Starting An Agricultural Farming Business in India

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How to Start Agriculture Business in India – Most Profitable Farming

Agriculture is a key sector of India’s economy due to its huge impact and contribution to the country’s food security. India has a lot of agricultural produce, some of which are cultivated at a subsistence level and on a commercial level.

This article focuses on agricultural businesses in India, with a special focus on the commercial sector. Agriculture alone contributes up to 15.5% to India’s GDP.

There are several food crops cultivated in commercial quantities that are disposed of or sold to the open market through channels of distribution spread across the country.

Apart from the domestic consumption of these agricultural products, these are also exported. Agricultural produce accounts for up to 13% of India’s total exports.

Some of these agro products include the following;


Production of Ginger Oil

Being the world’s largest producer of ginger, Indian agro entrepreneurs extract ginger oil which is used for a wide variety of purposes, some of which include baking, snacks, and confectionary of assorted types.

The ginger processing industry relies on and is sustained by the availability of raw material which in this case is ginger. Ginger farmers, therefore, cultivate this crop commercially and sell it to these industries.

Onion Paste Processing

This area of agricultural business is lucrative in India. Farmers produce this crop in commercial quantities and sell it to processing industries.

Because of its perishable nature, the onion processing business is a welcome idea as it prolongs the shelf life of onions, and the losses incurred by farmers are greatly reduced at the same time increasing their profits considerably.

The Production of Dry Fruit

This is an area that continues to witness growth due to its rising popularity not just in India alone, but across the world.

With the abundance of fruit crops in India, there is no shortage of these products as they are highly patronized and consumed locally and also exported for foreign exchange which has significantly impacted the Indian economy.

Production of Fruit Juice

Apart from the dry fruit industry where fruits are dried and consumed locally or exported, fresh fruits are also processed through the making of fruit juice.

This industry has witnessed a boom in recent times as there is an increasing number of fruit juice industries each producing various flavors and types of juice for the local and international markets.

Ginger and Garlic Paste Production

Because of the love Indians have for spices, these are cultivated in commercial quantities both for the local and international markets.

Ginger and garlic are blended into a paste form by these processing industries and used either for medicinal purposes or for cooking. These also generate much needed foreign exchange for India through export.

Rice Mill

This agro-allied industry has grown significantly to give India the reputation of being the world’s second-largest producer of rice (paddy). This is a widely consumed food not only in India but across the world.

Producing rice for the local market, this is also exported to the international market. This is a profitable area of business that has continued to attract interest from entrepreneurs leading to increased investments.

Processing of Spices

Indians grow a lot of spices in commercial quantities. A few of these include cinnamon, mustard seed, black pepper, chili pepper, cumin, coriander, curry, turmeric, garam masala, saffron, nutmeg, and fennel.

Others include panch phoron, mint, tamarind, star anise, and Kala namak among several others. India’s spice industry is huge and offers economic opportunities for farmers.

These spices are processed into several forms, increasing their value and domestically and internationally.

The Textile Mill Industry

This is a big industry in India due to the abundance of raw materials. This industry has flourished due to favorable policies put in place by the government.

Farmers of cotton, fibers, and other raw materials needed for the production of textile are increasingly making huge profits and at the same time sustaining an industry that has blossomed and provided employment for the Indian population.

Production of Sunflower Oil

This is an area of agro-business in India that has continued to thrive over the years. With the sunflower seed as its primary raw material, this is an interesting and attractive area of investment that promises great returns for farmers and the processing industries.

Tomato Processing

Tomatoes which are farmed in commercial quantities in India offer farmers a great way of avoiding wastages.

These processed tomatoes have an extended shelf life and are also exported to the international market. Investors can start a tomato processing industry without necessarily needing huge capital commitments.

With the proper planning and right procedures, this can significantly contribute to the income-generating capacities of Indians.

Already, there are well-established tomato processing industries in India that produce for the domestic as well as the international markets. The agro-industry in India is witnessing a huge boom due to this fact.

India’s Rope Industry

Being the world’s largest producer of jute, this contributes significantly to India’s GDP.

These are popular products with high demand across the world. This is a medium through which India’s agricultural business contributes significantly to the economy.

India’s agricultural industry is booming and there are increased possibilities for growth. The above-mentioned agricultural sectors are a few of the abundant agricultural industries that are found in India.

If the rate of growth continues, then India will be among the world’s biggest exporters of agricultural products.

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