Agriculture is one of the evergreen sectors to start your business. In this Sector every time is the right time to start. Whatever be the situation, food consumption will never stop. Starting an agri-business requires good knowledge about the crops and sizeable investment too. However, there are various low to moderate agri-business ideas that you can start and make them profitable.
Here are our top 5 agri-business ideas:
1. Fruits and vegetables export
You don’t necessarily need to have your own farm to start this business. You can collect quality fruits and vegetables from local farmers and export them internationally. As per the APEDA, during 2019-20, India exported fruits and vegetables worth Rs. 9,182.88 crores which comprised of fruits worth Rs. 4,832.81 crores and vegetables worth Rs. 4,350.13 crores. India ranks second in fruits and vegetables production in the world, after China. India is the largest producer of ginger and okra among vegetables. It ranks second in production of potatoes, onions, cauliflowers, brinjals, cabbages, etc. Among fruits, the country ranks first in production of bananas, papayas and mangoes. To start this business, you need low investment and, know the export and import policies. You can find out more about that on the APEDA website. Having good knowledge about the local farmers and contacts will definitely give you a head-start in this business.
2. Fish farming
According to The Pioneer, Tilapia farming can be a multi-billion dollar business in India. India can be a world leader in the fisheries sector, as it is the biggest peninsula in the world. Even Finance Minister Nirmala Sitharaman in her budget 2020 said that the government plans to involve youth in fishery extension through 3477 Sagar Mitras and 500 Fish Farmer Producer Organisations (Fish FPOs). Also, the government has proposed to raise fishery exports to Rs 1 lakh crore by FY25. Contacting your local Fish FPOs is a great way to start this business. This business requires moderate investment but has the potential to give huge returns. You can also consider shrimp and prawn farming, the consumption of which has seen a huge rise globally.
3. Spice processing and export
India is the world’s largest producer, consumer and exporter of spices. It produces about 75 of the 109 varieties listed by the International Organization for Standardization (ISO) and accounts for nearly 50% global export market. Organic spices are in great demand locally as well as globally. During FY19, top 10 exported spices and spice products in terms of value were chili, mint products, spice oils & oleoresins, cumin, turmeric, pepper, curry powder/paste, cardamom seeds, other spices like tamarind, asafoetida, cassia, and garlic. You can find various resources online on how to start spice processing business with low investment.
4. Mushroom farming
Mushroom farming is one of the most profitable agri-business that you can start with. This is because it requires very less investment and small space to start. Button, paddy straw and oyster are three main types of mushrooms that you can cultivate in India. Mushrooms are in great demand in hotels, restaurants and household. The Directorate of Mushroom Research provides technical assistance for mushroom cultivation in India. It’s a good place to start if you’re looking at mushroom farming for business.
5. Production of organic manure and fertilizer
Organic farming is seeing a steady rise around the world as people are becoming more health conscious. Even India is seeing adoption of organic farming by not only the farmers but also people trying to make terrace garden at their homes . According to The Guardian, organic food can reduce pesticides by 70% in your body. Starting your organic farm can be a tedious and an expensive process, but vermicompost or other organic fertilizers has become a household business. It requires very little investment and basic knowledge of the procedure. It mostly requires vegetable and food waste to produce. You can find various resources online if you’re looking to produce vermicompost.
Internet of Things (IOT) and technology is also slowly finding its way in the Indian agriculture business. But this will require good technical knowledge and investment. Even though it is at a very nascent stage in India, but if done right, digital adoption by farmers will create a huge opportunity in this sector. Recently, agritech startup BigHaat raised $2 million from Japanese investor Beyond Next Venture. Another great idea for agri-business is Hydroponics and Aquaponics, but this will require sizeable investment and knowledge too.
Drop in your comments and let us know if you have more ideas in the agri-business space.