Agro Based Industries in India

The Agriculture is most underrated Sector in India. Most people do not actually know about the potential of this business. Well, here in this article, I will share with you the information regarding the Agro-Based Industries in India. I will try to cover every topic in this article that is related to this. To get information in details, Check out our article in the given paragraphs below.

Agro Based Industries in India

The agriculture-based Industry, the name itself defines it. There are many branches of Agriculture based farming in India. All branches are important. Here we will see Some tops Agriculture Based Industries that runs better and known for their quality materials. India is a country, where the majority of the population are dependent on farming and agriculture. In this blog, I will use the best ways to explain everything and make you understand all the things in a very better manner. This article may be a bit broad. Read the complete article to get complete information about its importance of these industries, Problems as well as the importance these industries are for India’s Economy.


What is Agro Based Industry:

Agriculture based Industries are basically the Industries that use Plant-Based or Animal-based Agricultural Output as their RAW material. There are many fine examples of Agriculture based products like textile, Sugar, Vegetable Oils, Tea etc. The textile company is the largest Agriculture based Industries in organised Sector. Industries are in high demand nowadays because our majority of the population depends upon farming and Agriculture.

Any Industries related to Agriculture or farming is easy to start. It would be easy to get RAW material which is very important for any Industries. It would be easy to set up and easy to manage. Well, Every business needs proper knowledge and plan. Let’s see its Importance of Agriculture Based Industries in India, how effective it is in the current era.

Importance and Benefits of Agro Based industries in India

There are many branches in the Agriculture Based Industries. All the branches are important. In terms of Profit, Some are very profitable while some are less. It is hard to explain the importance of Agriculture based Industries. Well, here are some points related to its importance:

  • Agro-based industries help in increasing Industrial Production.
  • Agriculture based businesses are easy to establish.
  • It has very little competition as compared to the other businesses.
  • Agriculture based business would not need huge capital amount. The initial investment is very less as compared to the other businesses.
  • It provides employment to the people who have no lands.
  • It also helps in the countries development.
  • This Industries also earn much needed foreign exchange for the country.
  • It also improves the living standards of the person who are living in rural areas.

After all this, The Indian Government also supports the individual who is opting for Agriculture based business. There are many government schemes for Agriculture based Industries that makes it very easy to start this business. In order to start this business, One must have good knowledge about the RAW Materials, machinery required as well as Manpower requirement etc. After this, One must look at all the legal formalities that are required for a fresh startup.

Types of Agro-based industries in India:

Many types of Businesses are there that are related to the Agriculture. Here is the name of the business that are called as Agriculture Based Industries:

  • Cotton textiles
  • Woollen textiles
  • Silk textiles
  • Synthetic fibres
  • Jute textile industries
  • Sugar Industries
  • Vegetable Oil Industries
  • Dairy Industries
  • Food Processing Industry
  • Tea Industry
  • Coffee Industry
  • Leather Goods Industry

These Industries are running widely in the nation. India is the country where the majority of the population is dependent on farming. Agriculture based business makes life better especially in the rural areas. In order to start any of this business. One does not need to have a huge capital amount.

Top 5 Agro Based Industries in India:

As per the recent report and on the basis of some news souses. Here is the list of five industries that are the top business in the India right now.

  • Textile Industries
  • Sugar Industries
  • Vegetable Oil Industries
  • Tea Industry
  • Coffee Industry etc

Textile Industry:

Textile Industries are basically the Industry that is concerned about the Designing, production and distribution of the Fabrics and Ready-Made clothing etc. Textile industries in India Manufacture synthetic fibres, jute textiles cotton textiles, woollen textiles and silk textiles etc. India is the second-largest country in producing textile products. These are the Industries that plays an important role in the countries employment rate. Because textile industries provide the biggest employment. As per the recent survey, Directly and Indirectly, It provides employments to around 10.5 crores people in India. Textile Industries contributes around 12% in overall exports from India to foreign countries.

In the year 2015, The textile Industries market size was around 108.5 billion in United States Dollar and it is expected to reach 210 billion by the year 2023. Well, It is as easy to start this business, One must have good knowledge about the RAW material as well as about the market. Here is the list of some largest textile industries in India:

  • Arvind Ltd,
  • Vardhman Textiles Ltd,
  • Welspun India Ltd,
  • Raymond Ltd
  • Trident Ltd etc

Sugar Industry:

India is in second place in the production of sugar. India produces around 17% of total sugar. The Sugar Industry is responsible for the supply of Sugar. before the year 2019, India was in first place in the production of sugar. Now Brazil is one the first place in the production of Sugar. India Produces around 166.18 million matrix toe sugar. Here is the list of the largest and leading Industries that produce sugar in India as well in the world:

  • Eid Parry (India) Ltd,
  • Shree Renuka Sugars Ltd,
  • Balrampur Chini Mills Ltd,
  • Triveni Engineering and Industries Ltd
  • Dhampur Sugar Mills Ltd

Vegetable Oil Industry:

India is the country that consumes the maximum vegetable oils in the world. The Indian vegetable oil is Production is around 5% of the total production of total Vegetable oil. Currently, India is the country with the largest supply rate of Vegetable oil around 15 million tonnes. This Industry has also occupied a place in India’s economy as it provides employment to around a million people. The Average turnover of the Vegetable oil Industry on the domestic level is around 10 Billion per Annum. It earns around 90 million every year as foreign exchange. Here is the list of the some leading as well as the largest industries that produce Sugar in India as well in the world;

  • India include Fortune by Adani Group
  • Saffola by Marico
  • Sundrop by Agro Tech Foods
  • Dhara by Mother Dairy
  • Dalda by Bunge Limited etc

Tea Industry:

It is easy to explain the love of tea in India as well as in the world. Indian is the second largest producers of tea in the world. tea is also the most consumed liquid in the world after water. This Industry holds a special position in the Indian Economy. The tea Industry provides employment to the 2 million people in India. The growth of the Indian tea market is always remarkable. It earns a total of foreign exchange of around 830.90 million in United States Dollar. Here is the list of the some leading as well as some largest Tea Industry that produces the maximum every year in India as well as in the world:

  • Tata Global Beverages
  • Goodricke Group
  • Dhunseri Petrochem & Tea Limited
  • Jay Shree Tea
  • Assam Company India Limited 

Coffee Industry:

India is known as a tea-loving country but as per the recent survey, it has been found that Coffee is also most loved after the tea. The production of coffee has been also increased in the last two decades. the trend of coffee has come from some famous restaurants like Cafe Coffee Day, Starbucks Coffee etc.

India is the 6th largest producer of coffee and also the 5th largest exporter of coffee in the world. the coffee production in the year 2019-2020 was around 2,99,300 million ton. which is a total of 3.14% of total coffee production in the world. Here is the list of some leading and largest brands of Coffee in India as well as in the world.

  • Blue Tokai,
  • Davidoff Coffee
  • Starbucks Coffee
  • Nescafe Coffee
  • Cafe Coffee Day etc

Problems of Agro based Industries in India:

Problems can occur in any business either it’s related to Agriculture or not. Here are some problems That I have listed and it usually comes in Agriculture based Industry:

  • Small Landholdings
  • Seasonal Reason
  • Perishable nature of products
  • Variability
  • Limited Knowledge
  • Competition etc

The Indian Government has a number of schemes for agriculture-based Industries. It might help the people to start the industries in an easy manner. In order to form this, One must have proper knowledge as well as proper manpower, Machinery as well as sufficient Land etc. These are all the detailed information about the Agriculture related business or industries. Hope you got the answer.

FAQs For Agro Based Industries in India

How can get job in the agricultural based Industries?

For recruitment, You will need to apply for job to the individual industries. You can check the official site of the Individual companies to get more information.

Does Government Support Financially for the Agro-based Industries?

Yes, There are some schemes. You must check the government norms to get exact details about this. Check the official website if the Bharat Sarkar Yojna or Government of India schemes for Agro-based Businesses or Industries.

How to gain knowledge about Agro-based Businesses?

Well, There is no any particular books or any website or Article that could give you the complete knowledge about this. You will need to practice. You can take the help of some books but you mindset is important.

About the author

Dasharath Maurya