Economic analysis of agroprocessing industries in Kerala

Abstract

The study entitled quotEconomic Analysis of Agro-processing Industries in Keralaquot tries to examine growth, structure, features, performance, working, problems of agro-processing industries in the state and extent and forms of farmindustry linkages provided by these industries. The study is organized into eight chapters. The study found that agro-processing industrial sector occupies a significant positivn in the manufacturing sector of Kerala. However, its position in the Indian agro-processing sector was insignificant . It was observed that industrial structure of Kerala was slightly shifting against agro-processing sector of the state. It was found that growth performance of agro-processing industries in Kerala was unsatisfactory when compared with its neighbouring states. Labour productivity and capital intensity in agro-processing industries as a whole showed a rising trend and capital productivity showed a declining trend. The average capacity utilisation in agro-processing industries as a whole was found to be law and total factor productivity growth in agro-processing industries as a whole was found to be negative. Regarding sources of growth *in gross valuc added of agro-processing industries as a whole, it was observed that growth in it was accounted for by higher growth in capital input, slow growth of labour input and negative growth of total factor productivity. With regard to working of agro-processing industries, the study made significant observations regarding socio-economic characteristics of agroprocessing entrepreneurs, organization and management of the units, employment, output, capital structure, sources of finance, cost structure, profitability, sources of raw materials, price fixation etc. These observations provided the setting for analyzing the problems of agro-processing industries. The study found that agro-processing industrial units faced raw material related, financial and marketing problems.