Year: 2020 | Month: December | Volume 9 | Issue 4
Growth Status of Unorganised Food Processing Enterprises in India
Akash Dandapat
Soumita Dasgupta
Pinaki Das
DOI:10.30954/2249-6637.04.2020.11
Abstract:
This paper examines the growth status of unorganised food processing enterprises (UFPEs) in India based on the latest NSSO Unit level data of the 67th (2010-11) and 73rd (2015-16) rounds. Food processing is an important activity in unorganised manufacturing sector in India. UFPEs occupied 12% share in unorganised manufacturing sector in 2015-16. It is found that the number of UFPEs and their employment increased significantly during 2010-11 to 2015-16. Among eight different activities of UFPEs, grain mill activities occupied the largest share in respect of enterprise as well as employment. Labour productivity of urban located UFPEs was higher in all activities except animal feeds and processing of fruits & vegetables. Whereas among all activities, the average labour productivity was higher in animal feeds, processing of fish and edible oil product enterprises. Among UFPEs the percentage shares of expanding and stagnating enterprises were 32.2% and 42.1% respectively in 2010-11. In 2015-16, the share of expanding and stagnating enterprises reduced marginally. The multinomial logit regression of growth status shows that the type of an enterprise, its nature, availability of loan, maintenance of accountant and the rate of profit significantly affects the growth status of an enterprise
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