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Agro-Based Industries in India

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Agro-based industries refer to those industries which use agricultural products as raw materials for manufacturing. Agro-based industries are mostly consumer-based, as the products manufactured with the help of these industries are sold directly to the customers.

In India, agro-based industries are made of the textile, sugar, newspaper, and vegetable oil industries. Agricultural products are used as the raw materials in these types of businesses.

Agro-based industries

Agro-based industries

Agro-based Industries

Agro-based industries are those businesses that apply rural things as crude materials. For example, cotton materials and jute enterprises are unit agro based mostly ventures. For example, sugar enterprises are visible sugarcane and cotton material ventures, and so forth. The most standard agro ventures incorporate the cotton trade grouping cotton-connected things like coats and garments.

Types of Agro-based Industries

In Agro-based industries, there are mainly four types: agro-produced processing units, agro-inputs manufacturing units, agro produce manufacturing units, and agro-service centers. They are explained below:

  1. Agro-Produce Processing Units: These industries are concerned with the processing of agro-based raw materials and preserving them for later use and are concerned with utilizing by-products for agricultural raw materials.
  2. Agro-Produce Manufacturing Units: This agro-based industry is used for manufacturing raw materials and the finished goods after the manufacturing process are completed are different from that of the used raw material.
  3. Agro Inputs Manufacturing Units: The products which are manufactured in this type of industry are used as inputs for the improvement of agricultural production.
  4. Agro Service Centers: These service centers are mostly concerned with the repair and servicing of all the farm-related equipment and are part of the agro-based industries as they deal specifically with agro equipment.

Examples of Agro Based Industry

Agro-based industries are of different types and operate in many ways. All the types of industries have the commonality that all use agricultural produce as raw materials. A few examples are listed below:

Type of IndustryExamples
Agro-Produce Processing UnitsDal and Rice processing mills
Agro Produce Manufacturing UnitsSugar factory, textile factory, and bakery
Agro Inputs Manufacturing UnitsFertilizers, pesticides, and tools
Agro Service Centers

Service as well as repair farming equipment

such as tractors, diesel engines, etc.

Agro-Based Industries in India

In India, many agro-based industries cater to the best manufactured and processed agricultural products for the final customer. Some of the prominent agro-based industries in India include the following:

Agriculture-Based Industries in India
Textile made of cottonVegetable Oil Industry
Textile made of silkThe textile industry made of jute
Textiles made of woolTea and Cotton Industry
Fibers made of synthetic materialsLeather Goods Industry

Agro-Based Industries in India- Overview

Roughly 18 percent of the GDP in India is provided by agro-based industries and according to a recent survey, about 42 percent of the population in India depends on agriculture for livelihood. Some important agro-based industries of the country are listed below:

Textile Manufacturing

Textile manufacturing plays a very important role in the economy of India and makes a significant contribution to the agro-based industries in India, for employment generation and foreign exchange. It provides for around 4 percent of the GDP of the country. The industry is self-sufficient and comprehensive throughout the value chain, from raw materials to the highest value-added products.

Cotton Textile

Cotton textiles from ancient times were made using hand spinning as well as handloom weaving techniques. Traditional cotton textiles hit a setback during colonial times as they were not able to compete with England’s mill-made textiles. At present, there are about 1600 cotton and human-made fiber textile factories in India.

The private sector accounts for over 80 percent of the total, while the public and cooperative sectors made up the remaining 20 percent. Many small agro-based industries are present in India with about four to ten looms each. Initially, cotton textile manufacturing was concentrated in Maharashtra and Gujarat cotton-growing belt.

Sugar Industry

India stands in second position worldwide for the production of sugar, but it is the largest producer of jaggery. The raw materials which are used in the sugar industry are heavy and their sucrose concentration tends to decrease during transportation.

Uttar Pradesh, Bihar, Mumbai, Andhra Pradesh, Punjab, Gujarat, Haryana, Madhya Pradesh, and Karnataka have over 460 sugar mills, and Uttar Pradesh along with Bihar accounts for 60 percent of all mills. Due to its seasonality, it is most suited as a cooperative venture. 

Jute Textile

India is the largest producer of raw jute and jute products worldwide and the second-largest exporter of jute after Bangladesh. Around 70 jute mills are present in India and the majority of these jute mills lie in West Bengal, mostly on the banks of the Hugli River.

Hugli is an important site for jute textiles because of several factors, which include proximity to jute-producing areas, low cost for water transportation which is backed by a decent connection of other means of transport like railways, roadways, and rivers and streams for facilitating raw material movement to the mills. The abundance of water required for raw jute processing and cheap labor from West Bengal and other neighboring states play a pivotal role. Kolkata also provides banking, insurance, and port services for the jute exports, which boosts its growth.

Indian Leather Industry

About 12.93 percent of the world’s hides and skins are produced by Indian Leather agro-based industries, derived from cattle, pelts, large animals, and small animals like sheep.

Kanpur is well known in India for the leather industry and is noted for high-quality goods production. A huge workforce is required which results in the generation of employment for many young and skilled people in the country.

Related Links

  1. Importance of Manufacturing Industries
  2. Industrial Location
  3. Mineral Based Industries
  4. Contribution of Industry to the National Economy
  5. Industrial Pollution and Environmental Degradation
  6. Control of Environmental Degradation

FAQs on Agro-Based Industries in India

Q1: What is the agro-based industry?


Agro-based industries refer to those industries which manufacture or process agricultural produces as that of raw materials and includes the process or manufacture of agricultural produce for the creation of valuable items which are later sold to customers.

Q2: What are agro-based industries examples?


Some important examples of agro-based industries are as follows:

  1. Textile industry
  2. Rice and Dal mills
  3. Leather goods industry

Q3: What are some features of agro-based industries?


Some features of agro-based industries are:

  1. They help in the reduction of disparity between rural and urban areas.
  2. They help in improving the standard of living.
  3. They are useful for decentralization and also dispersal of industries.

Q4: Which is the largest agro-based industry in the world?


The largest agro-based industry in the world is food processing businesses and the second-largest is the sugar processing industry.

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Last Updated : 17 Apr, 2023
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