Currently India has about 4.5 million hectares area under certified organic farms and the number is growing fast.
Private players including corporates irrespective of their market size are performing varied roles of producers, consolidators, processors, retailers and certification agents and employing innovative business models to succeed in this behalf, highlights an ASSOCHAM study on “Organic Products-The Way Ahead”.
“Private sector with facilitation from the government has played a pivotal role in driving organic movement in the country,” said Mr D S Rawat, secretary general of The Associated Chambers of Commerce and Industry of India (ASSOCHAM).
Organic farming can create millions of jobs in the agri sector as it can spur over 30 per cent of employment per hectare as against non-organic farming and this ratio can further increase if on-farm processing, value addition, packaging and direct marketing are considered, says an independent research of ASSOCHAM.
The global organic market currently stands at around 65 billion dollars and is growing at a robust annual rate of over 5 billion dollars.
Certified organic products including all varieties of food products namely basmati rice, pulses, honey, tea, spices, coffee, oil seeds, fruits, processed food, cereals, herbal medicines and their value added products are produced in India. Apart from edible sector organic cotton fiber, garments, cosmetics, functional food products, body care products etc. are also produced.
Although, organic farming is picking up pace in India but the sector has been jostling with lack of awareness, knowledge and confidence about organic farming, food products among both farmers and consumers.
ASSOCHAM suggests the government to promote training programs for farmers, producers and certification programs for agencies to enhance awareness about organic farming, food products and their health benefits.
Research and development is another significant area which requires serious attention and the same can be addressed by setting up research institutions aimed at improving different aspects of organic production across India, points out the study.
“Considering the questions being raised on quality of Chinese organic products, more emphasis must be laid on maintaining quality control while promoting exports of domestically produced organic products,” added Mr Rawat.
Besides, there is limited expertise in marketing of organic products and the chamber suggests that government should engage non-governmental organizations (NGOs) to establish close linkages with farmers and promote organic farming by providing training, extension services information and marketing services to farming communities.
Only educated and health conscious urban lot consumes organic food produced in the country as there is a price difference of about 30 per cent between organic and non-organic food.
ASSOCHAM has urged the ministry of agriculture to spread awareness about the benefits of organic farming to small farmers and bring down the certification costs for further growth and development of organic sector in the country.
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