Development of agro-based industries in Punjab: an analysis

Abstract

In the present study, an attempt has been made to examine the pattern, growth and importance of agro-based industries and to identify the problems and prospects of development of agro-based industries in Punjab. The study has been based on secondary data. The study has covered the period from 1980-81 to 2005-06. For comparative analysis, the data relating to output and capital have been deflated by using wholesale price index, taking 1993-94 as the base year. This study reveals that agro-based industries need special attention for further development in Punjab. Wheat, rice, sugarcane and cotton are the dominant crops in the State of Punjab. The area, production and productivity of these crops have increased over the time period. The marketed surplus / market arrivals of paddy and wheat are more in absolute as well as in relative terms. The four districts namely, Sangrur, Ludhiana, Patiala and Ferozepur contributed about 50 percent of total marketed surplus of paddy in Punjab. Thus, the government should take initiative to establish more paddy and wheat-based industries in these districts of Punjab. The district-wise analysis reveals that the total number of units of food, beverages and tobacco-based industries has increased in the rural and urban areas of all the districts of Punjab during 1980-81 to 2005-06 except Faridkot district where the total number of units has decreased in the urban areas. There was significant growth in number of units of textile-based industries in the urban areas of Amritsar, Jalandhar, Hoshiarpur, Ludhiana, Bathinda, Sangrur and Patiala districts. The highest number of units of wood, paper and leather and textile-based industries was established in the urban areas, but the growth rate of fixed capital was lower in the urban areas as compared to the rural areas. The results reveal that Punjab State has relatively more growth in case of textile-based industries. The majority of number of units of food, beverages and tobacco; textile and wood-based industries were concentrated..