Agribusiness is a broad term that includes the production of food and fiber, the processing and distribution of those products, and their marketing. Agribusiness can be land-based or water-based, and it can be local or global in scope.
Agribusiness in India is growing rapidly as the country’s population increases, incomes rise, and demand for food increases. India’s agribusiness market is estimated to be worth $24 billion USD by 2025, making it one of the largest markets in the world.
In this article we will be discussing the scope of agribusiness in India in details.
Agribusiness management in India
The agricultural industry in India is huge and complex, with many different types of crops grown across the vast country. With such a large and important industry, it is essential that agribusinesses are managed effectively in order to produce enough food to meet the demands of the growing population.
There are a number of factors to consider while considering agribusiness management in India:
1. The type of crop you are growing
Each type of crop has different requirements in terms of climate, soil, water and nutrients. It is important to choose a crop that is well-suited to the conditions in your area. This is one of the most important things to consider while doing agribusiness management in India.
2. The size of your Agri farm
The size of your Agri farm will dictate the amount of land, labour and capital required. It is important to ensure you have enough resources to meet the needs of your chosen crop.
The smaller size of Agri farm is the reason why many smaller firms are not able to do well in terms of profit and revenue.
3. Your target market
Who are you selling your produce to? Will you sell direct to consumers or via wholesalers? What price point are you aiming for? It is important to understand your target market in order to make decisions about production and marketing.
4. Your business model
How will you generate revenue? Will you charge for products/services rendered, or will you receive payments from the government for environmental services provided (such as carbon sequestration)? There are many different ways to generate income from an agribusiness, so it is important to choose a model that suits your circumstances.
You need to have a very clear picture of your business model and have an efficient agribusiness management system in place to prosper.
Types of Agribusinesses in India
There are many different types of agribusinesses in India. In this section we will discuss a few of them.
1. Organic fertilizer production
This type of agribusiness typically involves the production of organic fertilizers from animal and plant waste products. These fertilizers are then sold to farmers for use on their crops. This is among the most well-known types of agribusinesses in India.
2. Dry flower business
This type of agribusiness revolves around the cultivation, processing and sale of dried flowers. These flowers are typically used for decoration purposes or for making herbal teas.
3. Mushroom farming
Mushroom farming is another popular type of agribusiness in India. Mushrooms are cultivated both for consumption as well as for export purposes.
Mushroom farming is the most booming among all other types of agribusinesses.
4. Poultry farming
Poultry farming is yet another important type of agribusiness in India. poultry farms typically rear chicken, ducks, geese, turkeys etc., which are then sold for meat or eggs.
5. Beekeeping
Beekeeping is another type of agribusiness that is gaining popularity in recent years. Bees are reared for their honey, which is then sold commercially. Additionally, beeswax and other bee products are also used in a variety of industries such as cosmetics and pharmaceuticals industry among others.
6. Dairy business
Dairy business is one of the most important agribusinesses in India. It is responsible for providing milk and milk products to millions of households across the country. The dairy sector has been growing at a rapid pace in recent years, due to increasing demand from urban consumers.
7. Tea plantations
Tea plantation is another major agribusiness in India. The country is one of the world’s largest producers and exporters of tea. Tea plantations are typically located in hilly regions with good rainfall and temperature conditions. The industry employs millions of workers, most of whom are women. The main challenge faced by tea growers is declining soil fertility due to heavy use of chemical fertilizers.
8. Fruits and vegetable exports
Fruit and vegetable export is another important agribusiness in India. The country is one of the world’s largest exporters of fruits and vegetables. The main exports include mangoes, bananas, oranges, grapes, and potatoes. The industry employs millions of workers, most of whom are small-scale farmers.
Major agriculture startups and agribusiness companies in India
There are quite a few agriculture startups and agribusiness companies that you could look up to for inspiration.
Here are a few of them:
1. Ninjacart
Ninjacart is a B2B agriculture startup that helps farmers and merchants with their fresh produce supply chain problems. The company was founded in June 2015 as a B2C hyperlocal food delivery business, but it has since pivoted to focus on the agricultural industry. To date, Ninjacart has raised $277 million from investors such as Tiger Global Management, Accel, Qualcomm Ventures, and Steadview Capital.
Ninjacart’s technology platform connects farmers with local merchants who need fresh produce. This connection enables farmers to sell their produce directly to merchants, without having to go through wholesalers or middlemen.
2. WayCool
Karthik Jayaraman and Sanjay Dasari founded WayCool in July 2015 as a B2B agritech platform. This is among those agriculture startups that enables farmers to sell their goods through numerous distribution channels. To date, WayCool has raised $60.8m in funding.
WayCool is based out of Chennai and operates in the southern states of Tamil Nadu, Karnataka, Andhra Pradesh and Telangana. The company has a network of over 10,000 farmers and 200 distributors. WayCool claims to have helped increase the incomes of its farmer-partners by 20-30%.
3. Godrej Agrovet
Godrej Agrovet Limited is among those agribusiness companies that specializes in the entire agricultural industry. It was founded in 1990 as a subsidiary of Godrej Corporation. The company has a strong presence in animal feed and poultry, and also operates a palm oil plantation. In recent years, Godrej Agrovet has been focused on developing quality green products.
Godrej Agrovet’s products are used by some of the largest agriculture companies in India. The company’s focus on quality has made it one of the top 10 agriculture manufacturers in the country.
4. Kaveri Seed Company Ltd.
Kaveri Seed Company is one of the leading agribusiness companies in the industry. The company has around 15,000 distributors and dealers throughout the country and offers hybrid seeds to farmers. With 883 employees, Kaveri is dedicated to investing in innovation and R&D to fulfill its brand promises. As India’s biggest seed producer, Kaveri is committed to helping Indian farmers grow healthy and bountiful crops.
5. JK Agri Genetics Ltd.
JK Agri Genetics Ltd. (JKAL) is among the leading agribusiness companiesin India that was established in 1989 in Hyderabad. JKAL is known for being a pioneer in India’s seed market and it is one of the top 10 agricultural firms in the country. The company specializes in developing, producing, processing, and marketing cotton, wheat, maize, corn, pearl millet, and other crops.
Conclusion
In conclusion, agribusiness is one of the most important industries in India. The country is one of the top producers and exporters of agricultural products in the world. This sector provides a lot of employment opportunities to people and also helps in improving their standard of living.