The main occupation of the people of Udgir is agriculture. Udgir has farmers that make up the rural setting in most of the surrounding areas. The soil as a part of the Deccan plateau is black basalt soil, rich in hummus. The main crops cultivated here are whole grains, including jawar, bajra, and wheat. Crops like sorghum, mung, toor dal, urad gram, soybean, sugarcane, onions, and other green leafy vegetables are also cultivated. 

A dairy was established in the early 1980’s. It emerged as a major employment resource for rural Udgirkars. Due to gradually-lowered production, the dairy is at a standstill. It came under the state government-run project called Aarey which was institutionalized during the Operation Flood. Agriculture-based businesses like pulses (dal) industry, warehouses, cold storage, sugarcane factories also run in Udgir. Udgir has around 80 dal (mills) processing units. Udgir has a skimmed milk powder plant established in 1978 and has capacity processing 1 lakh litres of dairy milk per day. Its conversion capacity is 10 M.T. S.M.P. per day.