Are you searching for small-scale agriculture business ideas with small capital investment? If yes, you have landed at the right place.
The agricultural sector is essentially the backbone of the economy for most countries throughout the world. There are various agriculture subsidy schemes that one can avail of while running an agro-based business. With proper strategic planning, any individual having a basic knowledge of business operations can develop any of these below-mentioned agro-based business ideas into a profitable venture.
Let us first understand, what the agriculture business is all about.
What is Agriculture Business?
Agricultural business broadly covers the farming of crops and livestock. It also includes processes related to managing the production and marketing of agricultural yield.
The agriculture business revolves around productive resources like feed, seed, fertilizer, equipment, energy, pesticides, machinery, etc., and farming commodities like raw and processed commodities of food and fiber.
Is Agriculture Business Profitable?
In India, agriculture accounts for nearly 18% of the industrial GDP( growth domestic product). India is the 2nd largest producer of agriculture products. The country produces 7.68 percent of the total global agricultural output.
The technology and processes of farming have seen a sea change in the last few years. It has also opened up a lot many allied businesses like agriculture equipment, fertilizer distribution, etc.
List of 50 Agriculture Business Ideas
#1. Agri Clinic
The primary objective of an Agri-clinic business is to provide paid services for the enhancement of agriculture production and the income of farmers.
#2. Bakery
A bakery is one of the most profitable food processing business opportunities. Anyone can initiate this business by having owned or rented space. According to the demand and financial aspects, you will need to choose the specific products for your bakery business.
#3. Banana Wafer Making
Banana wafers are under-ripe bananas that are cut into slices dipped in syrup solution, dried in the sun or in an oven, fried, and eaten as snack food or dessert. Additionally, you can sell these items both in the local and export markets.
#4. Basket Weaving
Basket weaving can be a profitable business for people living in rural areas. Currently, with modern equipment baskets, weaving has become more profitable and it is a popular item in the urban market also.
#5. Cane Chair Manufacturing
Cane chairs are a luxury furniture item. The manufacturing operation is very much profitable. However, you must procure the raw materials on a regular basis. Therefore, you must establish the unit in a location where you can procure the required raw materials easily.
#6. Cashew Processing
Generally, cashew processing manufacturing activities include cell cooking, cutting, cashew kernel drying, peeling, grading, and packing. Additionally, you can initiate cashew nut processing as an export-oriented plant. The unit demands simple machinery.
This business is among the most popular agriculture business ideas at present and has good potential for the future.
#7. Potato Chips Production
Potato chips in various forms are one of the most popular ready-to-eat snacks now among the young crowd. It has also export potential. In addition, you can initiate the production of the potato chips as a small-scale unit also.
#8. Coconut Oil Production
Coconut oil is used as an important cooking medium. Apart from this coconut oil has various industrial applications. In addition, the manufacturers of toilet soaps, laundry soaps, surface active agents and detergents, hair tonics, hair oils, cosmetics, etc. are the major consumers of this product.
Choosing the right location is one of the most important factors in starting coconut oil manufacturing. However, you must select a location where you can procure the raw materials easily.
#9. Cold Chain For Fruits & Vegetables
Providing a cold chain solution is a popular business venture. A cold chain is a temperature-controlled supply chain. An unbroken cold chain is an uninterrupted series of storage and distribution activities. The cold chains maintain a given temperature range.
It helps to extend and ensure the shelf life of products such as fresh agricultural produce, seafood, frozen food, photographic film, chemicals, and pharmaceutical drugs.
#10. Dal Milling
Dal milling is actually the processing of different pulses. Subject to the availability of raw materials you can select different various products. Commonly two types of conventional processing methods are used. Such as wet milling and dry milling.
#11. Dried Flower Business
Growing flowers and selling those flowers after drying is one of the most profitable agriculture business ideas. You can start a dried flower business by sourcing flowers from flower growers also.
#12. Dry Fruit Production
Dried fruits are very popular around the globe. Thus, these products have an immense export opportunity. Additionally, you can initiate a dry fruit production business with low investment.
#13. Fish Hatchery
A fish hatchery is a place for artificial breeding, hatching, and rearing through the early life stages of animals, finfish, and shellfish in particular.
Hatcheries produce larval and juvenile fish (and shellfish and crustaceans) primarily to support the aquaculture industry where they are transferred to on-growing systems i.e. fish farms to reach harvest size. From the techno-commercial aspect, the fish hatchery is a profitable venture to start.
#14. Flour Milling
Basically, you can produce flour by milling food grains. Generally, a large number of different varieties types of food processing industries are the major consumers of flour. These are Wheat flour, brown flour, whole wheat flour, wholemeal flour, etc.
The Production process is simple. Additionally, you can initiate this business on a small-scale basis with simple machinery.
#15. Frozen Chicken Production
Frozen chicken is a hot product now. The demand for this product is increasing globally. An entrepreneur living in a metro or suburban city can start this business with proper planning.
#16. Fruit Bar Production
Fruit bars are a very popular food item throughout the world. Additionally, you can initiate a small-scale manufacturing unit with small startup capital. Also, the business is financially feasible.
#17. Fruit Juice Production
Fruit juice is one of the ready-to-serve items. Another popular product is squash. These are very popular throughout the year, especially in summer. Additionally, you can initiate the fruit juice production business with low capital. However, you must select the products according to the availability of raw materials.
#18. Ginger Garlic Paste Processing
Ginger and Garlic Paste is mainly used as a condiment in various food preparation and also serves as a carminative and gastric stimulant in many medicinal preparations. As instant mixes and spices are becoming more popular, the demand for ginger garlic paste is also increasing.
The Production process is simple. Additionally, the product has an immense market opportunity for export also.
#19. Ginger Oil Production
The main application of ginger oil is confectionery beverages and baked products. India is the largest producer of ginger. Ginger oil production is one of the most profitable food processing businesses that can be started as a small unit at the initial stage.
#20. Grapes Wine Production
Grape wine making is actually fermenting the grape juice. The major raw material required for the processing and making of grape wine is grapes. Grape wine making is capital intensive and it requires proper operational and marketing strategy.
#21. Groundnut Oil Production
Groundnut oil processing is one of the most profitable food processing businesses considering the required capital investment. Generally, you can obtain oil from groundnuts/peanuts that are very healthy and suitable for the best human consumption. This business has huge export potential.
#22. Vermicompost Production
Vermicompost production is one of the most profitable agriculture business ideas. Additionally, one can initiate the business even from his or her backyard. However, the easy procurement of raw material and proper promotion strategy is important to get success in this business.
#23. Honey Processing
Honey processing is actually removing wax and other foreign unwanted particles from honey. You can establish the processing unit in two ways. Either by a manual system or by electrically driven. The Production process is simple. Additionally, you can initiate the business from your own backyard too.
#24. Ice Cream Production
Any individual can initiate an ice cream-making business with low startup capital investment. Ice cream making is a wonderful small business idea that any individual can explore to make handsome money out of it. Basically, ice cream is a frozen blend of a sweetened cream mixture and air, with added flavorings.
Additionally, you can use a wide variety of ingredients in ice cream making. However, you must maintain the minimum amounts of milk fat, milk solids (protein + lactose + minerals), and air in ice cream making.
#25. Insecticide & Pesticide Formulation
In starting the insecticide formulation business, you must have the required licenses and permits to run. Basically, insecticide is an essential item in any type of crop farming.
#26. Jaggery
Selecting the right location is very important for a jaggery processing plant. However, you must establish the unit in a location where you can procure the sugarcane easily. Moreover, you must select the place where you can procure the raw materials with minimum transportation cost.
#27. Jam Jelly Production
Any individual can initiate a jam-jelly-making business with low capital investment. However, with proper planning and strategy, you can initiate a jam jelly-making business as home-based also. Allowances and grants from Government institutions are also available.
Generally, you can use most kinds of fruit and some vegetables to make a wide variety of jams and jelly. Fruit jam contains rich fruit pulp and is available in mango, apple, mixed fruit, pineapple, and orange flavors. Jelly is a clear, bright mixture. Basically, you can produce jelly from fruit juice, sugar, and sometimes pectin. Generally, people consume jelly and jam as a bread spread and as a filling for some cakes and cookies.
#28. Livestock Feed Production
Any individual can initiate a livestock feed production business with proper planning and know-how about the right mixing formula. Most livestock farmers are always searching for the right food and food supplementary products for their farms. Several different livestock feeds need to serve different requirements legitimately.
#29. Meat Processing
Meat processing technology comprises the steps and procedures in the manufacture of processed meat products. All processed meat products have been in one way or physically and/or chemically treated. However, commercial meat processing is a capital-intensive business. You must have the proper distribution and marketing strategy to make more profit.
#30. Microbrewery
Microbreweries produce a small amount of craft beer than large-scale corporate breweries. Generally, microbreweries operate independently owned. Additionally, the market for microbreweries is immensely developing. However, it demands different licenses and permissions in initiating a microbrewery business.
#31. Micro Irrigation System
Micro-irrigation technology is gradually emerging as demand-driven technology these days in the farming sector. It is more profitable for countries that receive less rainfall. Providing a micro-irrigation system is a profitable agriculture startup opportunity.
#32. Milk Chilling Plant
Chilling basically stunts the growth of bacteria converting the lactose or sugar in the milk into lactic acid, which curdles the proteins and causes soaring. However, you must process the milk within one/one-and-half hours of milking.
Because after this duration of time, the naturally occurring preservatives in the milk (including carbon dioxide) stop working. A milk chilling plant is a profitable venture to start. However, you must get enough milk to be chilled.
#33. Multi-Purpose Cold Storage
Cold storage is essential for extending the shelf life, period of marketing, avoiding glut, reducing transport bottlenecks during the peak period of production, and maintenance of the quality of the product. Therefore, the cold storage industry plays an important role to play in reducing the wastage of perishable commodities and thus providing remunerative prices to the growers.
#34. Onion Paste Processing
Onion is one of the important ingredients of curries used by almost all households in the world. Basically, onion paste is one of the items, that is manufactured and preserved having high market demand. Being the involvement of simple technology, any entrepreneur can establish this unit and be successful in the business.
#35. Organic Farm Green House
An organic farm greenhouse project business has a high potential to grow and succeed because steadily the demand for organically grown farm products has grown. Nowadays, more and more people are turning away from food products that are grown with fertilizers and other chemicals to organically grown food. Because of the awareness of the multiple health risks of foods grown with the chemical is growing rapidly.
#36. Palm Oil Production
The main raw material is palm fruits. Palm oil is used as edible oil. Apart from that, there is a demand for commercial industrial use. Palm oil processing is profitable and capital-intensive. All types of palm oil processing units differ in the level of mechanization of each unit operation and the interconnecting materials transfer mechanisms.
#37. Pesticide Formulation
By importing the technical pesticides, any individual can initiate a pesticide formulation unit with substantial capital investment. The demand is high and the margin is also lucrative in this business.
#38. Pickles Making
Pickles are the most popular item in the Indian recipe. Besides, the domestic market pickles have an export potential also.
#39. Potato Processing
Potato is an important cash crop globally. And India ranks as the world’s third-largest potato-producing nation. Apart from fresh consumption, there are several value-added potato products popular in the market.
#40. Rice Bran Oil Production
Rice bran oil is a premium edible oil with limited consumption in India. However, the production of rice bran is capital intensive business. However, you must focus on export to get much better profitability from the unit. This is a very popular agro-based business.
#41. Rice Mill
India is the second-largest producer of paddy in the world. Rice is the staple food of the majority population. The mini rice mill consists of a paddy cleaner, sheller, separator, and polisher. Mini rice mill is one of the most profitable food processing and agro-based business.
#42. Rope Manufacturing
India is the single largest jute producer in the world producing around 35% of world production and earns the highest foreign currency from jute. The demand for jute products is good and there is bright scope of jute yarn, jute ropes, etc.
#43. Seed Production
Seed processing is one of the most profitable agro-based business ideas to start with substantial capital investment. Proper raw material resources, marketing strategy, and attractive packaging are important in getting success in this business.
#44. Soybeans Processing
Any individual can initiate the soya chunk processing business on a small-scale basis. The major raw materials are soybean meals and peanut meals. The Soya chunk production process involves milling, mixing, extruding, and cutting.
#45. Spice Powder Processing
Spice grinding and packaging is one of the most profitable food processing businesses. Additionally, you can initiate the business on a small and medium scale. Spice is an essential item and is a tastemaker.
Apart from individual spice powders like chilly, cumin, and turmeric; special quality mixed spice powder processing is more profitable. Some of the most popular items are meat masala, curry powder, chat masala, etc. Spice processing is much popular among production-based agriculture business ideas in developing countries like India.
#46. Sunflower Oil Production
For sunflower oil processing, the main raw material is sunflower seed. Refined sunflower oil goes through the long way of purification which consists of the following stages: mechanical cleaning, hydration, neutralization, bleaching, freezing, deodorization, and nitriding. Sunflower oil processing is a capital-intensive and profitable agro-based business.
#47. Tomato Processing
Tomato is a widely available item and processed tomato products are also very popular. The most popular products are tomato sauce, puree, juice, ketchup, etc. In initiating tomato processing, you can also produce tomato pulp for other small-scale industries.
The production process is not complex. Generally, you need simple machinery and equipment for this unit. Therefore, tomato processing is among the most lucrative agriculture business ideas across the globe.
#48. Tutti Frutti Production
Tutti frutti is a concentrated processed food product. In addition, you can produce this item from raw papaya with attractive color, sugar, and preservative. It is also an essential item for several other food processing industries like cake, bakery bread, etc. Additionally, the product has also a very good retail opportunity and is a popular agro-based business idea.
#49. Weedicide Production
Weedicides are an essential consumable item in certain types of crop farming. Furthermore, botanical and chemical two types of weedicides are popular among farmers.
#50. Grow Cabbages
Cabbage is a popular winter crop. Cabbages can be grown on large scales or in your backyard too on a smaller scale. If you have vacant land, growing cabbages are among the most profitable agricultural business ideas.
We hope, this list of agriculture business ideas will inspire you in making a decision for initiating an agriculture startup operation with a small startup capital investment. Analyze and find a suitable agriculture business idea that fits you most as per your skills, experience, and knowledge.
Editorial Staff at NextWhatBusiness is a team of Business Consultants having years of experience in small and medium scale businesses.