Any business, in order to succeed, should concentrate on and ensure the fulfillment of three essential factors:
- Investment of capital
- Ability to execute operations smartly
- Connecting with local, national, and International markets
In this post, we are listing the top 7 best agricultural business ideas in India.
Top 7 Best Agricultural Business Ideas in India
More than half of India’s population is directly dependent on agriculture. It is a lucrative earning option and provides one with several profitable ideas. Let us look at the top 7 best agri-business ideas in India.
• Organic farming
The organic farming business in India is economically sustainable and assures rich returns. Organic farms are profitable and environmentally friendly, as they use fewer chemicals, and the residue is comparatively less chemical-intensive. India has more than 15,000 certified organic farms. In the year gone by, the sector witnessed a growth of 35% in terms of exports. Currently, 0.65 million farmers practice organic farming over 0.72 million hectares of agricultural land in India. With a bit of hard work and understanding of the process, a farmer can earn a minimum of Rs.10 lakhs per annum.
• Distribution of Fertilizers
The fertilizer industry is a booming business in India. It is slowly but surely getting organized. Any individual can start the business of distributing fertilizers on a small, medium or large-scale. Small distributors typically operate within a district, and large distributors usually function in a state, or in some cases, in multiple states. The government primarily controls the fertilizer distribution business in India. This business requires low capital investment. The minimum period needed to break-even is five months, and one can expect to earn a gross profit ranging between 30-35%.
• Poultry Farming Business
Poultry farming is a highly profitable agri-business in India. It is not a seasonal industry but generates a good income throughout the year without investing too much labour and funds. If you have the required space and knowledge and can take good care of poultry, you can, on average, earn Rs.10 lakhs – Rs.12 lakhs per annum from selling poultry farm products.
• Mushroom Farming Business
Mushroom farming is one of the fastest-growing and profitable agri-businesses in India that you can start with low investment and less space. It can help you earn a fair amount of profit in a short period. Besides, starting your own business growing oyster mushrooms for profit is relatively easy. If we talk about profits, the mushroom farming business is growing at 12.9% worldwide. If you start growing it in less than 100 square feet, you can earn Rs.1 lakh – Rs.5 lakh per year. However, if you decide to undertake it on a large-scale, you can expect to earn anything between Rs.8 lakhs – Rs.12 lakhs per year.
• Fish Farming
Fish farming for commercial use has already established as a lucrative and profitable business venture in India. As we are all aware, fish is an excellent source of food and protein. Hence, the demand and price of fish and fish-related products are always on the higher side. On average, a fish farmer can earn Rs.1.75 lakhs per year by incurring an annual expenditure of just Rs.25,000.
• Exporting Organic Fruits and Vegetables
Exporting organic fruits and vegetables is a highly profit-generating venture because of the low overhead costs. There is a high demand for organic fruits and vegetables worldwide, so if you can sell them in large quantities by buying them from local farmers, you can make a lot of money in the form of commissions. Alternatively, you can also decide to grow them to make more profits. Besides, a study of 33 markets across India has revealed that fruit and vegetable retailers are selling them at 48.8% more than the wholesale prices.
• Medicinal Herbs Farming
Cultivation of medicinal herbs such as Shankhapushpi, Licorice, Bael, Isabgol, Atis, Guggal, Kerth, Aonla, Chandan, Senna, Baiberang, Long Pepper, Brahmi, Jatamansi, and Madhunashini, Kalmegh, Satavari, Ashwagandha, Chirata, Katki, Shankhpushpi, Ashoka, Giloe, kokum, Safed Musli, presents farmers with an excellent opportunity to earn high profits. A farmer engaged in the cultivation of medicinal herbs, with sufficient space and knowledge of marketing, can easily earn Rs.2 lakhs – Rs.3 lakhs per year.
Several agri-businesses in India provide you with the opportunity to earn handsome profits without spending too much on space and equipment. However, the critical element is to choose the right equipment based on your needs and budget. For example, if you need a tractor to help you perform small farming tasks, it would be a wise decision to spend on compact and sub-compact tractors, such as a Kubota tractor, a Mahindra tractor, or a Swaraj tractor, instead of wasting money on big, powerful, and expensive tractors.