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20 Best Agriculture / Agro-Based Business Ideas (2019) to Pursue In India

If you separate service sector from India’s huge GDP, you will realize how our economy breaths on agriculture. Forming 13% of the country’s total export, agriculture contributes 18.5% of India’s GDP.

With the rapid growth of Indian economy, the agricultural sector offers a huge potential for growth. The opportunities in the agro-industry are not only limited to farming.

There are various agro-based business ideas that if pursued even on a small scale manufacturing basis may prove to be highly beneficial.

As globalization and modernization set in, India is on the verge of a revolution in the agricultural sector. This revolution is fueling up agriculture-based business opportunities in India.

With the steady growth in population and need for excellent growth in exports, the total food production in India is likely to get doubled in the next ten years.

20 Best Agriculture Based Startup Ideas To Earn Money

In case you have a well-planned strategy for an agro-business idea based manufacturing operation, there is huge scope to set up a profitable venture. In this article, we bring to you some of the best agro-based business ideas for a small scale manufacturing operation. You also need a comparatively small startup capital to set up such businesses.

How To Start Cane Chair Manufacturing Business

how start Cane furniture business

As the society is moving towards modernization, a market for luxury products has also opened up. People are no more reluctant to pay for products that add up to the look of their vicinity.

Cane Chairs are also considered as a luxury furniture item. Requiring lesser investment, the manufacturing can be much profitable if combined with good marketing plans. Also, the cane is readily available as a raw material.

Difference between traditional canning and french canning:

Two sorts of hand caning are readily available. With conventional caning, holes have been drilled all of the way through the item’s wood frame. Pieces of cane, made from the bark of the rattan plant, are then stitched from the recognizable open-work routine by hand.

With French caning, the holes don’t penetrate the framework. The caner puts the strands in each hole, then glues and secures them using a peg till weaving is intact. French caning is essential when seat backs are dual caned. Costs for hand caning begin at Rs 4500 to get a little chair.

Tools needed to start canning chair business: Using makeshift workshops, cane seat makers do not demand the huge machines to deliver their delicate, but beautiful pieces of furniture.The tools are only, harmer, document, drawknife, a set of gloves, watched and a workout fabric. The materials are all available everywhere and are cheap. All any interested individual must do is to experience a six-month apprenticeship with a few of the famous hands in the enterprise.

How To Start Chips Production Business In India

how Chips Production india

Needless to say, there is no dearth in the market when it comes to demand for potato chips. Especially today’s younger generation loves to include this item as a snack. Apart from targeting the local market, you can also export these products if you have a good marketing strategy.

Potato chips making company could be initiated as small scale business with average capital investment. Considering that the achievement of your potato chips manufacturing business hinges mainly on your place, you would like to select it carefully.

Your perfect location is one that’s near sources of these raw materials and other materials you’ll need, and also near your intended industry. Moreover, your preferred location must abound with electrical source, water, and other utilities you’ll need for potato chips manufacturing.

Tools needed for chips production business:  Potato peeling machine cap, Slicing machine with arrangement to adjust thickness of slice complete with motor etc, Blancher, Spin dryer to extract excess moisture, Deep fat fryer, Electric polythene bag sealing machine, Weighing machine.

How To Start Multi-purpose agricultural cold chains

cold storage subsidy loan

With a variety of agricultural products in India like fruits and vegetables, to provide a cold chain solution is a profitable business.

Being a temperature-controlled supply chain, through a cold chain you can extend and ensure the shelf life of products such as fresh agricultural produce, frozen food, and fruits. With a spike in storage and distribution activities, agricultural food chains offer a huge opportunity for business growth.

How to apply for subsidy for setting up a cold storage plant: 

Ministry of Food Processing Industries provides excellent financial aid for the setup of a cold chain in India. MOFPI provides monetary support (grant-in-aid) to the tune of 50 percent the complete cost of plant and machinery and technical civil works in General regions and 75 percent to NE region such as Sikkim and challenging areas (J&K, Himachal Pradesh and also Uttarakhand) subject to a maximum of Rs.10 crore.

The application for financial support for establishing of a cold chain ought to be made in the prescribed format to Ministry of Food Processing from India in the format that was publicized. There are many banks like Bank Of India and Union Bank Of India that provide loans for setting up cold storage business. Besides above here is a link consisting information about aid by others related agencies.

Dal Milling

how Dal Milling business investment

This is basically a huge profit making business. In a typical household in India, pulses are the primary protein source of a diet plan. Also, there are wide varieties of pulses in the Indian market. You can capitalize on this fact through a dal milling plant. Such a plan actually processes different types of pulses.

There is scope to select various pulses as per the availability of raw material. Usually, you can set up a dry milling or wet milling plants as these are the conventional processing. Furthermore, you should keep in mind that this process is capital and energy intensive.

Flour Milling

Flour Milling business investment

The scope of a flour related business is not restricted to wheat flour. In India, the market has opened up towards the consumption of different varieties types of flour for preparing different foods.

Through a flour milling plant, you can process wheat flour, brown flour, whole wheat flour, wholemeal flour, etc.

You can even set up a plant with a simple machinery on a small scale basis as the production process is simple.

Groundnut Oil Production

Groundnut Oil Production

With the rising of spurious edible oils in the market, people most likely to buy pure edible oils from local market or production units situates around them, and this gives strong push business like groundnut oil production.

As groundnut is readily available as a raw material across India, groundnut oil processing is a highly profitable food processing business. The required capital investment is also not heavy.

Such a manufacturing unit can be set up even on a small scale basis. The market has a high demand potential for groundnut oil considering the several health benefits groundnut oil offers.

Honey Processing


This business has the scope to be set up even in a home based basis. Requiring small scale investment, it also not required any extensive marketing plans.

Honey processing involves removing wax and other foreign unwanted particles from honey.

Depending upon the scale of investment, you can establish a honey processing unit that has either manual system or is electrically driven.



Jaggery consumption in India has always been high considering the various health benefits. You can bank upon this high consumption if you select the right location for setting up the jaggery processing plant.

You should keep in mind to choose a location that has an abundance of sugarcane so that you have to bear minimum transportation cost.

Agri Clinic

By setting up an agri-clinic business, you can provide paid services for better agriculture production and income of farmers.

Through these agri-clinics, you can help farmers with maintenance and renting of agricultural equipment. Also, as an agri-clinic, you can set up beekeeping facilities or apiaries through which you can sell honey or bee wax or even charge farmers for pollination services.

Fumigation Services

Fumigation Services

Fumigation service is a typical agro-allied related services business that an entrepreneur may offer. Being a high growth potential and less capital-intensive business, fumigation involves elimination of unwanted insects, and weeds, etc.

You will also require some prior approval from authorities in your state to start up with this business.

Rajanigandha Farming

 Source Image

The flower rajanigandha can be farmed specifically as a profitable venture. This farming requires a scientific approach and has a high-profit margin along with a high demand. The flower is widely used in cosmetics, perfume, essential oils, and ayurvedic medicine industry.

`With proper farming technique, you can grow this flower up to around 8000 kg per hectare yield.



One highly profitable form of agro-based business is a bakery. It involves some initial set up cost as you need your own or a rented space.

The setup plan should include selecting the right product. Once you have done this, you need to design a proper marketing strategy to be successful in the bakery business.

As you choose a specific bakery product for the business, you must keep in mind the demand and geographical aspects in mind.

Basket Production

Basket Production

Especially for the rural sector in India, you can pursue basket weaving business as a profitable and popular business. As there are modern equipment being utilized in this business, there is scope to sell a wide variety of basket products even in the urban market.

Medicinal Herb Farming

Medicinal Herb Farming

Recently Ayurveda and yoga have regained their popularity all over India as well as the world. Cultivating herbs which are of medicinal value has a great potential in the market.

As there are various companies competing in the ayurvedic medicine market, you can supply the required herbs to them and gain profit. Also, there is an option to export these herbs as the international demand is also high.

You need some prior knowledge of the sector to gain profits.

Pickle Making

Pickles Box

As the most popular item in the Indian recipe, setting up a pickle making business can make you tap a potential domestic market as well as an exports market.

As there is a variety of different quality pickles to be produced, you can use a good plan to expand this form of business which is low capital intensive.

Vermicompost Production

Source Image

With high demand for good quality vermicompost products, this kind of production is a very profitable agro-based business idea.

Furthermore, it requires no special area as you can start it even from your backyard. You must keep in mind to have an effective marketing plan to succeed in this type of business.

Floriculture Business

Flowers are an essential part of various types of celebrations in India. Depending on the type of geographical region, you can grow your own flower or procure flowers to sell them at highly profitable prices.

Adding a decorative touch to dried flowers can do a great value addition to its price, thus enhancing the scope for profit-making.

Organic Farming

Organic Porduct In Hand

Through organic farming, you can produce crops and livestock feed without using pesticides, fertilizers, genetically modified organisms, antibiotics and growth hormones.

As people are getting increasingly conscious about what they consume, organic production offers much growth potential and it still remains a largely untapped market. You can market these organically produced products through retail stores or even e-commerce platforms.

Livestock Feed Production

With the life of rural part of India still largely dependent on livestock, you can initiate livestock feed production business with proper planning.

Also, there is a significant population dependent on livestock farming, so there is a constant demand for livestock food from livestock farmers. With the right mixing formula, you can provide the right food and food supplementary product for their farm.

There is a wide variety of different livestock feed that you can produce, thus scope for profitability is not a concern.

Micro Irrigation System Providing

Source Image

With India trying to move from monsoon dependency to modern irrigation, being a micro irrigation technology provider has gradually emerged as a demand-driven technology in India. With 48% of the geographical area of India receiving less than 1000 mm rain and the rest 1000-2500 mm, a micro irrigation system providing startup has great scope for profitability.

The scope of agro-based business ideas is not only limited to the above-mentioned ideas. Depending upon your geographical location and market demands, you can set up a small scale business with proper planning. You can also explore various non-manufacturing options that are related to the agricultural sector. These business ideas require a small startup capital investment. Keeping a tab on the profitability of such business ideas, you can grow your business with proper planning.

So all you need to do is analyze the market and the agro-based business ideas to find the best suitable one for you. Also, keep in mind your skills, experience, and knowledge while exploring these business options.

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