How Does Industry Depend on Agriculture? 

Interdependence is a key characteristic of agriculture and industry. They depend on one another. They benefit from each other, and the other can’t develop without them.

Agriculture is a source of raw materials and labor for many industries. It also provides food for workers in the industrial sectors. It can also provide funds for the industrial sector. Industries support the agricultural sector by developing and delivering better quality seeds, pesticides, and irrigation systems. They also offer storage and marketing facilities that can be used to meet the needs of farmers for manufactured goods. It also provides funds for the agricultural industry.

Industry Depends on Agriculture

These are some of the ways agriculture helps industry:

1. The agricultural sector provides raw materials for the industrial sector.

Agriculture supplies raw materials for many industries, such as Cotton to textile industries, oilseeds, and coconut for oil extraction, sugarcane for the sugar industry, tea leaves, coffee, etc. The demand for raw materials rises as more businesses are established or expanded. This growing demand can only be met by increasing agricultural production.

2. The demand for industrial goods comes from the agricultural population.

All human beings have a primary and fundamental need for food. After our basic needs are met, we look for other goods, such as clothes, shoes and houses, tube wells, tractors or sewing machines, gas stoves, radios, fridges, televisions, washing machines, etc. The industrial sector manufactures these goods.

Imagine how dependent this sector is on the agricultural industry to supply its products. The demand for industrial products will drop if the income of the rural population is low. The growth of the industrial sector is directly linked to the development of the agricultural industry. To grow the industrial sector, the agricultural sector must expand. To increase the income of people working in the industrial sector, it is necessary to raise the income of those who work in agriculture.

3. The agricultural sector is a source of labor for the industrial sector.

If a country is not developed, it is primarily an agricultural economy. As development occurs, the relative need for agricultural labor decreases. This is due to two factors. First, incomes rise, and second, the demand for labor in agriculture decreases. The demand for food products rises but at a slower rate. 

The use of high-quality seeds, fertilizers, and pesticides, as well as proper irrigation equipment, increased agriculture’s productivity. This means fewer people are required to produce the same number of crops from the same land area. 

However, as the economy grows and incomes rise, the demand for industrial products increases at a faster pace. Industries grow and need more workers. As we have seen, the agricultural sector is becoming more productive. The growing demand for labor in the industrial sectors can be met by workers not employed by the agricultural sector. This makes the agricultural sector the main source of the labor force for the industrial sector.

Also Read – Why Agricultural Income is not taxable?

4. The agricultural sector supplies food for those working in the industrial sector.

The agriculture sector is essential for man’s basic needs: food and water. It supplies cereals, pulses, and vegetables as well as fruits, vegetables, spices, beverages, and other food products. Agriculture fulfills the food needs of all people, regardless of whether they work in industry, agriculture, or the services sector.

The industrial sector’s population is dependent directly on the agricultural sector. The inability to find food in industrial areas discourages the opening of new units. A worker who senses a food shortage is discouraged from moving to industrial areas. The availability of food products in industrial areas must be constant. This is the precondition for industrial development.

5. Funding sources for the industrial sector.

Rural residents deposit their savings at banks, post offices, and other financial institutions. Because of certain restrictions, the rural population cannot use these savings to invest in agriculture. These funds are then channeled to the banks for use in urban industries. Rural savings are a source of funds that can be used to support the industrial sector. The growth of the industrial sector depends on the growth in the agricultural sector. This is because the higher the farmers’ income, the more they save.

This post discusses how the growth in the industrial sector depends on the growth in the agricultural sector. This isn’t an on-and-off interdependence. It’s a two-way interdependence.