Investment Opportunities in Agriculture

Investment Opportunities in Agriculture


A Promising Crop in Rajasthan

The cultivation of Cotton in Rajasthan is going through major phase of transformation. The yield of cotton has improved significantly in the state. Further, with the advent of Bt. Technology in cotton, the cultivation has gained momentum. At present, cotton is grown in an area of 4.09 lakh ha which produces about 11.06 lakh bales annually with a productivity of 453 kg/ha. The existing area under Cotton in the state covers both Deshi & American Cotton.

Major cotton producing districts are - Sriganganagar, Hanumangarh, Bikaner, Banswara, Bhilwara, Ajmer, Pali, Alwar, Jodhpur, Jalore, Nagaur, Sirohi, Rajsamand & Chittorgarh. Major sourcing markets (mandis) include districts like Sriganganagar, Hanumangarh and Bikaner.

This transformation has opened the doors in areas such as establishing units across ginners, spinners and textile units exist in Rajasthan.This transformation has opened the doors in areas such as establishing units across ginners, spinners and textile units exist in Rajasthan.

A year wise detail of area, production and productivity of Cotton in Rajasthan is annexed.



Pressure Irrigation


Over the years, the state has aggressively promoted replacement of flood irrigation to water efficient irrigation techniques. Over the next five years, Rajasthan aims at bringing 30-40% of the irrigated area under pressure irrigation systems.

This presents a big opportunity for manufacturing and marketing of sprinkler and drip irrigation equipment.



Rajasthan holds the best solar insolation on earth with 6 to 7 kWh/m2/day, 325 sunny days a year. Taking this into cognizance, Rajasthan Government has initiated several solar energy programs to sustain irrigation energy requirements.

Over 20,000 Solar Power Pumps have already been installed in the state, and with the increasing farm automation opportunities, companies can explore installing new solar power pump sets or other alternate energy sources to power irrigation systems.

Under the Solar Power Pump Project, upto 75 percent subsidy on the base rate is being granted.

The state offers opportunity for setting up of Solar Pump manufacturing units to tap the vast market in and around Rajasthan.



The state aims at gradually eliminating dependence on human and animal power in farm activities. Small and marginal farmers are usually unable to own farm machinery on their own or through institutional credit. There exists opportunity for setting up of Custom Hiring Centres for farm machinery & implements across the state.



The state has the export potential for a variety of agro produce such as kinnow, mandarin, fresh vegetables, aonla & its products, honey & its products, garlic (whole & powder), spices seed, rose. oil, dry petals, gulkand, isabgol husk, senna & body grade henna.



The state is encouraging the use of modern farm machinery for increasing efficiency and saving time and labour. Machinery for:

  • Land Preparation
  • Moisture Conservation
  • Seed and fertilizer placement
  • Plant Protection
  • Harvesting
  • PHM Processing
  • Grading
  • Sorting
  • Polishing
  • Waxing
  • Packaging
  • Transportation logistics



Rajasthan possesses a large number of water bodies, which offer potential for development of capture and culture fisheries. With the productivity in reservoirs in the state at 24 kg/ ha higher than national average of 20 kg/ ha, significant opportunities exist in the state in the areas of fish cultivation, fish seed & fish feed production.



The state, through the Rajasthan Agricultural Produce Markets (Third Amendment) Act 2005, allows and encourages Contract Farming.

Immense potential lies in win-win partnerships in cultivation of malt barley, fruits, vegetables, medicinal and aromatic plants.

Organic Farming


Rajasthan with its vast tracts of naturally organic land, provides immense opportunities for organic farming. The government also provides subsidy to drive growth in organic farming. Dungarpur is being developed as an ‘organic district’.

Opportunities exist for companies engaged in developing & marketing organic crop varieties, and also for organic farm produce processing & exporting companies.


Oil Seeds

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Fruits & Vegetables

Seed Spices

Forest Produce




Ready-to-eat / Packaged food


Changing demographics of the state with growing urbanization, per capita incomes growing at a CAGR of 6.5% for the past 5 years and participation of women in the work force at 35% of total workforce as compared to 25% at India level as per Census 2011, is leading to the growth of ready-to-eat/ packaged food products. Taking cognizance of this trend, most large FMCG companies have established a distribution presence in Rajasthan.




  • Seed research and development units
  • Crop technology and agri chemicals
  • Irrigation technology
  • Organic farming inputs


  • Modern supply chains with cold storage and warehousing
  • Agri produce procurement centres
  • Agri waste procurement & recycling
  • Packaging facilities
  • Agri waste based power plants
  • Waxing plants, pack houses and cold chain for fruits & vegetables


  • Dairy products including cheese processing.
  • High quality livestock feed
  • Better generic breeds of livestock
  • Processing of camel and goat milk


  • Carpet manufacturing facilities
  • Wool-based industries.

Rajasthan offers immense potential of quality raw material (agri produce in the form of food grains, horticulture, dairy, etc.) processing and the government is actively promoting packaged food production by offering VAT/ CST subsidies to enterprises engaged in manufacturing and processing of agriculture/ horticulture/ animal products in the state, multiple opportunities exist in the manufacturing of ready-to-eat/ packaged food.

Marketing and Mandi facilitation

  • Waiver of market fee on fruits & vegetables
  • No market fee/ user charge on purchase of fruits & vegetables outside market yards
  • Contract Farming is allowed to ensure qualitative and sufficient produce to the processors/buyers
  • Special license may be issued for undertaking purchases throughout the state directly from the farmers by setting up of purchase centres in the mandi area
  • Direct purchase by the processors is allowed at the processing facility without going to the mandi yards
  • Establishment of private sub market yards by private sector – to improve the accessibility of mandi, private/cooperative sector is allowed to set up mandi yards after having licence for the same from Director, Agricultural Marketing.


Rajasthan is the leading producer of Wheat, Guar,
Maize & other food grains.