CHAPTER IV

PROBLEMS FACED BY MODERN

RICE MILL INDUSTRIES
 PROBLEMS FACED BY MODERN RICE MILL INDUSTRIES

Indian agriculture sector is one of the conventional based with majority of

the labour force are belongs to semi skilled and unskilled in nature. Even now,

agriculture is treated as unrespectable and unprofitable profession because of

many reasons. In this situation agro based industries were evolved to protect and

promote the agriculture sector through utilisation of agricultural products as raw

materials and inputs. With this effect, food processing industries and rice mills

were established in all the parts of the country.

Indian agriculturists suffer seriously from the following problems: Stumpy

bargaining capacity of farmers, putting them under the mercy of selfish traders

and middlemen, who invariably exploit them to the core; very little fragmented

land holdings; very little marketable surplus; informal sector dominating the

marketing process of agricultural produce; fragmented agricultural supply chain;

poor marketing infrastructure installed for agricultural produce; imperfect market

conditions for agricultural commodities; massive wastage of agricultural produce

to the tune of 30 per cent to 60 per cent (Ganeshkumar, 2017).

Food process industries and Morden rice mill are the highly depends on

agriculture sector, if any changes in agriculture it will reflects in these industries,

particularly modern rice mill are directly related with agriculture with this aspects

the present chapter discuss the problems of modern rice mills industries in

Tiruchirappalli district with respects to finance, marketing, operational and labour

problems and its impact on performance of modern rice mills in the study area.
 Table No: 4.1
Location and Financial Problems
Ho: There is no association between location and financial problems of modern
rice mill industries.
Location Financial Problems χ2value p-value
Low Moderate High Total
Numbers 20 17 19 56
Rural
Row (%) 35.7 30.4 33.9 100.0
Column (%) 80.0 54.8 70.4 67.5
Numbers 5 14 8 27
4.145 0.000**
Urban Row (%) 18.5 51.9 29.6 100.0
Column (%) 20.0 45.2 29.6 32.5
Numbers 25 31 27 83
Total Row (%) 30.1 37.3 32.5 100.0
Column (%) 100.0 100.0 100.0 100.0
Note: **Denotes significant at 1% level; p<0.01

The table 4.1 shows the distribution of the location of the industries and

financial problems at three (low, moderate, high) levels of industries. It is seen

that, out of 56 industries from rural area, 35.7 percent of the industries (20) have

low level, 30.4 percent of the industries (17) at Moderate level, and 33.9 percent

of industries (19) have high level of opinion with regard to Financial Problems.

It is clear that, out of 27 industries from urban area, 18.5 percent of the

industries (5) have low level, 51.9 percent of industries (14) at Moderate level,

and 29.6 percent of the industries (8) have high level of opinion with regard to

Financial Problems. On the whole, majority of the industries (37.3%) have

moderate level of opinion towards financial problems. The values of chi square

test (4.145) at low p-value of (0.000) indicate that the null hypothesis is rejected at

1 percent level of significance. Hence it may be concluded that there is a highly

significant association between location of the industry and financial problems.

 Table No: 4.2
Location and Marketing Problems
Ho: There is no association between location and marketing Problems of modern
rice mill industries.
Location Marketing Problems χ2 value p-value
Low Moderate High Total
Numbers 13 20 23 56
Rural
Row (%) 23.2 35.7 41.1 100.0
Column (%) 61.9 57.1 85.2 67.5
Numbers 8 15 4 27
5.858 0.000**
Urban Row (%) 29.6 55.6 14.8 100.0
Column (%) 38.1 42.9 14.8 32.5
Numbers 21 35 27 83
Total Row (%) 25.3 42.2 32.5 100.0
Column (%) 100.0 100.0 100.0 100.0
Note: **Denotes significant at 1% level

The table 4.2 shows the distribution of the location of the industry and

marketing problems at three (low, moderate, high) levels of industries. It is seen

that, out of 56 industries from rural area, 23.2percent of the industries (13) have

low level, 35.7percent of the industries (20) at Moderate level, and 41.1percent of

the industries (23) have high level of opinion with regard to marketing problems.

It is clear that, out of 27 industries from urban area, 29.6percent of the

industries (8) have low level, 55.6percent of the industries (15) at moderate level,

and 14.8percent of industries (4) have high level of opinion with regard to

Marketing Problems. On the whole, majority of the industries (42.2%) have

moderate level of opinion towards marketing problems. The values of chi square

test (5.858) at low p-value of (0.000) indicate that the null hypothesis is rejected at

1 percent level of significance. Hence it is concluded that there is a significant

association between location of the industry and marketing problems of the

industries.
 Table No: 4.3
Location and Labour Problems
Ho: There is no association between location and labour problems of modern rice
mill industries.
Location Labour Problems χ2 value p-value
Low Moderate High Total
Numbers 15 25 16 56
Rural
Row (%) 26.8 44.6 28.6 100.0
Column (%) 65.2 73.5 61.5 67.5
Numbers 8 9 10 27
1.039 0.000**
Urban Row (%) 29.6 33.3 37.0 100.0
Column (%) 34.8 26.5 38.5 32.5
Numbers 23 34 26 83
Total Row (%) 27.7 41.0 31.3 100.0
Column (%) 100.0 100.0 100.0 100.0
Note: **Denotes significant at 1% level

The table 4.3 shows the distribution of the location of the industries and

labour problems at three (low, moderate, high) levels of industries. It is seen that,

out of 56 industries from rural area, 26.8percent of the industries (15) have low

level, 44.6percent of the industries (25) at Moderate level, and 28.6percent of the

industries (16) have high level of opinion with regard to labour problems.

It is clear that, out of 27 industries from urban area, 29.6 percent of the

industries (8) have low level, 33.3 percent of the industries (9) at moderate level,

and 37percent of industries (10) have high level of opinion with regard to Labour

Problems. On the whole, majority of the industries (41.0%) have moderate level

of opinion towards labour problems. The values of chi square test (1.039) at low

p-value of (0.000) indicate that the null hypothesis is rejected at 1 percent level of

significance. Hence it may be concluded that there is a significant association

between location of the industry and labour problems of the industries.

 Table No: 4.4
Location and Operational Problems
Ho: There is no association between Location and operational Problems of
modern rice mill industries.
Location Operational Problems χ2 value p-value
Low Moderate High Total
Numbers 9 24 23 56
Rural
Row (%) 16.1 42.9 41.1 100.0
Column (%) 37.5 75.0 85.2 67.5
Numbers 15 8 4 27
14.509 0.000**
Urban Row (%) 55.6 29.6 14.8 100.0
Column (%) 62.5 25.0 14.8 32.5
Numbers 24 32 27 83
Total Row (%) 28.9 38.6 32.5 100.0
Column (%) 100.0 100.0 100.0 100.0
Note: **Denotes significant at 1% level

The table 4.4 shows that distribution of location and operational problems

at three (low, moderate, high) levels of industries. It is seen that, out of 56

industries from rural area, 16.1percent of the industries (9) have low level, 42.9

percent of the industries (24) at moderate level, and 41.1percent of the industries

(23) have high level of opinion with regard to operational problems.

It is clear that, out of 27 industries from urban area, 55.6percent of the

industries (15) have low level, 29.6 percent of the industries (8) at moderate level,

and 14.8 percent of industries (4) have high level of opinion with regard to

operational problems. On the whole, majority of the industries (38.6%) have

moderate level of opinion towards with regard to operational problems. The

values of chi square test (14.509) at low p-value of (0.000) indicate that the null

hypothesis is rejected at 1 percent level of significance. Hence it is concluded that

there is a significant association between location and operational problems of the

industries.
 Table No: 4.5

Type of ownership and Financial Problems

Ho: There is no association between type of ownership of the industry and

Financial Problems of industries.
Type of χ2 p-
Financial Problems
ownership value value
Low Moderate High Total
Sole Numbers 8 8 6 22
Trading Row (%) 36.4 36.4 27.3 100.0
Column (%) 32.0 25.8 22.2 26.5
Numbers 17 23 21 61 0.649 0.000**
Partnership Row (%) 27.9 37.7 34.4 100.0
Column (%) 68.0 74.2 77.8 73.5
Numbers 25 31 27 83
Total Row (%) 30.1 37.3 32.5 100.0
Column(%) 100.0 100.0 100.0 100.0
Note: **Denotes significant at 1% level

The table number 4.5 shows the distribution of the type of ownership and

financial problems at three (low, moderate, high) levels of industries. It is seen

that, out of 22industries from rural area, 36.4percent of the industries (8) have low

level, 36.4percent of the industries (8) at moderate level, and 27.3percent of the

industries (6) have high level of opinion with regard to financial problems.

It is clear that, out of 61industries from urban area, 27.9 percent of the

industries (17) have low level, 37.7 percent of the industries (23) at moderate

level, and 34.4 percent of the industries (21) have high level of opinion with

regard to Financial Problems. On the whole, majority of the industries (37.3%)

have moderate level of opinion towards with regard to financial problems. The

values of chi square test (0.649) at low p-value of (0.000) indicate that the null

hypothesis is rejected at 1 percent level of significance. Hence it may be

concluded that there is a significant association between type of ownership and

financial problems of the industries.

 Table No: 4.6
Type of ownership and Marketing Problems
Ho: There is no association between type of ownership of the industry and
marketing problems of industries.
Type of χ2
Marketing Problems p-value
ownership value
Low Moderate High Total
Sole Numbers 6 12 4 22
trading Row (%) 27.3 54.5 18.2 100.0
Column (%) 28.6 34.3 14.8 26.5
Numbers 15 23 23 61
Partnership Row (%) 3.028 0.000**
24.6 37.7 37.7 100.0
Column (%) 71.4 65.7 85.2 73.5
Numbers 21 35 27 83
Total Row (%) 25.3 42.2 32.5 100.0
Column (%) 100.0 100.0 100.0 100.0
Note: **Denotes significant at 1% level

The table number 4.6 shows the distribution of type of ownership and

marketing problems at three (low, moderate, high) levels of industries. It is seen

that, out of 22 industries from rural area, 27.3 percent of the industries (6) have

low level, 54.5 percent of the industries (12) at moderate level, and 18.2 percent

of the industries (4) have high level of opinion with regard to marketing problems.

It is clear that, out of 61 industries from urban area, 24.6 percent of the

industries (15) have low level, 37.7 percent of the industries (23) at moderate

level, and 37.7 percent of the industries (23) have high level of opinion with

regard to marketing problems. On the whole, majority of the industries (42.2%)

have moderate level of opinion towards with regard to marketing problems. The

values of chi square test (3.028) at low p-value of (0.001) indicate that the null

hypothesis is rejected at 1 percent level of significance. Hence it is concluded that

there is a significant relationship between type of ownership of the industry and

marketing problems of the industries.

 Table No: 4.7
Type of ownership and Labour Problems
Ho: There is no association between type of ownership of the industry and labour
problems of industries.
Type of χ2 p-
Labour Problems
ownership value value
Low Moderate High Total
Numbers 6 11 5 22
Sole trading
Row (%) 27.3 50.0 22.7 100.0
Column (%) 26.1 32.4 19.2 26.5
Numbers 17 23 21 61
1.305 0.000**
Partnership Row (%) 27.9 37.7 34.4 100.0
Column (%) 73.9 67.6 80.8 73.5
Numbers 23 34 26 83
Total Row (%) 27.7 41.0 31.3 100.0
Column (%) 100.0 100.0 100.0 100.0
Note: **Denotes significant at 1% level; p<0.01
The table number 4.7 shows the distribution of the type of ownership of the

industry and labour problems at three (low, moderate, high) levels of industries. It

is seen that, out of 22 industries from sole trading, 27.3 percent of the industries

(6) have low level, 50 percent of the industries (11) at moderate level, and 22.7

percent of industries (5) have high level of opinion with regard to labour

problems.

It is evident that, out of 61 industries from partnership, 27.9 percent of the

industries (17) have low level, 37.7 percent of the industries (23) at Moderate

level, and 34.4percent of the industries (21) have high level of opinion with regard

to labour problems. On the whole, majority of the industries (41.0%) have

moderate level of opinion towards with regard to labour problems. The values of

chi square test (1.305) at low p-value of (0.000) indicate that the null hypothesis is

rejected at 1 percent level of significance. Hence it may be concluded that there is

a significant association between type of ownership of the industry and labour

problems of the industries.

 Table No: 4.8
Type of ownership and Operational Problems
Ho: There is no association between type of ownership of the industry and
operational problems of industries.
Type of χ2 p-
Operational Problems
ownership value value
Low Moderate High Total
Numbers 4 7 11 22
Sole trading
Row (%) 18.2 31.8 50.0 100.0
Column (%) 16.7 21.9 40.7 26.5
Numbers 20 25 16 61
4.353 0.000**
Partnership Row (%) 32.8 41.0 26.2 100.0
Column (%) 83.3 78.1 59.3 73.5
Numbers 24 32 27 83
Total Row (%) 28.9 38.6 32.5 100.0
Column (%) 100.0 100.0 100.0 100.0
Note: **Denotes significant at 1% level
The table number 4.8 shows the distribution of type of ownership and

operational problems of industries at three (low, moderate, high) levels of

industries. It is seen that, out of 22 industries from sole trading, 18.2 percent of

the industries (4) have low level, 31.8 percent of the industries (7) at moderate

level, and 50 percent of the industries (11) have high level of opinion with regard

to Operational Problems.

It is clear that, out of 61 industries from partnership, 32.8 percent of the

industries (20) have low level, 41percent of the industries (25) at Moderate level,

and 26.2percent of the industries (16) have high level of opinion with regard to

operational problems. On the whole, majority of the industries (38.6%) have

moderate level of opinion towards with regard to operational problems. The

values of chi square test (4.353) at low p-value of (0.000) indicate that the null

hypothesis is rejected at 1 percent level of significance. Hence it is concluded that

there is a significant association between type of ownership of the industry and

operational problems of the industries.

 Table No: 4.9
Type of Unit and Financial Problems
Ho: There is no association between type of unit of the industry and financial
problems of industries.
Type of p-
Financial Problems χ2 value
Unit value
Low Moderate High Total
Numbers 0 5 2 7
Micro
Row (%) 0.0 71.4 28.6 100.0
Column (%) 0.0 16.1 7.4 8.4
Numbers 23 25 23 71
5.179 0.000**
Small Row (%) 32.4 35.2 32.4 100.0
Column (%) 92.0 80.6 85.2 85.5
Numbers 2 1 2 5
Medium Row (%) 40.0 20.0 40.0 100.0
Column (%) 8.0 3.2 7.4 6.0
Note: **Denotes significant at 1% level

It is evident that, out of 7 industries from micro, 71.4 percent of the

industries (5) at Moderate level, and 28.6 percent of the industries (2) have high

level of opinion with regard to financial problems. It is clear that, out of 71

industries from small, 32.4 percent of the industries (23) have low level, 35.2

percent of the industries (25) at moderate level, and 32.4percent of the industries

(23) have high level of opinion with regard to financial problems.

It is revealed that, out of 5 industries from moderate, 40 percent of the

industries (2) have low level, 20 percent of the industries (1) at moderate level,

and 40 percent of the industries (2) have high level of opinion with regard to

Financial Problems. On the whole, majority of the industries (37.3%) have

moderate level of opinion towards with regard to financial problems. The values

of chi square test (5.179) at low p-value of (0.000) indicate that the null

hypothesis is rejected at 1 percent level of significance. Hence it may be

concluded that there is a significant association between type of unit of the

industry and financial problems of the industries.

 Table No: 4.10
Type of Unit and Marketing Problems
Ho: There is no association between type of unit of the industry and
marketing problems of industries.
Type of χ2 p-value
Marketing Problems
Unit value
Low Moderate High Total
Numbers 1 6 0 7
Micro
Row (%) 14.3 85.7 0.0 100.0
Column (%) 4.8 17.1 0.0 8.4
Numbers 20 29 22 71
16.443 0.000**
Small Row (%) 28.2 40.8 31.0 100.0
Column (%) 95.2 82.9 81.5 85.5
Numbers 0 0 5 5
Medium Row (%) 0.0 0.0 100.0 100.0
Column (%) 0.0 0.0 18.5 6.0
Note: **Denotes significant at 1% level

The table number 4.10 shows the distribution of the type of unit of the

industry and marketing problems at three (low, moderate, high) levels of

industries. It is evident that, out of 7 industries from micro, 14.3 percent of the

industries (1) at low level, 85.7percent of the industries (6) at moderate level of

opinion with regard to marketing Problems. It is clear that, out of 71 industries

from small, 28.2percent of the industries (20) have low level, 40.8percent of the

industries (29) at Moderate level, and 31percent of the industries (22) have high

level of opinion with regard to marketing problems. It is revealed that, out of 5

industries from moderate, 100 percent of industries (5) have high level with

regard to marketing problems.

On the whole, majority of the industries (42.2%) have moderate level of

opinion with regard to marketing problems. The values of chi square test (16.443)

at low p-value of (0.000) indicate that the null hypothesis is rejected at 1 percent

level of significance. Hence it may be concluded that there is a significant

association between type of unit and marketing problems of the industries.

 Table No: 4.11
Type of Unit and Labour Problems
Ho: There is no association between type of unit of the industry and labour
problems of industries.
Type of χ2 p-
Labour Problems
Unit value value
Low Moderate High Total
Numbers 2 1 4 7
Micro
Row (%) 28.6 14.3 57.1 100.0
Column (%) 8.7 2.9 15.4 8.4
Numbers 20 32 19 71
5.434 0.000**
Small Row (%) 28.2 45.1 26.8 100.0
Column (%) 87.0 94.1 73.1 85.5
Numbers 1 1 3 5
Medium Row (%) 20.0 20.0 60.0 100.0
Column (%) 4.3 2.9 11.5 6.0
Note: **Denotes significant at 1% level

The table number 4.11 shows the distribution of type of unit of the industry

and labour problems of industries at three (low, moderate, high) levels of

industries. It is evident that, out of 7 industries from micro, 28.6percent of the

industries (2) at low level, 14.3 percent of the industries (1) at moderate level and

57.1 percent of the industries (4) at high level of opinion with regard to Labour

Problems. It is clear that, out of 71 industries from small, 28.2 percent of the

industries (20) have low level, 45.1 percent of industries (32) at moderate level,

and 26.8 percent of the industries (19) have high level of opinion with regard to

labour problems.

On the whole, majority of the industries (41.0%) have moderate level of

opinion with regard to labour problems. The values of chi square test (5.434) at

low p-value of (0.000) indicate that the null hypothesis is rejected at 1 percent

level of significance. Hence it may be concluded that there is a significant

association between type of unit of the industry and labour problems of the

industries.
 Table No: 4.12
Type of Unit and Operational Problems
Ho: There is no association between type of unit of the industry and operational
problems of industries.
Type of χ2
Operational Problems p-value
Unit value
Low Moderate High Total
Numbers 7 0 0 7
Micro
Row (%) 100.0 0.0 0.0 100.0
Column (%) 29.2 0.0 0.0 8.4
Numbers 17 32 22 71
Small Row (%) 23.9 45.1 31.0 100.0
Column (%) 70.8 100.0 81.5 85.5 29.020 0.000**
Numbers 0 0 5 5
Moderate Row (%) 0.0 0.0 100.0 100.0
Column (%) 0.0 0.0 18.5 6.0
Numbers 24 32 27 83
Total Row (%) 28.9 38.6 32.5 100.0
Column (%) 100.0 100.0 100.0 100.0
Note: **Denotes significant at 1% level; p<0.01

The table number 4.12 shows the distribution of the type of unit of the

industry and operational problems at three (low, moderate, high) levels of

industries. It is seen that, out of 7 industries from micro, 100 percent of the

industries (7) at low level with regard to Operational Problems. It is clear that, out

of 71 industries from small, 23.9percent of the industries (17) have low level, 45.1

percent of the industries (32) at moderate level, and 31percent of the industries

(22) have high level of opinion with regard to operational problems. It is reveals

that, out of 5 industries from moderate, 100 percent of the industries (5) have high

level of opinion with regard to operational problems.

On the whole, majority of the industries (38.6%) have moderate level of

opinion with regard to operational problems. The values of chi square test

(29.020) at low p- value of (0.000) indicate that the null hypothesis is rejected at 1

percent level of significance. Hence it may be concluded that there is a significant

association between type of unit and operational problems of the industries.

 Table No: 4.13

Year of Existence and Financial Problems

Ho: There is no association between year of existence and financial problems of

industries.
Year of χ2 p-
Financial Problems
Existence value value
Low Moderate High Total
Numbers 3 9 5 17
6-10 years
Row (%) 17.6 52.9 29.4 100.0
Column (%) 12.0 29.0 18.5 20.5
More Numbers 22 22 22 66
2.560 0.000**
than Row (%) 33.3 33.3 33.3 100.0
10 years Column (%) 88.0 71.0 81.5 79.5
Numbers 25 31 27 83
Total Row (%) 30.1 37.3 32.5 100.0
Column (%) 100.0 100.0 100.0 100.0
Note: **Denotes significant at 1% level

The table shows the distribution of the year of existence and financial

problems at three (low, moderate, high) levels of industries. It is seen that, out of

17 industries from 6-10 years, 17.6percent of the industries (3) at low

level,52.9percent of the industries (9) at moderate level and 29.4 percent of the

industries (5) have high level of opinion with regard to Financial Problems.

It is clear that, out of 66industries from more than 10 years, 33.3percent of

the industries (22) have low level, 33.3 percent of the industries (22) at moderate

level, and 33.3 percent of the industries (22) have high level of opinion with

regard to financial problems. On the whole, majority of the industries (37.3%)

have moderate level of opinion with regard to financial problems. The values of

chi square test (2.560) at low p-value of (0.000) indicate that the null hypothesis is

rejected at 1 percent level of significance. Hence it is concluded that there is a

significant association between year of existence and financial problems

 Table No: 4.14
Year of Existence and Marketing Problems
Ho: There is no association between year of existence of the industry and
marketing problems of industries.

Year of χ2 p-
Marketing Problems
Existence value value
Low Moderate High Total
Numbers 6 11 0 17
6-10 years
Row (%) 35.3 64.7 0.0 100.0
Column (%) 28.6 31.4 0.0 20.5
More Numbers 15 24 27 66
10.373 0.000**
than 10 Row (%) 22.7 36.4 40.9 100.0
years Column (%) 71.4 68.6 100.0 79.5
Numbers 21 35 27 83
Total Row (%) 25.3 42.2 32.5 100.0
Column (%) 100.0 100.0 100.0 100.0
Note: **Denotes significant at 1% level; p<0.01

The table number 4.14 shows the distribution of the year of existence and

marketing problems at three (low, moderate, high) levels of industries. It is seen

that, 17 industries from 6-10 years, 35.3percent of the industries (6) at low level,

64.7percent of the industries (11) at moderate level regards to marketing

problems. It is clear that, out of 66 industries from more than 10 years,

22.7percent of the industries (15) have low level, 36.4percent of the industries

(24) at moderate level, and 40.9 percent of the industries (27) have high level of

opinion with regard to marketing problems. On the whole, majority of the

industries (42.2%) have moderate level of opinion with regard to marketing

problems. The values of chi square test (10.373) at low p- value of (0.000)

indicate that the null hypothesis is rejected at 1 percent level of significance.

Hence it may be concluded that there is a significant association between year of

existence of the industry and marketing problems of the industries.

 Table No: 4.15

Year of Existence and Labour Problems

Ho: There is no association between year of existence and labour problems of

industries.
Year of
Labour Problems χ2 value p-value
Existence
Low Moderate High Total
6-10 Numbers 3 10 4 17
years Row (%) 17.6 58.8 23.5 100.0
Column (%) 13.0 29.4 15.4 20.5
More Numbers 20 24 22 66
2.861 0.000**
than 10 Row (%) 30.3 36.4 33.3 100.0
years Column (%) 87.0 70.6 84.6 79.5
Numbers 23 34 26 83
Total Row (%) 27.7 41.0 31.3 100.0
Column (%) 100.0 100.0 100.0 100.0
Note: **Denotes significant at 1% level; p<0.01

The table number 4.15 shows the distribution of the year of existence and

labour problems at three (low, moderate, high) levels of industries. It is seen that,

out of 17 industries from 6-10 years, 17.6 percent of the industries (3) at low

level, 58.8 percent of the industries (10) at moderate level and 23.5 percent of the

industries (4) have high level with regard to labour problems.

It is clear that, out of 66 industries from more than 10 years, 30.3 percent

of the industries (20) have low level, 36.4 percent of the industries (24) at

moderate level, and 33.3 percent of the industries (22) have high level of opinion

with regard to labour problems. On the whole, majority of the industries (41.0%)

have moderate level of opinion with regard to labour problems. The values of chi

square test (2.861) at low p-value of (0.000) indicate that the null hypothesis is

rejected at 1 percent level of significance. Hence it is concluded that there is a

significant association between year of existence and labour problems.

 Table No: 4.16

Year of Existence and Operational Problems

Ho: There is no association between year of existence and operational problems

of industries.
Year of
Operational Problems χ2 value p-value
Existence
Low Moderate High Total
6-10 Numbers 6 7 4 17
years Row (%) 35.3 41.2 23.5 100.0
Column (%) 25.0 21.9 14.8 20.5
More Numbers 18 25 23 66
0.871 0.000**
than 10 Row (%) 27.3 37.9 34.8 100.0
years Column (%) 75.0 78.1 85.2 79.5
Numbers 24 32 27 83
Total Row (%) 28.9 38.6 32.5 100.0
Column (%) 100.0 100.0 100.0 100.0
Note: **Denotes significant at 1% level; p<0.01

The table number 4.16 shows the distribution of the year of existence and

operational problems at three (low, moderate, high) levels of industries. It is seen

that, out of 17 industries from 6-10 years, 35.3 percent of the industries (6) at low

level, 41.2percent of the industries (7) at moderate level and 23.5 percent of the

industries (4) have high level of opinion with regard to operational problems.

It is clear that, out of 66 industries from more than 10 years, 27.3 percent

of the industries (18) have low level, 37.9 percent of the industries (25) at

moderate level, and 34.8 percent of the industries (23) have high level of opinion

with regard to operational problems. On the whole majority of the industries

(38.6%) have moderate level of opinion with regard to operational problems. The

values of chi square test (0.871) at low p-value of (0.000) indicate that the null

hypothesis is rejected at 1 percent level of significance. Hence it may be

concluded that there is a significant association between year of existence and

operational problems of the industries.

 Table No: 4.17
Origin of Business and Financial Problems
Ho: There is no association between origin of business of the industry and
financial problems of industries.
Origin of χ2
Financial Problems p-value
Business value
Low Moderate High Total
Numbers 24 21 18 63
Inherited
Row (%) 38.1 33.3 28.6 100.0
Column (%) 96.0 67.7 66.7 75.9
Numbers 1 10 9 20
Newly 7.909 0.000**
Row (%) 5.0 50.0 45.0 100.0
started
Column (%) 4.0 32.3 33.3 24.1
Numbers 25 31 27 83
Total Row (%) 30.1 37.3 32.5 100.0
Column (%) 100.0 100.0 100.0 100.0
Note: **Denotes significant at 1% level; p<0.01

The table number 4.17 shows the distribution of the origin of business of

the industry and financial problems at three (low, moderate, high) levels of

industries. It is seen that, out of 63 industries from inherited, 38.1 percent of the

industries (24) at low level, 33.3 percent of the industries (21) at moderate level

and 28.6 percent of the industries (18) have high level of opinion with regard to

Financial Problems.

It is evident that, out of 20 industries from newly started, 5 percent of the

industries (1) have low level, 50 percent of the industries (10) at moderate level,

and 45 percent of the industries (9) have high level of opinion with regard to

financial problems. On the whole, majority of the industries (37.6%) have

moderate level of opinion with regard to financial problems. The values of chi

square test (7.909) at low p-value of (0.000) indicate that the null hypothesis is

rejected at 1 percent level of significance. Hence it is concluded that there is a

significant association between origin of business and financial problems of the

industries.
 Table No: 4.18
Origin of Business and Marketing Problems
Ho: There is no association between origin of business of the industry and
marketing problems of industries.
Origin of χ2
Marketing Problems P-value
Business value
Low Moderate High Total
Numbers 19 27 17 63
Inherited
Row (%) 30.2 42.9 27.0 100.0
Column (%) 90.5 77.1 63.0 75.9
Numbers 2 8 10 20
Newly 4.940 0.000**
Row (%) 10.0 40.0 50.0 100.0
started
Column (%) 9.5 22.9 37.0 24.1
Numbers 21 35 27 83
Total Row (%) 25.3% 42.2 32.5 100.0
Column (%) 100.0 100.0 100.0 100.0
Note: **Denotes significant at 1% level; p<0.01

The table number 4.18 shows the distribution of the origin of business of

the industry and marketing problems at three (low, moderate, high) levels of

industries. It is evident that, out of 63 industries from inherited, 30.2 percent of

the industries (19) at low level, 42.9 percent of the industries (27) at moderate

level and 27percent of the industries (17) have high level of opinion with regard to

marketing problems.

It is evident that, out of 20 industries from newly started, 10percent of the

industries (2) have low level, 40percent of the industries (8) at moderate level, and

50percent of the industries (10) have high level of opinion with regard to

marketing problems. On the whole, majority of the industries (41.2%) have

moderate level of opinion with regard to marketing problems. The values of chi-

square test (4.940) at low p- value of (0.000) indicate that the null hypothesis is

rejected at 1 percent level of significance. Hence it is concluded that there is a

significant association between origin of business and marketing problems of the

industries.
 Table No: 4.19
Origin of Business and Labour Problems
Ho: There is no association between origin of business of the industry and labour
problems of industries.
Origin of
Labour Problems χ2 value p-value
Business
Low Moderate High Total
Numbers 17 22 24 63
Inherited
Row (%) 27.0 34.9 38.1 100.0
Column (%) 73.9 64.7 92.3 75.9
Numbers 6 12 2 20
Newly 6.206 0.000**
Row (%) 30.0 60.0 10.0 100.0
started
Column (%) 26.1 35.3 7.7 24.1
Numbers 23 34 26 83
Total Row (%) 27.7 41.0 31.3 100.0
Column (%) 100.0 100.0 100.0 100.0
Note: **Denotes significant at 1% level

The table number 4.19 shows the distribution of the origin of business of

the industry and labour problems at three (low, moderate, high) levels of

industries. It is seen that, out of 63 industries from inherited, 27 percent of the

industries (17) at low level, 34.9percent of industries (22) at moderate level and

38.1percent of the industries (24) have high level of opinion with regard to labour

problems.

It is clear that, out of 20 industries from newly started, 30 percent of the

industries (6) have low level, 60 percent of the industries (12) at moderate level,

and 10 percent of industries (2) have high level of opinion with regard to labour

problems. On the whole, majority of the industries (41.0%) have moderate level

of opinion with regard to labour problems. The values of chi-square test (6.206) at

low p-value of (0.000) indicate that the null hypothesis is rejected at 1 percent

level of significance. Hence it may be concluded that there is a significant

association between origin of business of the industry and labour problems of the

industries.
 Table No: 4.20
Origin of Business and Operational Problems
Ho: There is no association between origin of business of the industry and
operational problems of industries.

Origin of χ2
Operational Problems value p-value
Business
Low Moderate High Total
Numbers 18 25 20 63
Inherited
Row (%) 28.6 39.7 31.7 100.0
Column (%) 75.0 78.1 74.1 75.9
Numbers 6 7 7 20
Newly 0.146 0.000**
Row (%) 30.0 35.0 35.0 100.0
started
Column (%) 25.0 21.9 25.9 24.1
Numbers 24 32 27 83
Total Row (%) 28.9 38.6 32.5 100.0
Column (%) 100.0 100.0 100.0 100.0
Note: **Denotes significant at 1% level

The table number 4.20 shows the distribution of the origin of business of

the industry and operational problems at three (low, moderate, high) levels of

industries. It is seen that, out of 63 industries from inherited, 28.6 percent of the

industries (18) at low level, 39.7 percent of the industries (25) at moderate level

and 31.7 percent of the industries (20) have high level of opinion with regard to

operational problems.

It is clear that, out of 20 industries from newly started, 30 percent of the

industries (6) have low level, 35percent of the industries (7) at moderate level, and

35percent of the industries (7) have high level with regard to operational

problems. On the whole, majority of the industries (38.6%) have moderate level

of opinion with regard to operational problems. The values of chi square test

(0.146) at low p-value of (0.001) indicate that the null hypothesis is rejected at 1

percent level of significance. Hence it may be concluded that there is a significant

association between origin of business and operational problems of the industries.

 Table No: 4.21
Nature of Industry Building and Financial Problems
Ho: There is no association between nature of industry building and financial
problems of industries.
Industry χ2 P-
Financial Problems
Building value value
Low Moderate High Total
Numbers 2 0 1 3
Part of the
Row (%) 66.7 0.0 33.3 100.0
House
Column
8.0 0.0 3.7 3.6
(%)
Numbers 23 31 26 80
Separate Row (%) 28.8 38.8 32.5 100.0 2.543 0.000**
Building Column
92.0 100.0 96.3 96.4
(%)
Numbers 25 31 27 83
Row (%) 30.1 37.3 32.5 100.0
Total
Column
100.0 100.0 100.0 100.0
(%)
Note: **Denotes significant at 1% level

The table number 4.21 shows the distribution of the nature of industry

building and financial problems at three (low, moderate, high) levels of industries.

It is seen that, out of 3 industries from Part of the house, 66.7 percent of the

industries (2) at low level and 33.3 percent of the industries (1) at high level of

opinion with regard to financial problems.

It is clear that, out of 80 industries from Separate Building, 28.8 percent of

the industries (23) have low level, 38.8 percent of the industries (31) at moderate

level, and 32.5percent of the industries (26) have high level of opinion with regard

to Financial Problems. On the whole, majority of the industries (37.3%) have

moderate level of opinion with regard to financial problems. The values of chi

square test (2.543) at low p-value of (0.000) indicate that the null hypothesis is

rejected at 1 percent level of significance. Hence it is concluded that there is a

significant association between industry building and financial problems.

 Table No: 4.22
Nature of Industry Building and Marketing Problems
Ho: There is no association between nature of industry building and marketing
problems of industries.
Nature of
χ2
Industry Marketing Problems P-value
value
Building
Low Moderate High Total
Part of Numbers 1 2 0 3
the house Row (%) 33.3 66.7 0.0 100.0
Column (%) 4.8 5.7 0.0 3.6
Numbers 20 33 27 80 1.535 0.000**
Separate
Row (%) 25.0 41.3 33.8 100.0
Building
Column (%) 95.2 94.3 100.0 96.4
Numbers 21 35 27 83
Total Row (%) 25.3 42.2 32.5 100.0
Column (%) 100.0 100.0 100.0 100.0
Note: **Denotes significant at 1% level

The table number 4.22 shows the distribution of the nature of industry

building and marketing problems at three (low, moderate, high) levels of

industries. It is seen that, out of 3 industries from Part of the house, 33.3 percent

of the industries (1) at low level and 66.7 percent of the industries (2) at moderate

level of opinion with regard to marketing problems.

It is clear that, out of 80 industries from Separate Building, 25 percent of

the industries (20) have low level, 41.3 percent of the industries (33) at moderate

level, and 33.8 percent of the industries (27) have high level of opinion with

regard to marketing problems. On the whole, majority of the industries (42.2%)

have moderate level of opinion with regard to marketing problems. The values of

chi square test (1.535) at low p-value of (0.000) indicate that the null hypothesis is

rejected at 1 percent level of significance. Hence it may be concluded that there is

a significant association between nature of industry building and marketing

problems of the industries.

 Table No: 4.23

Nature of Industry Building and Labour Problems

Ho: There is no association between nature of industry building and labour

problems of industries.
Industry
Labour Problems χ2 value p-value
Building
Low Moderate High Total
Part of
Numbers 2 1 0 3
the
Row (%) 66.7 33.3 0.0 100.0
House
Column (%) 8.7 2.9 0.0 3.6
Numbers 21 33 26 80
Separate 2.724 0.000**
Row (%) 26.3 41.3 32.5 100.0
Building
Column (%) 91.3 97.1 100.0 96.4
Numbers 23 34 26 83
Total Row (%) 27.7 41.0 31.3 100.0
Column (%) 100.0 100.0 100.0 100.0
Note: **Denotes significant at 1% level

The table number 4.23 shows the distribution of the nature of industry

building and labour problems at three (low, moderate, high) levels of industries. It

is seen that, out of 3 industries from Part of the house, 66.7 percent of the

industries (2) at low level, 33.3 percent of the industries (1) at moderate level with

regard to labour problems.

It is evident that, out of 80 industries from Separate Building, 26.3percent

of the industries (21) have low level, 41.3 percent of the industries (33) at

moderate level, and 32.5percent of industries (26) have high level of opinion with

regard to labour problems. On the whole, majority of the industries (41.0%) have

moderate level of opinion with regard to labour problems. The values of chi

square test (2.724) at low p-value of (0.000) indicate that the null hypothesis is

rejected at 1 percent level of significance. Hence it may be concluded that there is

a significant association between nature of industry building and labour problems

of the industries.
 Table No: 4.24

Nature of Industry Building and Operational Problems

Ho: There is no association between nature of industry building and operational

problems of industries.

Industry
Operational Problems χ2 value p-value
Building
Low Moderate High Total
Part of
Numbers 0 3 0 3
the
Row (%) 0.0 100.0 0.0 100.0
House
Column (%) 0.0 9.4 0.0 3.6
Numbers 24 29 27 80
Separate 4.961 0.000**
Row (%) 30.0 36.3 33.8 100.0
Building
Column (%) 100.0 90.6 100.0 96.4
Numbers 24 32 27 83
Total Row (%) 28.9 38.6 32.5 100.0
Column (%) 100.0 100.0 100.0 100.0
Note: **Denotes significant at 1% level

The table number 4.24 shows the distribution of the nature of industry

building and operational problems at three (low, moderate, high) levels of

industries. It is seen that, out of 3 industries from Part of the house, 100 percent of

the industries (3) at moderate level with regard to operational problems.

It is evident that, out of 80 industries from separate building, 30 percent of

the industries (24) have low level, 36.3 percent of the industries (29) at moderate

level, and 33.8 percent of the industries (27) have high level of opinion with

regard to Operational Problems. On the whole, majority of the industries (38.6%)

have moderate level of opinion with regard to operational problems. The values of

chi-square test (4.961) at low p-value of (0.000) indicate that the null hypothesis

is rejected at 1 percent level of significance. Hence it is concluded that there is a

significant association between industry building and operational problems.

 Table No: 4.25
Sources of fund and Financial Problems
Ho: There is no association between sources of fund of the industry and financial
problems of modern rice mill industries.
Sources χ2 value p-
Financial Problems
of fund value
Low Moderate High Total
Own Numbers 4 9 5 18
fund Row (%) 22.2 50.0 27.8 100.0
Column (%) 16.0 29.0 18.5 21.7
Numbers 8 6 8 22
Borrowed 2.252 0.000**
Row (%) 36.4 27.3 36.4 100.0
fund
Column (%) 32.0 19.4 29.6 26.5
Own & Numbers 13 16 14 43
borrowed Row (%) 30.2 37.2 32.6 100.0
fund Column (%) 52.0 51.6 51.9 51.8
Note: **Denotes significant at 1% level; p<0.01
The table number 4.25 shows the distribution of the source of fund of the

industry and financial problems at three (low, moderate, high) levels of industries.

It is seen that, out of 18 industries from own fund, 22.2 percent of the industries

(4) have low level, 50 percent of the industries (9) at moderate level, and 27.8

percent of industries (5) have high level of opinion with regard to financial

problems. It is clear that, out of 22 industries from borrowed fund, 36.4 percent of

the industries (8) have low level, 27.3 percent of industries (6) at moderate level,

and 36.4 percent of the industries (8) have high level of opinion with regard to

financial problems.

On the whole, majority of the industries (37.3%) have moderate level of

opinion with regard to financial problems. The values of chi–square test (2.252) at

low p-value of (0.000) indicate that the null hypothesis is rejected at 1 percent

level of significance. Hence it may be concluded that there is a highly significant

association between sources of fund of the industry and financial problems.

 Table No: 4.26
Sources of fund and Marketing Problems

Ho: There is no association between sources of fund of the industry and

marketing problems of modern rice mill industries.
Sources χ2 p-
Marketing Problems
of fund value value
Low Moderate High Total
Own Numbers 5 11 2 18
fund Row (%) 27.8 61.1 11.1 100.0
Column (%) 23.8 31.4 7.4 21.7
Numbers 7 7 8 22
Borrowed Row (%) 6.185 0.000**
31.8 31.8 36.4 100.0
fund
Column (%) 33.3 20.0 29.6 26.5
Own & Numbers 9 17 17 43
borrowed Row (%) 20.9 39.5 39.5 100.0
fund Column (%) 42.9 48.6 63.0 51.8
Note: **Denotes significant at 1% level; p<0.01
The table number 4.26 shows the distribution of the source of fund of the

industry and marketing problems at three (low, moderate, high) levels of

industries. It is seen that, out of 18 industries from own fund, 27.8 percent of the

industries (5) have low level, 61.1 percent of the industries (11) at moderate level,

and 11.2 percent of industries (2) have high level of opinion with regard to

marketing problems. It is clear that, out of 22 industries from borrowed fund, 31.8

percent of the industries (7) have low level, 31.8 percent of industries (7) at

Moderate level, and 36.4 percent of the industries (8) have high level of opinion

with regard to marketing Problems.

On the whole, majority of the industries (42.2%) have moderate level of

opinion with regard to marketing problems. The values of chi square test (6.185)

at low p-value of (0.000) indicate that the null hypothesis is rejected at 1 percent

level of significance. Hence it may be concluded that there is a highly significant

association between sources of fund of the industry and marketing problems.

 Table No: 4.27

Sources of fund and Labour Problems

Ho: There is no association between sources of fund and labour problems of

modern rice mill industries.

Sources χ2 p-
Labour Problems value value
of fund
Low Moderate High Total
Own Numbers 9 2 7 18
fund Row (%) 50.0 11.1 38.9 100.0
Column (%) 39.1 5.9 26.9 21.7
Numbers 3 11 8 22
Borrowe Row (%) 10.835 0.000**
13.6 50.0 36.4 100.0
d fund
Column (%) 13.0 32.4 30.8 26.5
Own & Numbers 11 21 11 43
borrowed Row (%) 25.6 48.8 25.6 100.0
fund Column (%) 47.8 61.8 42.3 51.8
Note: **Denotes significant at 1% level; p<0.01
The table shows the distribution of the source of fund of the industry and

labour problems at three (low, moderate, high) levels of industries. It is seen that,

out of 18 industries from own fund, 50 percent of the industries (9) have low

level, 11.1 percent of the industries (2) at moderate level, and 38.9 percent of

industries (7) have high level of opinion with regard to labour problems. It is clear

that, out of 22 industries from borrowed fund, 13.6 percent of the industries (3)

have low level, 50 percent of industries (11) at Moderate level, and 36.4 percent

of the industries (8) have high level of opinion with regard to Labour Problems.

On the whole, majority of the industries (41.0%) have moderate level of

opinion with regard to labour problems. The values of chi–square test (10.835) at

low p- value of (0.000) indicate that the null hypothesis is rejected at 1 percent

level of significance. Hence it may be concluded that there is a highly significant

association between sources of fund of the industry and labour problems.

 Table No: 4.28

Sources of fund and Operational Problems

Ho: There is no association between sources of fund of the industry and

operational problems of modern rice mill industries.
Sources χ2 p-
Operational Problems
of fund value value
Low Moderate High Total
Own Numbers 12 6 0 18
fund Row (%) 66.7 33.3 0.0 100.0
Column (%) 50.0 18.8 0.0 21.7
Numbers 4 7 11 22
Borrowed Row (%) 18.2 31.8 50.0 100.0
fund
Column (%) 16.7 21.9 40.7 26.5 20.278 0.000**
Own & Numbers 8 19 16 43
borrowed Row (%) 18.6 44.2 37.2 100.0
fund Column (%) 33.3 59.4 59.3 51.8
Numbers 24 32 27 83
Total Row (%) 28.9 38.6 32.5 100.0
Column (%) 100.0 100.0 100.0 100.0
Note: **Denotes significant at 1% level; p<0.01
The table 6.1 shows the distribution of the source of fund of the industry

and operational problems at three (low, moderate, high) levels of industries. It is

seen that, out of 18 industries from own fund, 66.7 percent of the industries (12)

have low level and 33.3 percent of the industries (6) at moderate level of opinion

with regard to operational problems. It is revealed that, out of 22 industries from

borrowed fund, 18.2 percent of the industries (4) have low level, 31.8 percent of

industries (7) at moderate level, and 50 percent of the industries (11) have high

level of opinion with regard to operational problems. It is revealed that, out of 43

industries from own and borrowed fund, 18.6 percent of the industries (8) have

low level, 44.2 percent of industries (19) at Moderate level, and 37.2 percent of

the industries (16) have high level of opinion with regard to operational Problems.
 Table No: 4.29
Independent Samples Test of Two Groups of Gender
Independent Samples Test
Factor H0
F Sig t p-Value
Financial Problem 0.541 0.464 -3.014 0.001** Reject
Marketing problem 5.251 0.025 1.624 0.001** Reject
Labour problem 13.015 0.001 1.982 0.001** Reject
Operational problem 0.025 0.876 3.328 0.001** Reject
Note: ** Significant at the 0.01 level.

Table number 4.29 indicates that the Levene’s test for equality of

variances, financial problem is greater than 0.05(F=0.541, p>0.05). It can be

assumed that variances are relatively equal. Therefore, we use the t-value and two

tail (p-value) significance for the equal variance estimates to determine whether

differences on financial problem exist between the two-group genders. The two-

tail significance for the gender indicates p<0.01 and, therefore, it is significant.

The null hypothesis is rejected and the alternative hypothesis is accepted. It can be

concluded that there is a significant difference in financial problem as an

agropreneurs perception factor between the two groups of gender.

Table number 4.29 indicates that the Levene’s test for equality of

variances, marketing problem is less than 0.05(F=5.251, p<0.05). It can be

assumed that variances are relatively the equal. Therefore, we use the t-value and

two tail (p-value) significance for the unequal variance estimates to determine

whether differences on marketing problem exist between the two-group of gender

male and female. The two-tail significance for the gender indicates p<0.01 and,

therefore, it is significant. The null hypothesis is rejected and the alternative

hypothesis is accepted. It can be concluded that there is a significant difference in

marketing problem as an agropreneurs perception factor between the two groups

of gender.
 Table number 4.29 indicates that the Levene’s test for equality of

variances, labour problem is less than 0.05(F=13.015, p<0.05). It can be assumed

that variances are relatively unequal. Therefore, we use the t-value and two tail

(p-value) significance for the unequal variance estimates to determine whether

differences on labour problem exist between the two-group genders. The two-tail

significance for the gender indicates p<0.01 and, therefore, it is significant. The

null hypothesis is rejected and the alternative hypothesis is accepted. It can be

concluded that there is a significant difference in labour problem as an

agropreneurs perception factor between the two groups of gender.

Table number 4.29 indicates that the Levene’s test for equality of

variances, operational problem is greater than 0.05(F=0.025, p>0.05). It can be

assumed that variances are relatively equal. Therefore, we use the t-value and two

tail (p-value) significance for the equal variance estimates to determine whether

differences on operational problem exist between the two-group of gender. The

two-tail significance for the gender indicates p<0.01 and, therefore, it is

significant. The null hypothesis is rejected and the alternative hypothesis is

accepted. It can be concluded that there is a significant difference in operational

problem as an Agropreneur perception factor between the two groups of gender.

It is concluded that, modern rice mills industries in Tiruchirappalli district

are facing serious problems such as financial, marketing, operational and labour

aspects. This chapter analyzes the modern rice mill industries in Tiruchirappalli

district and its impacts in various problems associated with modern rice mills

industries. The problems are closely associate with modern rice mill industries in
Tiruchirappalli district during the study period; particularly finance and marketing

are two major problems in modern rice mill industries which influence the

operational performance of these industries at large. Hence, it is observed that,

properties of the modern rice mill industries should concentrate more on these

issues to overcome the future challenges in modern rice mill industries in

Tiruchirappalli district.

Table No: 4.30

Factor Extraction Process for the Impact of Agro Based Industries
KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling
0.876
Adequacy.
Bartlett's Test of Approx. Chi-Square 24.363
Sphericity df 190
Sig. 0.005**(S)

Kaiser-Meyer-Olkin measure of sampling adequacy is an index to examine

the appropriateness of factor analysis. High values between 0.5 and 1.0 indicate

that factor analysis is appropriate. Values below 0.5 imply that factor analysis

may not be appropriate. From table number 4.30 it is seen that Kaiser-Meyer-

Olkin measure of sampling adequacy index is 0.876 and hence the factor analysis

is appropriate for the given data set. Bartlett’s test of Sphericity is used to

examine the hypothesis that the variables are uncorrelated. It is based on chi-

square transformation of the determinant of correlation matrix. A large value of

the test statistic will favor the rejection of the null hypothesis. In turn this would

indicate that factor analysis is appropriate. Bartlett’s test of Sphericity, Chi square

statistics is 24.363, showing the thirty statements are correlated and hence as

inferred in Kaiser-Meyer-Olkin, factor analysis is appropriate for the given data

set.
 Table No: 4.31

Total variance explained by the variables of impact of anxiety

Eigen Percentage of Cumulative percentage of

Factor
value variance variance

1 2.036 10.178 10.178

2 2.013 10.065 20.243
3 1.811 9.057 29.300
4 1.686 8.429 37.729

Regarding principal component analysis and specifying the interpretation

obtained output of factor analysis, there are two stages in factor analysis. Stage 1

is the factor extraction process, wherein the objective is to identify how many

factors are to be extracted from data. This most popular method is called principal

component analysis. In stage 2, there is also a rule of thumb based on the

computation in eigen value, to determine how many factors to extract. The higher

the eigen value of a factor, the higher the amount of variance explained by the

factor. The four factors were extracted as 37.729 percent of the variance.

To find out the factors influencing impact factor, the responses were

obtained on a five-point scale ranging from strongly disagree (1) to strongly agree

(5). In total, thirty four statements variables were used to identify the major

factors influencing agro based industries. The item scale was subject to factor

analysis using principal component method with Varimax with Kaizer

normalization rotation. It is evident from Table number 4.31, that the two factors

acted together and accounted for 37.729 percent of the total variance.
 Table No: 4.32

Rotated Component Matrix

Component
Variables
1 2 3 4
QVAF1 0.723 -0.326 0.055 0.128
QVAF2 0.654 -0.254 0.035 0.110
QVAF3 0.622 0.139 -0.330 0.074
QVAF4 0.751 0.473 0.026 0.412
QVAF5 0.720 0.257 -0.192 -0.505
QVBM1 -0.053 0.561 0.131 0.092
QVBM2 -0.361 0.615 -0.015 -0.371
QVBM3 0.217 0.595 0.004 0.030
QVBM4 -0.456 0.632 -0.457 0.169
QVBM5 -0.167 0.511 0.239 -0.531
QVCL1 0.023 -0.112 0.063 0.588
QVCL2 0.325 -0.124 0.731 -0.051
QVCL3 0.605 -0.243 0.763 -0.068
QVCL4 -0.146 0.117 0.830 0.574
QVCL5 -0.604 0.003 0.519 0.033
QVDO1 0.120 0.328 0.341 0.820
QVDO2 -0.031 0.363 -0.062 0.718
QVDO3 0.424 0.435 0.073 0.684
QVDO4 -0.002 0.118 0.264 0.503
QVDO5 -0.034 -0.054 0.607 0.771
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.

While referring the principal component analysis, there are two stages in

factor analysis. Stage 1 is the factor extraction process, wherein the objective is to

identify how many factors are to be extracted from data. This most popular

method is called as principal component analysis. In stage 2, there is also a rule of

thumb based on the computation in eigen value, to determine how many factors to

extract. Higher the eigen value of a factor, higher the amount of variance

explained by the factor. The four factors were extracted as 37.729 percent of the

variance.
 To find out the factors influencing impact factor the responses were

obtained on a five-point scale ranging from strongly disagree (1) to strongly agree

(5). The questions were started from negative perspective, and were reversely

coded, (Streiner and Norman, 1995). In total, twenty five variables were used to

identify the major factors influencing anxiety.

The item scale was subject to factor analysis using principal component

method with Varimax with Kaizer normalization rotation. The principal

component Analysis was conducted using statistical package for social sciences

(SPSS) version 19.0. It is evident (looking at the cumulative % Column), that the

four factors acted together and accounted for 37.729 percent of the total variance.

Looking at table number 4.31 the variables having the loadings above 0.5

is grouped together and named as financial problem, marketing problem, labour

problem and operational problem. There after the factor extraction process totally

four problems are identified and further analysis was carried out.

Table No: 4.33

Inter correlation among the factors of agro based industries
MRM
Financial Marketing Labour Operational
Factors industrial
Problems Problems Problems Problems
problems
MRM
industrial 1
problems
Financial
-0.310** 1
Problems
Marketing
0.420** 0.428** 1
Problems
Labour
0.782** -0.206** 0.433** 1
Problems
Operational
0.029** 0.268** 0.625** -0.062** 1
Problems
Total 83 83 83 83 83
** Correlation is significant at the 0.01 level (2-tailed).
* Correlation is significant at the 0.05 level (2-tailed).
 The correlation coefficient between agro based industrial problem and

financial problems is -0.310 which indicates 31 percent negative relationships

between agro based industries and financial problems significantly at 1 percent

level. The correlation coefficient between agro based industries and marketing

problems is 0.420 which indicates 42 percent positive relationship between agro

based industries and marketing problems significantly at 1 percent level. The

correlation coefficient between agro based industrial and labour problems is 0.782

which indicates 78 percent positively relationship between agro based industrial

and labour problems significantly at 1 percent level. The correlation coefficient

between agro based industrial and operational problems is 0.029 which indicates

29 percent positively relationship between agro based industrial and operational

problems significantly at 1 percent level.

The Multiple Correlation Co-efficient

In this study, the dependent variable is customer satisfaction and

independent variables are financial problem, marketing problem, labour problem

and operational problem that are discussed as follows; multiple corrections co-

efficient is 0.829 measuring the degree of relationship between the actual values

and the predicted values of the services satisfaction. Because the predicted values

are obtained as a linear combination of financial problem (X1), marketing

problem (X2), labour problem (X3), and operational problem (X4). The co-efficient

of value of 0.829 indicates that the relationship between services satisfaction and

four independent variables is quite strong and positive.

 Table No: 4.34
Modern Rice Mill Industries in the Multiple Regression Analysis

Un standardized
Coefficients Standardized
Dimension t p-value
Coefficients
B Std. Error
Constant 4.381 1.523 2.876 0.005**
Financial
0.160 0.039 -0.342 4.098 0.000**
Problems
Marketing
0.264 0.086 0.390 3.078 0.000**
Problems
Labour
0.342 0.060 0.537 5.662 0.000**
Problems
Operational
0.068 0.072 0.090 -.935 0.000**
Problems
Multiple R- value 0.829
R square value 0.687
F- value 42.816
p- value 0.000**
Note: ** Denotes significant at 1 % level.

The co-efficient of Determination R-Square measures the goodness – of -

fit of the estimated regression in terms of the proportion of the variation in the

dependent variables explained by the fitted sample regression equation.

Thus, the value of R square is 0.829. It simply means that about 82% of the

variation in modern rice mills industries explained by the estimated SRP that uses

financial problem (X1), Marketing problem (X2), Labour problem (X3),

operational problem (X4), as the independent variables and R-square value is

significant at 1 % level. (F = 42.816; p<0.01)

The Multiple Regression Equation is

Y = 4.381 + 0.160 X1 + 0.264 X2 + 0. 342 X3 + 0.068 X4

 Here the co-efficient of X1 is 0.160, which represents the partial effect of

financial problem, holding the other independent variables as constant. The

estimated positive sign implies that such effect is positive and that modern rice

mill industrial problem would increase by 0.160 for every unit increase in

financial problem and this co-efficient of value is significant at 1% level.

The co-efficient of X2 is 0.264, which represents the partial effect of

marketing problem on modern rice mill industries, holding the other independent

variables as constant. The estimated positive sign implies that such effect is

positive and that modern rice mill industries would increase by 0.264 for every

unit increase in marketing aspects and this co-efficient of value is significant at

1% level.

The co-efficient of X3 is 0. 342, which represents the partial effect of

labour problem on agro based industries, holding the other independent variables

as constant. The estimated positive sign implies that such effect is positive and

that modern rice mill industries would increase by 0. 342 for every unit increase

in labour aspects and this co-efficient of value is significant at 1% level.

The co-efficient of X4 is 0.068, which represents the partial effect of

operational problem on agro based industries, holding the other independent

variables as constant. The estimated positive sign implies that such effect is

positive and that modern rice mill industries would increase by 0.068for every

unit increase in investment aspects and this co-efficient of value is significant at

1% level.
 Among the four independent variables (financial problem, marketing

problem, labour problem, operational problem) labour problem is the best

predictor and it is highly significant with the dependent variable modern rice mill

industrial problem (t =5.662; p<0.01).

STRUCTURAL EQUATION MODELING

Structural Equation Modeling is a general statistical modeling technique,

which is widely used in the behavioral sciences. It can be viewed as a

combination of factor analysis and regression or path analysis. Structural equation

modeling provides general and convenient framework, for statistical analysis that

includes several traditional multivariate procedures, for example factor analysis,

regression analysis, discriminant analysis and canonical correlation, as special

cases. Structural equation models are often pictured by a graphical path diagram.

Structural equation modeling (SEM) is a statistical modeling technique that

combines factor analysis and multivariate multiple regressions. Structural

equation provides estimation of multiple and interrelated dependence relationship

and the capacity to stand for unobserved concepts in these associations and

explanations for measurement error in the estimation process. The primary aim of

SEM is to explain the model of a sequence of inter-related dependence

associations simultaneously among a set of dormant (unobserved) constructs, each

measured by one or more manifest (observed) variables. SEM is a multivariate

technique which combines confirmatory factor analysis modeling from

psychometric theory and structural equations modeling.

 TABLE No: 4.35
The variables used in the structural equation model
S. No Structural Equation Model
Observed, Endogenous Variables
I.
1. Modern rice mill industrial problem
Observed, Exogenous Variables
1. Financial Problem
II. 2. Marketing Problem
3. Labour Problem
4. Operational Problem
Unobserved, Exogenous Variables
1. e1: Error term for problem of modern rice mill industrial problem
2. e2: Error term for Financial Problem
III.
3. e3: Error term for Marketing Problem
4. e4: Error term for Labour Problem
5. e5: Error term for Operational Problem

Chart 4.1

STRUCTURAL EQUATION MODEL ON PROBLEMS OF

MODERN RICE INDUSTRIES
 Table No: 4.36
Variables in the Structural Equation Model Analysis

Un
Standardi
standardiz Sig.
Variables S.E zed co- t value
ed value
efficient
co-efficient
← Financial
0.161 0.021 - 0.342 1.148 0.032*
Problems
Problems ← Marketing 0.263 0.032 0.389 2.365 0.001**
of Agro Problems
based ← Labour
0.343 .054 0.539 1.243 0.002**
Industrie Problems
s ← Operation
al 0.069 0.017 -0.087 5.214 0.001**
Problems
Note: **Denotes significant at 1% level *Denotes significant at 5% level

Here the unstandardized coefficient of 0.161 represents the partial effect of

financial problems towards Problems of Agro based Industries, holding marketing

problems, labour problems and operational problems as constant. The estimated

positive sign implies that such effect is positive that Problems of modern rice mill

industrial problems would increase by 0.161 for every unit increase in financial

problems and this coefficient value is significant at 1% level.

Here the unstandardized coefficient of 0.263 represents the partial effect of

marketing problems towards Problems of Agro based Industries, holding

marketing problems, labour problems and operational problems as constant. The

estimated positive sign implies that such effect is positive that Problems of

modern rice mill industrial problems would increase by 0.263 for every unit

increase in marketing problems and this coefficient value is significant at 1%

level.

Here the unstandardized coefficient of 0.343 represents the partial effect of

marketing problems towards Problems of modern rice mill industrial problems,

holding marketing problems, labour problems and operational problems as

constant. The estimated positive sign implies that such effect is positive that

Problems of modern rice mill industrial problems would increase by 0.343 for

every unit increase in marketing problems and this coefficient value is significant

at 1% level.

Here the unstandardized coefficient of 0.069 represents the partial effect of

marketing problems towards Problems of modern rice mill industrial problems,

holding marketing problems, labour problems and operational problems as

constant. The estimated positive sign implies that such effect is positive that

Problems of modern rice mill industrial problems would increase by 0.069 for

every unit increase in marketing problems and this coefficient value is significant

at 1% level.

Table No: 4.37

Model fit Summary
Variables Value
Chi-square value 6.325
p- value 0.000
GFI 0.916
AGFI 0.932
CFI 0.961
RMR 0.022
RMSEA 0.011
Table number 6.37 it is found that the calculated p - value is 0.000 which is

less than 0.01 which indicates perfectly fit. Here GFI (Goodness of Fit Index)

value and AGFI (Adjusted Goodness of Fit Index) value is greater than 0.9 which

represents that it is a good fit. The calculated CFI (Comparative Fit Index) value

is approximately 1 which means that it is a perfectly fit and also it is found that

RMR (Root Mean Square Residuals) and RMSEA (Root Mean Square Error of

Approximation) value is 0.011 which is less than 0.09.

 In India agriculture sector is facing various challenges and problems by

nature and human beings. Agro-based units are facing problems in their expansion

from the very existence. The problem is not new in India; it has been found that

from our independence we are struggling in this path. The processing of

agricultural product has become a chaos in the economy. Quality, price,

distribution, promotion, finance, health, government policies, managerial

inefficiencies, etc. are found a big cause for the same. Agricultural consumers

here refer to the consumers who consume agro-processed good such as

confectionaries, flour, and other such goods (Anuj Gupta, 2015).

The present study also analysed the problems faced by the modern rice

mill in Tiruchirappalli District with regards to Location and Financial Problems,

Location and Marketing Problems, Location and Labour Problems, Location and

Operational Problems, Type of ownership and Financial Problems, Type of

ownership and Marketing Problems, Type of ownership and Labour Problems,

Type of ownership and Operational Problems, Type of Unit and Financial

Problems, Type of Unit and Marketing Problems, Type of Unit and Labour

Problems, Type of Unit and Operational Problems, Year of Existence and

Financial Problems, Year of Existence and Marketing Problems, Year of

Existence and Labour Problems, Year of Existence and Operational Problems,

Origin of Business and Financial Problems, Origin of Business and Marketing

Problems, Origin of Business and Labour Problems, Origin of Business and

Operational Problems, Nature of Industry Building and Financial Problems,

Nature of Industry Building and Marketing Problems, Nature of Industry Building

and Labour Problems, Nature of Industry Building and Operational Problems,

Sources of fund and Financial Problems, Sources of fund and Marketing

Problems, Sources of fund and Labour Problems, Sources of fund and Operational

Problems, Independent Samples Test of Two Groups of Gender, Factor Extraction

Process for the Impact of Agro Based Industries KMO and Bartlett's Test, Total

variance explained by the variables of impact of anxiety, Rotated Component

Matrix, Inter correlation among the factors of agro based industries, Modern Rice

Mill Industries in the Multiple Regression Analysis, The variables used in the

structural equation model, Variables in the Structural Equation Model Analysis

and Variables in the Structural Equation Model Analysis. Hence, it is concluded

that Modern rice mills are significantly facing the problems with regards to

finance, marketing, labours and operational problems. If these problems will be

overlooked, modern rice mills will be successful and sustainable industries in the

study area.