ROLE OF AGRI-BUSINESS IN PROPELLING SMALL BUSINESS – AN EXPLORATORY REVIEW

Abstract

The Indian economy is characterized by its heavy dependence on the agriculture sector. It is also the biggest source of employment in the country. However, despite being an agro-based economy, the country is yet to achieve the status of a prominent agro economy in the world. A number of factors, including a complex regulatory system, unavailability of modern technology and poor logistics facilities, are responsible for the low ranking of the Indian agriculture sector. It has been seen that while western economies have ensured continuous technology upgradation to promote the farming industry, the Indian government has done very little to support this segment. Agribusiness is the business of agricultural production. It includes agrichemicals, breeding, crop production (farming and contract farming), distribution, farm machinery, processing, and seed supply, as well as marketing and retail sales. All agents of the food and fiber value chain and those institutions that influence it are part of the agribusiness system