NGOs :: West Godavari District

Detailed Potential Survey of Non Farm Sector in West Godavari District of Andhra Pradesh

Executive Summary

Background

District Rural Industries Project (DRIP) for creating sustainable employment opportunities in the rural sector was launched by NABARD in 1993-94 on a pilot basis in 5 select districts. Thereafter seeing the success of the experiment, NABARD has been extending the project with a target of covering 100 districts by 2005-06 under the progress. In Phase VII, covering the year 2005-06, 25 districts, have been identified all over India. West Godavari district is one among them. Detailed Potential Survey is the first step in implementation of DRIP. The objective of the survey is to identify and map the existing RNFS activities, to assess the growth potentials which can be harnessed keeping in view the available infrastructure facilities and to suggest measures for developing the non farm sector. DRIP is a participatory approach where banks, NGOs, Govt. Departments and other concerned agencies are the stakeholders and they have to put in their best for achieving the objective.

District Profile

West Godavari District is one of the prosperous and prominent coastal district in the State of Andhra Pradesh. The district has an agrarian economy with more than 80% of the district dependent on agriculture. It is known as the rice bowl of the state. The Godavari river is the lifeline of the district Godavari passing through almost half of the district making the soils of the district fertile. It has highest Literacy rate of 73.53% as compared to the state average of 60.47%.

Potential for development of Rural Non Farm Sector

The district has a good scope for development of non farm sector in the district due to availability of rich resources and good infrastructure. The factors favorable for development of Non Farm Sector in the districts are given below:

Resources

ª The District has a well developed agriculture economy. High rates of agricultural growth facilitate in development of non farm sector enterprises such as agro processing, servicing of farm equipments, trade, manufacturing units etc.

ª The District is one of the major producers of mango in the state. Other horticulture crops of the district are – Citrus, Banana, Guava, Sapota, Cashew nut. The horticulture crops offer vast opportunities for processing industries in rural areas.

ª Fisheries is the second largest economic occupation of this district after agriculture due to the availability of marine, inland and brackish water resources which again offers opportunities in the processing sector.

ª Mineral resources such as ball clay, fire clay, road metal, building stone offer a large scope for industries in the ceramics, construction material etc.

Infrastructure

The District is well connected by Roads and Rail.

It has excellent education facilities with a very high rate of literacy rate in the state.

There is a good banking network with high credit deposit ratios.

Potential Sectors

Agro processing, food processing and agro based industries

The District has rich agricultural resources which offer tremendous opportunities for value addition. The major opportunities in agro processing sector are given in the following paragraphs:

Grain Milling: The District produces 16800 tones of rice offering vast scope for Rice mills and its by product industries. There is scope for setting up of a few mini modern rice mills in large villages of the district. Demand for credit from banking sector is expected from this industry for expansion, modernization of the existing rice mills. Besides modernisation Integrated Rice Processing. Units could be established with integrated production facilities for rice milling, processing of by products such as rive barn, husk etc., particle board manufacturing etc.

By products of rice: In paddy processing, sevcral byproducts are produced such husk and bran. There exist several possibilities for' reprocessing them into higher value added products. Rice barn is a major byproduct of the rice milling accounting for 5% to 8% ofthe weight of the paddy. Rice barn contains 10% to 23% bran oils depending on the different kinds of rice. Edible oil and industrial grade oil can be obtained from crushing rice barn oil. There is a good scope for rice barn oil enterprises. in the small industry segment with a capacity ranging from 10 TPD to 15 TPD

The rice husk is mainly used as fuel for boilers. The industrial use of husk is yet to be tapped. It has potential in building materials, input to produce paper hard board. Husk ash can also be used in glass industry due to its high silicon content.

Rice flakes are made out of inferior quality paddy. Rice flakes are used in various snack food preparations and as breakfast food. Activated Carbon may be manufactured from rice husk which is widely used for absorption of toxic gases and vapours and for purification of air and water.

Fibre Board from Agro Waste: The agro waste produced by paddy and sugarcane could be effectively used for production of fibre Boards from agro waste which has different uses for use to walls, ceiling and panels as Board for advertising and also as packaging material. The units could be set up at Eluru, Tadepalligudem and Tanuku.

Fruit processing: Mango is one of the major fruits produced in the district. Jangareddigudem area is. famous for Totapuri variety. A wide va_iety of fruits such as Cashew citrus. banana.guava, sap.toa, cashew are also produced in the district offering a wide scope for setting up of fruit processing units in Jangareddigudem, Bhimavaram, Chintalpudie, Tadepalliglldcm and Tanuku mandals of the district.

The potential sectors under fruit processing activity are given below:

Fruit	Type of ecterprises
Mango	Mango jelly, Mango Pulp, Canned Mango Slices in syrup
Others	Canning of fruits, Citrus juice, citrus peel candy, Fruit cheese, Fruit squash and syrup,fruit toffee, Jam, Jelly and Marmalade

Cashew Processing: Cashew is grown in 42,464 acres in the district with production of 22,931 MT or Cashew. Cashew processing is (me of the high growth sector activity in the district in view or availability of plenty of .resources. It is an employment intensive sector. The following processing industries have potential in the district:

Cashew Apple Juice Roasted and salted Cashew nuts

Cashew nut dec0rticator

Cashew Nut shell liquid

Palmyra Processing: Palmyra grows naturally in almost all the rnandals in the district. Tanuku,

Peravali, Iragavaram, Undrajavaram, Attili and Nidadavole mandals in the district offers good scope for the. following activities

Canning of Palmyra Tender Kernels Palmyra Kernel Preserve

Extraction of Palmyra fibre (used for high Palmyra brooms

quality brushes, acoustic board, household Fibre brushes,Palm gur

brooms, cushions) etc.

Maize processing: Maize is grown in Pedavegi, Chintalpudi, T Narsapuram, K. Kota, Peravali mandals in the district offering scope for maize milling activity. At present all the maize is going in to poultry feed. This can however be processed in to corn oil, starch and corn flakes etc. There is a scope for establishment of micro enterprises in production of corn flakes, pop corn.

Jaggery units: Sugarcane is grown in Tanuku, Tadepalligudem, Chagallu, Tallapudi,

Nidadavole, Gopalapuram, Jangareddigudem, Bhimadole offering scope for Jaggery units in the area. Jaggery making activity is concentrated in Tanuku and Nidadavole mandals. There is good scope for speciality, products such as chemical free jaggery.

Coconut processing: The district produces 219 million nuts every year. The coconut processing industries that can be established in the district are Desiccated coconut, Active carbon from coconut shells, Coconut cream, coconut shell powder and tetra packing of tender coconut water.

Coir: Most of the coconut husk is being wasted as fuel in power plants. What ever coir is made is being supplied to mattress industry. It can create huge gainful employment in the district in the following activities.

Curled coir Motorized traditional ratts

Defibreing units Rubberised coir manufacturing

Coir pith processing

Fisheries and prawn processing: The district has rich marine, brackish water and freshwater resources. There is potential for the following industries in this sector

Fish Meal and Oil. Processing and Canning of Fish.

Fresh Water Prawn Culture. Processing and Canning of Prawns.

Citroen from Prawn Waste. Fish Feed Pellets.

Poultry Feed from Prawn Waste. prawn Fed Pellets.

Fish pickles , Fish Oil

Banana based opportunities: Banana is grown in 8405 hectares in the district. The stems banana after harvest of bunches are being discarded with out any use. Banana fibre can be extracted from this waste. The fibre could be used for production of hand bags, decorative items and hand made paper. Technology for hand made paper is available with KYIC and National Institute of Hand Made Paper, Jaipur. Bontha variety of banana grown in the district is suitable for banana chips. Banana chips have a good market in the restaurants, railway stations, canteens etc.

Banana fibre can be used for making coarse woven fabrics such as hessian, sacks, ropes. twigs. sandbags, kit bags etc. Banana fibre can be blended with wool and cotton for making blankets carpets etc.

Milk products: The District produces around 12 lakh liters of milk/day which can be used in production of condensed dried milk. There is scope for various milk products such as Paneer, Khoa , sweets etc. Casein can be extracted from milk which has a while use as a nutritional supplement in Coffee whiteners, bakery, instant breakfast and beverages, cheese products and pharmaceuticals. The acid casein is used as coatings for paper and board, adhesive for wood, paints,cement, textile sizing, synthetic fibres, horticultural spread, leather tanning etc.

Milk chilling units and milk transport tankers ;have good potential in the district.

Food Processing: Food processing is a sunrise sector. Ministry of Food Processing. Government of India is offering several incentives and schemes for promoting this industry. Government of Andhra Pradesh has also come out with a separate policy for development of this sector.

Bakery products Meat Pickles

Garam masala powder Noodles making

Groundnut chikki Papad making

Instant gravy mixes Vermicelli

Iodised salt

Ice Factories: Ice Block unit having lot of potential in the District because of flourishing fisheries sector. For preserving these products ice is required. There is a scope for more ice factories in the district.

Cold Storages: More than 30% of fruits and vegetables produced are lost due to shortage of post harvest storage facilities, poor handling etc. There are three cold storages in the district at T.P.Gudem, Chintalapudi and D.Tirumala with a total capacity of 15000 metric tones. There is scope for establishment of few more cold storages in the District.

Refrigerated Vans/Trucks: Most of the agriculture and horticulture products of the district are marketed outside the district. The marine products are transported to Kolkata in Ice packed Trucks. The refrigerated vans/trucks would minimize the wastage during transportation. There is good scope for at least 10 to 12 refrigerated vans to operate in the District.

Textile Products:

The garment sector is a high growth sector offering scope for establishment of enterprises in the ready made garment segment. The segment has a large number of products such as knitted cloth, vests and undergarment, hosiery, cotton knit wear, hosiery, readymade fashion garments, school bags, uniforms etc.

There are a large number of lace artisans in the District. Lace works have to be combined with ready made garment sector to increase the market opportunities.

Mineral based Industries:

The mineral based industries have potential in the district are – Fly Ash Bricks, Stone crushing, Stone cutting and polishing, Ceramic tiles. With the commissioning of the Indira Sagar Reservoir (Polavaram) project, the stone crushing industry is going to get a good demand for its products. However, environmental aspects of the stone industry have to be kept in view.

Chemical based industries:

These are demand based industries. The following industries in this sector have scope in the District:

Adhesive for plywood Dyes

Air freshener Bottles and bottle caps

Camphor tablets Cement paints

Carboxy Methyl Starch Chlorine tablets

Disinfectant fluids Cleaning powder

Dry distempers Dyeing and bleaching

Mosquito coil / mats Shampoo / Herbal shampoo

Naphthalene balls Office gum paste

Scouring powder Petroleum jelly

Wax candles Phenyl

Agarbathis Zinc Sulphate.

Mechanical and engineering based industries:

These industries proved supporting services the agriculture and industrial sector. The product lines which can be promoted in the district are given below:

Aluminum hangers Buckets and drums making

Aluminum untensils Copper coated MS wire

Fishing hooks Metallic buttons

General Engineering workshops Fabrication works

Agriculture implements and tractor accessories Rolling shuntters

Steel almirahs and furniture Shock absorbers and other auto components

Paper and Paper based products

The following industries in this category have potential for establishment in the district:

Corrugated boxes

Vermicompost

The important of vermin compost, which is eco friendly has increased in recent years as it is a chemical – free manure. The district being a predomninantly agricultural economy, there is a vast scope for units manufacturing this eco-friendly manure.

Agri Clinics and Agri Business Centres:

With the diversification and modernisation of agricultural practices, the extension services for agriculture need augmentation from the private sector. The district has a rich agricultural base offering scope for setting up of agri clinics and agri business centers by the Agricultural Graduates. The agri business centers may offer various services such as:

Soil, water quality, inputs testing laboratories.
Plant protection service centre
Agro service centre – Farm machinery
Vermicompost units
Horticulture clinic and business center
Private veterinary clinic with small dirty unit.
Eco hatchery for carp seed production and extension services.
Setting up of information technology kiosks for access to various agriculture related portals.
Rural marketing dealership of farm inputs and outputs.

Service Activities

The agriculture prosperity of the district offers potential for various enterprises in the Service sector. There would be a large number of service activities which can come up in the district some of the indicative activities are given below:

Electrical Motor rewinding units Rural tourism activities at

Computer servicing centers Two wheelers and Auto repairing

D.T.P and Computer Job works Welding and General Engineering works

Battery reconditioning TV,Tape recorder servicing repairing centres

Gas stoves repairing centre Refrigeration and Air coolers units

Computers repairing centre Pumpsets Repairing / Servicing

Perupalem Beach (Near Narasapuram), Bowdha Aramamlu at Jeelakara Gudem near Kamavarapukota, Dwaraka Tirumala are prominent to this places in West Godavari District. There places of importance of Tourism officer scope for various service sector enterprises.

Potential areas identified by Small Industries Service Institute, GOI

RESOURCE BASE INDUSTRIES:

Agro based industries