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Top 10 agro-based Industries in India 2022

    Top 10 agro-based Industries in India 2022

10 major agro-based Industries in India 2022

26 Jul, 2020

The agro-based industries are the industries whose raw material requirements are fulfilled by agricultural output. These industries process the agricultural output into consumer goods making them more valuable than before. These industries contribute a lot to industrial production as well as to the economy of the country by supporting a lot of lives by providing them employment and opportunity to improve their economic status.

Importance of Agro-Based Industries

  • They are important because agro-based industries support a huge part of our population by providing them with employment.

  • They help us to enhance our exports and foreign exchange.

  • They support the development of backward and uneducated people, farmers and women by giving them the opportunities to enhance their financial condition.

  • They are highly responsible for the development of rural areas and the lives of people living there.

  • They are beneficial for the farmers dependent on agriculture as it stabilizes their income.

  • It also helps by preventing the migration of rural population to urban areas.

  • It reduces the chances of exploitation of farmers by middlemen.

  • Encourage farmers to have better produces they get better prices for their produce.

Types of Agro-Based Industries

Agro-based industries are classified into various sub-divisions based on the raw material they use and the service and output provided by them. There are majorly four types of agro-based industries present in the market, which are as follows-

  • Agro-processing units

In these types of units, no new products are produced. Instead of producing new products they just process the raw materials in a way to increase their lifetime by adding preservatives and package them in a way to make their transport easier and cheaper.

  • Agro-produce manufacturing units

In such units the production of new completely different end product takes place. Here usually, the raw materials are converted into goods that are more suitable for consumers.

  • Agro input manufacturing units

These units are mainly responsible for the development of the agriculture sector as they produce goods that are majorly responsible for increasing the productivity of the agriculture sector including its mechanization.

  • Agro service centre

These units are basically units that provide agriculture-related services to people like farm equipment repairing, educational workshops etc.

Top 10 Agro-Based Industries in India

Here are is the list of ten major agro-based industries of India-

1. Textile Industry

Raw Material: Cotton, jute, silk, wool and man-made fibre.

End Product: Household, apparel, furniture etc.

The textile industry is the largest agro-based industry in India. This industry deals with the manufacturing of garments. It is a self-reliant industry that produces everything from raw material to the final value-added product to its customer. It has a major contribution to the economy of the nation.

The industry is basically divided into the following branches-

  • Cotton Textile

This specific domain of this textile industry uses cotton as a raw material to produce its product. It covers a significant portion of its parent industry and is currently growing at a very fast rate.

  • Woolen Textile

The woolen textile industry in India is partly a cottage industry and partly a factory industry. This industry uses wool of sheep as raw material and is majorly located in Northern India.

  • Silk Textiles

India is the second-largest producer of silk after China and it is important as silk textile industry contribute significantly towards the total exports. The industry gives employment to about 55 lakh people. The specific area of silk in agriculture is known as sericulture.

These are some subdivisions of textile industries, other than these, its divisions includes synthetic textiles.

2. Food Processing Industry


Raw Material: All kind of agricultural produce

End Product: Processed food

India's food processing industry is one of the largest food processing industries in the world making it the fifth-largest industry in India and the most important agro-based industry. India's food processing industry is one of the most important parts of our economy as it supports many lives in our country by providing them with employment. Major food processing industries in India include

3. Dairy Industry

Raw Material: Milk

End Product: Butter, Cheese, Cream, Condensed Milk, Dried Milk, Packaged Milk, Ice Cream etc.

Dairy Industry is one of the most important sectors in India as it contributes to up to 4% of the economy. It is one of the best source of second-hand income for farmers in India making it one of the most practised activities in rural areas all over India. Its continuous practice all over India for the past many years has made India a 20% contributor to the total world milk production.

4. Sugar Industry

Raw Material: Sugarcane

End Product: Brown Sugar, white sugar etc.

India is the world's largest consumer of sugar stands as the world's largest sugarcane and second-largest sugar-producing country in the world making the sugar industry one of the most important agro-based industries in India. Sugarcane is the fundamental source of sugar production in our country hence, even though this industry supports a lot of people in India but this supports don't last for the whole year as this industry is majorly active only during the harvesting months of the sugarcane.

5. Vegetable Oil Industry

Raw Material: Olive, peanuts, safflowers etc. or their crude oil

End Product: Edible vegetable oil

Vegetable oil is the primary source of fat in the Indian diet. Vanaspati is a hydrogenated vegetable oil that is widely used in India. Different regions use different materials based on the technology they use. The most common raw material for this industry includes coconut, mustard, and groundnut. Among all the vegetable oil-producing state Madhya Pradesh remains at the first because of its high volume of oilseed production.

6. Tea Industry

Raw Material: Green tea leaves

End Product: Instant tea, cosmetics etc.

Tea is a favourite beverage consumed by Indians and so is its production. Tea is mostly cultivated in Assam, West Bengal, and Kerala. The industry runs throughout the year and gives employment to about 1 million people while producing a billion kilos of tea per year, making it the second-largest tea producing country in the World.

7. Coffee Industry

Raw Material: Seeds or coffee beans

End Product: Instant coffee etc.

Coffee is highly preferred for its blending quality. Indian coffee has found its own different place because of its distinct taste. As well as it contributes 70% of total production to the international market making it the third-largest coffee producer in Asia.

8. Leather Goods Industry

Raw Material: Cattle hide

End Product: Leather goods, belts etc.

The basic raw material of this industry is hides and skins, which come from pelts of cattle and large animals and small animals like sheep and goat. In India Kanpur is known for leather industries and as it has some of the finest leather industries known for their high-quality products. This industry is also known for having a large amount of young workforce, hence giving the youth of our country a high number of employment opportunities.

9. Jute Industry

Raw Material: Jute

End Product: Gunny bags, Hessian, Carpets, Ropes, Strings, Packing material etc.

Jute Industry is one of the most popular industries in West Bengal as 60 out of 70 jute industries are based in West Bengal near the banks of the Hooghly River. Jute Industry is an important agro-based industry as it supports the life of around 4 million people in India. The jute industry is currently growing at a very good rate as well as it has now become an important part of our economy.

10. Bamboo Industry

Raw Material: Bamboo

End Product: Furniture, Plywood, Matboards, Handicraft, Utensils etc.

The bamboo plantation is one of the major practices in eastern states of India, making it a good source of income in these states. Day by day as the environmental issues are coming to light, bamboo-based sustainable products are getting popular, making the bamboo industry one of the most important bamboo industries.

Britannia Industries Ltd., Kohinoor Foods Ltd (Satnam Overseas Ltd), LT Foods Ltd (Daawat), McCain Foods India Pvt. Ltd. etc.

All these agro-industries are very important for our nation's economy. As they provide employment to a very large part of our population while supporting our economy. The demand from these industries also decides the profit percentage of farmers. Although various other factors are also responsible but once the final harvest is obtained, it all depends on the industry demand. Therefore, agriculture and agro-based industries are interdependent on each other for their growth.


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