Potential of agro based industries employment and self employment by abhay and rashmi

Summer internship report
On
2011

Potential of Agro based Industries Employment and Self Employment

Abhay Kumar Mandal & Rashmi Kumari
NIAM
6/30/2011

Summer internship report-2011

CERTIFICATE

This is to certify that Mr. Abhay Kumar Mandal and Miss Rashmi Kumari are bonafide
student of Post Graduate Diploma in Agri-Business Management (2010-2012), NIAM, Jaipur
participated as summer trainee in “Indigram Skill and Knowledge Initiatives Pvt. Ltd.”Company
for the period May- June 2011

They have successfully completed their summer project titled “Conducting a feasibility study
on potential of Agro Industries & Rural Service based Employment and Self Employment
in Gulbarga, Karnataka” towards the partial fulfillment of their course.

Date:

Mr. Mayuk Dasgupta

(Vice President)

Indigram Skill and Knowledge Initiatives Pvt. Ltd

NATIONAL INSTITUTE OF AGRICULTURAL MARKETING, JAIPUR
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CERTIFICATE

This is to certify that Mr. Abhay Kumar Mandal and Miss. Rashmi Kumari is bonafide
student of Post Graduate Diploma in Agri Business Management (2010-2012), NIAM, Jaipur
worked as Summer Trainee in Indigram Skill and Knowledge Initiatives Pvt. Ltd. Company for
the period May-June 2011.

They have successfully completed his Summer Project “Conducting a feasibility study on
potential of Agro Industries & Rural Service based Employment and Self Employment in
Gulbarga, Karnataka” towards the partial fulfillment of the course.

Date:

Dr.Kamal Mathur
Director, PGDABM
NIAM, Jaipur

3


DECLARATION

This is to declare that, we, Abhay Kumar Mandal and Rashmi Kumari student of Post
Graduate diploma in Agri-Business Management (2010-2012), NIAM, Jaipur have given original
data, information and maintained full confidentiality to the best of my knowledge in the project
report titled “Conducting a feasibility study on potential of Agro Industries & Rural Service
based Employment and Self Employment in Gulbarga, Karnataka.” and that, no part of this
information has been used for any other assignment but for the partial fulfillment of the
requirements towards the completion of the said project.

Date:

PGDABM (2010-12)
NIAM, Jaipur

4


ACKNOWLEDGEMENT

It is a matter of great pride for us to be associated with Indigram Skill and Knowledge Initiatives
Pvt. Ltd. We hereby would like to thank Indigram Skill and Knowledge Initiatives Pvt. Ltd. and
all its staff members whomever we came across, for their kind hospitality and co-operation
during our project work. We would like to extend my deepest gratitude to Mr. Alok Baraya,
CEO for giving us an opportunity to work with Indigram Skill and Knowledge Initiatives Pvt.
Ltd. as Summer Interns. This has been a pleasant and learning experience for us. We wish to
express my deep sense of gratitude to our Guide, Mr. Mayuk Dasgupta for his able guidance
and useful suggestions, which helped us in completion of the project work in time. He has been a
mentor and critic in the best of senses. We would also like to thank Mr. Premsingh Rathod
(ISAP) and Mr.Ramalingham(ISAP) for his valuable help during the project work. We extend
our thanks to Ms. Deepti Nigham for her kind co-operation and support throughout the project.
Our heartfelt gratitude and appreciation goes to all Farmers, Students, Dealers, Distributors,
Government officers and Industries whose patient answers to our queries formed the foundation
of project. We reverently express our special gratitude to Mr. Anurag Bhatnagar I.A.S
(Director General, NIAM), Dr. Kamal Mathur (Director, PGDABM, NIAM) for their valuable
suggestion and feedback time to time. My sincere thanks also goes to Dr. Hema Yadav, (Deputy
Director and Principal coordinator PGDABM, NIAM) for her guidance and moral support which
has always been with us. Finally, yet importantly, we would like to express our heartfelt
gratitude to our beloved family for their blessings.

Regards
PGDABM(2010-12)
NIAM, Jaipur

5


POTENTIAL OF AGRO BASED INDUSTRIES EMPLOYMENT

AND

SELF EMPLOYMENT FOR YOUTH

Executive Summary

Project titled “feasibility study on potential of Agro Industries & Rural Service based
Employment and Self Employment” was conducted in Gulbarga districts of Karnataka. Main
objective of this survey is to determine potential of skill development vocational center in and
around the identified areas of implementing the Skill development program. This survey
provides vital, direct and meaningful input that allows the professional to consider future
decision making actions with greater security and accuracy.
The project involved a face to face interaction with drop-out student, college student, major Agri
Industries, farmers in the area and the other Govt. institutes such as block development office,
district education office, Agriculture departments, village talukas and panchayats.
Both primary and secondary data collection has been collected to gather information. Different
set of questionnaire was developed for students, farmers and Agri Industries to know their
demand and requirements.
The analysis was drawn that large no. of youth is unemployed in surveyed areas and industries
also requires skilled employees with different kind of skills ranging from technical skill, job
related skills, managerial skills, communication skills etc. as per requirement of the industries.
Main thing is that majority of youth does not have technical education so they are forced to do a
labour job in industries or as Agriculture labour with very less wages, some of the youth who are
well educated also doing labour works as they don’t have any technical qualification.
So there is needed to start skill development programme in identified areas by considering the
requirements of the industry i.e. what type of trained people they want and also take care of the
potential of the rural youth.

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Introduction

Unemployment is a major problem of India and presently more than 4.5 crores of youth are
unemployed in this country. Young people are a major human resource for development, key
agents for social change and driving force for economic development and technological
innovation. But harnessing these resources is a major challenge. The youth challenge is
considered as the most critical of the 21st century’s economic development challenge. Youth,
defined by the United Nations as persons between the ages of 15 and 24, is a transitional period
from childhood to adulthood, According to the Census of India 2001, nearly 40 per cent of the
population was in the age group of 13 to 35 years. The number of youth aged 15 to 24 years was
195.07 million, which accounted for 19.0 per cent of the whole population. India contributes
about 33 per cent of youth population in the developing Asian countries (ADB, 2008) The
unemployment was the highest in the age group of 20-24 years and at least 83% of the
unemployed belong to the age group of 15-29 years in each social group both in rural and urban
areas.
The critical aspects of the challenge are mostly related to labor market entry where young people
encounter difficulties in finding and maintaining a decent job. The growing large number of
unemployed youth is one of the most daunting problems faced by developed and developing
countries alike (ILO, 2004, 2005b). Failure to integrate young people into the labor market has
broader consequences for the future prosperity and development of countries.
Though the share of agriculture in the aggregate economy has declined rapidly during the
planned development of the country; it assumes a pivotal role in the rural economy. The NSS
surveys on employment show a decline in the share of agriculture and an increase in the share of
non-agricultural sector in aggregate employment. Such a structural shift though expected in a
developing economy, has been slower in the Indian economy. This process is even slower in the
rural economy. Nevertheless in rural India the growth rate of employment in the non-agricultural
sector has been far short of the increase in the rural workforce. As a consequence, the incidence
of rural unemployment on the basis of current daily status (CDS) is as high as seven percent in
the year 1999-00. There is no evidence to suggest improvement in the quality of rural
employment, which is generally associated with the structural changes of employment. In this

7


context employment in agriculture remains important. Agriculture is one of the
strongholds of the Indian economy and accounted for 14.2 per cent of the country's gross
domestic product (GDP) in 2010-11, according to the Central Statistical Organization’s (CSO)
estimates. Furthermore, the sector provided employment to 55 per cent of the work force which
account for 467 million labour forces.

Background of the study
Indigram skill and knowledge initiative pvt.ltd is an education and skill development company
working in agri-rural areas providing employability training in vocational skills including self
employment opportunities by training, placement and mentoring of rural youths. Knowledge and
skills of the national workforce are the key determinant for future economic growth. A massive
investment by the various government sectors in rural areas is expected to create huge
infrastructure and job opportunities for millions of rural youth. Indigram will act as an enabler
that will equip these youth with just the right kind of skills and be a part of this Endeavour.

Vision of Indigram is to be the largest skills and employability training provider for rural youth
in India. In the next ten years vision will be to provide appropriate training to over 2 million rural
youth and create gainful employment or self employment opportunities and sustainable
livelihood to equal number of families.

This report is framed around central questions.

 How can the job skills and placement opportunities for unemployed vulnerable youth be
increased in India, with particular attention to the Gulbarga, Karnataka?
 What are the entry points for youth in the local industries, and how do these points relate
to economic growth, employment generation, livelihood and labor policies in the
Gulbarga district of Karnataka?
 What are the formal and non-formal education and training opportunities that can help in
preparing school dropout unemployed youth for working and engagement in civil
society?
 What kinds of strategies and programs Indigram can consider to strengthen efforts to
meet the education, training, and employment of unemployed out-of-school youth?

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Need for the study
The main goal of the report is to mesh current knowledge and information of India workforce
development into a coherent strategy that examines the three main components of the
assessment: the youth, the economic environment that shapes workforce demand, and the
institutional supply of workforce training. Because 175 million students enroll in class I every
year, Out of which only 20 million finish class XII; 55%student (96 Million) drop out up to class
VIII & 70% (122 Million) by class X. 152 million has no access to obtain Vocational Training.
What happens to those who do not finish school? Enter the employment / labor market and learn
while working. Take what are available menial jobs which normally fail to bring them above
poverty line or Remain unemployed.

OBJECTIVES OF THE STUDY

 Identification of catchment areas for students in the target locations within an age group
of 18 ~ 30 yrs.
 Sensitizing rural youths and their families on the need for skills training in various sectors
and potential analysis on various agri and rural services based training for income
generation.
 Identifying industries that require skilled employees for entry level jobs
 Understanding existing skill gaps for industries and their entry level requirements.
 Market potential of vocational training in the target locations
 Assessment report focuses on the challenges and opportunities for employment for out-
of-school Youth in Gulbarga.

9


Why Gulbarga?

The choice of the Gulbarga reflects initial investigations that showed clear potential for
economic growth in the geographical area. Further, Indigram already had a presence in these
regions, thus creating possibilities of synergy between current Indigram programming in
education and economic growth. Gulbarga has five most backward taluka out of eight talukas in
which large number of unemployed youth is present. Gulbarga has relatively more per capita
land holding but agriculture is only rain fed which does not give employment to farmers
throughout the year. Hence there is a need of vocational training which will provide them an
alternate source of income.

GULBARGA DISTRICT PROFILE

The district is one among the 30 districts of Karnataka State. It is located in the Northern part of
the state and lies between North latitude 170 10 and 170 45 and between east longitude 760 10 and
770 45.It is bounded on the west by Bijapur district of Karnataka and Solapur district of
Maharastra on the north by Bidar district of Karnataka and Zaheerabad district of Andhra
Pradesh and on the sotuh by Yadgir, a newly formed district of Karnataka. The district
constitutes 7 revenue blocks and 8 educational blocks, they are Afzalpur. Aland, Chincholi,
Chittapur, Gulbarga (North), Gulbarga (South), Jewargi and Sedam.

Socio-Economic Characteristics of Gulbarga

In recent years a High Power Committee was constituted by the govt. of Karnataka to look into
the problem of regional imbalances in the state. The committee (Popularly known as
Nanjundappa Committee) submitted its report in 2002. The committee, on the basis of various
socio-economic indicators assessed the development of 175 taluks in the state. The committee
has identified the committee has identified six taluks among the seven taluks in the Gulbarga
district as the most backward taluks.

MOST BACKWARD TALUKAS OF GULBARGA DISTRICT IN KARNATAKA STATE

10


TALUKA RANK IN STATE INDEX
SEDAM 155 0.72
CHITTAPUR 165 0.65
AFZALPUR 170 0.62
ALAND 172 0.61
CHINCHOLI 173 0.57
JEWARGI 174 0.57

During our survey we find that talukas which is backward, desire of student and farmer to
undergo vocational training is more as compared to develop talukas. Jewargi, Aland and
Afzalpur talukas are economically backward hence farmer and student of these talukas should be
targeted.

INDUSTRIAL AND EMPLOYMENT PROFILE

Gulbarga has 3 industrial areas and 3industrial estates. Gulbarga has an Industrial base for Agro
Based, Cements, and Chemicals industry etc. The recent investments in Cement by ACC,
Rajashree and India Cements make the District as an emerging destination for Cement industries.
The proposed Suvarna Karnataka Corridor envisages the creation of an Information Technology
zone, Bio Technology zone and a cement zone. There are 7 Large and Medium industries in the
district with an investment of Rs 1,683.95 Crore There are 129 factories in the district. There is a
proposal for a Textile Park in the district of Gulbarga. Gulbarga is the house of more than 300
pulse mill which provide employment to more than 3000 people. The district economy is mainly
an agricultural economy as agriculture contributes 31.7% of district income and provides
employment to 67% of the population.
Above mentioned data and interaction with student, farmers and industries gives us idea that
potential of skill development courses in Gulbarga is very high and Indigram can move ahead for
further expansion program.

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Industry and industry employment in different talukas

Textiles Chemical Engineering Others Total Employment
Afzalpur --- 1 --- 1 2 3000
Aland 1 --- 1 2 4 400
Chincholi --- --- 1 --- 1 50
Chittapur --- --- 4 4 8 300
Gulbarga --- 3 9 47 59 3000
Jewargi --- --- 1 --- 1 50
Sedam --- --- --- 3 3 1500
District 1 4 16 57 78 8300

Gulbarga has large number of domesticated animals and birds and trend is also very encouraging
which creates demand of very large number of veterinary doctors which veterinary college are
not able to fulfill the increasing demand so this gap can be filled though trained Para-Vet
personal, Para-Vet can be the one of the course which Gulbarga centre can offer as short duration
certificate course.

Cattle population
Cattle 819620
Buffaloes 224109
Sheep 459515
Goats 562104
Poultry 733497
Other 152560
Total 2951405

Population of Gulbarga is 21.75 lakh and area is about 16,224 sq-km with population density of
129 person per square kilometer, which shows that per-capita land holding is large, means there
is sufficient land for cultivation but due to unaware about commercial use of uncultivable land
there source of income from these land is very low. If they will be trained for using these land
then they will generate extra income from the uncultivable land, for that farmer needs training

12


which Indigram can provide by this means farmer and Indigram both will be
benefitted. During our survey we also find that farmer are interested undergoing training which
increase their livelihood, particularly farmer of Afzalpur are interested undergoing poultry
training.

Land use Classification: (Unit: Area in Hectares)

Area Uncultivated
under Land Not available for land excluding
Taluka Forest cultivation fallow land Fallow land

Pmt.
Land Pastures Mics.
put to Barren & & other Tree Other
non uncultivable Cultivable grazing cropes, Current fallow
agri.uses land waste land` groves fallows land
1 2 3 4 5 6 7 8 9
Afzalpur 78 5819 2395 458 1322 4 15083
Aland 2854 3465 3142 974 3469 55 28504 2600
Chincholi 19622 3006 13003 2723 6516 857 8703 700
Chittapur 6150 9368 3689 4530 674 21 25591 1480
Gulbarga 4121 8150 4223 78 4322 39 24237 300
Jewargi 310 8317 1838 294 6486 60 3761 230
Sedam 2181 3295 6823 360 3066 50 3345 1475
TOTAL 35316 41420 35113 9417 25855 1086 109224 6785

Land distribution of Gulbarga (Unit: Area in Hectares)

Number Percentage Area
Marginal
holding 112331 20.46 13463
Small
holdings 191271 34.86 281868
Semi
Medium 158492 28.87 435718
Medium 73750 13.45 435001
Large 12956 2.36 180220
Total 548808 100 1346270

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Research Methodology

Methodology
After the objectives of the survey were well defined, the Descriptive Research design was taken
up. The research was of survey type and so immense importance was given on the technicalities
of sampling, method of constructing questionnaires, interviewing the respondents, editing,
coding, and tabulation of data and the statistical techniques to analyze data.
Type of Research Undertaken: - Descriptive type of research was undertaken as information
needed through this project was clearly defined. Descriptive research is preplanned and
structured. A formal research design specifies the method for selecting the sources of
information and collection of data from those sources.

Sampling and Data collection:
 Field data collection through Questionnaire, Form student’s communities and Industries.

 Exploratory method (personal interview) has been adopted for data collection and
executive opinion on specific subject.

 Random sample method was selected for collection of data from field for students and
farmer communities like mandis, haats, Gram Panchayats, etc.

Sources of information:
Primary Data
 Data collection from students available in various high schools, colleges and other
academic institutions like ITI.
 Data collection from farmer communities like Mandis, Haats, Gram Panchayats, etc. by
direct interaction.
 Data collected from industries in Agri and Rural services sector in the target market.

14


Secondary Data
 Demographic details of the target location through data sources like govt. statistics,
district employment exchanges, and other data bases.
 District agriculture dept, Rural Development offices, Block development office and other
sources.

Period of the study
Our field level study was for one month i.e. in the month of July

Area of study
 Gulbarga district of Karnataka.
 Catchment area of 40 ~ 100 kms from the target location
 Catchment area for students:

For this project our main focus area was Gulbarga district of Karnataka and for making it
more effective and efficient we divided Gulbarga district into 8 educational blocks they
are
1. Gulbarga (North)
2. Gulbarga(South)
3. Afzalpur
4. Aland
5. Chincholi
6. Chittapur
7. Jewargi
8. Sedam

Number of school, college and coaching institute selected for survey

15


Sr. No. Name of block No of schools No. of college No of coaching
selected for selected for institute
study study selected for
study
1 Gulbarga (North) 7 12 8
2 Gulbarga(South) 4 10 5
3 Afzalpur. 3 5 -
4 Aland 2 2 -
5 Chincholi 2 5 -
6 Chittapur, 2 2 -
7 Jewargi 2 2 -
8 Sedam 2 2 -

Villages surveyed in different talukas of Gulbarga

Name the village

Industry selected for survey

Name the industry from database

Analysis:
The data collected has been analyzed and interpreted through MS Excel, MS Project, Google
Scholar, SPSS etc.

16


KEY FINDINGS & IMPACT ASSESSMENT
A) student’s key finding

Student’s response for vocational training (Total students surveyed – 212)

1. Interest of students in different sectors

Name of Agriculture Sales Retail Healthcare Para vet. Others total
the sector based and
service
No. of 58 40 34 32 28 20
interested
students 212
percentage 27.36% 18.87% 16.04% 15.09% 13.21% 9.43% 100%

No. of interested students in diffrent
sector

20 Agriculture based
58
28
Sales and service

32 Retail

40 Healthcare
34 Para vet.
Others

During our survey we interacted with students of school, college, private coaching institute and
drop-out individual. We find that Majority of students (27.36%) are interested in taking
agricultural based vocational training, main reason behind this is average land holding in

17


Gulbarga is high and this sector has high potential of self employment. There is
great opportunity for rural drop-out student to start their own business as well as generate
employment for other unemployed youth in their village. It was good to notice that every
individual are interested for skill development course some for permanent job other for par time
job. Second interested sector is sales and service as expected because of very high demand of
these skilled personal. Poultry was one of the high demanded courses in Afzalpur talukas of
Gulbarga because of more Muslim population.

Model for poultry farming:

2. Student interest for job location

Job Job in own Job in own Job in Interstate
destination village district own state job

No. of 24 102 60 27
interested
students

120
100
80
60
40
20 No. of interested students
0

18


Inference –
Majority of students wants job in their own district, main reason behind this is socio
economic condition of student’s family. Student from economically backward number is
more in Gulbarga. Student wants to take a part time job by which they can earn money
without leaving school and college and also support their family financially.

Accountable number of students has shown interest in doing job in their own state. These
are the drop out students who left their studies and presently searching job, they are
ready to work in any part of Karnataka even any part of India.

3. Preferred salary choice of the students:

Amount Rs.15000- 8000- 5000-8000 <5000
of salary 10000 10000
No. of 89 69 39 13
students
interested

19


No. of students interested
90
80
70
60
50
40
30
20 No. of students interested
10
0

Inference –

Large percentage of students wants higher level salary so that they can sustain in the job and
continue it for longer time.

4. Family background of rural youth

Family Marginal Small Large service business
background farmer farmer farmer

No of 26 42 38 68 37
students
% of
students 12.32 19.91 18.00 32.22 17.45

20


student's family background

37 26
Marginal farmer
42
Small farmer
Large farmer
68
38 service
business

Student surveyed were mostly from family with service background, large farmer, business etc.

5. Educational status of rural youth

Educational <10 th pass 10th pass 12th pass Graduate
qualification
% of students 15.6 47.86 21.8 14.7
No of students 33 101 46 31

21


% of students

<10 th pass
10th pass
12th pass
Graduate

During our survey we targeted only literate person because our objective was to find student and
farmer for vocational training courses. Prerequisite for doing this course is at least 8th class
passed.

6. Do they want to continue their studies further?

wants to continue their further
study
yes 181
no 31

22


wants to continue their further study

200

150

wants to continue their
100
further study

50

0
yes no

Maximum of surveyed student we interested in continuing his education further which
means maximum want to do part time job.

7. Willingness to pay for a training with confirmed job opportunity

willingness to pay for a training with confirmed job
opportunity
yes 208
no 3
208 students of 212 surveyed wants to pay for the course which provide confirmed job opportunity, this
data shows that maximum are interested in doing vocational courses.

23


willingness to pay for a training with
confirmed job oppurtunity

250
200
150 willingness to pay for a
training with confirmed
100 job oppurtunity
50
0
yes no

Recommendations
Build a bridge of better communication and understanding on workforce development
between partnering institutions. Improved communication and understanding by the firms and
education and training institutions is a first step in changing traditional practices of training,
recruitment, hiring, and expectations. This communication leads to a “marriage” among the
private sector, the training institutions, and youth, and allows for the distinct actors to contribute
to the process.
Promote core employability skills and competencies. India is just now developing a system of
workforce skills and competencies that can be used by industry and education institutions. This
system creates a set of standards that is an alternative to the formal education credential. The
main priority is to develop simple and straightforward frameworks of skills and competencies
that enable private sector, training providers, and youth to be partners in the workforce
development process.
Support institutional transformation of technical education. Accompanying this process is
the reform and transformation of education and training institutions to be more oriented to the
workplace. This institutional change process happens at different speeds in the public and private
sectors. Throughout the NGO community, many new and small projects are currently developing

24


this workplace orientation. We recommend that Indigram assist in this institutional
strengthening, particularly with new institutions committed to youth workforce development.
Encourage active labor market programs for all skill levels of youth, but with particular
attention to rural and vulnerable youth. The main challenge of all employment training
programs is to establish working linkages between demanders and suppliers of training. India is
now at a crossroads for this change of attitude. We recommend that programs place priority on
active linkages among the private sector, programs and youth.
Limitations for study
 Time was major limiting factor for this project because of random selection of students
and such a many school and colleges has to cover.
 Direct interview method adopted for students and industries, so bias may appear due to
reasons like human exaggerating nature, social prestige, prejudices, suspicions etc.
 With the consideration of all constraints and limitations, adequate efforts have taken to
minimize biasness and make these efforts more meaningful.

Directions for further Research

Bibliography

1. Youth Employment and Unemployment in India
By- S. Mahendra Dev and M. Venkatanarayana
Indira Gandhi Institute of Development Research, Mumbai
http://www.igidr.ac.in
2. Unemployment among youth in India:
Level, nature and policy implications
By- Pravin Visaria
Institute of Economic Growth
University of Delhi
3. Vocational Training in India
By- Dr. Ashok Kolaskar
India Knowledge Commission

25


4. Jobs for the 21st Century: India Assessment
A Report by- USDA
5. Socio-Economic Dimensions of Unemployment in India
By- S. Ray and Rattan Chand
6. Report on BACKWARD REGION GRANT FUND
District Planning Committee, Gulbarga

26

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