Most Demanding & Profitable Agriculture Business Ideas in India

Agriculture is the backbone of India’s economy because it covers a large section of lands in rural areas. It is the most demanding sector these days which contribute more to India’s economic growth. There are several things included in agriculture sector that allow people to generate more profits. However, they also face certain challenges that affect the growth levels. On the other hand, agricultural industries provide opportunities for earning more money in various ways.

It is estimated that India’s agriculture sector accounts only for around 14 percent of the country’s economy but for 42 percent of total employment. As around 55 percent of India’s arable land depends on precipitation, the amount of rainfall during the monsoon season is very important for economic activity.

Market Size

During 2019-20* crop year, food grain production was estimated to reach a record 295.67 million tonnes (MT). In 2020-21, Government of India is targeting food grain production of 298 MT.

Production of horticulture crops in India was estimated at a record 320.48 million metric tonnes (MMT) in FY20 as per second advance estimates. India has the largest livestock population of around 535.78 million, which translates to around 31 per cent of the world population. Milk production in the country is expected to increase to 208 MT in FY21 from 198 MT in FY20, registering a growth of 10 per cent y-o-y.

Sugar production in India reached 26.46 MT between October 2019 and May 2020 sugar season according to Indian Sugar Mills Association (ISMA).

India is among the 15 leading exporters of agricultural products in the world. Agricultural export from India reached US$ 38.54 billion in FY19 and US$ 28.93 billion in FY20 (till January 2020).

The organic food segment in India is expected to grow at a CAGR of 10 per cent during 2015-25 and is estimated to reach Rs 75,000 crore (US$ 10.73 billion) by 2025 from Rs 2,700 crore (US$ 386.32 million) in 2015.

Here are some demanding & profitable agriculture business ideas one can try with low investments:

1. Mushroom farming

Mushroom farming is a profitable business idea because it takes only little space and expenses. As the demands for mushroom in increasing in different sectors, cultivating the same will result in more advantages. Anyone who wants to know more about mushroom farming can get ideas from experts or other sources that can help achieve goals.

2. Soybean cultivation

Soybean is the most used food item in India and cultivating the crop is one of the best ideas that can help generate more profits. In fact, there are different types of products made from soybean. Some of them include soymilk, soy sauce, and soyflour that are very healthy to children and others. Those who have a vacant land can try soybean cultivation that can help earn more profits.

3. Fruit and vegetable cultivation

It is possible to cultivate fruit and vegetable in empty spaces with ease. People who live in apartments can try this idea on upstairs and other vacant areas which ultimately give ways to earn more revenues. Furthermore, they can export fruit and vegetables to other places where the demand is high.

4. Cultivation of medicinal herbs

The medicinal herbs are gaining popularity over recent years and cultivating them doesn’t require more space. Apart from that, one can even export them to other countries that allow a person to earn high revenues.

5. Spices processing

The demand for species is increasing all over the world because they contain medical properties that enable a person to focus more on his/her health objectives. One can cultivate species and process the same in simple steps that can help sell them in the markets at high rates.

6. Maize or corn farming

Corn or maize farming is one of the greatest ideas for earning more profits because it is easy to cultivate in a land. At the same time, it requires more protection from birds and other problems to avoid damages.

Handbooks and Technology Books on Agri Businesses:

Hand Book Of Mushroom Cultivation, Processing And Packaging [Buy Now]

Agro Based Plantation Cultivation & Farming Hand Book [Buy Now]

Technology Of Soybean Products With Formulae – Hand Book [Buy Now]

Technology Of Spices And Seasoning Of Spices With Formulae [Buy Now]

BANKABLE PROJECT REPORT

Before you start any industry, you need to get project report prepared. Readers who do not know about project report, let me explain – A Project Report is a document which provides details on the overall picture of the proposed business. The project report gives an account of the project proposal to ascertain the prospects of the proposed plan/activity. 

Project Report is a written document relating to any investment. It contains data on the basis of which the project has been appraised and found feasible. It consists of information on economic, technical, financial, managerial and production aspects. It enables the entrepreneur to know the inputs and helps him to obtain loans from banks or financial Institutions. 

The project report contains detailed information about Land and buildings required, Manufacturing Capacity per annum, Manufacturing Process, Machinery & equipment along with their prices and specifications, Requirements of raw materials, Requirements of Power & Water, Manpower needs, Marketing Cost of the project, production, financial analyses and economic viability of the project. 

Below are few mandatory details you should include in your project report:

1. Present Market Position and Expected Future Demand,
2. Market Size,
3. Statistics,
4. Trends,
5. SWOT Analysis and
6. Forecasts.

 Report provides a comprehensive analysis from industry covering detailed reporting and evaluates the position of the industry by providing insights to the SWOT analysis of the industry. 

Report should include:

1. Plant Capacity,
2. requirement of Land & Building,
3. Plant & Machinery,
4. Flow Sheet Diagram,
5. Raw Materials detail with suppliers list,
6. Total Capital Investment along with detailed calculation on Rate of Return,
7. Break-Even Analysis and
8. Profitability Analysis.

 The report should also provides a bird’s eye view of the global industry with details on projected market size and then progresses to evaluate the industry in detail. I hope this help, please keep me posted if you have any query related to industry startup or need any suggestions.