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Organic Farming Initiative And Market In India
The first “Scientific” approach to organic farming can be quoted back to the Vedas of the “Later Vedic Period, 1,000 BC to 600 BC. The “Vrkshayuweda” [ Science of Plants ], the “Krishisastra” [ Science of Agriculture ], and the “Mrgayurveda” [ Animal Science ] are the main works. The essence of these scriptures was to live in harmony with nature, rather than over-exploit it.
India Organic
To promote the organic agriculture in India, the government took some initiatives in 2000. The National Steering Committee under the Chairmanship of the Secretary, Commerce Ministry, outlined and approved the National Program for Organic Production [ NPOP ]. Under this program, the National Organic Standards have been evolved. It has also developed Criteria for Accreditation of Certification Agencies, Accreditation, and Procedure Inspection and Certification Procedures. In developing these standards and procedures due attention is paid to the guidelines as enumerated by international organizations such as International Federation for Organic Agricultural Movements [ IFOAM ], EU Regulations, and Codex Standards. As part of this program, a National Logo for organic products on behalf of Govt. of India has also been developed. APEDA [ Agricultural and Processed Food Products Export Development Authority ] is the nodal agency to promote the Indian Organic Agriculture and its Export Opportunities.
The Indian National Standards for Organic Production and India Organic Logo are governed by APEDA, which provides national standards for organic products through a National Accreditation Policy and Program.
- Aims Of The National Program For Organic Production Include
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- To provide the means of evaluation of certification programs for organic agriculture and products as per internationally approved criteria.
- To accredit certification programs.
- To facilitate certification of organic products in conformity to the National Standards for Organic Products.
- Encourage the development of organic farming and organic processing.
Other efforts towards the promotion of organic exports include attempts to collaborate with all the major organic importing countries. Towards this APEDA is deliberating with European Union for the inclusion of India in the list of third countries under Article 11 of the EU regulations No 2092/91 so that India’s National Program for Organic Production gets the required recognition under the EU regulations.
Facilitating Factors For Organic Farming
Organic farming provides economic opportunities for different stakeholders. Some of the drivers that facilitate the growth of organic agriculture in India are:
- Growing export market for organically produced crops.
- The price premium for organically produced agricultural products is from 10 to 100%.
- Diverse agro-climatic regions across the country that provides an environment for a wide range of crops can cater to market demands.
- Increasing awareness and health consciousness especially among certain sectors of domestic consumers.
- Availability of comparatively cheap labor for labor-intensive organic agriculture.
- Huge numbers of small farmers who do traditional farming with very limited capacity to pay for most of the chemical inputs.
- Presence of Non-Government Organizations [ NGOs ] as active promoters of Organic farming in different agro-climatic regions.
- Increasing involvement of private companies in the field of agricultural extension, trade, consultation, and allied services.
- Enhanced Government attention and support for organic agriculture through various policy initiations and action programs.
Constraints For Organic Farming
Organic farming provides a unique set of market opportunities in India. However, it is not growing at a pace to capitalize on its market attractiveness. The small and medium organic farmers face many constraints such as the lack of access to extension services, inputs, and financing.
- Constraints For Organic Development
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- Organic production is a learning process that requires adequate time to achieve its full potential.
- Institutions and incentives providing support to conventional agriculture [ i.e. research centers, input subsidies, trained extension personnel, etc. ] are not available for organics.
- Transaction costs for certifying products can be a distinct barrier for small producers. Standards for different markets are diverse and not harmonized. This increases the certification costs and also compliance more difficult.
- Local market demand is modest with low consumer awareness. The few established distributions or sales outlets are often not part of the mainstream.
Organic Market
Today, organic production and trade are emerging as an important sector in India. It is seen as an important opportunity for sustainable development as well as economic growth. We shall study the major organic products cultivated in India and their trade.
Major Organic Products From India
According to the FAO study of mid-2003, India had 1,426 certified organic farms producing approximately 14,000 tons of organic food annually. In 2005, as per Government of India figures, approximately 190,000 acres [ 77,000 hectares ] were under organic cultivation. The total production of organic food that year was 120,000 tons, though this largely included certified forest collections.
Major organic produces from India include plantation crops [ Tea and Coffee ]; Spices [ Cardamom, Ginger, Turmeric, Chilies, and Cumin ]; Cereals [ Wheat, Rice, Jowar, and Bajra ]; Pulses [ Pigeonpea, Chickpea, Green Gram, Red Gram, and Black Gram ]; Oilseeds [ Groundnut, Castor, Mustard, and Sesame ]; Fruits [ Banana, Sapota, Custard Apple, and Papaya ]; and Vegetables [ Tomato, Brinjal, and Leafy Vegetables ], besides Honey, Cotton, and Sugarcane [ Especially for Jaggery ]. Organic production of meat items like Poultry, Livestock, and Fisheries is yet to figure in India.
- Major Organic Farming Products
Commodity: Tea, Coffee, Rice, Wheat.
Spices: Cardamom, Black pepper, White pepper, Ginger, Turmeric, Vanilla, Mustard, Tamarind, Clove, Cinnamon, Nutmeg, Mace, Chilies, Vanilla extracts, Thyme, Oregano, Parsley, Garcinia.
Pulses: Red gram, Black gram, Pigeon pea, Chickpea, Green gram.
Fruits: Mango, Banana, Pineapple, Passion fruit, Orange, Cashew nut, Walnut, Custard apple, and Papaya.
Vegetables: Okra, Brinjal, Garlic, Onion, Tomato, Potato.
Oil Seeds: Sesame, Castor, Sunflower, Groundnut, Mustard.
Others: Cotton, Herbal extracts, Honey, Sugarcane.
Market For Organic Products
The domestic sales of certified organic products is around 1050 tons since recently. This accounts for 7.5% of total organic production. The market has not grown large so far due to a lack of marketing initiatives from key players [ Producers, Traders, NGOs, etc. ], the low awareness about organic products and higher prices.
However, there seems to be increasing health awareness among the literate population due to the presence of the pesticide in food. This is often dealt with in the media. The increasing awareness is expected to push up the demand for organic products in the coming years.
A number of domestic marketing initiatives have been launched. Some of them have registered positive success. A semi-government-operated cooperative initiative has organized the marketing of organic products in a number of outlets in the major cities. Some private marketing has begun to include organic products in their banding and distribution lines. Even in rural areas, numerous farmers’ groups and NGOs have started selling organic products.
Potential Customers For Organic Products In The Domestic Market
The domestic market for organic products is not well developed as the export market. Most organic production originates from small farmers. Wholesalers/traders account for a 60% share in the distribution of organic products. Large organized producers distribute their products through supermarkets as well as through self-owned stalls. Considering the profile of existing consumers of organic products, supermarkets and restaurants are the major marketing channels for organic products. Major consumers of organic products are in metropolitan cities like Mumbai, Delhi, Calcutta, Chennai, Bangalore, and Hyderabad. The health-conscious middle-class families are the majority to buy organic foods. Vegetables and fruits are the major organic products desired by Indian customers. NGOs play a very important role in promoting the market for organic products.
Awareness about the presence of organic products is quite low among the large majority of Indians. In metropolitan cities, only 25% of the consumers were aware of the good organic products. The purchase ratio of organic to conventional products is 1:10. The organic products currently being consumed are rice, wheat flour, pulses, vegetable, and fruits.
Products Comparative Advantage
A new trend is developing in India to produce some of the crops organically not only on account of the love for the protection of nature but also because of the need for having safe products for consumption. A good number of farmers produce different food crops by organic methods for their own consumption and also for sale in the local markets. Some of the agricultural products, that enjoy a comparative advantage for domestic as well as international markets, can be grown organically in major producing zones. They are given below:
- Products That Have A Comparative Advantage In Organic Market
1 – Tea:
Season: Throughout the year.
States: Assam, Kerala, WB, TN.
Major Location: Darjeeling, Ooty, Guwahati, Dehradun, Munnar.
2 – Species:
Season: Throughout the year.
States: Kerala, Tamil Nadu, Karnataka.
Major Location: Cochin, Coimbatore, Idukki, Coorg.
3 – Coffee:
Season: Throughout the year.
States: Kerala, Tamil Nadu, Karnataka.
Major Location: Coimbatore, Coorg, Wayanad, Peermade.
4 – Rice:
Season: Kharif And Rabi.
States: Punjab, Haryana, Uttar Pradesh, Kerala.
Major Location: Ambala, Patiala, Bhatinda, Faridkot, Wayouned.
5 – Wheat:
Season: Rabi.
States: Punjab, Haryana, Madhya Pradesh, Assam, Maharashtra, Tamil Nadu.
Major Location: Amritsar, Jalandhar, Darrang, Ratnagiri, Kanchipuram, Tiruvallur.
6 – Vegetables:
Season: Throughout the year.
States: All India.
Major Location: Various Locations.
7 – Fruits:
Season: Throughout the year.
States: All India.
Major Locations: Various Locations.
8 – Cotton:
Season: Kharif.
States: Maharashtra, Gujarat, Madhya Pradesh.
Major Locations: Akola, Amravati, Amreli, Kheda, Indore.
India is likely to grow more crops organically in the coming years for the export market. Accordingly, the area under organic cultivation for some of the export-oriented crops will go up soon. In addition, there will be increasing production for local consumption, as the domestic market in a growing economy can also absorb bigger quantities of organic products particularly, fruits and vegetables.
