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Challenges to Fruits and Vegetables Processing Industry; A Study in Assam |
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Paper Id :
18669 Submission Date :
2024-02-04 Acceptance Date :
2024-02-15 Publication Date :
2024-02-25
This is an open-access research paper/article distributed under the terms of the Creative Commons Attribution 4.0 International, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited. DOI:10.5281/zenodo.11120128 For verification of this paper, please visit on
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Abstract |
The
economy of India is primarily agrarian and cultivation of fruits and vegetables
play an important role in economic development of
the country. Food processing industry is an integral part of
agricultural activities. It helps the cultivators in increasing income as well
post harvest losses. In this paper, attempt is made to bring out the problems
faced by fruits and vegetables processing industry in Assam. The current study
is based on both primary and secondary data. Secondary data is collected from different
official sources and primary data is collected from 90 processing units from
different districts of Assam for the year 2021 by preparing a standard
questionnaire. Data are analyzed through simple statistical tools and study
reveals that the fruits and vegetables processing industry face several
problems due to infrastructural and organizational hazards. The study also
tries to find out some policy implications to get rid of these problems. |
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Keywords | Agrarian, Economic Development, Food Processing, Post Harvest Losses, Income and Employment, Infrastructural and Organizational Hazards etc. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Introduction | JEL
classification L66 or L69 Indian economy
is primarily based on agriculture and almost 70 percent of the total population
depends on agriculture and other allied activities directly or indirectly. Food
processing is one of the most important micro enterprises for agricultural
country. Micro enterprise always plays an important role in the economic
development of a country. It helps in generating employment opportunities and
promoting self employment. In labor abundant country like India, such
enterprises are considered to be one of the major sources of employment. Food processing
can be defined as the conversion of raw agricultural ingredients (plants and
animal products) into food and food into other value added product. Food
processing is a large sector that connects with the activities such as
agriculture, horticulture, plantation, animal husbandry and fisheries. Food
processing covers all the processed edible items, be it agro processing, meat
processing or dairy products. The processed food sector covers a wide spectrum
of product which includes Rice mills, Atta chakkis, Supari making units,
Bakeries, Oil mills, Noodles making, Fruit and vegetable processing units etc. Food processing
dates back to the prehistoric ages when crude processing incorporated
slaughtering, fermenting, sun drying, preserving with salt, and various types
of cooking (such as roasting, smoking, steaming, and oven baking). Salt
preservation was especially common for foods that constituted warrior and
sailors’ diets, until the introduction of canning methods. Evidence for the
existence of these methods can be found in the writings of the ancient Greek,
Chaldean, Egyptian and Roman civilizations as well as archaeological evidence
from Europe, North and South America and Asia. Examples of ready-meals also
exist from pre industrial revolution times such as the Cornish pasty and
Haggis. During ancient times and today, these are considered processing
foods. In India, agricultural production is seasonal and due to lack of well equipped storage and transportation facilities post harvest loses are heavy (EPW, 2012). Government of India has been taking different measures for improving the processing sector. For example, the licensing system has been abolished for setting up fruit and vegetables industry. The sector is regulated by the Fruit Product Order 1955 (FPO) issued under Essential Commodity Act. The demand for processed food is large in India and the industry contributes to human welfare and economic development. The importance can be studied as follows: firstly, it reduces post harvest losses and helps in diversification of agricultural food grains. Secondly, it is labor intensive and very high employment potential (direct and indirect) with significantly lower investment and also enhances the return to the farmers. Thirdly, food processing industry induces overall development through its linkages with other sectors and change wage structure cropping pattern and intensity. Fourthly, the industry is highly investment attractive. Fifthly, utilization of food processing waste and ancillary generates additional employment in the economy as well as contribute to economic development as a whole. Assam, one of the prominent states of north east India is primarily an agrarian state. Principal and staple food crop in Assam is rice with some unique classes used for different purposes. Cash crops are jute, tea, cotton, oil seeds, sugar cane etc. Assam has an abundance of fruits and vegetables which serve as raw materials for the fruit and vegetable based unit. Presently, a number of food processing units have come up in Assam. But contrary to the expectation, their role in the process of rural industrialization so far seems to have remained very much passive due to several hurdles like marketing, infrastructural and financial. There are several subsectors of food processing industry; fruits and vegetables are one of the most important sectors because, its raw materials are mostly perishable. This study, therefore attempts to study the problems faced by fruits and vegetables sub sectors in Assam and try to suggest some probable remedial measures for it. |
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Objective of study | The primary objective of the paper is to study the problem
faced by fruits and vegetables sub sectors in Assam and some probable
suggestions for its remedy. |
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Review of Literature | Choudhury and
Baruah (2006) argue that the
factor endowment and agricultural production is important ingredient for food
processing industry. The climate and soil condition of Assam in particular and the region in general is
best suited for the agricultural products which serves as raw materials for
processing industry and this has resulted in the emergence of the food
processing units in the region. Murthy and
Dasaraju (2011) observed that
a strong and dynamic food processing industry plays a vital role in economic
development of a country. The processing sector provides a vital linkage
between industry and agriculture and has been identified as a sector of having
immediate potential for the growth of the economy. Raise, et. al. (2014) opined that agriculture is an important sector in the
economy of the North East Region. The production of fruits, vegetables, spices,
cashew nut is high in the recent past in the region but failed to get the
market value and hence it has large potentialities for establishment of food
processing industry. CPHPR (2018) noted that the value addition of
horticulture crops has contributed significantly to income generation and
poverty alleviation. The report revealed that the primary processing of ginger
increases the farmer’s income by 42.8 % per kg. FICCI (2020) in the survey report stated that the
absence of proper cold storage facilities leads to wastages of produce. This
problem has been marked as great challenges in food processing industry.
Moreover, the report revealed that lack of trained manpower, inadequate
technology is primarily responsible for slow growth of processing sector in
India. Aljamali
Mahmood et.al. (2021) mentioned in their study that about 30%
of the total population in the
industrialized countries themselves suffer
from food borne illness
infection annually. The rate
of infection with
food-borne diseases is estimated at 76 million cases annually, of which
about 325,000 cases are treated
in hospitals, in addition to
about 5,000 deaths. Rais, et. al.
(2022) in their study
found that the North East Region has its own agrarian roots having agro
friendly climatic condition, indicating a high potential for food processing
industry in the region. They stated that plenty of waters in Assam and other
areas are very useful for cultivation of various crops including horticultural
product. Food Park scheme is an
important infrastructure for the development of food processing industry. |
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Methodology | Assam is
selected purposively for the study as it produces variety of fruits and
vegetables and these are mostly perishable. The study is mainly based on the
primary data, though secondary data are also used. The secondary data has been
collected from various official and non official, published as well as
unpublished sources. Primary data, which constitutes the core of the study, has
been collected through direct interview method with the help of a well-prepared
questionnaire to collect the information from 90 units or 25% of the total
units (361) from 6 different districts namely Kamrup (Metro), Nagaon, Darrang,
Lakhimpur, Sonitpur and Sibsagar depending on the existing number of processing
units during the month of October 2019. Secondary data are collected from
Directorate of Economics and Statistics, Assam, District Industries and
Commerce Centre, Directorate of Industries (GOA), Food and Agriculture Organization
(FAO), etc. Moreover various books, research journals, research theses and
periodicals are used for the study. Simple statistical tools like tables,
diagrams etc. have been used for the analysis. The sample size is shown in
table1. Table1. Sample
Size of the Study
Source:
Director of industries, (2020-21) Assam
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Result and Discussion |
1.1 Production
and Productivity of Fruits and Vegetables in Assam: The production
of fruits and vegetables and productivity is one of the important determinants
for establishment of fruits and vegetables processing sector in an area.
Following table shows the performances of horticultural sector regarding area,
production and productivity in Assam from 2015-16 to 2021-22. During this
period, the area for fruits increases by 25.74 percent from 1.68 (2015-16) to
1.78 (2021-22) lakh hectares and production increases from 20.56 (2015-16) to
22.99 (2021-22) lakh tones. Regarding vegetable crops, the area increases from
2.67 (2015-16) to 3.14 (2021-22) lakh hectares but production increases from
49.33 (2015-16) to 58.96 (2021-22) lakh tones. This indicates a comfortable
environment for the growth of fruits and vegetables processing industry in
Assam. Table-2 Area,
Production and Productivity of Horticultural Crops in Assam
Source: Directorate
of Horticulture and Fruit Processing (2021-22) The table
clearly shows that the percentage increase in production of fruits and
vegetables exceeds the percentage increase in area of cultivations. Therefore,
it helps in supplying raw materials for fruits and vegetables processing
industry in Assam. 1.2
Distribution of Fruits and Vegetable Processing Units in Assam In our study
there are 8725 registered food processing units, since inception to March 2021
(Directorate of Industries, GOA). The subsector wise distribution reveals the
predominance of rice processing units accounting to more than 41 percent of the
total, followed by atta (16.16%), bakery (11.34%), oil processing (8.95%),
spice (5.14%) and fruits and vegetables (4.13) and so on. Distributions of
fruits and vegetables units in different districts are shown in table 3. Table3 District wise
number of fruits and vegetables processing units in Assam (up to March 2021)
Source:
Directorate of Industries & diccassam /admin, 2021 As shown in the
table, Nagaon district has the highest number of fruits and vegetables
processing units followed by Kamrup (M), Sibsagar, Sonitpur, Lakhimpur, Darrang
and so on. 2. Problems
Faced by Fruits and Vegetables Industry in Assam: Fruits and
vegetables processing subsector in Assam faces a number of problems, such as
hazards from the administrative setup, labor, infrastructure, unhealthy
competitions, various food laws and regulations which retards their
development. The problems can be classified into several categories viz.
infrastructural, organizational, marketing and financial etc. The fruits and
vegetables processing industry of Assam confronts some serious infrastructural
problems most of which arises on account of poor economic condition and low
maintenance of existing infrastructure. These can be again classified in to
physical, natural and specialized infrastructure. Different problems faced by
the fruits and vegetables processing units are discussed below. 2.1
Infrastructural Problems: Fruits and
vegetables processing units of Assam face several problems due infrastructural
hazards. According to the entrepreneur from six different districts, these
occur mainly due to poor economic condition and low maintenance of existing
infrastructure. Problems indicated by the entrepreneur regarding
infrastructural during field study are stated here: 2.1.1
Transportation Problem: Transportation plays a vital role both from the point of
procurement of raw material to the point of production and from production to
marketing counter of any product. Most of the units are forced to bear heavy
cost due to hiring of vehicles. Even those units having self owned vehicles
also have to bear high cost due to devastated road conditions and so on. In our
sample study, 75 units (83.33%) reported poor transportation as the main
constraint for the rapid development of the industry. The roads are destroyed
by heavy floods during rainy season makes transportation of the perishable
fruits and vegetables practically impossible. The transportation of raw
material and even finished product are very difficult during rainy seasons.
Sometimes, entrepreneurs are made to bear double cost because some products
cannot be kept for long time due to their high perishability. Due to the
scarcity of self owned vehicle of the entrepreneurs, the transportation cost is
very high in Assam. Moreover, the retailers are scattered in different places
and the producers must bear high cost for dispatching the product. Most of the
units have provided rented vehicle and the expenditures are high for excess
fuel consumption expenditure due to damage road condition 2.1.2 Problem
of Power Supply: Short supply of
power and power cut is another serious problem in Assam. In our field study, 80
entrepreneurs (88.89 percent) complained about power shortage as one of the
major physical constraints for the growth of the fruits and vegetables
processing industry in the state. It is either in the form of no connection or
low voltage (due to unauthorized consumers) and frequent power cut. 2.1.3 Problem
of Refrigerated Van: Refrigerated vehicle is mostly essential for carrying
perishable commodities. Among the 90 sample units of our study, 82
entrepreneurs (91.11 percent) expressed the view that the procedure of
procurement of raw material is not at all satisfactory. Most of the raw
materials (fruits and vegetables) are packed in bamboo baskets and carried in a
hand cart or even bullock cart in the absence of cold storage van. These carts
are often overloaded and as a result most of the materials lose their freshness
or original quality. Moreover, the fruits and vegetable processing units of
Assam largely depend upon the local markets for the supply of raw materials.
The quality, quantity and the price of the raw materials are often
unpredictable and fluctuating. 2.1.4 Problem
of Cold Storage: Fruits and
vegetables are mostly perishable and seasonal in nature. Therefore, it requires
preserving in cold storage to avoid wastage and decay. But in Assam, the
entrepreneur with their limited capital assets can neither afford to have their
own cold storage nor do they take the advantage of public cold storages. The
cold storage facilities are not practically enjoyed by more than 90 percent of
fruits and vegetables processing entrepreneurs of our sample units. There are
31 cold storages in Assam up to 2020, but the utility derived from them are not
satisfactory. It is observed that 85 percent of the storage capacities are utilized
only for potatoes. The cold storages are not utilized for whole year
and are not suitable for multipurpose facilities. 2.1.5 Lack of
Specialized Training: Training is essential for smooth conducting of processing activities. But,
in our study among the sample units 65 units (72.22 percent) have complained
about the system of selection of beneficiaries and method of training. The
remaining entrepreneurs have not suffered from this problem. Various
institutions like Assam Agricultural University (AAU), North East Regional
Agricultural Marketing Corporation (NERAMAC) and different NGOs conduct
expensive training programms and exhibitions/ seminar for growers and
entrepreneur to provide general awareness in fruits and vegetables processing.
But sometimes the entrepreneurs have not get any information about it and
unable to train out their employees and to create awareness among the local
people. 2.1.6 Problem
of Collecting Raw Materials: - It is one of the important problems faced
by fruits and vegetables processing units. Though there are large quantities of
fruits and vegetables produces in Assam, yet they are scattered and small
amount is produced by single farm. Therefore, high collection cost hinders
their development. Moreover, it takes a lot of time which is very expensive for
them. Almost all the sample entrepreneurs complain about this
problem. 2.1.7
Heterogeneous Quality of Raw Materials: - Fruits and Vegetables produce in
different places of Assam are not homogenous at all due to climate and
topography. Among 90 sample units, 81 of them (90%) face this
problem, which creates the problem of quality processed product and hence it
creates the demand for processed food. 2.1.8
Seasonality and Week Supply Chain of Raw Material: - Fruits and vegetables processing
subsector suffers from the problems created by seasonality of production of raw
materials in different districts of Assam. Out of 90 sample units 79 units
(87.77%) faces this problem. Moreover,
almost all entrepreneurs of the sample units face the problem of irregular
supply of raw material during the rainy season. During the monsoon, the flood
damages the crops and breaks the supply chain from field to industry. Even the
drought creates problem to the entrepreneurs in collecting the raw materials.
The supply chain network becomes weak due to these factors between supplier and
the processing units. During rainy season the roads and bridges are damaged due
to flood and soil erosion. 2.1.9 Absence
of the Quality Testing Laboratory: Quality testing laboratory is most essential for smooth
increase in demand among the consumers. But this type of laboratory is not
available in Assam. The entire sample entrepreneur faces the problem created by
absence of quality testing laboratory and as a result, they are not in a
position to compete with the products of branded companies. Moreover, the use
of pesticide in agricultural field hampers the quality of production and hence
creates problem in targeting for international market. 2.1.10 Problem
of Quality Water: Availability of quality water in sufficient quantity is very essential for
the development of processing activities, particularly for the production of
beverages. But, as many as 83 sample units out of 90 constituting 92.22 percent
complain about the non availability of good quality water. 2.2
Organizational Problems: Some
organizational problems are also faced by the entrepreneurs that hinder the
development of fruits and vegetables processing sub sector. The primary
organizational problems pointed out by the entrepreneur are stated below: 2.2.1 Problem
of Registration: The
entrepreneur faces some confusion regarding registration of the units. Large
amount of paper works actually lead towards dilemma. Along with these, the multiplicity
of food laws and regulatory authority lead to open harassment of food
processing units. The existence of various laws and authorities confuse the
entrepreneur that creates a major problem. The multiplicity of agencies for
registration of units in Assam like Khadi and Village Industries Commission
(KVIC), Khadi and Village Industries Board (KVIB), Districts Industries and
Commerce Centres (DICC), Block Office/Municipal Corporation etc. also creates
problem by confusing the entrepreneurs in selecting the agency for registering
their units. In our sample study 79 entrepreneurs express their experience
during the time of registration. 2.2.2 High
Ratio of Raw Material to Finish Product: Due to the non-availability of proper
varieties for processing, the raw material to finished product ratio is very
high in Assam in comparison to other parts of the country. All most all the
tomato processors in our sample units complain that to produce one tone of
tomato paste, 8 tons of raw tomatoes are needed in Assam; but only 4 tones of
tomatoes are required to produce one tone of tomato paste in other parts of
India as well as countries outside India. This is mainly due to the absence of
suitable processing varieties of tomato. Similar condition prevails in the case
of other fruits like orange and pineapple. Almost all the entrepreneurs of
units (90) reported about this problem. 2.2.3 Working
of the Units in Under Capacities: A large number of processing units are functioning in
Assam, but many of them are running under capacities. This is due to scarcity
of capital and problem of marketing of the finished products. In our sample
study as many as 73 entrepreneurs, constituting 81.11 percent of the sample
reported that they are producing below their full capacities. As a result, the
entrepreneurs are unable to conduct their unit very smoothly. 2.2.4 Stiff
Competition and Easy Import of Substitutes:-Another important problem reported by entrepreneurs is
the problem of competition and import of substitute. Different types of
alternative attractive product of low cost are imported which hinders the
development of local products. Among the sample units 78 units constituting
86.66 percent reported about the problem of competition with imported products. 2.2.5 Problem
of Labor: Labor problem is another important problem indicated by 84
entrepreneurs (93.33 percent) of our sample study. Particularly after festivals
or other functions like Durga Puja, Bihu, etc. when the labor get leave for few
days, most of them do not come back from their home at the predetermined time
schedule. As a result, the supply of the products gets interrupted. 2.2.6 Official
Harassment: The harassment
in official level is another unavoidable problem faced by entrepreneurs of
fruits and vegetables processing industry. The food inspector, labor officer,
sale tax officials, electricity board officials should be friend, philosopher
and guide instead of obstructers. In our study, 73 entrepreneurs (81.11%) has
complained about the harassment at official level. 2.2.7 Non
Cooperation of the Staff and Locality: In our study more than 50 percent of the entrepreneurs
complain that the workers and even the people living in the vicinity try to
noncooperation with the management. Particularly the women workers face a lot
of problems in the working place or outside and the local people sometimes feel
neglected and they start to oppose the activities done by the units. As a
result of this the workers start none cooperation and production of the units
often gets disrupted. 2.3 Marketing
Problems: Marketing is
the performance of business activities that direct the flow of goods and
services from producer to consumer. It indicates all those activities involved
in the point of production to the final consumption. In Assam, large
volume of perishable fruits and vegetables are processed but the entrepreneur
faces lots of problem in marketing the product. These are discussed below. 2.3.1 Packaging
and Labeling: Packaging and
labeling of the processed product is one of the important ways for attracting
the consumers. But, in our study it is seen that almost all the entrepreneurs
consider packaging and labeling as a serious problem. Good quality
of packaging materials like jar, bottle and others are unavailable within the
state. So, the entrepreneurs have to purchase these from outside at a high
cost. Moreover, 57 sample entrepreneurs constituting 63.33 percent refused to
accept the local material for labeling and packaging due to its quality. 2.3.2 Problem
of Revenue Collection: In Assam, large volume of perishable fruits and vegetables are produced and
the farmers face a lot of problems. The processors prepare processed food
but seasonality of demand creates a problem in marketing the product. The
entrepreneur faces another problem in marketing that is the inability of the
retailer as well as the customers to pay the price in cash at proper time.
Sometimes it takes a lot of time to sale the product and the cash remains
unpaid and sometimes totally unpaid. Most of the retail shopkeepers
refuse to pay the price even after selling the product and in case of women
entrepreneurs, this problem is very serious. Generally the vendor’s
take away the product from the units to supply the retailers. They
are and unable to collect the price until its sale. Therefore, it becomes
unpaid and the entrepreneur faces the crises of capital. Most of the
women entrepreneurs complain that they are unable to get the sale proceeds from
the retail shopkeepers at proper time and proper amount. Sometimes the
retailers refuse to pay the required amount even after the sale of the product.
As results dally collection cost of the entrepreneur is increasing
continuously. In our study 87 entrepreneurs (96.66 percent) confess the facts. 2.3.3 Variation
in Demand of Final Product: -All the units confess that the demand for processed
product is very low in some situation. During the celebration period like Bihu,
Puja and Eid and others the demand for the product is almost well. But, in some
slack session production is closed for two to three weeks. The seasonal demand
of the processed product creates a problem to the processors. In our Study 57
(63.33 percent) of the total sample entrepreneurs reported the problem of
seasonality of the demand for their product as the main marketing related
problems. The demand also fluctuates depending on the occasion and habit of the
consumers. 2.3.4 Strike,
Lockdown etc: In Assam different types of Bandh, road blockages etc are
frequently resorted by various organizations as a means for fulfilling their
demands. These types of programmes badly affect the business and trade
activities. In our study 79 entrepreneurs (87.7percent) of the
sample units suffer from this problem. 2.3.5
Inadequate Marketing Research: All most all the entrepreneurs of fruits and vegetables
processing industry face the marketing research problems. They do not have
enough money and spread of technical knowledge to conduct marketing research on
their own regarding the demand, acceptance of the finished product and its
prices. Due to lack of proper knowledge the processors fix the price at the
very beginning without any pre investigation about the acceptability by the
consumers. In our sample 81 entrepreneurs consisting 92.22 percent faces the
problems of marketing research. 2.3.6 Lack of
Export Marketing: In our sample study it is found that almost 82 percent of the units have no
Food Security and Safety Authority of India (FSSAI) license and have not
availed the opportunity to export their product to other countries. Even units
having license have no capability to export the product due to the under
utilization of the full capacity. Among our 90 sample units 79 entrepreneurs
accounting 87.77 percent have reported about this problem. 2.3.7
Advertisement: The local
processed food items are hardly advertised due to high cost of advertising .As
a result, the local people are ignorant about the product and the outsider’s
processors take the advantages. In our sample study 76 entrepreneurs from 90
(84.44percent) reported that due to this problem, the sale of the product is
very low. 2.3.8 Problem
of Warehouses: More than 70
percent of the entrepreneurs of sample units started their enterprise at their
own houses at an insufficient space and were unorganized. As many as 73
entrepreneurs constituting 81.11 percent of the total opined that they have
suffered from insufficient space for production. Though the government provides
several sheds in industrial areas yet the space of such shades are hardly
sufficient for production or for keeping raw materials. 2.3.9 Frequent
Local Bandh, Road Blockade, Strike etc: In Assam different types of Bandh, road
blockages etc. are frequently resorted by various organizations as a means for
fulfilling their demands. This type of programmes badly affects the business
and trade activities. In our study 54 entrepreneurs
(87.10%) of the sample units suffer from these problems. 2.4. Financial Problems: Entrepreneurs
also face some financial issues which are indicated below: 2.4.1 Problem
in Institutional Credit: - Finance is a major problem faced by the food processing units of
Assam. Our field study reveals that 81 entrepreneurs accounting for 90.00
percent of the total entrepreneurs face the problem of institutional credit.
Among them only 9 units are availing sufficient loan from institutional
sources, 81 entrepreneurs opined that financial assistance extended by
financial institutions is inadequate and creates a lot of hazard during the
processing of the activity. Lengthy process of getting loan from the
institutional and official complicacy, filling up forms etc. takes a lot of
time. For this reasons most of the entrepreneur prefer non institutional
credits. 2.4.2 High Rate
of Interest: The interest
rate of credit is high and the repayment period is very short. In our study 74
entrepreneurs, constituting 82.22 percent have badly suffered from this
problem. Moreover, the terms and conditions required to get the financial help
is hardly fulfilled by the local entrepreneurs. 2.4.3 Problem
Regarding Payment of Wages: The wages of labor in the food processing units of Assam varies from unit
to unit. There is no uniform rate and mode of payment to the laborers. In some
cases the wages are paid on monthly basis, in some cases it is on daily basis
and in some cases more pay for more work systems prevails. In our study as many
as 43 entrepreneurs accounting for 47.77 percent of the total paid monthly
fixed salary, 31 entrepreneurs (34.45 percent) paid wages on daily basis while
16 entrepreneurs (17.78 percent) paid on more pay more work basis. All the
sample entrepreneurs face the problem regarding wage payment.
2.4.4 Problem
of Donation to Different Organizations: In Assam, most of the organizations, individual persons
and various festivals committee are very aggressive in collecting
donation. They collect it from office, individual household, industrial
units and even in the road during travelling. Almost all of these 100 percent
of the entrepreneurs complain about this problem. |
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Conclusion |
From the study it is
seen that fruits and vegetables processing industry face a lot of problems in
Assam. Some of these problems are common for all the sub sectors of processing
industry, but some are special for fruits and vegetables processing sector
only. Perishability of raw material (fruits and vegetables) creates several
problems because it cannot be stored normally for a long time and
transportation should be done carefully. Heterogeneity
of raw materials also creates some problems to processing sectors. Among these some problems like power supply, inadequacy of cold chain, lack of quality testing laboratory, problem due to flood and rain, high ratio of raw materials to finished products, the donation demanded from different organizations, transportation, procurement of raw materials, training facilities, pure water, running of the units at under capacities, problem of warehouses, labor, packaging and leveling, advertising, revenue collection, market research and export marketing, wages to labor, stiff competition and easy import of processed food, official harassments, high rate of interest, situation created by bandh, road blockade, strike etc. seems to be serious problems. These can be solved by creating adequate infrastructure with governmental aid. On the other hand, some problem can be solved unitedly by the entrepreneur in an area. Some important facts are revealed in this study that all of these problems don’t occur in all the 6 sample districts. For example, the problems of flood in rainy seasons mostly disturb the transportation system in Lakhimpur, Sibsagar and Nagaon district. Similarly problem of quality water mostly disturb the entrepreneur from Kamrup and Darrang districts. It indicates that the problems faced by the entrepreneur are not homogeneous for all over Assam. It varies in different places of the state. Again the natures of problems are also varying in rural and urban areas. Some tasks collecting of raw materials are easy in rural areas in comparison to urban areas. Policy Implications i. For the development of food processing industry, adequate infrastructure like, power, water, transport and communications, laboratory testing facilities, cold chain system must be provided by the government. The entrepreneur must avail the opportunity from different governmental schemes like North East Mega Food Park situated at Nathkuchi in Tihu area of Nalbari district, Food park at Chaigaon of Kamrup district etc. Government intervention is urgently required for improving the connectivity and power supply in the state. Renewable energy sources and waste product can be used as an energy source. ii. Banks and other financial institutions should play an active role for the development of food processing industry by sanctioning loans with liberal working capital and long moratorium period. Micro credit for women must be making stronger to improve economically weaker section to create large processing activities. Entrepreneurs should also use the credit very carefully. They should not avail the financial credits more than the requirement. The bank officials must suggest some schemes to the entrepreneur regarding the utilization of fund by arranging different conferences, workshops etc in different localities and for different sectors. iii. Moreover, for solving the problem of marketing research, central and state government should conduct seminars and workshops on market research of processed food product. Frequent food exhibitions should be conducted with government support to enable the food processing units to market their product. Organized market research, marketing advisory service and market information system need to be developed. A door to door campaign should be conducted by sending vendors with free sample to examine the acceptance of the product by the consumer. iv. Training programs should be conducted frequently with government aids to organize the system in professional manner. The entrepreneur must perform some activities which help to develop the locality and it creates satisfaction to the local people. |
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