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Mr. Sharma, a farmer, grows wheat and sells it to a local flour mill. The flour mill processes the wheat into flour and sells it to a grocery store. - Commercial Applications

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Question

Mr. Sharma, a farmer, grows wheat and sells it to a local flour mill. The flour mill processes the wheat into flour and sells it to a grocery store. The store sells the flour to customers in the neighbourhood.

Identify the different types of industries involved in this case and explain their interdependence. 

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Solution

Types of industries:

  1. Primary industry: Mr. Sharma’s wheat farming is a primary industry because it involves the extraction of natural resources directly from the land.
  2. Secondary industry: The flour mill represents a secondary industry, as it processes the raw wheat into flour, adding value to the raw material.
  3. Tertiary industry: The grocery store is part of the tertiary or service sector, as it distributes and sells the finished product to consumers.

Interdependence:

  • The flour mill depends on the farmer for a steady supply of wheat.
  • The grocery store depends on the flour mill for processed flour.
  • The farmer, mill, and store all rely on each other to complete the production-distribution-consumption chain.
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Chapter 1: Introduction to Commercial Organisations - EXERCISES [Page 21]

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C. B. Gupta Commercial Applications [English] Class 9 ICSE
Chapter 1 Introduction to Commercial Organisations
EXERCISES | Q III. 20. (i) | Page 21
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