Pradesh”, Southern
Economist, January15, pp. 15-16.
20
Narsis I. 2008, “Marketing of Agricultural products”, Kisan world, April 1-15, pp.18-19.
21
Murugan.M, 2008, “Food Processing Industry in India”, Kisan world, April 15-30,
pp.29-40.
22
Shelka.R.D and Degamkar A.M., 2008, “Agro Processing Industries in India”,
Kisan world, November, pp.,23-24.
23
Sathya Sundaram (2009), “Agro - industries; Imporatnce problems and prospects”, Yogana,pp.
38-39.
Srinvasan (2009)24 in his article “Projects to standardize ethnic fermented food
stated that the primary products used for making the agro-based foods are selected based
on experience and not on scientific principles.
Shinde M. N. (2009)25 in his article “ Indian Agriculture and Economic Reforms” stated that in
the year 2006 – 07 volume of food production in India is increased more than 4 times as
compared to the year 1950 – 51. But on average its growth rate has declined to 2.48.
Venkata Rao P and Ch. Thandava Krishna, (2009)26 in their articles, Food security in India”
stated that agro based food production increased from 55 million tonnes in 1951 to 203 million
tones in 1999, while the population also increased from 360 million to 980 million during the
same period. National Sample Survey data on hunger show that the proportion of the rural
households having two square meals a day of 81 percent in 1983 which rose to 88 percent in
1983 which rose to 88 present in 1991 and 93 percent in 1993.
Swaminathan M. S. (2009)27 in his article, “Strengthen Food Security Based on Home Grow
Foods “ stated that increasing population leads to increased demand for agro food and reduced
percapita availability of land and irrigation water.
Sitalakshmi. S (2009)28 in her article, “Towards Achieving a Second Green Revolution – The
Role of Radiation Technology in Food Processing Management” stated that there is an urgent
need for developing economies like India to utilize the technological advances made by BRIT to
revamp the food processing sector. Starting from deregulation of the sector to investing in
Research and Development facilities, to providing post-harvest. Storage facilities and marketing
infrastructure, to linking economic policies to investments in agricultural extension services, a lot
of ground has been cleared for the successful implementation of radiation technology.
Syed Alag Mujtaba (2009)29 in his article “ Agro based sugarcane Industries in India” stated that
the economy is yet to realize the full potential of agro- based food industries. The domestic as
well as global market is enormous. Only with mass production aided by modern technology and
intensive marketing can the domestic market as well as the export market be exploited to the
fullest extent.

24
Srinivasan (2009), Projects to standardise ethnic fermented food: The Hindu,
Thiruvananthapuram Edition, dated September 2009, pp. 7.
25
M.N. Shinde. (2009), “ Indian agricultural and Economic Reforms”- Southern Economist,
January 1, 2009 pp. 8-12.
26
Dr. P. Venkata Rao and Dr. C.H. Thandava Krishna(2009), “Food Security in India” Kisan
World – June- 2009 pp. 7-8.
27
M.S. Swaminathan (2009), “Strengthening food security based on Home Grown food”- Indian
Journal of Agricultural Economics – volume.64, April – June pp. 179.
28
Sitalakshmi S., “Towards achieving a second Green Revoluation- The role of
Radiation Technology in food processing Management”- Indian Journal of
Marketing, January, 2009 pp. 12-16.
29
Syed Alag Majabu Pankaj, “ Agro- based sugarcane Industries in India”, Southern Economist,
June, 15, 2009, pp 9-10.
Major Kumar Sarma (2009)30 in his article “Productivity of growth of food grains of India”
stated that a sustainable agricultural system is one that indefinitely meets mounting demand for
agro-based food with the increase in population growth.
Saraswathi and Durai Raj (2009)31 in their article “Emerging food Retail chains in India” stated
that to ensure food safety and maintain product integrity from the source to the customer (farm to
place) the food retailing companies have to establish a totally integrated infrastructure and
services package. This connects and maintains the flow of food from the source of farmers and
processes to the customer.
Goenka S.P (2009)32 in his article “Look East for Food and Energy Security” stated that
investment in agro- industries can ease the pressure of the demands of growing population by
synergizing the national resources available in the Indo - China region with the superior
technology and manpower resources available in India.
Sanjeeve Rao N. and Tulasi Das V,(2009)33 in their article “Globalization and Agricultural
Marketing” expressed that the development of high yielding fertilizers, use of plant production
methods and use of modern agricultural implements helped in increasing food production and
generate marketable surplus.
Yadav D.B, H.R.Shine and Dorage J.T. (2009)34 in their article “Export potential of major fruits”
stated that implementation of WTO results into lot of changes in agrofood market in India and
abroad. India is the second largest producer of fruits in the world after China. There is an overall
increase in the demand for fruits for consumption both in the fresh and the processed form which
has resulted in wide diversification on production pattern globally.
Kathirvel N (2009)35 in his article “ A Story on Satisfaction level of Farmers Towards Production
and Marketing of Agricultural products” stated that Indian farmers are unable to secure a fair
deal at the marketing and production stages of their produce and an average farmer is denied the
full fruits of his industry. The farmers need the services of well-organised marketing system
supported by marketing co-operatives, integrated means of transport and scientific storage
facilities.
Nageswara Rao M and Srinivas Rao S (2009)36 in their article “ Direction of Trade in Indian
Agricultural Commodity Exports” stated that the share of agricultural commodities in the total

30
Major Kumar Sarma, “ Productivity of Growth of food grains of India- An analysis”, Southern
Economist, May 15, 2009, pp.13-14.
31
Saraswathi and Devaraj, “Emerging Food Retail Chains in India”, Southern Economist, July
15, 2009, pp-37-38.
32
Goenka S.P. (2001) “Look East for Food & Energy Security”, The Hindu, September 6, p.14.
33
Sanjeeva Rao and V. Tulasi Das,(2009) “ Globalisation and Agricultural Marketing: Some
Strategies for Success”, Southern Economist, February 15, pp.16-18.
34
Yadav D.B., Shinde H.R., and Dorage J.T. (2009), Export potential of major fruits”, Southern
Economist, March pp. 13-14.
35
Kathitvel N. (2009), “ A Study on Satisfaction Level of Farmers Towards Production and
Marketing of Agricultural Products”, Indian Journal of Marketing, February, 2009 pp.41-54.
value of trade is dwindling very fast. Indian exporters are required to improve their processing
and packaging facilities to meet the international quality standards.
Perumalsamy R (2009)37 in his article “ Agricultural Marketing in India’s Economy” stated that
as we have a tradition of agricultural production, marketing and allied commercial activities,
now it is time for us to brainstorm and come out with new ideas of value added services. These
value added services will give the existing agricultural engine a new dimension. The next logical
step could be food processing which not only could be another revenue generating area but also
can provide lots of full time employment to our youths.
Maheskumar.S (2009)38 in his article “ Food Industry in India” stated that while India has an
abundant supply of food, the food processing industry is still nascent. The food processing has
been declared a priority sector with various government incentives.
Seshaadri Kumar N. (2010)39 in his article "Food security for India” stated that the per capita
yearly food grain consumption of 144 kilogram for an Indian compared to 300 kilograms for a
China reveals loudly the reason for Chinese on top and India at the
bottom of the Olympic Medal Tally.
Ammananya K.K (2010)40 in his article “Union Budget – Primary to Agriculture and Rural
Development” quoted that increased funds is made available on development of food processing
industries by providing state of the art infrastructure. In addition to 10 mega food parks already
being set up, the government has decided to set up 5 more such parks. The government has also
proposed major reduction in indirect taxes for agricultural and food processing industries.

36
Nageswara Rao M. and Srinivas Rao S, 2009, “ Direction of Trade in Indian agricultural
Ecommodity Exports”, Southern Economist February1, pp.21-23.
37
Perumalswamy.R,. 2009, “Agricultural Marketing in India Economy”, Kisan world,
September, pp.31-32.
38
Maheshkumar S (2009)” Food Industry in India”, Kisan World, September pp. 15 – 17.
39
Seshadri Kumar.N., 2010, “Food Security for India”, Kisan world, Vol.37, April,
pp.11-15.
40
Ammannya K. K. 2010, “Union Budget Primary to Agriucltural and Rural Development”,
Southern Economics, Vol.48, March.15, pp.43-44.