How To Start An Agriculture Business In India?

More than 60% of the population depends on agribusiness in India, and it has thrived during the pandemic. Agribusiness has a huge market considering the ever-growing population of India. No wonder why so many people are entering the agriculture business these days. It gives a high return on investments because it serves the whole population.

Although what makes it lucrative is, you can start this business with other complementary businesses without spending more on investments. For example, you can do organic farming and organic fertiliser production on the same land. You don’t need to spend extra money on basic investments.

Therefore, there is an increased demand in the industry for agribusiness. If you are wondering how to start an agriculture business, this is the right place for you. However, the process to start an agriculture business depends a lot on what type of business you want. So, let us understand the different types of agribusinesses.

Types of agriculture business

1. Herb, fruit, or vegetable farming and export

You can grow and sell fresh fruits and vegetables in the local market. There is a huge demand for organic fruits and vegetables.

You can also collect fruits and vegetables from local farmers and export them. It will require knowledge of legal formalities about the import-export business.

2. Organic gardening

You can grow organic vegetables on your terrace and sell them in the local market. This is a great business idea if you are low on budget.

3. Field crop farming

This is the good old farming business. It is a great option if you own land. You can grow a variety of fruits and vegetables.

4. Distribution of fertilisers

You can resell or produce your fertilisers. It is a good option for people living in rural areas.

5. Dairy farming

The dairy business is one of the most profitable agribusinesses in India. You will need guidance from dairy experts and good capital investment for this business. It also gives a high return on investment if done right.

6. Poultry farming

It has become one of the fastest-growing industries in the last decade. If you want to start a small business that will support your farming, this is a good idea.

7. Farming of medicinal herbs

This is a profitable business idea due to the increase in the demand for organic and natural food.

8. Grocery shopping portal

Most people prefer shopping online these days. You can start an e-commerce portal and start selling vegetables and groceries online. It will need capital investment.

9. Nursery

You can grow and sell plants. This business will need some time to earn profits because growing plants will take some time.

10. Organic vermicompost

This is a great idea for a side business along with your farming. People prefer eating organic vegetables. Hence, there is a demand for organic fertilisers in the market.

Although agribusiness is one of the most profitable businesses in India. These are some of the common agribusiness ideas.

The process to start an agriculture business depends on what type of business you want. You can start a business on a small scale with little investment or otherwise.

So it is advisable that you should decide the type of agribusiness that suits you and then follow the process mentioned below. The process is the same for all types of agribusinesses. It revolves around research, planning, and marketing.

Here is a step-by-step guide to starting an agriculture business in India.

How to Start an Agriculture Business in India?

Step 1: Market Research

Every successful business starts with proper market research. You must study the specific market you want to establish your business. It will help you make a good business plan.

You can consider these things in your market research:

• Does this market have the potential for your product or service?
• What is the future of this market?
• What are the problems faced by your customers?
• What are the problems faced by your competitors?
• Where do you see yourself in the market?
• What legal formalities do you need to get into the market?
• Where are you going to serve your products or services?

Always look out for relevant information from trusted sources. This analysis will help you with insights into the market, and you might also come across various new opportunities in the market.

Also Read: Dairy Companies in India

Step 2: Getting your Business Plan Ready

A good business plan is the starting point for any successful business. It is a document about your goals and action plans to achieve them. It includes your marketing, financial, and operational strategies.

Consider these points to create a successful business plan:

• What is going to be your USP (Unique Selling Proposition)?
• What are your strategies for marketing, finance, and operations?
• What is the startup cost of your business?
• How are you going to arrange the funds?
• Who is your target customer?
• How many employees do you need to hire?

Once you are ready with the business plan, you will be clear about where you stand in the market. However, remember that creating a business plan is not overnight work. You might have to improvise your plan several times.

The strategies and action plan will give you an idea about how much funds you need. We will discuss funds in the next step.

Step 3: Arranging the Funds

In this step, you will decide how you will arrange the capital. If you want to utilise your savings or you need a loan.

Agriculture is the backbone of our economy. It is one of the businesses to thrive even during the pandemic. So a lot of banks and micro-finance companies are ready to support this business. The government also offers some schemes to support the agriculture business. You can get more details in your nearest bank.

Step 4: Register your Business

Depending on what type of company you want, you can register it as:

• LLP - Limited Liability Partnership
• Proprietorship
• Partnership
• Private Limited
• Public Limited

The steps involved in registering your business are:

• Getting a Digital Signature Certificate (DSC)
• Getting a Director Identification Number (DIN)
• Registering yourself as a new user and incorporating your company

You can hire a legal firm or agency to get these things done for you. These agencies also help you get the licenses depending on the type of your business, or you can do it by visiting the Registrar office.

Step 5: Buying the Tools

Now that you have a business plan and funds ready, you can start executing your ideas. You can buy or rent out land, office space. You can invest in the tools and equipment required for your business.  

Step 6: Marketing your Products or Services

The next logical step is to make the marketing part. You have done your market research in the first step. So now you can use it to launch your products and services.

You can hire a marketing team with previous experience in the same field and knowledge about your business. It will help you focus on your business without worrying about the marketing part.

These are the steps to get started with an agriculture business. Like any other business, it involves research, strategies, plans, and execution. Although what makes any business successful is the strategic execution of plans.

We hope the article about “how to start an agriculture business” is helpful for you.

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FAQs

Q. Can women avail of agriculture loans in India?

Ans. Yes, the Government of India encourages women to avail of agriculture loans by offering special facilities.

Q. Why do I need an agriculture business loan?

Ans. You can utilise the loan to buy farming and irrigation equipment, to pay storage and warehousing expenses, marketing expenses, transportation costs, etc.