Question

Agro-based industries are mainly established in rural areas because of

• A. Availability of raw material
• B. Availability of labour
• C. Absence of pollution in environment
• D. Low tariff on electricity

Hint:

Remember: "Weight-losing and perishable raw materials draw industries toward their source."
Since agricultural inputs are highly perishable and bulky, agro-processing facilities must be located near the farm gate in rural areas.

Answer 1

The Correct Option is A

Step 1: Understanding the Concept:
Industrial location theory (such as Weber's Least Cost Theory) examines where manufacturing facilities are located relative to raw materials and markets.
Industries are classified as either "market-oriented" or "material-oriented" based on the transport characteristics of their raw materials.
If the raw materials are highly perishable, heavy, or lose significant weight during processing, the processing facility must be located close to the source of these raw materials.

Step 2: Detailed Explanation:
Agro-based industries (such as sugar mills, cotton ginning facilities, fruit canning units, and dairy processing plants) utilize agricultural products as their primary inputs.
These agricultural raw materials have specific characteristics:
1. High Perishability:
Products like sugarcane, milk, and fresh fruits deteriorate rapidly after harvest and must be processed quickly to maintain quality.
For example, sugarcane must be crushed within 24 hours of harvest to maximize sucrose recovery.
2. Weight-Losing Nature:
Many agricultural raw materials are bulky and lose significant weight during processing.
In sugar production, the final weight of refined sugar is only about $10\%$ of the initial weight of the harvested sugarcane.
Transporting bulky, heavy raw sugarcane over long distances to urban areas is economically inefficient.
Therefore, to minimize transport costs and prevent crop spoilage, these facilities are located in rural areas close to the farm gate where raw materials are produced.
While labor availability (B) and electricity tariffs (D) are important, the primary driver for locating agro-based industries in rural areas is the availability of raw materials.

Step 3: Final Answer:
Agro-based industries are primarily located in rural areas to be close to the source of their perishable and bulky agricultural raw materials.
Therefore, the correct option is (A).