50+ Best Agro-Based Business Ideas | Small Scale Manufacturing

Are you searching for agro-based business ideas with small scale manufacturing opportunity? At present agriculture business in India revolves around productive resources like feed, seed, fertilizer, equipment, energy, pesticides, machinery, etc. and agriculture commodities like raw and processed commodities of food and fiber. The agriculture-based business opportunities in India are on the verge of revolution.

The process of modernizing the entire food chain in India has already started. The total food production in India is likely to get doubled in the next ten years. At present, agro-based business has excellent export prospects.

The agricultural sector in India is the largest sector of the country’s economy. It contributes almost 18.5% to India’s GDP, and it accounts for about 13% of the country’s total export. With proper strategic planning, any individual having basic knowledge of manufacturing operation can develop any of these above mentioned agro-based business ideas into a profitable venture.

Here in this article, we have compiled 50+ best agro-based business ideas for small scale manufacturing operation with comparatively small startup capital.

List Of 50+ Best Agro-Based Business Ideas – Low Cost 

#1. Agri Clinic

The primary objective of an Agri-clinic business is to provide paid services for the enhancement of agriculture production and income of farmers. Read More…

#2. Bakery

A bakery is one of the most profitable food processing business opportunity one can initiate by having owned or rented space. Selecting the right product and designing proper marketing strategy are the major deciding factor in getting success in the bakery business. According to the demand and financial aspect, you will need to choose the specific products for your bakery business. Read More…

#3. Banana Wafer Making

Banana wafers are under-ripe bananas that are cut into slice dipped in syrup solution, dried in the sun or in an oven, fried and eaten as snack food or dessert. Additionally, you can sell these items both in the local and export markets. You can initiate this business as small scale basis. Read More…

#4. Basket Production

Basket weaving is a profitable and popular business in the rural sector of India. Currently, with modern equipment basket, weaving has become more profitable and it is a popular item in the urban market also.

#5. Cane Chair Manufacturing

Cane chairs are the luxury furniture item. The manufacturing operation is very much profitable. However, you must procure the raw materials on regular basis. Therefore, you must establish the unit in a location where you can procure the required raw materials easily.

#6. Cashew Processing

Generally, the cashew processing manufacturing activities include cell cooking, cutting, cashew kernel drying, peeling, grading and packing. Additionally, you can initiate cashew nut processing as small scale and also as an export-oriented plant. The unit demands simple machinery. Read More…

#7. Chips Production

Potato chips in various form are one of the most popular ready-to-eat snacks now among the young crowd. It has also an export potential. In addition, you can initiate the chips production unit as small scale basis also.

#8. Coconut Oil Production

Coconut oil is used as an important cooking medium. Apart from this coconut oil has various industry applications. In addition, the manufacturers of toilet soaps, laundry soaps, surface active agents and detergents, hair tonics, hair oils, cosmetics, etc. are the major consumers of this product. Choosing right location is one of the most important factors in starting coconut oil manufacturing. However, you must select a location where you can procure the raw materials easily. Read More…

Agro-Based Business Ideas#9. Cold Chain For Fruits & Vegetables

Providing cold chain solution is a profitable business in India now. A cold chain is a temperature-controlled supply chain. An unbroken cold chain is an uninterrupted series of storage and distribution activities. Basically, cold chain maintains a given temperature range. It helps to extend and ensure the shelf life of products such as fresh agricultural produce, seafood, frozen food, photographic film, chemicals, and pharmaceutical drugs.

#10. Dal Milling

Dal milling is actually processing of different pulses. Subject to the availability of raw material you can select different various products. Commonly two types of conventional processing methods are used. Such as wet milling and dry milling. Dal milling is capital intensive and energy sapping in nature.

#11. Dried Flower Business

Growing flower and selling those flower after drying is one of the most profitable agriculture business ideas. You can start dried flower business by sourcing the flowers from flower grower also.

Related: Top 10+ Small Scale Livestock Farming Business Ideas

#12. Dry Fruit Production

Dried fruits are very popular around the globe. Thus, these products have an immense export opportunity. Additionally, you can initiate dry fruit production business as small scale basis also.

#13. Fish Hatchery

A fish hatchery is a place for artificial breeding, hatching, and rearing through the early life stages of animals, finfish, and shellfish in particular. Hatcheries produce larval and juvenile fish (and shellfish and crustaceans) primarily to support the aquaculture industry where they are transferred to on-growing systems i.e. fish farms to reach harvest size. From techno-commercial aspect, fish hatchery is profitable venture to start.

#14. Flour Milling

Basically, you can produce flour by milling of food grains. Generally, the large number of different varieties types of food processing industries are the major consumers of flour. These are Wheat flour, brown flour, whole wheat flour, wholemeal flour etc. The Production process is simple. Additionally, you can initiate this business as small scale basis with simple machinery.

#15. Frozen Chicken Production

Frozen chicken is a hot product now. The demand for this product is increasing globally. An entrepreneur living in a metro or suburban city can start this business with proper planning.

#16. Fruit Bar Production

Fruit bars are very popular food item in India from the early age. Additionally, you can initiate a small scale manufacturing unit with small startup capital. The business is financially feasible. Read More…

#17. Fruit Juice Production

Fruit juice is one of the ready to serve item. Another popular product is squash. These are very popular throughout the year, especially in summer. Additionally, you can initiate the fruit juice production business as small scale basis. However, you must select the products according to the availability of raw materials. Read More…

#18. Ginger Garlic Paste Processing

Ginger and Garlic Paste is mainly used as a condiment in various food preparation and also serves as a carminative and gastric stimulant in many medicine preparations. As instant mixes and spices are becoming more popular, the demand for ginger garlic paste is also increasing. The Production process is simple. Additionally, the product has an immense market opportunity for export also. Read More…

#19. Ginger Oil Production

The main application of ginger oil is confectionery beverages and baked products. India is the largest producer of ginger. Ginger oil production is one of the most profitable food processing business that can be started as small scale basis also.

#20. Grapes Wine Production

Grape wine making is actually fermenting the grape juice. The major raw material required for the processing and making of grape wine is grapes. Grape wine making is capital intensive and it requires proper operational and marketing strategy. Read More…

#21. Groundnut Oil Production

Groundnut oil processing is one of the most profitable food processing business considering the required capital investment. Generally, you can obtain the oil from groundnuts/peanuts is very healthy and suitable for best human consumption. Additionally, you can establish the manufacturing unit as small scale basis. Read More…

Related: 20 Most Profitable Medicinal Herbs Growing With Small Investment

#22. Groundnut Processing

Groundnut processing is one of the profitable agriculture business ideas to start with small capital investment. This business has as export potential also.

#23. Honey Processing

Honey processing is actually removing wax and other foreign unwanted particles from honey. You can establish the processing unit by two ways. Either by a manual system or by electrically driven. The Production process is simple. Additionally, you can initiate the business as small scale and home based basis.

#24. Ice Cream Production

Any individual can initiate ice cream making business as small scale basis with low startup capital investment. Ice cream making is a wonderful small business idea that any individual can explore to make handsome money out of it. Basically, ice cream is a frozen blend of a sweetened cream mixture and air, with added flavorings. Additionally, you can use a wide variety of ingredients in ice cream making. However, you must maintain the minimum amounts of milk fat, milk solids (protein + lactose + minerals), and air in ice cream making. Read More…

#25. Insecticide & Pesticide Formulation

In starting insecticide formulation business, you must have the CIB permission. Basically, the insecticide is an essential item in any type of crop farming. Consumption is so high in India. Read More…

#26. Jaggery

Selecting the right location is very important for jaggery processing plant. However, you must establish the unit in a location where you can procure the sugarcane easily. Moreover, you must select the place where you can procure the raw materials with minimum transportation cost.

#27. Jam Jelly Production

Jam jelly-making business is profitable. Additionally, any individual can initiate the business as small scale basis with low capital investment. However, with proper planning and strategy, you can initiate jam jelly-making business as home based also. Different allowances and grants from Government sector are also available.

Generally, you can use most kinds of fruit and some vegetables to make a wide variety of jam and jelly. Fruit jam contains rich fruit pulp and available in mango, apple, mixed fruit, pineapple and orange flavors. Jelly is a clear, bright mixture. Basically, you can produce jelly from fruit juice, sugar and sometimes pectin. Generally, people consumes jelly and jam as a bread spread and as a filling for some cakes and cookies. Read More…

#28. Livestock Feed Production

Any individual can initiate livestock feed production business with proper planning and know-how about the right mixing formula. Most of the livestock farmers are always searching for right food and food supplementary product for their farm. Several different livestock feed needs to serve the different requirement legitimately. Read More…

#29. Meat Processing

Meat processing technology comprises the steps and procedures in the manufacture of processed meat products. All processed meat products have been in one way or another physically and/or chemically treated. Meat processing is capital intensive. Additionally, you must have proper distribution and marketing strategy before initiating the business.

#30. Microbrewery

Microbreweries produce a small amount of craft beer than large-scale corporate breweries. Generally, microbreweries operate as independently owned. The market of microbreweries is immensely developing. However, it demands different licenses and permissions in initiating microbrewery business.

#31. Micro Irrigation System Providing

Micro irrigation technology is gradually emerging as demand-driven technology these days in India. 48% of the geographical area of the country receives less than 1000 mm rain and the rest 1000-2500 mm. Providing micro irrigation system is a profitable agriculture startup opportunity. Read More…

Related: 15 Lucrative Business Ideas In Poultry Farming Industry

#32. Milk Chilling Plant

Chilling basically stunts the growth of bacteria converting the lactose or sugar in the milk into lactic acid, which curdles the proteins and causes soaring. However, you must process the milk within one/one-and-half hour of milking. Because after this duration of time, the naturally occurring preservatives in the milk (including carbon dioxide) stops working. Milk chilling plant is a profitable venture to start. However, you must get enough milk to be chilled.

#33. Multi Purpose Cold Storage

Cold storage is essential for extending the shelf life, period of marketing, avoiding glut, reducing transport bottlenecks during the peak period of production and maintenance of quality of produce. The cold storage industry, therefore, plays an important role to play in reducing the wastage of the perishable commodities and thus providing remunerative prices to the growers.

#34. Onion Paste Processing

 Onion is one of the important ingredients of curries used by almost all household in the world. Basically, onion paste is one of the items, is manufactured and preserved having high market demand. Being involvement of simple technology, any entrepreneur can establish this unit and be successful in the business.

#35. Organic Farm Green House

An organic farm greenhouse project business has a high potential to grow and succeed because steadily the demand for organically grown farm products has grown. Nowadays, more and more people are turning away from food products are grown with fertilizers and other chemicals towards organically grown food. Because the awareness of the multiple health risks of foods grown with the chemical is growing rapidly. Read More…

#36. Palm Oil Production

The main raw material is palm fruits. Palm oil is used as an edible oil. Apart from that, there is a demand for commercial industry use. Palm oil processing is profitable and capital intensive. All type palm oil processing units differ in the level of mechanization of each unit operation and the interconnecting materials transfer mechanisms.

#37. Pesticide Formulation

By importing the technical of pesticide, any individual can initiate a pesticide formulation unit with substantial capital investment. The demand is high and the margin is also lucrative in this business.

#38. Pickles Making

Pickles are the most popular item in the Indian recipe. Besides domestic market pickles have an export potential also. Additionally, you can produce the various different quality of pickles. However, you must select the product according to the availability of the raw materials. Generally, you will need to procure simple machinery and equipment. In addition, the production process is simple. Read More…

#39. Potato Powder Processing

The demand for potato powder is increasing in a variety of food preparations like snack foods, soups, curries and other dishes as a thickening agent. However, potato powder manufacturing is capital intensive. Additionally, the business demands FPO and Pollution Control Board permissions.

#40. Rice Bran Oil Production

The Commerce Ministry recently allowed bulk exports of rice bran oil and removed quantitative restrictions on outbound shipments of organic edible oils. Rice bran oil is a premium edible oil with limited consumption in India. Rice bran oil production is capital intensive. However, you must focus on export to get much better profitability from the unit. This is a very popular agro-based business.

#41. Rice Mill

India is the second largest producer of paddy in the world. Rice being the staple food of majority population. The mini rice mill consists of a paddy cleaner, sheller, separator and a polisher. Mini rice mill is one of the most profitable food processing and agro-based business. Read More…

Related: Top 10+ Aquaculture Business Ideas | Low Cost

#42. Rope Manufacturing

India is the single largest jute producer in the world producing around 35% of the world production and earns highest foreign currency from jute. The demand for jute products are good and there is a bright scope of jute yarn, jute rope making unit.

#43. Seed Production

Seed processing is one of the most profitable agro-based business ideas to start with substantial capital investment. Proper raw material resources, marketing strategy, and attractive packaging are important in getting success in this business.

#44. Soybeans Processing

Any individual can initiate soya chunk processing business as small scale basis. The major raw materials are soybean meal and peanut meal. Soya chunk production process involves milling, mixing, extruding and cutting. This is one of the most profitable food processing business one can start with moderate capital investment.

#45. Spice Powder Processing

Spice grinding and packaging is one of the most profitable food processing business. Additionally, you can initiate the business as small and medium scale. Basically, spice is an essential item and is considered as a tastemaker. Apart from individual spice powder like chilly, cumin, turmeric; special quality mixed spice powder processing is more profitable. Some of the most popular items are meat masala, curry powder, chat masala etc. Read More…

#46. Sunflower Oil Production

For sunflower oil processing, the main raw material is sunflower seed. Refined sunflower oil goes through the long way of purification which consists of the following stages: mechanical cleaning, hydration, neutralization, bleaching, freezing, deodorization, and nitriding. Sunflower oil processing is capital intensive and profitable agro-based business.

#47. Textile Mill

Textile mill is a lucrative business in India because of the massive availability of raw materials. Generally, you can establish textile mills in the area where fibers are interlaced together to produce fabrics. Also, you can produce cotton, wool, synthetic blend and wool blend yarns from the same unit.

#48. Tomato Processing

Tomato is a wide available item and processed tomato products are also very popular. Most popular products are tomato sauce, puree, juice, ketchup etc. In initiating tomato processing, you can also produce tomato pulp for other small scale industries. The production process is not complex. Generally, you need simple machinery and equipment for this unit. Therefore, tomato processing is a very profitable agro-based business idea. Read More…

#49. Tutti Frutti Production 

Tutti frutti is concentrated processed food product. In addition, you can produce this item from raw papaya with attractive color, sugar, and preservative. It is also an essential item for several other food processing industries like cake, bakery bread etc. Additionally, the product has also a very good retail opportunity and a popular agro-based business idea.

#50. Vermicompost Production

Vermicompost production is one of the most profitable agro-based business ideas. Additionally, one can initiate the business even from his or her backyard. However, easy procurement of raw material and proper promotion strategy is important to get success in this business.

#51. Weedicide Production

Weedicides are one of an essential consumable item in certain types of crop farming. Furthermore, botanical and chemical both two types of weedicides are popular among the farmers.

These 50+ agro-based business ideas we hope will inspire you in taking a decision for initiating an agriculture startup operation with small startup capital investment. Analyze and find the suitable agro-based business idea which fits you most as per your skills, experience, and knowledge.