Manufacturing Industries (Agro-Based)

On the basis of the nature of products, industries can be classified as-

1. Heavy industries like ship building industry.
2. Light industries like electronic goods industry.

(i) Sugar mills are located close to sugarcane growing areas because sugarcane is a weight losing crop, i.e., its sucrose content goes on decreasing with time. Therefore, it is necessary to crush sugarcane within 24 hours of harvesting.

(ii) Mumbai is known as the 'Cottonpolis of India' because Mumbai has become the most important centre of cotton textile in the country due to reasons like proximity to raw materials, favourable climatic conditions, good transport and port facilities, enough labour force, adequate capital, power and a huge market for cotton textiles.

(iii) The silk industry has a small market because silk industry faces competition from artificial silk which is cheaper and better in quality. Moreover, the changes in prices of raw silk badly affect both the weavers and the silk industry.

(i) Two advantages of setting up a small scale industry are-

1. Less capital is required.
2. These industries make use of indigenous raw material.

(ii) The differences are-

Two by-products of the sugar industry are-

1. Bagasse, the leftover cane after crushing, is used for producing steam which is used as a source of power for sugar industry.
2. Press mud is used for making wax, carbon paper and shoe polish.

The sugar industry is highly dispersed in India because sugarcane is cultivated throughout the country. Hence, sugarcane industries are spread in the country near to the sugarcane fields.

Also, the area under sugarcane cultivation is limited due to the pressure of food crops. Thus, the sugar factories are highly dispersed even in areas which have large percentage of land under sugarcane cultivation.

(i) Scanty rainfall affects the healthy growth of sugarcane, as the crop requires abundant water for proper development. Inadequate rainfall leads to stunted growth and produces a fibrous crop, resulting in a lower sugar output.

(ii) India is the largest producer of sugarcane in the world and the second-largest exporter of sugar. If the sugar crop fails, production and exports reduce. This creates a shortage of sugar in the global market. As a result, the supply decreases while demand remains the same, leading to an increase in global sugar prices.

(iii) Sericulture flourishes in Karnataka because Karnataka has favourable climate for rearing silkworms. Karnataka has established nurseries, silk farms and has licensed seed distributors to promote Sericulture.

Three important reasons which have made Maharashtra the leading producer of sugar in India are-

1. The maritime climate of Maharashtra is ideal for the cultivation of sugarcane.
2. Availability of excellent transport facilities in relation to export markets.
3. The sugarcane farms are managed by co-operative societies which have access to better facilities like better seeds, fertilisers, irrigation etc.

Two features of the cotton textile industry in India are-

1. Cotton textile industry directly or indirectly supports more than nearly 40% of the country's labour force.
2. It is the oldest and the largest industry which is found in almost all the states of India.

Mumbai and Ahmedabad have emerged as the important cotton manufacturing centres because of the following reasons-

1. Climatic conditions — The humid coastal climate favours the textile making without breaking the thread.
2. Transport facilities — These states are well connected through rail and road links with cotton growing areas of Maharashtra and Gujarat and also through sea routes with the foreign markets.
3. Proximity to raw material — The supply of raw cotton for the mills is supplied by the cotton producing areas of the Deccan Plateau that lie close to these mills.
4. Port Facilities — Good port facilities facilitate import of capital goods, chemicals etc. and the export of finished goods.
5. Labour — The states have enough labour force from within or nearby states.
6. Capital — Both the states have easy access to capital and financial resources.
7. Power — Power is supplied in Mumbai by the Tata Hydroelectric system while Ahmedabad gets its power from Ukai and Kakrapara hydroelectric projects.
8. Market — There is a huge market for the cotton cloth in these states and in the southern states of the country because of the hot climate which prevails in these areas.

Three problems faced by the cotton industry in India are-

1. Shortage of Raw Material — There is a shortage of raw material, particularly of long staple cotton.
2. Shortage of Power — The mills are facing acute shortage of power. This leads to loss of man hours, low productivity and loss in the mills.
3. Sick Industrial Units — The industry faces constant threat of sickness and consequent closure. These sick units require heavy financial investments for replacement and modernisation purposes.

The rearing of Silkworms for Silk production is known as Sericulture.

Two problems faced by the silk industry are-

1. Competition from artificial silk which is cheaper and better in quality.
2. The changes in prices of raw silk badly affect both the weavers and the silk industry.

Two geographical features favourable for setting an industry are-

1. Raw materials — The location of the industry is guided by the availability of raw material in a particular area.
2. Transport — Good transport facilities are required to carry raw materials to the manufacturing units and finished products to the market.

Murali, who is deeply involved in this industry, may not want his children to follow his footsteps due to the problems being faced by the silk industry:

1. Competition from artificial silk is the main problem faced by the Indian silk industry. Artificial silk is cheaper and better in quality.
2. Import of better quality and cheaper raw silk from China is also detrimental for the Indian silk industry.
3. The changes in prices of raw silk badly affect both the weavers and the silk industry.
4. There is no systematic testing and grading of silk as in advanced countries like Japan.
5. The industry needs modern power looms for increasing production.

(i) Sugarcane is a weight losing commodity because its sucrose content goes on decreasing with time. Therefore, it is necessary to crush sugarcane within 24 hours of harvesting.

(ii) Uttar Pradesh has been relegated to second place in terms of sugar production because of old mills, management and labour problems and shorter crushing period.

(iii) India has restricted sugar exports due to a drop in domestic production caused by poor rainfall. The ban helps ensure enough sugar is available within the country, keeps prices stable, and supports essential uses like domestic consumption and ethanol production.

(i) Assam is the largest producer of non-mulberry silk in the country.

(ii) Assam provides non-mulberry silk (tasar, eri and muga). Assam is also the only muga producing region of the country. Bihar provides tasar silk.

(a)

(i) Yes, the government is likely to continue the ban on sugar exports aiming to stabilize domestic prices and maintain adequate supplies for domestic consumption and ethanol production, especially with potential lower production in the 2024-25 season.

(ii) Patchy rains lead to uneven water distribution, which negatively affects crop development, resulting in poor yields and lower sucrose content.

(b) The ban helps ensure enough sugar is available within the country, keeps prices stable, and supports essential uses like domestic consumption and ethanol production.

(c) Heavy rainfall and flooding damages sugarcane crop and reduces the sucrose (sugar) content in them. This can lead to lower sugar production in 2025–26. If production remains low, the government may continue the export ban to ensure enough sugar is available for domestic use and to keep prices stable. The ban is likely to be lifted only when production improves.

(d) India is the largest producer of sugarcane in the world and the second-largest exporter of sugar. Due to the ban, there is a shortage of sugar in the global market. As a result, the supply decreases while demand remains the same, leading to an increase in global sugar prices.

(a) The most important factors which have led Mr. Rahat to invest in the industry are as follows:

1. Close proximity to raw materials
2. Favourable climatic conditions
3. Well-developed transport facilities
4. Well-developed port
5. Enough labour force
6. Adequate capital
7. Sufficient power
8. Huge market for cotton textiles.

(b) I'd advise Mr. Rahat to set up his unit at Mumbai as it offers advantages like raw cotton availability, skilled labour, industrial infrastructure, and good port connectivity for export.

(c) Three problems faced in this industry, and ways for Mr. Rahat to tackle them are given below:

1. Shortage of raw material — Mr. Rahat can partner with local farmers through contract farming, support better seed varieties, and invest in sustainable cotton farming initiatives.
2. Loss of foreign market — Mr. Rahat should can focus on high-quality cotton products, branding and diversification into blended fabrics. Also, adopt eco-friendly practices to appeal to global markets.
3. Obsolete Machinery — Mr. Rahat should invest in modern, energy-efficient machinery and automation to improve productivity and product quality.

(d) Yes, Sugar industry can be set up in Maharashtra.

Profitability Comparison between Cotton Textile Industry and Sugar Industry

Cotton textiles have higher long-term profitability and export potential than Sugar industry. Hence, for long-term growth and better returns, Mr. Rahat should go ahead with cotton textiles.

Basic

Both A and R are true and R is the correct explanation of A.

Explanation — Jute mills are concentrated in the Hooghly region as industries in India developed near the sources of raw material. This also helps reduce transportation costs and optimize production.

Both A and R are true and R is the correct explanation of A.

Explanation — All industries depend heavily on the availability of fresh water as it is needed in the process of manufacturing, for cleaning, cooling, washing, etc. Therefore, industrial units are located at places where water is easily available.

Tertiary Industries

Tertiary

Bagasse

Both A and R are true and R is the correct explanation of A.

Explanation — The availability of both skilled and unskilled manpower, as well as mobility of cheap labour, is an essential factor for industrial development. This is why a large number of industries are located in and around metropolitan cities.

Molasses

Both A and R are true and R is the correct explanation of A.

Explanation — Extreme type of climate is not favourable for the location of industries as it affects the availability of raw materials.

Molasses

Bagasse

Both A and R are true and R is the correct explanation of A.

Explanation — About the entire crop of sugarcane is harvested at the same time, due to which there is excessive pressure on sugar factories during harvest time.

Press mud

All of the above.

Both A and R are true and R is the correct explanation of A.

Explanation — Mumbai and Ahmedabad have emerged as important cotton manufacturing centres as they fulfil all requirements of the industry like close proximity of raw cotton to mills, favourable climatic conditions, well developed transport and port facilities, good labour force, easy access to capital and financial resources, availability of power, and huge market.

Ahmedabad and Mumbai

Varanasi

Both A and R are true and R is the correct explanation of A.

Explanation — India is one of the largest producers of silk in the world as it has a long tradition of manufacturing and producing silk textiles. This long standing tradition has contributed to India's prominence in silk production.

Both A and R are true and R is the correct explanation of A.

Explanation — While sericulturists want imports of raw silk to be restricted to have better market for their produce, exporters want imports of cheaper raw silk so as to be able to export more silk products at competitive rates. This is why India contributes to about 18 per cent to the world silk production.

Assam

Possible reasons for Ramesh's agro-based manufacturing unit running into losses despite having modern equipment and producing quality products could be:

1. Insufficient Market Demand — The products may not have had enough demand in the market, leading to low sales and revenue.
2. Distance from city — As Ramesh's manufacturing unit is located far away from the city and the market for his products maybe mainly in the cities so he might be incurring high transportation costs due to which his unit ran into losses.
3. Intense Competition — Strong competition from established players in the industry could have made it challenging for Ramesh's unit to gain market share.
4. High Cost Structure — Inefficient cost management, including high production costs and overhead expenses, could have impacted profitability.

To assess the feasibility of starting a sugar mill in Lakhimpur Kheri, Uttar Pradesh, I would suggest the following:

1. Location Advantage — Lakhimpur Kheri is known for its sugarcane cultivation, making it a favorable location for a sugar mill due to proximity to the raw material source.
2. Availability of Resources — The area has abundant supply of raw material for the mill. Additionally, availability of water, electricity, and skilled labour should be considered.
3. Transport Infrastructure — Evaluate the existing transport infrastructure to ensure smooth transportation of sugarcane and manufactured products to the market.
4. Market Potential — Assess the demand and competition in the sugar industry. Consider factors like pricing, customer preferences and potential buyers.
5. Government Policies and Support — Research the government policies, subsidies, and incentives available for the sugar industry in Uttar Pradesh.
6. Financial Viability — Conduct a thorough financial analysis to determine initial setup costs, working capital requirements and profitability margins.
7. Risk Assessment — Evaluate potential risks such as fluctuations in sugarcane prices, changes in government policies, market volatility, and environmental factors like weather conditions affecting crop yields.