Profitability, Employment and Factor Influencing Type A Secondary Agriculture Activities in Karnataka, India

Abstract

The present study examined the profitability and employment potential of Type A secondary agriculture activities in Karnataka, with specific attention to jaggery production, milk pooling and chilling units, and cottage-scale pickle making. Primary data were collected through personal interviews with 30 small-scale units in Belagavi and Haveri districts. Economic performance, labour use and factors influencing the growth of secondary agriculture were assessed using cost and returns analysis, descriptive statistics and Garrett’s ranking technique. The results showed variation in profitability across activities. Jaggery production generated substantial gross returns but incurred high raw material costs and seasonal constraints, which reduced cost efficiency. Milk pooling and chilling units generated the highest turnover and stable net returns, supported by year-round operation and efficient cost management. Cottage-scale pickle making required relatively low investment and recorded favourable returns per rupee of investment, although its annual net returns were limited by the small production scale. Employment analysis indicated that jaggery production was highly labour-intensive, particularly for female workers, whereas milk pooling required a stable workforce throughout the year. Pickle making generated comparatively limited but relevant employment. Garrett’s ranking identified raw material availability, storage facilities, labour availability, higher income prospects, access to credit and low transportation costs as important accelerating factors. Major constraints included high establishment costs, irregular raw material supply, inadequate storage facilities, limited extension support, skilled-labour shortages, high packaging costs and weak local demand. Addressing these constraints may improve the contribution of secondary agriculture to farm income diversification and rural livelihoods.