Agro and Food Processing Industry in India: Inter-sectoral Linkages, Employment, Productivity and Competitiveness

Contents
Editors and Contributors
1 Introduction
	1.1 Agriculture–Industry–Services Linkages
	1.2 Employment, Investment and Productivity Growth
	1.3 External Trade, Competitiveness and Determinants
	References
Part IAgriculture-Industry-Services Linkages
2 Post-harvest Food Management, Extent of Processing and Inter-sectoral Linkages
	2.1 Introduction
	2.2 The Methodological Approach, Data Sources and Limitations
	2.3 The Evolving Food System: Consumption, Trade, and Scale of Agro-industry
		2.3.1 Consumption Patterns
		2.3.2 Trade Patterns: Composition of Food Exports and Imports
		2.3.3 Structure and Trends of Agro-processing and Services
	2.4 Extent of Processing of Agriculture and Inter-sectoral Production Linkages
		2.4.1 Extent of Processing of Agriculture Commodities
		2.4.2 Estimate of Production Linkages
	2.5 Summing Up and Implications
	Appendix 2.1: Agro Processing Industries/Enterprises (Under Manufacturing Sector)
	Appendix 2.2: Data Limitations
	Appendix 2.3: Classification of Food Items According to the Level of Processing
	Appendix 2.4
	Appendix 2.5
	References
3 Output and Employment Linkages of the Primary, Secondary and Tertiary Sectors in the Indian Economy: A Computable General Equilibrium (CGE) Analysis
	3.1 Introduction
	3.2 Literature on Intersectoral and Intra-sectoral Linkages
	3.3 Database and Methodology
		3.3.1 Structure of the CGE Model
		3.3.2 Modelling CGE Linkages
	3.4 Empirical Analysis and Results
		3.4.1 Aggregated Analysis of Linkages
		3.4.2 Disaggregated Analysis of Linkages
	3.5 Summary, Conclusions and Policy Implications
	References
4 The Food Processing Industry in India: Regional Spread, Linkages and Space for Farmer Producer Organisations
	4.1 Introduction
	4.2 The Landscape of the Food Processing Industry in India
	4.3 Organisation and Integration of Unorganised Processing Units Through FPOs
		4.3.1 Objectives of Farmer Producer Organisations (FPOs)
		4.3.2 Farmer Producer Organisations (FPO) in the Food Processing Industry
		4.3.3 Financing Food Processing Via the FPO Model
		4.3.4 The Triple Win for Farmers, Processing Units and Consumers
	4.4 The North East and Food Processing Opportunities
	4.5 Conclusion
	Annex
	References
5 Forging Linkages to Promote Agriculture Exports Through Contract Farming: A Case Study of Okra Cultivation
	5.1 Introduction
	5.2 The Commodity and the Contexts
	5.3 Methodology
	5.4 Results and Discussions
		5.4.1 Characteristics of Contract and Independent Farmers
		5.4.2 Determinants of Farmers’ Participation in Contract Farming
		5.4.3 Impact of Contract Farming on Farmers’ Profit
		5.4.4 Impact of Contract Farming on the Adoption of Farm-Level FSMs
	5.5 Conclusion and Policy Implications
	References
Part IIEmployment, Investment and Productivity Growth
6 Temporal and Spatial Patterns in Employment and Productivity Growth in the Organised Food Industry
	6.1 Introduction
	6.2 Sources of Data
		6.2.1 Trends in Employment and Partial Productivity Measures
		6.2.2 Relative Position of States in Key Industry Indicators
	6.3 Relative Position of Organised Food in Overall Organised Manufacturing
	6.4 Conclusions
	Annex
	References
7 Unorganised Food Processing Enterprises in India: Key Performance Indicators
	7.1 Introduction
	7.2 Data and Methodology
	7.3 Structure and Size onf Food Processing Industry in India
		7.3.1 The Unorganised Food Processing Sector
		7.3.2 Spatial Disparities in Unorganised Food Processing Enterprises
	7.4 Inter-linkages Between the Key Performance Indicators and Determinants of Labour Productivity
		7.4.1 Disparities Across the States: Comparison of 67th and 73rd NSS Rounds
		7.4.2 Labour Productivity and Its Determinants During 2015–16
	7.5 Conclusions
	Annex 1: Notations and Explanations of Variables
	References
8 Dynamics of Competition in Food and Agriculture Inputs Industries in India: A Mobility Analysis
	8.1 Introduction
	8.2 Data and Methodology
	8.3 Results and Discussion
	8.4 Summary and Conclusions
	References
9 Labour Regulations and Employment Growth in the Organised Food Processing Industry in India
	9.1 Introduction
	9.2 India’s Food Processing Industry and Policy Initiatives: An Overview
	9.3 Employment Scenario in the Organised Food and Beverages Sector and the Share of Contract Workers
	9.4 Impact of Labour Regulations on Employment
	9.5 Conclusions and Implications
	References
10 Beyond the Polemics: Subcontracting in the Unorganised Food Manufacturing Sector in India
	10.1 Introduction
	10.2 Database and Methodology
	10.3 Subcontracting in Unorganised Food Manufacturing Units: Structure and Performance
		10.3.1 Structure of Subcontracting Food Manufacturing Enterprises
		10.3.2 Efficiency of Subcontracting Food Manufacturing Units
		10.3.3 Labour Compensation
		10.3.4 Factors Affecting Subcontracting in Unorganised Food Manufacturing
	10.4 Conclusions
	References
11 Investment Pattern and Sources of Finance in Micro, Small and Medium Agro-Processing Enterprises in India
	11.1 Introduction
	11.2 Literature on Investment and Institutional Credit in MSM APEs
	11.3 Selection of Variables and Empirical Approaches
	11.4 Investment Pattern and Its Determinants in APEs
		11.4.1 Investment Pattern in SSI APEs (1972–1973 and 1987–1988)
		11.4.2 Investment Patterns in MSM APEs During 2001–2002 and 2006–2007
		11.4.3 Determinants of Investment in MSM APEs
	11.5 Access of MSM APEs to Institutional Loans
	11.6 Conclusion
	References
Part IIIExternal Trade, Competitiveness and Determinants
12 India’s Trade in Agro-Processed Products: Revealed Comparative Advantage and Its Determinants
	12.1 Introduction
	12.2 Brief Review of Literature
	12.3 Data and Methodology
	12.4 Empirical Findings and Results
		12.4.1 Composition of Agricultural Exports by Commodity Groups
		12.4.2 Trends in RCA to Export
	12.5 Determinants of Changes in RCA
	12.6 Conclusions and Implications
	References
13 Trade Competitiveness of the Indian Dairy Industry: An Empirical Analysis
	13.1 Introduction
	13.2 Review of Literature
	13.3 Dairy Exports and Imports by Country
		13.3.1 Trade Performance of the Indian Dairy Sector (1988–2017)
		13.3.2 International Markets
	13.4 Competitiveness of India’s Dairy Sector
		13.4.1 Nominal Protection Coefficient (NPC)
		13.4.2 Assessing the Impact of Exchange Rate and World Income on Dairy Exports (1988–2017)
	13.5 Conclusion and Implications
	References
14 Protection Structure and Comparative Advantage in Primary and Processed Agriculture Exports
	14.1 Introduction
	14.2 Trends in Primary and Processed Agriculture Exports and Imports
		14.2.1 Composition of Primary and Processed Agriculture Exports and Imports
	14.3 Measuring Protection in Primary and Processed Agricultural Commodities
	14.4 Comparative Advantage in Primary and Processed Commodities and Structural Shift
		14.4.1 Interpretation
	14.5 Conclusions and Implications
	References
15 Protection Structure and Total Factor Productivity Growth in India’s Organised Food Industry
	15.1 Introduction
	15.2 Estimating Total Factor Productivity (TFP): Data Sources and Methodology
	15.3 Results and Discussion
	15.4 Impact of Protection on Total Factor Productivity Growth and Employment
	15.5 Summing up and Implications
	Annex A
		DEA Approach to Estimate TFP
	Annex B
		Construction of Variables and Sources of Data
	Industry-Specific Variables
	Labour
	Gross Fixed Capital Stock
	Measurement of Gross Value Added
	Measurement of Gross Output
	Measurement of Wages (Emoluments)
	References
16 Productivity, Competitiveness and Export Performance: A Plant-Level Analysis of India’s Wearing Apparel Industry
	16.1 Introduction
	16.2 Analysis of Trends in Export Performance–Wearing Apparel
		16.2.1 Trends in India’s Exports of Readymade Garments
		16.2.2 Comparative Analysis: India Compared with China, Bangladesh and Vietnam
	16.3 Export Intensity of Organised Sector Plants in the Wearing Apparel Industry
	16.4 Determinants of Export Intensity—Plant-Level Analysis
	16.5 Impact of REER on India’s Export Performance in Wearing Apparel
		16.5.1 Analysis Based on Time Series Data on Aggregate Level of Wearing Apparel Exports
		16.5.2 Analysis Based on Plant-Level Data on Export Intensity
	16.6 Conclusions
	References
17 Import Content, Value-Added and Employment Generation: An Input–Output-Based Analysis of India’s Exports
	17.1 Introduction
	17.2 Database and Methodology
		17.2.1 Import Content of Exports (ICE)
		17.2.2 Contribution of Domestic Value-Added in Exports (DVA-Exports)
		17.2.3 Employment Multiplier of Exports (EMP-Exports)
	17.3 Empirical Results
		17.3.1 Import Content of Exports (ICE)
		17.3.2 Total Direct and Indirect Value-Added (TVA) Contribution Due to Exports
		17.3.3 Employment Generation Due to Exports
		17.3.4 Import Content of Exports (ICE) and Employment Generated Due to Exports
	17.4 Conclusion and Policy Remarks
	References