NOTES – E&Y Report

 Oil seeds are more than 50% exports


 Madhya Pradesh has the largest area under organic certification (4.62 lakh ha)
followed by, Maharashtra (1.98 lakh ha) Rajasthan (1.55 lakh ha), Telangana (1.04
lakh ha), Odisha (0.96 lakh ha), Karnataka (0.94 lakh ha), Gujarat (0.77 lakh ha) and
Sikkim (0.76 lakh ha). These states had a combined share of 90% of the area under
organic certification in 2015-16.


  TRENDS : INDIA

1. Size of mkt USD530 mil with 17perc growth in

2015.
2. Rise of online marketing channels
3. Rise in organic food restaurants and cafes
4. Inc awareness
5. Inc investment in organic food companies.
6. More retail space for org food companies
7. Introduction of new product categories

GOVT SCHEMES
National Mission for Sustainable Agriculture (NMSA), Mission for Integrated Development of
Horticulture (MIDH),
National Food Security Mission (NFSM) and Rashtriya Krishi Vikas Yojana (RKVY).

CHALLENGES

PRODUCER LEVEL
1. Certification issues :
2. Certification standards
3. Lack of market for pre-certification
4. Lack of standardization for different commodities. (Standardization of organic coconut
is different from that of value added product of coconut.)
5. Lack of incentive for farmers. High input and low yield in initial years.
6. Lack of standardized organic input and subsidy on organic inputs.
7. Lack of research on organic farming and extension.
PROCESSOR LEVEL:
1. Supply chain issues: Collection, transport and storage of organic produce is high. Lack
of infra in hilly regions where there is extremely high potential for organic farming.
2. Global Competitiveness: Difference between intl quality stds and indian standards.
 3. Lack of branding and packaging :

CONSUMER LEVEL:
Lack of awareness, availability and cost. Plus fakes also crowd the market which reduces
legitimacy

Regulatory Framework

APEDA: APEDA was established under the Agricultural and Processed Food Products Export Development
Authority Act. Its main functions include promoting the export-oriented production and development of scheduled
products (including fruits, vegetables, cereals and rice), fixing of standards and specifications for the scheduled
products for the purpose of exports.

NPOP : Since 2001, the Government has been promoting organic farming through third-party certification under
NPOP. NPOP is implemented by APEDA to meet the stringent standards for exports.

The scope of NPOP includes:

1. Policymaking for development and certification of organic products as notified by the Department of
Commerce from time to time
2. Creating national standards for organic products and Processes
3. Accreditation of certification programs to be operated by certification bodies
4. Certification of organic products.
Large-scale farmers or small size landholder growers groups (minimum of 25 and maximum of 500 farmers who
possess land in the same geographical area) can apply for organic certification of their produce.

( http://iird.org.in/ )
Participatory Guarantee System-India (PGS-India): The development of PGS in India began in 2006. It was
only in 2015 that it was officially recognized. PGS-India is a process based certification wherein a group certifies
that its members are growing food organically. This certification process has been made free for the farmers,
ensuring that they do not have to bear any cost other than a nominal cost as set by the farmer community.
Currently, PGS-India is implemented by the National Centre of Organic Farming (NCOF) under the
National Project on Organic Farming (NPOF).
Produce from farms that are being converted to organic carries the PGS-India Green logo during the transition
period, and after three years of not using any chemicals the farm will be eligible for the PGS-India Organic symbol.

PGS-India controls the quality system through internal QMS

through Farmer Grower Group Certification (GGC) instead of
a certifying agency. The role of GGC is as follows:
1 Act as an internal quality control system for small farmer
group and cooperatives40
2 Producers who share common products are organized
under one management and marketing system
3 Collective marketing of the organic products,
4 Centralized processing, marketing, and distribution
system,
5 Internal control and supervision system to ensure
compliance with organic certification.

US and EU do not accept PGS yet. 100 countries willing to trade PGS products. PGS has a lack of market (as per
Sanjeevni Agro Food)
Organic food that is marketed through direct sales by the small original producer or producer organization is
exempted from the provisions (of certification from NPOP,PGS-India, other equivalent authorities.)

Organic food imports under bilateral or multilateral agreements on the basis of the equivalence of standards
between NPOP and the organic standards of the exporting countries shall not be required to re-certify on import.

GOVERNMENT INITIATIVES

The Government of India is promoting organic farming through its two national level flagship programs NPOP and
NPOF. These are the growth engines for organic farming in India. Under the NPOF, organic farmers in the country
are provided with the assistance of 25%-35% of the total cost of the project. However, a limit of INR4 million-INR6
million has been set up for the establishment of production units for bioinputs such as bio-fertilizers and bio-
pesticides.
In addition to NPOP and NCOF, several other schemes/ programs have been taken to boost organic farming.
Major schemes that promote organic farming are as follows:2728
1 NMSA
2 Paramapragat Krishi Vikas Yojana (PKVY)
3 Rashtriya Krishi Vikas Yojana (RKVY)
4 Mission for Integrated Development of Horticulture (MIDH)
5 National Mission on Oilseeds & Oil Palm (NMOOP)
6 Network Project on Organic Farming of Indian Council of
7 Agricultural Research (ICAR)
8 National Project on Management of Soil Health and Fertility
(NPMSH&F)

To facilitate organic farming, 11 state governments (Kerala, Karnataka, Andhra Pradesh, Sikkim, Mizoram, Nagaland,
Himachal Pradesh, Madhya Pradesh, Gujarat, Rajasthan and Odisha) have come out with their own State Organic
Farming Policies.
Opportunities and solutions for organic market growth

Value chain development can cut down costs and make organic markets
profitable.
This framework deals with the problems at each stage, namely:
1. Production
2. Harvesting and collection
3. Processing and packaging
4. Marketing distribution

PAGE 34 – 4V
EXPORT OPPORTUNITIES

The organic market grew at 11.4% (EU 12%). The highest growth was in France with a 22% growth. The per capita
consumer spending on organic products in Europe has been EUR41 (EU EUR61). The Swiss spend on organic food
(EUR274) was the highest globally. Denmark has the highest organic market share of 9.7 %.
Organic producers:

There are more than 2.7 million organic producers globally, with India having the
maximum share (835,00 farmers), followed by Uganda (210,352 farmers) and Mexico
(210,000 farmers). More than 84% of the producers are in Asia, Africa, and Latin
America. In terms of organic area cultivation, the highest area is in Oceania (27.3
million ha), Europe (13.5 million ha) and Latin America (7.1 million ha).
 ASSOCHAM
 Area Under Farming

 Market Share and Forecast

Number of growers are large but land size is small. Area under wild harvest is
witnessing a decline, while net sown area under organic is witnessing an increase.
Organic food grains and pulses dominated the market in 2014.
ORGANIC FOOD GRAIN & PULSES

In 2014, the market for organic pulses and food grains in India stood at USD100 million. Growth in
organic pulses and food grains market can be attributed to rising domestic consumption
coupled with increasing exports to Europe and North America.
INDIA ORGANIC PROCESSED FOOD MARKET OVERVIEW

Market share is going to increase due to rising working population.

Was 5% of exports by volume !
ORGANIC FRUITS AND VEGES

 In 2013, 75-80% of org produce in fruits was apple banana and

orange.
 Poor supply chain and preserving fruits and veges is tough.
 Continuous training to farmers is also needed.
ORGANIC DAIRY PRODUCTS

Lots of problems with this sector including getting organic fodder etc.
Indian cows are less yielding also.
OTHER ORGANIC FOOD PRODUCTS

Market for beverages and poultry products is expected to grow at a significant rate, other sub
segments such as meat and fish are forecast to witness a decline in market share due to low export
volumes and low domestic consumption.
INDIA ORGANIC FOOD SUPPLY CHAIN

Producer gains 10-15% margin on organic produce. Middleman earns 15-

20%.

Major issues : inconsistent supply, increased lead time, insufficient

production volumes, lack of proper warehousing.
Retail sales of organic food accounted for less than 2.5 % of the total
food sales (org + conventional) during 2012-2013. In spencers it was only
0.6% of food sales.

Major problems are unavailability of products – impacts revenue. Supply

chain issues have forced ITC to exit organic spices market.
EXPORT – IMPORT DYNAMICS

In 2013-2014, exports accounted for share of 75% in total organic food

products produced in India with focus on North America and EU.
High margins with export esp organic oil seeds. The margins for org
food to Europe and North America is in 40%-100% range.

Middle east has very high potential for organic food exports.
POLICY
SWOT
FOOD PROCESSING
US : 90 perc food processing
India: 10 perc food processing – many schemes
FOOD PRODUCER COMPANIES

VAPCOL
 VANDANA SHIVA
Cropping patterns (2011 figs)
 ORGANIC FARMING PROSPECTS

 Include legume crop like beans, peas, cowpea etc. in the crop rotation not
only to improve the soil fertility by fixing atmospheric nitrogen but also
to increase the yield upto 30-35%. Inoculation of legume crop specific
rhizobial strains can further improve their N- fixing ability.
 Azotobacter and Azospirillum depicted a significant influence on
vegetable crops, resulting in nitrogen economy of 25-50% and increase in
yield from 1- 42 %. Similarly phosphorus solubilizers can also save in
general 40% phosphorus fertilizers and can enhance the crop yields from
4.7-51%.
Response of Vegetables to Organic Farming
Potato: The long-term field experiment for seven years at Jalandhar (Sharma
et al., 1988) revealed that FYM wasmore effective in increasing tuber yield than
green manuring with dhaincha. Grewal and Jaiswal (1990) reported that the
yield increase due to increased nutrients by increasing organic matter.

Tomato: Application of oil cakes of margosa, castor, and groundnut (@ 0.2%

W/W) is generally is found to reduce the intensity of root gall development.
Thamburaj (1994) found that organically grown plants were taller with more
number of branches. They yielded 28.18 t/ha, which was at par with the
recommended dose of FYM and NPK
(120:100:100 kg/ha).

Brinjal: Highest yield of brinjal was with 50 kg N/ha as poultry manure and
50 kg N/ha in the form of urea (Jose et al, 1988). By application of neem cake
higher yield was obtained in brinjal (Som et al., 1992).

Okra: Okra responded to poultry manure @ 20 kg N/ha (Abusaleha and

Shanmugavelu, 1989). There was increased in protein and mineral content of
okra crop by application of FYM as compared to commercial manures
(Bhadoria et al., 2002). Higher yield was also recorded by application of neem
cake (Raj and Geetha Kumari, 2001).

Cauliflower: Singh and Mishra (1975) obtained highest

returns of cauliflower by mulching with mango leaves.

Cabbage: Application of animal compost (cattle manures and chicken manure)

to mineral soil of cabbage crop was effective in reducing the leaching out of
mineral nutrients.
The total carbon content was increased with the application of compost
prepared with cattle manure.
 OCP FOUNDATION REPORT

KARNATAKA FARMERS MAHA SOCIETY STORY :

PREZ

Napier Grass : Grows on its own

Initial period of the organic farming when the transition phase we

must choose a crops that require less nitrogen less nitrogen
fertilizer or less nutrient adjust the crops.
 HORTICULTURE

Only 2 per cent of horticulture produce is processed, 0.4 per cent is

exported and 22 per cent is lost or get wasted in market chain.
Azotobacter

Azotobacter requires a large amount of organic carbon for its

growth
It improves seed germination and plant growth. It thrives even in
alkaline soils. But less effective in soils having poor organic
matter.
Seed inoculation with Azotobacter helps in saving nitrogenous
fertilizers by 15-20kg N/ha.
Increase in yield of cereals(15-30%), vegetables (2-45%) and cash
crops(10-20%) is recorded due to Azotobacter inoculation .