P: ISSN No. 2231-0045 RNI No.  UPBIL/2012/55438 VOL.- XII , ISSUE- III February  - 2024
E: ISSN No. 2349-9435 Periodic Research

Challenges to Fruits and Vegetables Processing Industry; A Study in Assam

Paper Id :  18669   Submission Date :  2024-02-04   Acceptance Date :  2024-02-15   Publication Date :  2024-02-25
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DOI:10.5281/zenodo.11120128
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Nandita Goswami
Assistant Professor
Economics Department
Barbhag College
Kalag, Nalbari,Assam (India)
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.

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.  

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.

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.

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

Sub sectors

Nos. of units

Sample drawn

Percentage of the total

Fruits and vegetables

361

90

25

Source: Director of industries, (2020-21) Assam


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

Crops

Items

2015-16

2018-19

2021-22

Fruits

Area (Lakh hectare)

1.68

1.71

1.78

Production(Lakh MT)

20.56

21.62

22.99

Average Yield (kg/hectare)

12238

12643

12915

Vegetables

Area (Lakh hectare)

2.67

2.98

3.14

Production(Lakh MT)

45.33

51.15

58.96

Average Yield(kg/hectare)

16977

17164

17822

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)

Name of the districts

Numbers of units

Name of the districts

Numbers of units

Barpeta

09

Kamrup(M)

39

Baska

03

Kamrup(R)

21

Bongaigaon

09

Karimganj

18

Cachar

09

Kokrajhar

04

Chirang

05

Lakhimpur

26

Darang

25

Morigaon

05

Dhemaji

05

Nalbari

06

Dhubri

06

Nagaon

40

Dibrugarh

12

N.C.Hills

04

Goalpara

08

Sibsagar

37

Golaghat

09

Sonitpur

31

Hailakandi

04

Tinsukia

09

Jorhat

10

Udalguri

01

Karbianglong

06

TOTAL

361

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.

2.4Financial 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.

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. 

References

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10. Merchant, A. (2008) India- Food Processing Industry OSEC Business Network, New Delhi

11. Mohanti, N. (1995) Impact of Agro-based Industries on Rural Economy: Radha Publications, New Delhi.

12. Padmanabhan, M. (2011) ‘Set for a Quantum Jump’, The Hindu Survey of Indian Industry. 

13. Patnaik, G.(1997) ‘Adding Value to Agriculture through Marketing and Processing’ in B.M.Desai and M.V. Namboodiri (ed.), Agricultural Development Paradigm for the Ninth Plane Under New Economic Environment, Oxford and IBH Publishing Company, New Delhi.

14. Ramachandran, M.K. (2005) Economics of Agro-Based Industries, A Study of Kerala. Mittal Publications, New Delhi

15. Subbulakshmi, G.and S.A. Udipi (2008) Food Processing and Preservation, New Age International (p) Limited, Publishers               

16. Vijayarani K.R. (2011) Small Scale Industry in India, Problems and Policy Initiatives, New Century Publications, New Delhi, India

Journals:

1. Baisya, R.K. (1990) “Fruits and Vegetable Processing Industry in Rural India, Its problem and Prospects”, Indian Food Packer, 34 (6) 29-32 

2. Banerjee, S. and Banerjee, G.D. (2003) ‘Impact of Mango processing on the Income of the Primary Producers- A Case Study’, Indian Journal of Agricultural Economics, 58(3)

3. Chengappa, P.G. (2004) “Emerging Trends in Agro-Processing in India”, Indian Journal

Of Agricultural Economics, 59(1): Jan-March: pp 55-74.

4. Chaudhuri, B. and Panigrahi, A.K. (2018) “Gender Bias in Indian Industry”, The Journal of Industrial Statistics, 2(1): pp108-127

5. Connor, J. Heien, D. Kinsey, J. and R. wills (1985) “Economic forces shaping the food processing Industry.”   American Journal of Agricultural Economics, 67: 1136-1142.

6. Dholakia, R.H. (1989) “Regional aspects of industrilisation in India”, Economic and Political Weekly, November, 18, pp 2563-67

7. Dileep, B. K, Grover, R.K., and Roy, K.N. (2002) “Contract Farming in Tomato: An Economic Analysis”, Indian Journal of Agricultural Economics, 57(2): April-June pp 197-210.

8. Eaton, Charles and Andrew W. Shepherd (2001) “Contract Farming Partnerships for Growth, A Guide”, FAO Agricultural Service Bulletin 145, Food and Agricultural Organisation, Rome

9. EPW (2002) ‘Food Processing: Long Hull’, editorial, vol-26 June 29

10. Masuo, D., Fong, G., and Cable C. (2001) “Factors associated with business and family success: A comparison of single Manager and dual Manager family business households.” Journal of family and Economic Issues, 22, 55-73

11. Majumder, K., (2012) “Foreign Direct Investment in Indian Food Processing Industry”, Asian Journal of Research in Business economics and management vol.-2, Issue-4, PP-113-120

12. Nayak, P. (1996) “Problems and Prospects of Rice Mill Modernization - A Case study” Journal of Assam University, 1(1): Pp 22-28.

13. Rangi, P.S. and Sidhu M.S. (2000) “A Study on Contract Farming of Tomato in Punjab” Agricultural marketing, 42 (4): Pp 15-23.

14. Rao, N.C. and Dasgupta, S. (2009) ‘Nature and employment in food processing sector’ in Economic and political weekly, 44 (17): pp 109-114.

15. Rais, M., Acharya, S and Vanloon G.W. (2014) ‘Food Processing Industry: Opportunity in North East Region of India’ The NEHU Journal, 12(1): pp 37-51.

16. Roy, B.C. (2008) ‘Fruits and Vegetable processing in India and its Role in agricultural development’ Indian Journal of Agricultural Economics, July-September, 63 (3)

17. Sharma V.P. (2012) ‘India’s Agricultural Development under the New Economic Regime: Policy Perspective and Strategy for the 12th Five Year Plan’, Indian Journal of Agricultural Economics, Vol. 67, No.1, January-March 2012.

18. Sidhu, M.S. (2005) ‘Fruits and Vegetable Processing Industry in India, An appraisal of the Post- Reform Period’, Economic and political Weekly, 40 (28), pp. 3065-61

19. Singh, S.P., F. Tegegne and E. Ekenem (2012) ‘The Food Processing Industry in India: Challenges and Opportunities’, Journal of Food Distribution Research.43 (1)

20. Shehrawat, P. S.(2006) ‘Agro-Processing Industries –A Challenging Entrepreneurship for Rural Development’ Journal of Asia Entrepreneurship and Sustainability 2(3)

21. Thorat, Sukhadeo(2008) ‘Labour Market Discrimination issues Related to Concept, Measurement Forms and Remedies’, Indian Journal of Labour Economics ,January-March, 51(1)pp 31-52.

Reports:

1. Census 2011- Census Report of GOI 2011.

2. GOI, Ministry of Food Processing Industries (2006-07, 2011-12, 2014-15) Annual Report on food processing industries in India, New Delhi. 

3. GOI, Ministry of Commerce and Industry, APEDA (2013b) three year export summary statements (2010-11 to 2012-13), New Delhi

4. Economic survey of Assam, (2017-18) Government of Assam

5. Statistical Handbook, 2018, Government of Assam

Thesis & Research papers:

1. Bhattacharyya, B. (2016) ‘Status, Prospects and Problems of Food processing Industry in Assam’, Ph.D Thesis, Gauhati University, Guwahati (Assam)

2. Sailaja, N (2001) Economics of Paddy Processing Units in Andhra Pradesh, UN published Ph.D Thesis submitted to Acharya N.G. Ranga. Agricultural university: Hyderabad.

3. Sharma, R.(2007) ‘Micro Enterprise in the Rural Non Farm Economy of Sonitpur District of Assam – Nature, Problems and Prospects,’ Ph.D thesis, Gauhati University.