Edible Oil Refinery Units & Oil Processing Industries wwith Employment Opportunities in Nagpur

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1 Edible Oil Refinery Units & Oil Processing Industries wwith Employment Opportunities in Nagpur Dr. Raju G. Shrirame Head, Department of Economics Jeevan Vikas Mahavidyalaya, Thugaondeo Abstract : Maharashtra has diverse agro climatic conditions suitable for the cultivation of a wide range of crops and a progressive farming community. The state has a large urban population with high purchasing power. It is one of major horticultures State in India especially in Maharashtra with more than 13 lakh under different fruit crops. Maharashtra is a pioneer and leader in the use of water saving technology like drip and sprinkler irrigation system with program of Maharashtra Jalyukt Shiwar Abhiyan and accounts for 60% of the total area under banana in the state has access to drip irrigation. The state is the largest exporter of Thompson seedless grapes, Alphonso as Hapus mangoes, onions and long stem cut flowers. In Nagpur district there is a major contribution of Irrigation development of Jalshiwar. These programmes help to increase the percentage of oilseeds production in Nagpur region. Irrigation programme as developing day to day Agro and Food Processing Industries in Nagpur districts are increasing with satisfactory growth of Industries. The chief concern of this paper is to focus the oil industries and its future, scope, opportunities and reality of edible oil production and crude oil industries. Introduction : Today Nagpur district bears the stamp of developing area of Mihan Project and the next step is to establish super special economic zone in the nation. The fact is that every year farmers have to suffer from the great loss of crores of rupees due to damage of imperishable vegetables and agricultural crops. Considering all these aspects, there is a urgent need to discuss collaboratively on this issue to avoid the consequences arising out of it. Still, there is a vast scope in the sector of agriculture-based products like orange processing, oil seeds, cottonseeds, chilly, turmeric, rice, dal mil, vegetables and fruits. If cared properly, will help to preserve these products for a long time and help in the increase of export in the International trade. At the same time, it will open new vistas and opportunities in agricultural processing sector in future. UPA Interdisciplinary National Peer Reviewed e-journal 1

2 Maharashtra s Gross state Domestic Product ( GSDP) at current prices for is estimated at Rs /- cores and contributes more than 13 %of National GDP. Agriculture and allied activities contributes nearly 12% to the state income, although 55% of the population is dependent on the GDP. Current Scenario of Agro And Food Processing Industries : Especially in the food or agro processing industrial sector, Maharashtra has as many as 16512, small scale food processing units. 13 Mega projects have also approved under the package scheme of incentive since 2005 with an investment of nearly 2600 cores rupees. At the gross root level, there are more than 45,000 agro processing co-operatives societies. In fact food products and beverages is one of the industries in Maharashtra, and contributed 9.7% in terms of total value of output The food processing sector in the State has attracted Rs cores worth of Foreign Direct Investment through 173 projects since Thus Maharashtra is one of the country leading in agro processing industries in general and in food processing in particular. However, the current level of processing in the state, as in the rest of India, is very low by International standards. There is tremendous potential for much higher value addition through processing. In the special context Vidarbha region has occupied the area of oilseeds and cotton sectors. In our area Cotton provides cottonseeds for edible oil. In the Nagpur district crops of oil seeds are in major quantity including Soya been, Cotton, Sunflower, Rice bran, Kardai, Ground Nuts and Til in the thousands hectors. Oil Processing Units in Vidarbha Region : In the Vidarbha region, there are oil processing industries as a small scale and large scale industries with middle scale units of industries. These industrial units provides most directly and indirectly employment to people. In the periods of slavery, Indian cottage and small scale industries as a Telghanis mostly occupied in rural India, provided employment opportunities to people with direct and indirect employment. UPA Interdisciplinary National Peer Reviewed e-journal 2

3 Direct & Indirect Employment Opportunities In Vidarbha Sr. No. Districts Oil Processing Industries Type of Industries Provide Employment Opportunities Direct and Indirect 1 Yeotmal 03 Middle Scale 2412 Peoples 2 Wardha 03 1 Large scale+2 M.S People 3 Amarawati 02 Middle Scale 1970 People 4 Chandrapur 02 Middle Scale 1822 People 5 Buldhana 04 Middle Scale 3243 People 6 Akola 05 Middle Scale 4832 People 7 Washim 03 Middle scale 2134 People 8 Bhandara 02 Middle Scale 1846 People 9 Gondia 01 Middle Scale 1652 People 10 Nagpur 15 9 Large+ 6 Middle Scale people Direct & Indirect Employment Opportunities in Oil Industries At Nagpur District : In Vidarbha, total 40 Oil industries are working in different districts. Especially in 10 districts they are engaged in the profession of edible oil productions. Nagpur districts largely produce the oilseeds and processing units near about 15 units. Thus, Vidarbha provides the employment opportunities in processing units near about to people directly and to 1,52455 people provides indirectly. In the same manner, Nagpur districts provide the major employment opportunities in the oil processing industries. Nagpur District s Employment scenario of oil industries reveals that 15 large & middle scale processing units provide employment opportunities near about to people in a year. The direct and indirect employment opportunities in oil processing industries goes up to with the oilseeds crops production, transport, Agro based supporting industries, hot ling, others soya products, etc. The Maharashtra state has its 4 th rank in the production of oilseeds in the National level. Madhya Pradesh Indore is the top most cities in the production of edible oil at the National level. Income Sources & Annual Production of Edible Oil Capacity In Nagpur District : Out of 40 0il industries working in Vidarbha at present status, these are 9 large oil industries while 31middle scale industries. Out of these 31 oil industries are such that they produce edible oil on by processing on the oil seeds. There is only one oil industry, UPA Interdisciplinary National Peer Reviewed e-journal 3

4 which was started A.C. All these large and middle scale industries are producing edible oil and their daily rushing metric tons while the monthly crushing capacity of all these oil industries is enormous and is of 3 lakh 12 thousand metric tons. The average monthly crushing capacity of these 40 oil industries have metric tons and the crushing season of these 28 oil industries continues generally 5 to 6 months. There are 6 oil industries, which take up crushing season for 7 to 8 months. Lastly 4 oil industries which work continuously for 10 to 12 month as such their crushing capacity is also enormous. In these oil industries Ruchi Soya Proteins Pvt. Ltd. Buttibori is a Mega plant and the capacity of this projects maximum 1500 metric tons per day. Now newly launch the Mega Oil Industry of Shalimar is really a Mega plant because of its crushing mega capacity of day near about 2500 metric tons daily. Adani- Wilmar Group of Industries Malegaon, Taniya Group Saoner, Murali Agro Processing Industry, Madhur Agro Processers, which are daily crushing capacity 1000 metric tons and those units provides employment opportunities for 5 to 6 months. All these oil industries are producing DOC as a secondary product, and total extent of proteins in these DOC s in India is 45 to 50 percent. Conversely the extent of proteins produced in DOC of USA is only 33 percent. Therefore Indian DOC s are exported to foreign countries on a large scale. This export earns total 16oo cores rupees as foreign exchange in India. The total requirement of edible oil in India is 5 Crores ton s while only 4 crores tone edible oil is only produced in the country indigenously. As such we have to import annually the remaining 1 crore tons edible oil from the foreign countries at a huge cost of crores. Oil industries are run on these imported oil seeds. In future this industry is likely to flourish nicely. This business of producing edible oil is very well developed and new opportunities of employment have been created. Each and every year India has become an exporter of DOC near about crore tons and get 1600 crore rupees in the form of foreign currency to Maharashtra whereas the Vidarbha region get 800 crore rupees as a share of foreign currency. So for as working conditions of workers in oil industries are concerned, the working hours of worker engaged in this business are fixed and the workers are paid salaries as per industries by the majority of oil industries management. Mostly all government facilities and advantages as a insurance, compassion, employment scheme, welfare laws are being provided for. UPA Interdisciplinary National Peer Reviewed e-journal 4

5 Small Scale Industries & Comparatively Employment Opportunities Between Nagpur & Vidarbha Region Telghani as a small scale industry provides largely employment as a level of rural and urban place in Vidarbha region. The edible oil production industry producing edible oil and DOC has proved to be the greatest in providing employment. Through this business the people have received many types of employment opportunities and there is still more scope for direct and indirect employment opportunities. Through these industries 48,874 persons have reach & direct indirect employment. This pictures is of Nagpur district. In the special context of Nagpur have situated 152 oil telghanies at 14 tahsil s and at the level of Vidarbha near about 1234 oil telghanies engaged in the production process. These provide employment opportunities to near about 7,0 5,000 people as a direct & indirect employment. District -Wise Oil Industries Scenario of Vidarbh Region Sr. No. Districts No. of Telghanis Types of Industries Indirect Employment Opportunities 1 Nagpur 152 Small Scale 48,874 People 2 Chandrapur 148 Small Scale 23,432 People 3 Bhandara 163 Small Scale 23,987 People 4 Gondia 197 Small Scale 34,543 People 5 Wardha 207 Small Scale 42,343 People 6 Yeotmal 206 Small Scale 41, 987 People 7 Washim 143 Small Scale People 8 Amarawati 189 Small Scale People 9 Akola 294 Small Scale people 10 Buldhana 198 Small Scale People Guiding Principles For Food & Oil Processing Industries Policy : Focus on core sectors based on production strength and specific intervention to make these sectors more commercially viable taking advantage of the strengths and potential of different areas in the State. 1) Focus on the development of agro clusters and end-to-end integrated value chains so as to make them domestically and globally competitive, including support to UPA Interdisciplinary National Peer Reviewed e-journal 5

6 SME clusters for providing links between the farm and large industrial processing units. 2) Attracting large investments in agro processing industry in Maharashtra, which would help catalyze the entire supply chain, create an enabling environment for the development of smaller units, and increase value addition at all levels for the benefit of farmers and the rural economy generally. 3) The project with an outlay of Rs. 750 cores, involves development of on-form collection centers serving agro business center, feeding perishable commodity centers and developing value chain under PPP model. 4) The entire project envisages nearly 1000 farm collection centers, 50 agricultural business centers and 5 perishable commodity centers. Sub-Sectoral Policies And Schemes : While this Policy is applicable to all subsectors of agro-industry and food processing except for sugar, distilleries and textiles, some have special features and requirements. For instance, meat processing, oil processing involves issues relating to abattoirs. The needs of fisheries and poultry-based agro-industry are also different from those of food processing based n agricultural crops. Conclusion : Agro processing industries well set up & occupied in Vidarbha region, but there is a need to funding and improvement with advance techniques. 1) Small scale and telghani s industries mostly provide employment opportunities in oil processing industries from long times at rural and urban sectors. 2) Small scale industries direct & indirectly provide employment opportunities to people near about at rural & urban sectors in Vidarbha region. 3) Large & Middle Scale industries employment opportunities directly provides at rural & urban sectors near about people and indirectly provides 1,52455 people s every years. 4) Nagpur & Akola district are really most useful for production of oil processing industries. 5) Oil processing industries sectors receiving the medium of foreign currency to nation by exporting of DOC proteins. 6) Now current era FDI flows day to day haves increasing in oil processing industries with capital of multinational companies. UPA Interdisciplinary National Peer Reviewed e-journal 6

7 7) Multinational companies and corporate sectors have standing the challenges on the References root of small scale industries. They always try to perish them at rural & urban sectors. 1) Agro industrial policy of Maharashtra-2010, draft for comments & suggestions. 2) Nagpur district gazetteer vol-1 & vol-2. 3) S. G. Kolarkar, History of Vidarbha, Mangesh Prakashan, Ramdaspeth, Nagpur 4) Brief industrial profile of Nagpur district ) Shrirame R.G.,Comparative Economical Study of Employment Situation In Oil Industries, In Nagpur District For Period From 1995 to ) Shrirame R. G., Agro Processing Industries & Employment Opportunities in India, Sir Sahitya Publication, Nagpur, First Edition ) Kacharu R. P., Agro Processing Industries In India- Growth, Status and Prospectus. 8) Shrirame R. G., A Analytical studies of Adani- Wilmar group of Industries Nagpur Unit Oil Refineries & Oil Processing industries. With Special References in 2000 to 2010, M.Phil Thesis. 9) Sorte Ravi, Research Paper, Agro Industries & Employment Opportunities In India,2012, Sir Sahitya Publication Nagpur. 10) Duchhake Prashant, Research Paper, Vidarbha Industrial Bulletin, Oil Processing Industries & Employment Opportunities In Rasoya Proteins. 11) All Statastical Information Sources By Sakal,Nagpur Addtion, ) Shrirame R. G. Oil Processing Industries & Employment Opportunities In Vidarbha Region. UPA Interdisciplinary National Peer Reviewed e-journal 7