Date of Publication :30th December 2021

Abstract: Almost three-fourths of Indian population live in rural areas. where agriculture is backbone of the Indian economy through providing employment opportunities to more than 60% population & livelihood to majority of the people. Because of lesser employment opportunities in villages people either migrate or travel to cities for work. The inception of naturally beneficial linkages between agriculture and industry is one of the central themes of the development process. Argo-based industries plays a key role in strengthening agricultural and industrial linkages. Paddy cultivation is the major cultivation in agriculture sector in Varuna village. This paper is going to study about the status of agricultural farmers. and economic condition of the farmer. And how Varuna village has seen drastic changes in cultivation leading to the conversion of agricultural land to nonagricultural land and resulting in loss of food production. The paper is going to study how paddy based agro-industry can be source of income to farmers (food economy), that enhance farmers livelihood. The paper attempts to elaborate on the benefits of agro-based industries which have great predominance in the rural areas since they could be significant in strengthening strong linkages between the agricultural and industrial sectors; while empowering rural folk by generating employment opportunities. The research methodology follows both qualitative and quantitative methods. The paper concludes with the tangible and intangible benefits of agro-based industry as a source of income for the farmers

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