An Economic Analysis of Agro Based Industries: A Case Study of Tiny, Small and Medium Scale Rice Mills in Koppal District, Karnataka

Abstract

The increasing population’s food needs and nurturing entrepreneurship skills in underdeveloped countries is possible with efficient agro based industry development. The agro based industries are less capital intensive and more employment creative. So agro based industries are source of food security, employment creation, income generation, entrepreneurship skills nurturer. So it is necessary to know the importance of the agro based industries worldwide and especially rice mills in Koppal district. This study has analysed 2009 to 2018 data. The study found that worldwide agro based industries provided stable employment and income generation which shows they are inelastic to economic fluctuations. The rice mills in Koppal district nurture industrial development and entrepreneurial skills with employment creation in the district. However, rice mills in the Koppal district are suffering from decreased paddy production in the district due to lack of Tungabhadra reservoir water to the area which constitutes 1 million hectares for two crops. Less participation of women, capital problems, infrastructure problems and quality of raw material, and so on, are other problems that are faced by rice mills in the Koppal district. So, suggestion is that government must arrange seasonal markets at farms in a village and encourage combined or group infrastructure facilities creation by rice mills in the district.