Agro Industries
A. Sugar Industry
Sugar industry is the second largest agro-based industry of India. If we take Gur, Khandsari and Sugar together, then India becomes the largest producer of sugar product in the world. This industry employs about 2.5 lakh people.

Distribution
Most of the sugar mills are concentrated in six states, namely Uttar Pradesh, Bihar, Maharashtra, Tamil Nadu, Karnataka and Andhra Pradesh.

Localization Factors
The following are the factors for the localization of sugar industry –
1) Sugarcane is the main raw material for making sugar. Sugar mills can be set up only in the sugarcane producing areas. Sugarcane gets dry soon after harvesting. It can neither be stored nor kept for long period of time. Sugarcane should be taken immediately to the sugar mills after harvesting.
2) Transportation cost of sugarcane is high. Generally sugarcane is transported through bullock carts which can carry it upto 20-25 kilometers. Recently tractor trolleys and trucks have been used to carry sugarcane to the sugar mills.
3) Beside these factors, capital, market, labour and power also play significant role in localization of this industry.
Reasons for shifting of sugar industry from North India to Peninsular India
Sugarcane industry is gradually shifting from north Indian states to states in Peninsular India. Some of the important reasons:
1) The production of sugarcane per hectare is higher is Peninsular India. In fact, sugarcane crop grows well in the tropical climate of south India.
2) The sucrose content is higher in the tropical variety of sugarcane grown in the south.
3) The crushing season in south India is longer than in north India.
4) In south India most of the mills have modern machinery.
5) Most of the mills in Peninsular India are in cooperative sector, where profit maximization is not the sole objective.

B. Tea Industry
• Nearly 98 per cent of the tea production comes from Assam, West Bengal, Tamil Nadu, Kerala and Karnataka. Some tea is also grown in Himachal Pradesh, Arunachal Pradesh, Manipur and Tripura.
• The tea estates are generally set upon cleared hill slopes while in Assam, tea cultivation is done in the lowlands, above the flood level. The production of tea has more than doubled since independence mainly through increase in yield by improved varieties and optimum use of inputs.
• The tea industry provides direct gainful employment to more than one million workers mainly drawn from the backward and socially weaker sections of the society.
• It is also a substantial foreign exchange earner and provides significant contribution to the state and central exchequer.
• Tea plantations in India are mainly located in rural, hill and backward areas of north­eastern and southern states.

C. Coffee Industry
• Coffee was first grown in Bababudan Hills in Karnataka during the 17th century, but on a plantation scale, it was cultivated in Chikmaglur (Karnataka) in 1826. Later, coffee cultivation was extended to Wynad, Shevaroy and the Nilgiris.
• Although India contributes only a small percentage of the world production, Indian coffee has created a niche for itself in the international market. Indian robustas, are highly preferred for their good blending quality. Arabica coffee from India is also well received in the international market.
• Distribution
a) More than half of the country’s coffee production comes from Karnataka, of which 80 per cent comes from Coorg and Chikmagalur. Hasan is the third largest producer in the state.
b) In Kerala, coffee is produced in Wynad (Palghat region), Kozhikode and Cannanore.
c) In Tamil Nadu, coffee comes from the Nilgiris, Annamalai (Coimbatore region) Shevaroy hills (Salem district), Palani hills, Tirunelveli and Madurai.
d) Small quantities come from Orissa, Andhra Pradesh and the north-eastern states.

D. Leather Goods Industry
• Hides and skins are the basic raw materials which come from pelts of cattle and large animals and small ones like goat and sheep. India has a large livestock population.
• West Bengal and Tamil Nadu are the largest producers of cattle hides and Uttar Pradesh and West Bengal of the goat skin.
• Rajasthan and Madhya Pradesh also produce substantial quality hides. Major footwear production centres in the country include Kanpur, Agra, Lucknow, Kolkata, Chennai, Mumbai, Bengaluru and Jaipur.
• Leather is a highly labour-oriented industry in India, and has been identified as one of the major thrust areas for export. It is one of the traditional industries of India spread over organized and unorganized sector.
• The small-scale, cottage and artisan sector account for over 75 per cent of the total leather production. India has traditionally a rich advantage in this industry both in terms of raw material and skilled manpower. People employed in this sector are predominantly from the minorities and disadvantaged sections of the society.