Best 10 Agriculture Stocks in India 2025

We’ve witnessed significant growth in India’s development because of rising agricultural activities. Nowadays, banks provide easy loans to farmers, making the best agriculture stocks in India a popular investing option. As the agriculture sector has been considered the backbone of the Indian economy, it provides investors with the experience to participate in the potential uptrend. 

Around 55% of India’s population considers agriculture their primary source of income. India is the largest cultivator of rice, cotton, wheat, pulses, milk, and spices. The government also supports small farmers with the PM KISAN Yojana and allocated 1.3% of the budget to this scheme in FY23-24. Because of such trends, investors will see a notable increase in the prices of the best agriculture stocks in India. 

What are Agriculture Stocks in India?

Agriculture sector stocks in India represent the shares or equities of companies engaged in activities such as farming, fertilisers, pesticide manufacturing, machinery, seed production, and more. Investing in these stocks provides exposure to the growth potential of the agriculture sector and the profitability of the companies. 

These stocks also come with market resilience to economic downturns and might diversify your portfolio. Thus, some investors already consider them to be the best options for building wealth in the long term. It is essential to conduct research on the best agriculture stocks in India and choose the best among them to generate higher returns. Keep scrolling through this piece of research to make informed investment decisions. 

Agriculture Stocks List With Price and Market Capitalisation

*Data is updated as of 2nd December 2024

Factors to Consider When Investing in Agriculture Stocks in India

Investing in the best agriculture stocks in India is good. However, one should consider several impacting factors to fix their ideal returns in the stock market. These factors include. 

1. Market Demand: Demand for farm products, along with the performance of the agricultural sector in India, becomes the key determining factor when one needs to choose the best agricultural stocks in India. Flattering market trends are bound to enhance the financial performances of farm companies doing farming, agribusiness, and associated activities. India is a major trading country for agricultural products. Thus, overseas demand for crops and other processed foods is likely to impact performance of agriculture sector stocks. 
2. Regulatory Frameworks: Legal authorities have bound the agriculture sector with several rules and regulations. These include The Essential Commodity Act, Farmers’ Produce Trade and Commerce Act, and more. Stay informed about such regulations imposed on the agriculture companies in India to assess the impact of all changes or amendments. It could help you analyse the impact of change in laws on the best agriculture stocks in India. 
3. Economic Indicators: To invest in fundamentally strong agriculture sector stocks in India, track economic indicators such as inflation rates, GDP growth, interest rates, and more that could impact your returns in the coming years. Monitor them closely and assess their impact on stock prices significantly to trade optimally. Agriculture stocks are resilient to economic slowdowns, but it is important to follow trends to generate higher returns. 
4. Weather Condition: Most agriculture activities and outputs depend on monsoon. Understand the weather pattern to have an idea about any uncertainty that could arise in the future. It is one of the significant factors every investor should consider before buying the best agriculture stocks in India.  
5. Government Initiatives: The Indian agriculture sector is backed by the immense support of the government. For example, PM KMY (Pradhan Mantri Kisan Maan Dhan Yojana) was launched as a voluntary pension scheme to assist small farmers in the country. This scheme provides a fixed monthly pension of ₹3,000 to farmers after the age of 60. Explore such initiatives and their impact on the company’s financial health to generate higher returns. 

Best Agriculture Stocks Based on 1-Year Returns

*Data is updated as of 2nd December 2024

Dividend Yield in Agriculture Sector Stocks in 2024

*Data is updated as of 2nd December 2024

Advantages of Investing in Agriculture Stocks 

The Best agriculture stocks in India are the compelling opportunity for investors to build their wealth. Let’s explore some of its advantages. 

• Stable Growth Potential: Agriculture stocks in India have been generally stable, making them the perfect investment even during economic slowdowns.
• Universal Economic Relevance: As a basic sector, the agriculture sector has been an integral part of any economy. This ensures its timelessness as an investment option for all.
• Diverse Growth Horizons: Agriculture sector stocks in India cover areas ranging from food production to industries like textiles, biofuels, and pharmaceuticals, thus providing ample options for growth.
• Cyclical Opportunities: Stocks in the agriculture sector can provide an opportunity to ride on cyclical trends and benefit from favourable market conditions.
• Sectoral Impact: Investing in agriculture stocks supports the growth of a sector that is vital for food security and global economic development.
• Long-Term Potential: Agriculture-related stocks are long-term in nature and support strategies seeking steady growth and wealth accumulation.

Risks Associated With Best Agriculture Stocks

Investing in agricultural stocks in India could build wealth but can also cause money loss. Several risks exist in the Indian stock market that could impact the investment journey. Let’s explore these risks and devise a strategy to minimise their impact. 

Note: Consider Univest, a trusted platform to eliminate the risks associated with investing in agriculture sector stocks in India. Try now to get exclusive deal offers on the premium version. 

Let’s Wrap

The agriculture sector has a crucial role in the economic development of India. Those looking to generate higher returns with steady growth opportunities and resilient investing options can consider the best agriculture stocks in India. Understanding the impacting factors, risks, and benefits of investing in such stocks is essential. You can also consult the best stock advisory platforms like Univest to make informed investment decisions. Download the app from the Play Store on Android or App Store on iOS to start with five free trades. 

FAQs On Best Agriculture Stocks

1. Which agriculture companies are listed on stock exchanges?

Ans. Here are the best agriculture companies listed on the NSE (National Stock Exchange).

• UPL Ltd. (NSE: UPL)
• BASF India Ltd. (NSE: BASF)
• Bombay Hybrid Seeds Ltd. (NSE: BSHSL)
• Kaveri Seed Company Ltd. (NSE: KSCL)
• Sumitomo Chemical India Ltd. (NSE: SUMICHEM)
• Chambal Fertilisers and Chemicals Ltd. (NSE: CHAMBLFERT)

2. Is it good to invest in agriculture stocks in India?

Ans. The agriculture sector is the backbone of the Indian economy, contributing around 1.9% to the GDP (Gross Domestic Product). With an impeccable growth potential and immense government support, it could double or triple your invested money in the coming years. You should also conduct your own research before investing in agriculture stocks in India.

3. How to invest in agriculture stocks?

Ans. Investing in agriculture stocks in India is quite easy. Just follow the steps mentioned below.

Step 1: Get registered with a broker and open a demat account. 

Step 2: Research the best agriculture stocks in India or use a stock advisory platform. 

Step 3: Select the quantity you wish to buy. 

Step 4: Place and execute a buy order to invest your invaluable money. 

Step 5: Track the stocks’ performance in the portfolio section and wait to exit in a timely manner to book profits. 

4. What are the top 10 agriculture stocks in India?

Here is the list of the top 10 agriculture stocks in India with their LTP (last traded price) and market capitalisation:

*Data is updated as of 2nd December 2024