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Agro Based Industries: Features, List, Types, Importance, Examples
Akansha Akshara
Updated on 27th June, 2024 , 5 min read
Agriculture is a major sector in India which has led to agro based industries. These industries have agricultural products in the raw or processed form as their main product. These products are either plant-based or animal-based and also includes activities as well as services used in agricultural processes. Agriculture sector is responsible for 17% of India's total GDP and employs around 60% workforce of India. These industries through employed workforce convert agricultural raw inputs into marketable processed products.
Agro Based Industries: List of India's agro based industries
The table below lists the agro based industries in India:
List of India's agro based industries | ||||
| Tea and Coffee | Dairy Industry | Poultry | Sugar Industry | Textile Industry |
| Pulses and Cereals Processing Industry | Edible Oils Industry | Biofuel Industry | Rubber Industry | Leather Industry |
| Vegetable and Fruit Processing Units (pickles, chips, jams, etc) | Palm Oil Industry | Rice Mills | Jute Industry | Paper Industry |
Types of Agro Based Industries
Agriculture and industry combine to form agro based industries. Though agriculture and industry are two sectors which are very different agro based industries bring these two sectors together to increase the profit rate of agricultural products. The types of agro based industries in India are as follows:
- Agro-produce processing units
- Agro inputs manufacturing units
- Agro produce manufacturing units
- Agro service centers
Agro-produce processing units
Agro-produce processing units are not manufacturing units instead they are processing units which process agro-based raw products preserving them for later use. Another focus of this type of industry is implementing ways in which agricultural raw material byproducts can be used for other things. A few examples of agro-produce processing units are Dal and Rice processing mills, exfoliating units for groundnuts and seed plants, etc.
Agro inputs manufacturing units
Agro-input manufacturing units are involved in producing goods that assist in agricultural productivity and agricultural mechanisation. Agro-inputs are those materials which are used for producing agricultural as well as related products either biological, chemical, or organic. The following are the agricultural inputs in India which are used in such units:
- In-organic fertilizers
- Seeds of various varieties and high-yield hybrid seeds
- Pesticides such as insecticides, fungicides, nematicides, and herbicides
- Animal & Poultry feed
- Manufacturing of Micronutrients and Plant Growth Regulators
- Manufacturing of agricultural equipment and machinery
Agro produce manufacturing units
These units focus on the manufacture of totally new products while using agricultural raw materials for primary raw materials. The final product and the original raw material are entirely different. The following are the main Indian agro-produce manufacturing units:
- Sugar factories
- Textile mills
- Paper mills
- Textile units
- Leather and rubber factories
Agro-Service Centers
Agro-service centers focus on the fixing and maintenance of farm equipment. It deals with agro or farm equipment like pump sets, tractors, diesel engines, etc.
Importance of Agro Based Industries in India
The rural-based economy of India is a reflection if its large population living in rural areas. India's rural economy is made by the combination of agricultural subsector and non-agricultural subsector. The agro based industries in India is important because of the following reasons:
- The agro-based industry impacts the traditional production as well as distribution patterns which are substituted by properly planned and synced linkages between the different parties in the supply chains.
- It also protects the farmers from being mistreated or exploited as it brings direct earning opportunities to them without involving any traders or middlemen.
- The eating habits of India population has changed with the development of middle class and rising preference in eating packaged and ready-to-eat foods, which demands for the development of agro based industries.
- It is crucial in the development of rural population of India by offering them direct employment possibilities which helps improve their economic condition. It also widens the scope for demand-based industries.
- The rising development of agro based industries also helps in improving rural infrastructure facilities.
- Processing agricultural products at the place of agricultural production, brings a decrease in transportation costs and costs of final goods.
Significant Agro Based Industries in India
The following are the major significant agro based industries in India:
- Textile Industry
- Sugar Industry
- Tea Industry
- Leather Goods Industry
- Vegetable Oil Industry
- Coffee Industry
Textile Industry
The textile industry is an agro based industry focusing on yarn, fabrics, and clothing. This industry is responsible for the manufacture, marketing, and distribution of these products. Woolen, cotton, synthetic, and jute textiles are some of the textiles which this industry produces. The textile industry is important for Indian economy as it is the second largest employer. It adds 7% to the total industrial output and 2% to the nation's GDP. The cotton textile sector is a boon to 5.8 million cotton farmers and 40-50 million people which are related to the activities of the cotton textile industry.
Sugar Industry
Secondary to textile industry, sugar industry is the largest agro based industry in India. It is an employer to 500,000 sugar mill workers and supports the livelihood of 50 million sugarcane farmers. India is the world's largest producer and consumer of sugar, and the second-largest exporter. The industry provides an annual output of approx. INR 80,000 crores along with 732 operational sugar factories. During 2021-2022 sugarcane season, India was able to produce 5000 LMT of sugar, and sugar exports reached an all-time high of 109.8 LMT.
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Frequently Asked Questions
What are agro based industries?
Agriculture is a major sector in India which has led to agro based industries. These industries have agricultural products in the raw or processed form as their main product. These products are either plant-based or animal-based and also includes activities as well as services used in agricultural processes. Agriculture sector is responsible for 17% of India's total GDP and employs around 60% workforce of India. These industries through employed workforce convert agricultural raw inputs into marketable processed products.
What are the types of agro based industries?
Agriculture and industry combine to form agro based industries. Though agriculture and industry are two sectors which are very different agro based industries bring these two sectors together to increase the profit rate of agricultural products. The types of agro based industries in India are Agro-produce processing units, Agro inputs manufacturing units, Agro produce manufacturing units, and Agro service centers.
What are the major agro based industries in India?
The major significant agro based industries in India are Textile Industry, Sugar Industry, Tea Industry, Leather Goods Industry, Vegetable Oil Industry, and Coffee Industry.