Do you want to start a business in the agro-based industry? Find here a list of the 20 most promising agro-based business ideas for young entrepreneurs. Also, the article contains a detailed paragraph about the importance of agro-based industries in India.
Still, agriculture is demographically the broadest economic sector. Also, it plays a significant role in the overall socio-economic fabric of India. However, agricultural produces have a short shelf life. And we can’t keep the product edible for a long period of time. Additionally, some of the products need processing to make them edible like paddy, wheat, etc. And here the industrial activity becomes significant.
Basically, the agro-based industry depends on the raw material produced by the agricultural sector. Hence, it includes the processing, preservation, and preparation of agricultural production for intermediate and final consumption. Also, it is highly interconnected with the food processing sector.
In India, the agro-based industry is one of the most profitable sectors for starting new ventures. You can ensure the availability of the raw materials easily. And there is a more than 130 crore population domestic market. So, find here a list of the 20 most profitable agro-based business ideas that you can start low or moderate capital investment.
List of 20 Agro Based Business Ideas
The bakery is the traditional sector in the Indian agro-based industry. It produces a wide range of value-added food items. The list may include biscuits, wafers, bread, cake, pastry, patties, etc. A small-scale bakery business requires small capital investment. Also, you can start by capturing the local market.
Raw Materials: Wheat flour and other ingredients.
Beaten rice is also popular as Chira or Poha. Basically, it is a staple breakfast diet. Also, it has good nutritional value. In a beaten rice manufacturing unit, you will need the only raw material that is paddy. With some simple machinery and equipment, you can produce beaten rice.
Raw Materials: Paddy
#3. Coconut Oil Production
In the southern part of the country, coconut oil is important cooking oil. Apart from cooking, it is an essential ingredient in the soap, body oil, and hair oil manufacturing industry. The product has good market demand. If you live in a coconut growing area, you can start the commercial production with small capital investment.
Raw Materials: Dry Coconut
#4. Coffee Processing
In our country, some of the major coffee-producing states are Karnataka, Kerala, Tamilnadu, Andhra Pradesh, Orissa, and Assam. Currently, coffee is getting huge popularity as a frequent hot beverage not only in winter but throughout the year. Actually, the rapid urbanization and the growing cafe retail are the major reasons behind it.
Raw Materials: Coffee
#5. Dal Milling
Pulses and lentils are the important cash crop in our country. However, they need proper processing to make them consumable. In India, dal milling is a profitable business. Depending on the production output, you can start this business at any size. Generally, the large-scale operation ensures more profitability.
Raw Materials: Pulses
#6. Flour Milling
Generally, flour mills produce a wide number of products. The list may include wheat flour, whole wheat flour, sooji, Gram flour, Sattu, etc. Flour milling is a traditional agro-based industry in India. Also, it is an easy business to start. Apart from the localized flour mills, established brands earn more profit from this business.
Raw Materials: Wheat Seeds
India’s agroclimatic condition is perfect for different types of fruit farming. You can find en number of fruits here. However, fruits are perishable items. And keeping them in cold storage sometimes enhances the price considerably. Therefore, fruit juice production activity helps to reduce the post-harvest loss.
Raw Materials: Fruits
Ginger garlic paste is ready to cook food item. Definitely, it is an emerging product. Also, it gains huge popularity in the urban demographics. The changing lifestyle and food habits are the major reasons for the growing demand for this product. The ginger garlic paste production process is simple. And you can start the business with a small investment.
Raw Materials: Ginger & Garlic
Jackfruit is one of the largest tree fruits in the world. The tropical countries are the major producers of jackfruits. As the shelf life of jackfruit is very less, you can produce different types of value-added products from jackfruit. These products are nutritious and tasty also.
Raw Materials: Jackfruit
If you live in a sugarcane-producing area, you can open jaggery. In India, only Uttar Pradesh and Maharashtra produce good jaggery which is export quality also. Actually, sugar cane is one of the most important commercial crops of the tropics and is the main source of sugar. Jaggery is a labor-intensive business. Also, you need to ensure the availability of raw materials.
Raw Materials: Sugarcane
#11. Jam Jelly Making
India has diverse agro-climatic conditions, varied soil types, and abundant rainfall. Due to this, our country is a potential grower of high-value horticultural produce. Fruits are an important source of energy for human-beings but they are perishable items. However, we can prepare en number of value-added products that have a larger shelf life.
Raw Materials: Fruits and other ingredients
#12. Mustard Oil Production
In our country, mustard oil is an important edible oil and cooking medium. Also, it is an essential item in the traditional pickles-making industry. Also, our country has the largest number of commercial varieties of oilseeds. Therefore, mustard oil production is a financially lucrative business for new entrepreneurs.
Raw Materials: Mustard seeds
#13. Pickle Making
Generally, pickles are fruits and vegetables preserved in vinegar or brine solution. Commercial pickle production is a profitable business. Also, the requires small capital investment initially. Some of the most popular pickle varieties are mango pickles, mixed pickles, cucumber pickles, jackfruit pickles, lemon pickles, etc.
Raw Materials: Fruit & Vegetables
#14. Pineapple Processing
Pineapple is a seasonal fruit crop. Additionally, it is a highly perishable item. Hence, it results in a huge post-harvest loss during the peak season. However, producing different types of value-added products ensures the preserve and good revenue earning.
#15. Rice Milling
Rice is the agricultural commodity with the third-highest worldwide production. Also, it is the major staple food in our country. However, paddy requires specific processing for producing edible rice. Hence, rice milling is a traditional industry in India. And still, you can earn very good revenue from the rice milling business.
Raw Materials: Paddy
#16. Spice Processing
Currently, both the type of whole spice and powder spice is getting immense popularity. The spice processing method is simple. If you deal with chili, then only you need NOC from the state PCB. The business requires low capital investment. Also, you can start the unit with small infrastructure.
Raw Materials: Whole Spices
#17. Sugar Milling
Initiating an integrated sugar mill requires a lot of planning and moderate capital investment. you need a wide area of land also. Basically, sugar milling is a medium-scale business. However, the business is highly profitable financially. Also, the product has good export potential.
Raw Materials: Sugarcane
Basically, sunflower oil is essential cooking oil. Apart from cooking, it is an important ingredient in bakery soap, canning, paint, and even in the cosmetic and medical industries. The packaging is a major aspect of the sunflower production business. The business requires moderate capital investment and marketing planning.
Raw Materials: Sunflower seeds
Tamarind pulp is edible. And people use tamarind pulp in preparing different types of food. Also, it is used as the pickling agent. Basically, tamarind has a sour taste. Tamarind paste has many culinary uses including a flavoring for chutneys, curries, and the traditional sharbat syrup drink.
Raw Materials: Tamarind
#20. Tomato Processing
Tomato is an important vegetable crop in India. Commercial tomato processing is a profit-making agro-based business. And you produce different value-added products including puree, sauce, ketchup, juice, etc from tomato. And the tomato juice and pulp have industrial use along with domestic consumption.
Raw Materials: Tomato
In our country, agro-based industries play a pivotal role in overall economic development. Also, this is an evergreen industry that ensures constant profitability.