Agro-Based Industry (1)

Agro-Based industry are the industries that have direct or indirect links with agriculture. It covers a variation of industrial, manufacturing, and handling activities based on agricultural raw materials as well as activities and services that go as efforts to agriculture.

Industries based on agricultural raw materials are known as Agro–based industries, such as sugar industries based on sugarcane and cotton textile industry, etc. The best-known agro-industries include cotton, manufacturing products like jackets and clothes. As per the Information on the website

Importance of Agro-Based Industry

Importance of Agro-Based Industry


Agricultural enterprises’ establishment is based on the availability of their raw materials. The importance of agribusiness includes the following:

Agricultural industries are established in rural areas where raw materials are readily available—improving the rural economy.

  • Provision of employment opportunities for the rural population.
  • Helps generate income and improve people’s economic conditions.
  • Solve the problems of exploitation of the farming community.
  • Increase agricultural production and improve the country’s economy.
  • It helps minimize the cost of finished products.
  • We are helping backward areas by creating agribusinesses.
  • Avoid migration of people from the countryside to the city.
  • Ayuda in the decentralization and dispersal of industries.
  • Reduce transportation costs.

The agro-based industry gives away poverty alleviation to rural farmers. Agribusiness contributes to an equitable distribution of industries and creates an environment for equal development in rural and urban areas. The changing eating habits of Indians can rationalize the growth of the agriculture-based sector with an increased demand for packaged and ready-to-eat foods. Agribusinesses create more excellent opportunities for industrial development and for integrating different economic sectors.

Brief about Agro-Based Industry in India

Brief about Agro-Based Industry in India

Industries that have agricultural produce as raw materials are known as Agro-based Industries in India. These are consumer-based industries. Cotton, jute, silk, woollen textiles, sugar, and edible oil are based on agricultural raw materials.

Processing Units for Agricultural Products

  • The aim is to process the raw material so it can be preserved and transported more cheaply.
  • No new product will be made. e.g., rice mills.

Production Units for Agricultural Products

  • Create entirely new products.
  • The finished products will be completely different from their original raw material.
  • Examples: sugar mills, bakeries, solvent extraction plants, textile mills, etc.

Agro-Input Production Units

  • Industrial units that produce goods for agricultural mechanization or to increase productivity belong to this type.
  • Examples: agricultural equipment, seed industry, pumps, fertilizer and pesticide plants, etc.

Agricultural Service Centers

  • They provide auxiliary and necessary services for the sectors.
  • Example- workshops and service centers dedicated to repairing and maintaining motor pump groups, diesel engines, tractors, and also all types of agricultural machinery.

Types of Agro-Based Industry

Types of Agro-Based Industry

As per the information on the website Agribusiness includes textiles, sugar, paper, and vegetable oil industries. Therefore these industries use agricultural products as raw materials. The textile industry is the primary industry in the organized sector. Textiles are an essential part of the industrial sector. It accounts for nearly a fifth of industrial production and also a third of export earnings.

Below are the primary agro-based industries in India.

  • Cotton Textiles
  • Woollen Textiles
  • Silk textiles
  • Synthetic fibers
  • Jute textile industries
  • Sugar Industries
  • Bamboo
  • Leather Goods
  • Coffee and Tea
  • Vegetable Oil
  • Dairy Products
  • Food Processing

All these agricultural industries are essential to the economy of our country. Because they employ a large part of our population and, at the same time, support our economy. The demand for these farms also determines the farmers’ profit rate. Although other factors play a role, the final crop depends entirely on industry demand once produced. As a result, agriculture and the farming sectors are interdependent for growth.

Features of Agro-Based Industries

Features of Agro-Based Industries

Agriculture is growing and expanding day by day. Along with technological advances, changes in climate and weather patterns paved the way for plants’ growth and also industries’ development.

Hence, agriculture-Based Industries As the name suggests, “Agro” refers to farming. Agroindustry’s are industries that use plants and agricultural products of animal origin as a source of raw materials. In addition, they increase the main features of farm products by processing them and producing goods that can be sold and used. India’s textile, sugar, vegetable oil, tea, coffee, and also leather goods sectors are some examples of countries with agricultural businesses.

Agricultural industries depend highly on agriculture for their raw materials and also other necessary products. Therefore, the connection or interdependence of agriculture and industry aims to increase the country’s growth, development, and income. Moreover, the creation of agricultural sectors contributes to the rapid production of farm products and creates jobs in the country with the establishment of the industry in the upcoming years.


Agricultural industries will be the growth engine for India in the coming decades. Agricultural journalism is growing to promote the dissemination of information and also encourage entrepreneurship. Hence, it is high time that the potential of farming industries was fully realize.