Top 10 profitable Agriculture Business Ideas in India 2024

02 Feb, 2024

India has been considered as ‘Land of Farming’ since ancient times because most of the population in India has adopted agriculture as their primary business or family business. India's multiple agro-climatic zones, fertile terrain, and plentiful natural resources make it an ideal location for a wide range of agricultural operations. 

As the agricultural environment evolves, new opportunities for creative and sustainable business models that serve both home and international markets arise.

In this post, we will look at 10 profitable farming business/agriculture business ideas concepts that have gained traction and have a high chance of success in India in 2024. These concepts include a wide range of parts of the agricultural value chain, from crop production to value-added products, and from technology-driven solutions to sustainable farming practices.

In a country where agriculture is deeply rooted in its culture and economy, these agribusiness ideas offer aspiring entrepreneurs and existing farmers potential opportunities that lie within the agricultural sector.

What is an Agricultural Business?

Before discussing money-making agriculture businesses Plan in detail, let’s understand what agriculture businesses are. 

An agriculture business/farming business refers to a business entity that is primarily involved in the production, processing, distribution, and sale of agricultural products. It encompasses a wide range of activities related to farming, ranching, horticulture, and other agricultural practices.

Agriculture businesses can vary in size and scope, ranging from small family-owned farms to large commercial enterprises. Agriculture business may focus on cultivating crops, raising livestock, or both. Additionally, some agriculture businesses specialize in niche areas such as organic farming, aquaculture, greenhouse production, or agroforestry.

Agriculture businesses In India have been categorized into three broad sections, which are described below:- 

Productive Resources: Productive resources are necessary inputs for agricultural production. Seeds, fodder (for animals), fertilizers, equipment, energy (such as gasoline and electricity), and machinery are examples of these resources. Crop production begins with seeds, whereas livestock farming requires feed. Similarly, fertilizers supply essential nutrients for plant development, while farm equipment and machines allow for a variety of farming tasks. 

Commodities for Agriculture: Agricultural commodities are the final products of the agricultural production process. They are used as food or fiber and can be raw or processed. Grain, fruits, vegetables, oilseeds, animals, and dairy products are examples of raw agricultural commodities. Food, drinks, oils, textiles, and biofuels are examples of processed commodities. 

Facilitative Services: Facilitative services play a crucial role in supporting agricultural production and marketing. These services include storage facilities (such as warehouses and silos) to preserve and protect agricultural commodities, processing units for value addition and transformation, and other supporting services. 

Top 10 Profitable Agricultural Business Ideas In India 

Here are some of the most demanding and profitable agriculture business ideas. You can start with any one of them which are described below. 

1. Agricultural Land

The very basic example of the best agriculture business is buying agricultural land. You can invest your money in buying fertile agricultural land so that you may start your work by producing some most demanding items locally as well as at faraway places. Right now, due to developing technology, you can also promote and sell your products online by using different social media channels. 

If you don’t want to do farming on your own, you can give that land for rent. Many farmers can't buy land due to high prices. But, they know the art and science of farming. So, you can use their skills and start making handsome money with this agriculture business plan. 

2. Grocery Shopping Portal

Online shopping is booming like anything and you can make the best farming business out of it by opening an online farming, fruits, and grocery shopping portal. At present, people don’t want to waste their time buying day-to-day groceries because they prefer to get their ordered groceries at their doorstep. So you can start your e-shopping portal and can get maximum profits from this agribusiness idea. 

3. Tree Farm

Amongst many money making agriculture business ideas in India, you can start your agriculture business by buying a tree farm in which you can grow trees and sell them. Although this process is time-consuming, as trees require considerable time to grow, it is amongst the most profitable agriculture business India and is one of the best agribusiness ideas with which you can make a start.

4. Dry Flower Business

This is amongst the most innovative agriculture business ideas that have come to light in the last 10 years. You can grow flowers on your vacant land where they will get dried properly and after that, you can sell those dried flowers to craft stores or hobbyists.  

5. Beekeeping

As people have become health conscious, the demand for honey has increased a lot so you can start a beekeeping business and can avail the great opportunity to get maximum benefits as it is amongst the most money-making agriculture business ideas. You just have to keep close supervision of bees.

6. Spice Processing and Packaging

India is known for its rich spice production. All sorts of aromatic spices are produced in abundance on the fertile land of India. As Indian spices are highly aromatic, they have a huge demand across the globe. This is amongst the best farming business in India ideas.

If you’re looking for innovative agricultural business ideas then spice processing and packaging is worth a try. Setting up a spice processing and packaging unit can be a lucrative business, catering to domestic and international markets.

7. Dairy Business

The dairy farm business plan is one of the most functional and profit-driven agriculture startup ideas in India to own a dairy farm. India owns a great livestock resource. India is the world's largest consumer of milk and dairy products, with a rapidly growing population. The demand for milk, yogurt, cheese, butter, and other dairy products remains consistently high, providing a vast market for the dairy farm business.

The Indian government has implemented various schemes and initiatives to support the dairy sector, such as the National Dairy Plan, the National Livestock Mission, and subsidies for dairy farmers. So, it's easy for anyone to start a dairy business. 

8. Beverage Production

This agriculture business idea involves the production of beverages such as fruit juices, soft drinks, energy drinks, packaged water, and alcoholic beverages. It can include processes like extraction, filtration, mixing, bottling, and packaging. You can start this agro-based business in India and make great profits. 

9. Groundnut Processing

For starting this best agriculture business, you just need to have good quality raw materials (groundnuts) and moderate capital because processed groundnuts are highly demanded all over the world which makes this one of the best farming ideas.

10. Medicinal Herbs Farming

Amongst the most profitable farming in India is medicinal herbs farming and for that, you need to have great knowledge of herbs and sufficient land. You can grow medicinal herbs and sell them but with a certain license from the government for this business which is among very profitable farming ideas.

The list of best agriculture ideas includes many other ideas like mushroom farming and hydroponic farm which is amongst the most profitable farming in India.

How To Start Agriculture Business In India?

Indian agriculture and its corresponding industries are booming like anything. In the year 2022, the Indian farming market size touched an impressive figure of INR 25,173 Billion. The future for the profitable farming business in India also seems bright as the IMARC Group expects the market to touch the mark of INR 45,577 Billion by 2028. 

So, if you haven’t started any best agriculture businesses in India then this is the right time to move ahead. Before you shape your thoughts, get familiar with the basics of setting up the best agriculture business or agro company in India. 

 #1- Do proper research to find out which types of agribusiness are working great in your area and which best agriculture-based product has a huge demand around you. This research will help you find the best farming business ideas that will have high success probability. 

#2- After selecting a type of agribusiness, Create a business plan and address concerns like the key goals of the business, a roadmap of the business, necessities, funds required to get started, and so on. The business plan will help you move in the right direction. 

#3- Register your business and try to acquire all the applicable licenses and certificates. Different agriculture businesses have different registration and licensing requirements. For instance, if you’re planning to start a food-related business then you have to meet food safety compliance. Learn about all of them and proceed accordingly. 

#4- Procure the right kind of machinery and equipment to set up the industry. 

#5- Set up a supply chain so that you can easily procure the raw material and supply the produced products to the market as quickly as possible. 

#6- Keep a check on competitors' moves and industry trends to make sure that your business is keeping up the pace and delivering the services that your customers want. 

The Help You Can Get From the Indian Government To Start An Agriculture Business 

Starting the best agriculture business needs tons of effort and the right kind of assistance. Indian Government offers adequate guidance and resources for agricultural entrepreneurship that includes: 

- Considerable grants and subsidies for best farming business ideas.

- Crop insurance to make sure that the loss incurred due to unforeseen situations doesn’t break a start-up completely. 

- Institutions like the National Bank for Agriculture and Rural Development (NABARD) offer loans for setting up agriculture companies at affordable rates. 

- Setting up a Minimum Support Price (MSP) for a few commodities so that farmers get justified prices of their products.

- Establishment of mandis (agricultural markets), cold storage facilities, warehouses, and rural agro-processing units. 

- Initiatives like the Rashtriya Krishi Vikas Yojana (RKVY) and the National Food Security Mission (NFSM) provide financial assistance and training to farmers for the adoption of advanced farming techniques, machinery, and precision agriculture.

- Programs like the Agricultural and Processed Food Products Export Development Authority (APEDA) provide support and assistance to agriculture businesses for export promotion, market intelligence, and quality certification.

Conclusion

Agriculture and its related businesses are empowering the Indian economy by all means possible and it’s high time that the youth of this nation must start showing interest in the best agriculture business in India. We discussed a few of the businesses related to agriculture. A big list of innovative agricultural business ideas is left to see. To know more about this, just keep on reading our upcoming articles.

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