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IN TELANGANA
SUBMITTED BY
ETIKALA SAHITH
H.T.NO:2278-19-683-063
Assistant Professor
2019-24
1
DECLARATION
I ETIKALA SAHITH, bearing H.T No: 227819683063 hereby declare that, this project titled
“A STUDY ON CONSUMER BUYING BEHAVIOUR TOWARDS ORGANIC FOOD
IN TELANGANA” is an original work carried out by me, under the guidance of
Mr. BALA SRI PRASAD (Assistant Professor). The report submitted by me is a bonafide
work carried by me of my own effort and it has not to submit to any other university or
published any time before.
2
…………2023
CERTIFICATE
This is Certify that ETIKALA SAHITH Roll No: 227819683063 has completed a project
Titled “A STUDY ON CONSUMER BUYING BEHAVIOUR TOWARDS ORGANIC
FOOD IN TELANGANA” At 24 MANTRA towards partial fulfilment of requirements for
the award of INTEGRATED MBA, OSMANIA UNIVERSITY.
The project has not formed a basis for the award of any other Degree/Diploma by Osmania
University or any other University.
HOD PRINCIPAL
INTERNAL GUIDE
3
ACKNOWLEDGEMENT
This acknowledgement is a humble attempt to earnestly thank all those who are directly or
indirectly involved with my project and were of immense help to me. First of all, I would like
to express my sincere thanks to the Director of college Mr. MIR IRFAN UL HAQUE, Mrs.
BSN. DEVI, HoD, for giving me this opportunity to carry out the project. I acknowledge with
greatest courtesy the efforts taken by Mr. BALA SRI PRASAD, Assistant Professor my
internal guide, who took genuine interest in my project and helped me, understand the basic
concepts of the project when necessary.
I convey my regards and special thanks to Vishwa Vishwani School of Business. Finally, I
would like to thank my parents, family, friends, colleagues and God almighty for their
unending inspiration and encouragement.
ETIKALA SAHITH
HT.NO: 227819683063
4
Abstract
Organic or organically grown foods are commonly represented as food grown without
pesticides grown without artificial fertilizers grown in soil whose humus content is increased
by the additions of organic matter grown in soil whose mineral content is increased with
applications of natural mineral fertilizers has not been treated with preservatives, hormones,
antibiotics etc. The substitution of organic for chemical fertilizers during the growth of plants
produces no change in the nutritional or chemical properties of foods. All foods are made of
chemicals. Traces of pesticides have been reported to be present in about 20 to 30% of both
organic and conventional foods. These traces are usually within the official tolerance levels.
Such levels are set low enough to protect consumers adequately. Indeed, there is no record of a
single case of injury to a consumer resulting from the application of pesticides to food crops at
permitted levels.
Key words: Demographic factors, Organic food, Buyer’s behavior, Mineral content, etc.
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TABLE OF CONTENTS
CHAPTERS TOPIC PAGE
NO
INTRODUCTION 1–3
2 REVIEW OF LITERATURE 10 - 13
5.1 Findings 51 - 52
5.2 Suggestions 52 - 53
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5.3 Conclusion 54
Bibliography 55–56
Questionnaire 57–58
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LIST OF TABLES
7
4.11 Frequency Distribution Awareness on Organic Food 40
Products
8
LIST OF GRAPHS
9
4.11(a) Frequency Distribution 40
Awareness on Organic Food
Products
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OUTLINE OF THE PROJECT REPORT
Chapter I – Introduction: This chapter provides an overview on the food habits and changing
pattern among consumers. It also covers the areas of Organic food industry in India & its
evolution, Organic food regulatory bodies in India. Need & Significance of the study, Scope
for the study, Objectives of the study, Limitations of the study and Scheme of the study.
Chapter II – Review of Literature: it deals with the literatures reviewed under this study. It
highlights the importance of organic food products and lists out the factors influence the
consumers’ Behavior. Review of Literature is useful to identify the variables under the study
and helps the researcher develop the conceptual framework, establishing the relationship
among variables, identify the research gaps and preparing statement of the problem under the
study.
Chapter III – Industry and Company Profile: This chapter elaborates the industry and
company analysis related organic food products in Hyderabad city.
Chapter IV – Data Analysis and Interpretations: This chapter starts with analyze the
demographic profile of the consumers and factors influencing consumer buying Behavior like
Ethical Self-identity, Health consciousness, Food safety concern, Consumer attitude,
awareness, Intention to buy, Willingness to pay price and consumer satisfaction towards
Organic Food Products with special reference to Food Products and Millets are discussed.
Chapter V – Summary of Findings, Suggestions and Conclusion: The major findings of the
study along with the summary are given in this chapter. Further it suggests the important
factors influencing consumer to buy the organic food products. Finally, the report is concluded
with the conclusion and scope for further studies.
Bibliography
Annexure –I Questionnaire to Respondents
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CHAPTER – 1
INTRODUCTION
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Introduction
India’s organic food and beverage consumption has grown in recent years due to its advanced
demographic dividend, improved purchasing power and increased interest for the perceived
health and wellness benefits of certain organic products. In market year (MY) 2019, organic
food and beverage retail sales reached $69 million. It is estimated to further rise by 12 percent
to $77 million in Market Year 2020 (Report on organic food markets in India by USDA). In
recent times of COVID -19 pandemic situations, consumers are focused on Food quality and
safety. These are the two important factors for sustainable health (Das, S et al). Hence, it may
understand that consumers are not interested in conventionally grown foods because of its
immense adverse health effects due to the presence of higher pesticide residue, more nitrate,
heavy metals, hormones, antibiotic residue, and also genetically modified organisms.
Moreover, conventionally grown foods are less nutritious and contain lesser amounts of
protective antioxidants (APEDA). The awareness on the excessive pesticides and fertilizer
usage in the production of food products are influenced the consumers 11to change their
preference towards organic food products in India. These changes in the consumers’ perception
might result into increase the number of organic grocery stores and vegetable stores in the
major cities of India (Organicrooster.com). Organic farming protects the environment and has
a greater socio-economic impact. Twenty-first century consumers raised great interest for
healthy and tasty diet with high nutritional values and greater food safety. Environmental and
animal welfare and its future sustainability resulted into consumers’ consciousness towards
organic products (Mutlu, N.). The popularity of organically grown foods is increasing day by
day owing to their nutritional and health benefits. India is bestowed with indigenous skills and
potentiality for growth in organic agriculture (Sakthi Rama, V., &Venkat ram, R.).
ORGANIC FOOD – DEFINITIONS:
Organic food has been defined from many perspectives in many countries.
1. The National Organic Standards Board of the U.S. Department of Agriculture (USDA)
defines organic as follows:
“Organic food, defined by how it cannot be made rather than how it can be made, must be
produced without the use of sewer-sludge fertilizers, most synthetic fertilizers and
pesticides,genetic engineering (biotechnology), growth hormones, irradiation and antibiotics”
(Ahmad,2010)
2. A formal regulation under Council Regulation (E.C.) 2092/91 defines organic food as
follows:
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“Organic food production refrains from using synthetic chemicals like pesticides and
fertilizers” (Schiffer stein& Oude Ophism, 1998)
3. According to Segen's Medical Dictionary:
Organic food is defined as a category of food which, in the purest form, is grown without
chemical fertilizers or pesticides and sold to the consumer without adding preservative and
synthetic food enhancers.
A crop cultivated with specific guidelines that limit the use of petrochemical, radiation or
genetically engineered technologies in its agriculture.
4. According to the Department for Agriculture and Rural Affairs (DEFRA):
Organic food is the product of a farming system which avoids the use of man-made fertilizers;
pesticides; growth regulators and livestock feed additives. Irradiation and the use of genetically
modified organisms (GMOs) or products produced from or by GMOs are generally prohibited
by organic legislation.
5. According to International Federation of Organic Agriculture Movements (IFOAM):
Organic food is defined as the product, both fresh and processed, obtained or made according
to the standards of organic agriculture and organic agriculture is a production system that
sustains the health of soils, people and ecosystems, using organic pesticides and avoiding, for
instance, the use of antibiotics and growth hormones.
6. According to the USDA – National Organic Program (NOP):
Organic food is defined as a food produced by farmers who emphasize the use of renewable
resources and the conservation of soil and water to enhance environmental quality for future
generations. Organic food is produced without using most conventional pesticides; fertilizers
made with synthetic ingredients or sewage sludge; bioengineering or ionizing radiation.
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cultivation and green revolution yields high production in wheat and rice crops in India. The
green revolution within India led to an
increase in agricultural production especially in Haryana, Punjab and Uttar Pradesh. In Green
Revolution the use of high yielding variety seeds, tractors, irrigation facilities, pesticides and
fertilizers.
India started its exports in the early 90‘s by exporting tea to Europe and sets its first joint
venture with German organic food companies. At present a huge variety of nearly 300 products
are available in almost 20 product categories. Some of them are tea, fruit, corn, rice, vegetables
and spices to finished
products and also organic cotton. The total volume of export during 2019-20 was 6.389 lakh
MT. The organic food export realization was around ₹ 4,686 crore (689 million USD). Organic
products are exported to USA, European Union, Canada, Switzerland, Australia, Japan, Israel,
UAE, New Zealand, Vietnam etc.In terms of export value realization Processed foods
including soya meal(45.87%) lead among the products followed
by Oilseeds (13.25%), Plantation crop products such as Tea and Coffee(9.61%), Cereals and
millets (8.19%), Spices and condiments (5.20%), Dry fruits (4.98%),Sugar(3.91), Medicinal
plants(3.84%) and others(NATIONAL PROGRAMME FOR ORGANIC PRODUCTION
(NPOP)–HTTPS://APEDA.GOV.IN/APEDAWEBSITE/
In India, the market of organic products is growing, as the number of people willing to
consume organic food and their attitude towards organic food products have changed to a
greater extent
(Dash, M., Samantaray, A., & Dash, M) India undergoes a massive contradiction with regard
to organic food products. On one hand, it is rising as an important player in the global market,
particularly in Europe; on the other hand, the home market for organic food is still at infant
stage. After the COVID -19 pandemic scenario, consumers attitude and perception towards
buying organic food products has tremendously changed in India. In short, consumer attitude
and knowledge have become decisive factors in changing of preference and buying behavior
towards organic foods, which is expected to drive the growth in the organic food markets
further (Altarawneh, M).
landscape has included various national level schemes to encourage organic farming, initiating
new exports from the remote North East region, and improved market linkages of producer
clusters with agribusiness, phytochemical, organized retail and e-commerce firms.
A growing demographic of young, educated individuals that are increasingly concerned about
chemicals and pesticide residue in food products will further grow demand and domestic
consumption of organic products. Moreover, increasing buying power of the customers,
improving income level and living standard of people in India is gradually increasing the sales
of organic food products. Modern retail outlets like supermarkets, convenience stores, or
hypermarkets like Nature’s Basket, Foodhall, FabIndia, 24Seven, Star Bazaar, More, Organic
India etc. remain the most visible distribution channels for certified organic products, and the
retail industry has been providing increased shelf space for the organic category to fuel
demand.
Few Concepts related to Organic Food
Organic is away, a habit and a practice all rolled into one. It refers to a way of growing and
processing food. It is also about the reliance on an ecological system that sustains itself on rich
soil and proven traditional practices to grow crops and food that resists pests and diseases.
Organic also means, the farmers don’t use toxic, persistent pesticides, fertilizers which are
known to contaminate soil, air, water, and food. In fact,
organic farmers and farming involve practices of rotating crops, deploying beneficial insects,
using locally honed methods, adding composted manure and plant wastes to the soil.
Organic farmers are environmentally friendly. They choose solutions to the pests and disease
problems that affect their crops in a way that does not damage and destroy the planet. Their
wisdom is proven so are their practices.
CROP ROTATION
Seemingly simple, it rests on a sound understanding of the basics of biology and nature.
Organic farmers alternate the crops grown in each field, rather than growing the same crop year
after year (mono-cropping). They know that different plants contribute varying nutrients to the
soil. By rotating crops, they ensure the soil is naturally replenished. This time-honored practice
can eliminate the need for insecticides in many crops since the insect’s life cycle and habitat
are interrupted and destroyed.
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COVER CROPS
Organic farmers and entities like us are reiterating the importance of cover crops. These are
species that can protect the soil, add nutrients, prevent weed growth, aerate the soil with deep
root systems, and fertilize the soil by building organic matter when plowed under. Cover crops
conserve and trap moisture, they are a rich ground for microflora and fauna. Earthworms and
other beneficial soil organisms when they thrive in the soil, arrest the growth and prevent
problematic bacteria, fungi, nematodes, diseases, and insects from proliferating.
RELEASE BENEFICIAL INSECTS
Organic farmers utilize natural predators to control pests that destroy their crops, which
eliminate the need for chemical insecticides that remains in the soil for years.
COMPOST AND PLANT WASTES
If you have ever been to a farm, or a village you would see for yourself how the smart farmer
knows the use of compost and natural wastes. The continuous cycling of naturally occurring
materials helps the soil retain moisture and nutrients.
Organic is a healthy choice for farmers. One step forward to nurturing goodness and helping
the environment. Organic also means no use of chemicals in processing or dangerous food
preservation methods like irradiation. It works on the scientifically validated age-old natural
processing and preservation principles.
Better quality food, better planet, also means a better future for all of our children and us.
Right? Well, it is a complex process this organic farming and way but has several long-lasting
benefits for all of us.
Key benefits:
No pesticides or harmful chemicals
Better nutrition – rich in antioxidants
Better taste
Better ecology
Sustainable -better planet for our children
Safe food
No water contamination
Farmers – better lives
10 reasons to go organic:
1. Protect children and your family members from cancer-causing pesticides
2. Say goodbye to harmful chemicals in your diet
3. Get the taste of health and nutrition
4. Reduce health risks with Organic purity
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5. Eat foods adhering to international standards
6. Protect the earth as organic farming is planet-friendly
7. Prevent water contamination as there are no chemicals pollutants in organic farming
8. Gain from the diversity of crops which is becoming a thing of the past
9. Help small farmers and eliminate middlemen to create sustainable livelihoods
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1. How much degree of awareness, motives and frequency of buying by consumers on Organic
Food Products in Hyderabad city?
2. How much level of satisfaction on Organic Food Products to the consumers?
Thus, it is believed that this study will be of great help to the organic farmers, marketers,
marketing experts and research scholars in understanding the consumers’ awareness level,
knowledge towards organic products and their buying practices of organic food products.
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Primary Data:In this project, I have collected the primary data from the questionnaire.
Secondary Data: In this project, I have collected the secondary data from the text books,
articles, websites.
Statistical Tools used in the project:
Statistical tools help to analyze and interpret the data. The following are the statistical tools
used under the study.
1. Frequency Method
2. Descriptive Statistics – Mean, Standard Deviation
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Chapter –II
Review of Literature
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Factors influencing Consumer Buying Behaviour towards Organic Food
Products:
Aertsens, J., Verbeke, W., Mondelaers, K., & Van Hollenbeck, G. (2011) has critically
examined the “Personal determinants of organic food consumption: a review”. This paper aims
to provide an overview, within a framework linking Schwartz’ values theory and the theory of
planned behavior (TPB). Several studies concluded that health, which is linked with the value
security, is the strongest motive for purchasing organic food.
Ayub, A. H., Nik Muhammad Nazi man, Y. H., & Samat, M. F. (2012) explores the
research on “Factors influencing young consumers’ purchase intention of organic food
product” and identified three independent variables: health consciousness, environmental
consciousness and social influence is study is to determine factors that influence young
consumer’s purchase intention towards organic food product. Researcher also suggested future
researcher to focus on the health consciousness factor as a factor that influencing young
consumers’ purchase intention in buying organic food product. Form descriptive analysis, that
health consciousness as a most factor answered by respondents, but then this independent
variable at the end had been found as not supported as a factor in which this factor did not
show a significant relationship with dependent variable.
Basha, M. B., Mason, C., Shamsudin, M. F., Hussain, H. I., & Salem, M. A. (2013) in their
research title, “Factors influencing Indian consumers' actual buying behavior towards organic
food” focused on the motivating factors that influences the purchase of organic food, to
evaluate the subjective norms of the organic food consumers, to study the relationship between
environmental concern and attitude towards organic food products, to appraise the organic food
consumers’ attitude towards safety/trust for organic food products using quantitative research,
finally researcher suggested that the results of the study further show that the reasons
advocated by the consumers for buying organic food products are varied and primarily the
motivations behind their decision to purchase include concerns for environment, health concern
and lifestyle, food product quality and their subjective norms. Nowadays consumer behavior is
changing towards purchase of many environmental-friendly and organic products, due to
awareness of environmental degradation and the related issues.
Dumea, A. C. (2014) conducted research on “Factors influencing consumption of organic food
in Romania”, to study environmental issues, concern about the nutritional value of food and
health issues in Romania. Concludes that most respondents have a positive attitude towards
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organic food. People who have a greater concern for health and environment and people who
have a higher level of knowledge about organic food have a higher purchase frequency.
Hughner, R. S., McDonagh, P., Prothero, A., Shultz, C. J., & Stanton, J. (2015) conducted
research on “Who are organic food consumers? A compilation and review of why people
purchase organic food. Journal of Consumer Behavior”. This paper integrates and synthesizes
the findings of published research on organic food consumption. The key research areas she is
currently associated with are Sustainable Consumption, Organic Food Consumption, Families
& Consumption and Advertising to Children.
Krishna, R., & Balasubramanian, P. (2016) conducted research on “The significance of
factors influencing consumer behavior towards organic food products in Kochi” to study is to
analyze the purchase behavior, preferences and factors affecting the consumer’s purchase
intention towards organic food products, finally researcher suggested that Marketers needs to
bring out innovative strategies for retaining the customers and in turn convert them into loyal
customers. The perceptions of this research can be useful to the marketing managers to decide
on their market segments and thereby target the potential consumers. The current research
enlightens specific questions of how organic food can be made available in different retail store
formats, how it can be less expensive and make them an indispensable part consumers’ life.
Krishnakumar, B., & Niranjan, S. (2017) conducted research on “Consumers’ buying
behavior towards organic food products in Tamil Nadu”. The objective is to study conducted in
Tirupur district of Tamil Nadu state has investigated the consumers’ buying behavior towards
organic food products. Researcher collected data from 240 respondents (120 organic food
consumers and 120 non-organic food consumers). The study has used chi-square test and
multivariate analysis of variance (MANOVA) for analysis. The study has revealed that factors
like gender, family income, education and occupational status differentiate consumers of
organic and non-organic food products. Besides, psychological factors such as attitude,
perception, belief and intention have shown positive results for the organic food consumers of
Tirupur district.
Pandey, D., Kakkar, A., Farhan, M., & Khan, T. A. (2018) conducted research on “Factors
influencing organic foods purchase intention of Indian customers”. The study aims to discuss
the decisional factors responsible for the purchase intention of the organic food customers &to
check the relationship between key decisional factors and purchase intention of the customers
towards the organic food. Concludes that these days, people have started showing concern
towards health and consumption of organic food is helping them to do so.
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Singh, A., & Verma, P, (2019) conducted research on “Factors influencing Indian consumers'
actual buying behavior towards organic food products” to examine the mechanism behind
consumers' actual buying behavior towards organic food products, he conducted Theoretical
background and research hypotheses. To test the proposed hypotheses, empirical data has been
collected through a structured questionnaire. Finally, researcher found that the marketers of
organic food products to segmenting their market cautiously and frame their marketing
planning and strategy to convince these potential consumers about its benefits like healthy
contents, pesticide free, freshness and environmentally friendly.
Song, B. L., Safari, M., &Mansori, S. (2020) conducted a research on “The marketing stimuli
factors influencing consumers’ attitudes to purchase organic food”, identified Market stimuli
variable, demographic variables, to investigate the effect of product attributes, pricing,
availability, sales promotion and marketing communications on consumers’ attitude of organic
food and, to analyze the influence of consumers’ attitude towards actual purchase of organic
food, using CFA results, Percentage on demographic profile, compatibility testing using chi-
square, Chi/df, RMSEA, IFI, CFI and TLI. Researcher has determined a sample size of 430 for
this study to meet the requirement for SEM analysis. It can be concluded that three marketing
stimuli variables of product attributes, availability and sales promotion have significantly
influenced consumers’ attitudes of organic food. Additionally, consumers’ attitudes is
positively correlated to the actual purchase of organic food. In contrast, price and marketing
communications have no significant effect on consumers’ attitudes of organic food.
Yi, L. K. (2021) conducted research on “Consumer behavior towards organic food
consumption in Hong Kong: an empirical study”. Identified Demographic, attitude, health
conscious, environmental concerns. To investigate on the consumption of organic foods in
Hong Kong. Research on Conceptual frame work, hypothesis, exploratory and descriptive
researches, sample of 323 with 110 questionnaires. Concludes that Consumers aged between
36-45 shows high frequency in the consumption of organic products.
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Chapter – III
Industry and Company Profile
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3.1: Industry Profile
Organic Market Size and Trends
India became 30th largest market in Organic food and beverages by an estimated market size of
$77 million in world by it value for the market year 2020. The Government of India has
introduced multiple schemes to encourage the adoption of organic farming. These schemes are
useful to farmers, producers and consumers. Government of India, introduced schemes like
Paramparagat Krishi Vikas Yojana (PKVY), National Project on Organic Farming
(NPOF), National Mission for Sustainable Agriculture (NMSA), Rashtriya Krishi Vikas
Yojana (RKVY), National Food Security Mission (NFSM), National Horticulture Mission
(NHM) and Horticulture Mission for North East and Himalayan State which accelerate the
growth of organic market size in terms of production, revenue etc.,
Table No – 3.1:
Organic Products Consumption in India (USD million)1USD = Rs.73
CAGR
Category 2015 2016 2017 2018 2019 2020* (2017-
2020)
Organic packaged
food and beverages
38.6 46.3 54.6 61.6 69 77 12%
consumption
(Combined)
Organic packaged
6.7 7.8 9.2 10.2 11.1 11.8 9%
food consumption
Organic beverages
32 38.5 45.3 51.4 57.9 65.1 13%
consumption
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Depicts the Organic Products Consumption in India. The above table shows the organic
products consumption in India from 2017-2020 and it may understand that health and wellness
products
consumption is constantly increased YoY. Hence, there are lot opportunities for the organic
producers to maximize the production of these health & wellness products. Overall, Organic
beverages consumption is more as compared with the organic packed food consumptions in
India.
Reasons for Increase in Demand / Consumption of Organic Food Products in
India:
During the COVID 19 pandemic the demand for organic food went up as consumers perceived
them as being healthier and good for immunity. However, otherwise too, demand for organic
food is increasing at a continuous pace. According to an Expert Market Research report the
Indian organic food market stood at a value of USD 849.5 million in 2020. For the forecast
period of 2021 – 2026, the trend in the organic food market is expected to grow at a CAGR of
about 20.5% to reach about USD 2601 million by 2026.
Fitness, health and wellbeing: One of the main motives for the consumption of organic food is
that they do not contain harmful chemicals and pollutants. As some chemicals could lead to
cancer and other serious medical problems. Consumers are begun to realize that their energy
and fitness levels also increase when they consume organic food. Organic Food Consumptions
prevent the allergies to certain foods, chemicals or preservatives to people.
Harmful effects of pesticides: To increase crop production several man-made pesticides are
used and leading to the depletion of water tables and soil contamination. Organic farming is
eco-friendly and more sustainable since there is no soil and water contamination from use of
synthetic chemicals. Farming without the use of pesticides also provides a healthier life for
small animals and humans who live close to or work on the farms.
Use of antibiotics: Use of antibiotics on livestock is causing a poor immune response in
humans. Animals that are organically raised do not receive antibiotics, growth hormones and
are not fed any animal by-products. The animals are also given more space to move about
outdoors, which ensures better health for the animal.
Unsafe food and food safety: Worldwide organic food has gained popularity because they are
produced in an agricultural system that provides food that is free from toxic pesticides,
synthetic fertilizers and genetically modified organisms (GMOs). So organic products are seen
as being of high quality and are considered safer for both health and the environment.
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Moreover, the certification processes that organic food have to undergo, makes it clear that the
food has been grown and processed according to the standards required for certification.
Environmental protection: Organic farmers follow strict cultivation standards which has a
positive impact on soil, water and air. Natural farming methods also conserve biodiversity and
maintain the natural balance of the ecosystem. Organic agriculture helps the fight against global
warming as organically produced food is distributed locally and so less energy is used for
transportation which automatically reduces carbon dioxide emission.
Other advantages of organic foods: it may observe from various studies shows that increase
in the awareness about the benefits of organic food results into the demand for Organic Food
Production in a direct proportional. Besides this, other reasons for the demand of organic food
are that they
Organic Food Products have high nutritional value
Organic Food Products have high biological quality even when stored for longer periods of time
Organic Food Products are more suitable for processing and distribution due to their longer
shelf life.
Organic Food Products need less energy to be processed
Organic Food Products have higher organoleptic properties like color, fragrance and taste
contain no residues of pesticides, heavy metals or hormones.
Consumer spending on health:
In recent years, Indian consumers have started paying more attention to their health, the nutrient
content and quality of the food they eat. Due to these concerns, they have gradually begun
shifting towards organic food, even though organic foods are priced higher than conventional
foods. This awareness among consumers is further giving a boost to the organic market as
consumers are willing to pay for them if it is going to benefit their health and wellness. Also, in
places where consumers are aware about the safety and quality of organic products, the market
is growth is increasing, since consumers are willing to pay higher prices
Organic Food Regulatory bodies in India
The Government of India mandates the (NATIONAL PROGRAMME FOR ORGANIC
PRODUCTION (NPOP) Established in 2002. NPOP serves as the central system responsible
for organic agriculture regulations. These are based on the International Federation of
Organic Agriculture Movements (IFOAM) basic standards. The national organicProgramme
involves the accreditation Programmefor Certification Bodies, standards for organic production,
promotion of organic farming etc. TheNPOP standards for production and accreditation system
were recognized by European Commission and Switzerland for unprocessed plant products as
equivalent to their country standards. Similarly, USDA has recognized NPOP conformity
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assessment procedures of accreditation as equivalent to that of US. With these recognitions,
Indian organic products duly certified by the accredited certification bodies of India are
accepted by the importing countries. The NPOP falls under APEDA, located within the
Ministry of Commerce and Industry (GOI).
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ORGANIC CERTIFICATION AGENCIES IN INDIA:
Organic Certification: “Certified Organic” is a term given to food items delivered according
to a setoffstandard. Organic guidelines define a set of practices for production and handling
which must be taken after for the farmer’s products to be labeled and sold as “Organic”. While
a recent a product can be named “natural”, a governmentshould certifier by make inspection the
agriculturist farm where the food is cultivated to ensure the farmer is following all the rules and
regulations to satisfy the Government benchmarks for organically grown. Agencies that deal
with or prepare natural food before it goes to marketplace it should be certified. As portion of
complying with the benchmarks, a review path, or record.
Nationational Program for Organic Production (NPOP)
for export
Organic Certification is necessary to prove that farmers produce is
organic in nature. There are no tests to distinguish between organic
and non-organic food and hence a certification remains the only way
of proving that farmer’s produce is organic. In such a scenario, it is
necessary to know which agencies provide organic certifications. Certifying agencies play a
vital role for producer in facilitating ace of organic markets, especially on export level.
In India the certifying and inspecting agency are required to comply with ISO guide 65 and
should be actively involved in such works for a period of minimum one year to get
accreditation. The agency accredited by the National Accreditation Body with the National
Steering Committee (NSC). The categories of accreditation are organic agriculture production,
organic processing operations, forestry and organic animal production and processing. The
certifying and inspecting agency deal with inspection and certifying the yield as purely organic
on the basis of history of inputs used as well as their current usage in cultivation. When NPOP
came into force there were 11 certifying agencies which have grown to 32 in India at present.
The logo used under Indian organic certifications Programme will be called as “India Organic”.
A trademark – “India Organic” will be granted on the basis of compliance with the National
Standards of Organic Production (NOP). Only such exporters, manufacturers and processes
whose products are duly certified by the certifying agencies, will be granted the license to use
the logo which would be governed by a set of regulation. The Indian Organic logo is projected
below.
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Table No 3.1.2
LIST OF ACCREDITED CERTIFICATION BODIES UNDER NPOP
S. No Name of the Organic Certification Agencies under NPOP
1 Bureau Veritas (India) Pvt. Limited
2 ECOCERT India Pvt. Ltd
3 IMO Control Pvt. Ltd
4 Indian Organic Certification Agency (INDOCERT)
5 Lacon Quality Certification Pvt. Ltd
6 OneCert International Private Limited.
7 SGS India Pvt. Ltd.
8 CU Inspections India Pvt Ltd. (w.e.f. 19/12/2018)
9 Uttarakhand State Organic Certification Agency (USOCA)
10 APOF Organic Certification Agency (AOCA)
11 Rajasthan State Organic Certification Agency (RSOCA)
12 Vedic Organic Certification Agency
13 ISCOP (Indian Society for Certification of Organic Products)
14 TQ Cert Services Private Limited (formerly FoodCert India Private Limited)
15 Aditi Organic Certifications Pvt. Ltd
16 Chhattisgarh Certification Society, India (CGCERT)
17 Tamil Nadu Organic Certification Department (TNOCD)
18 Intertek India Pvt. Ltd.
19 Madhya Pradesh State Organic Certification Agency
20 Odisha State Organic Certification Agency (OSOCA)
21 Natural Organic Certification Agro Pvt. Ltd.
22 Fair Cert Certification Services Pvt.Ltd.
23 Gujarat Organic Products Certification Agency (GOPCA)
24 Uttar Pradesh State Organic Certification Agency
25 Karnataka State Organic Certification Agency
26 Sikkim State Organic Certification Agency (SSOCA)
27 Global Certification Society
28 GreenCertBiosolutions Pvt. Ltd
29 Telangana State Organic Certification Authority
30 Bihar State Seed and Organic Certification Agency (BSSOCA)
31 Reliable Organic Certification Organization
32 Bhumaatha Organic Certification Bureau (BOCB)
Source: https://apeda.gov.in/apedawebsite/organic/NPOP_certification_bodies.pdf
31
Participatory Guarantee System for India (PGS-India):
Participatory Guarantee System is locally focused quality assurance
systems, built on a foundation trust, social networks and knowledge
exchange. In the case of organic agriculture, Participatory Guarantee
System is a process in which people in similar situations (in this case
producers) assess, inspect and verify the production practices of each other
and collectively declare the entire holding of the group as organic. PGS –
India is facilitated by Ministry of Agriculture and Farmers Welfare, Govt.
of India through National Centre of Organic Farming (NCOF) as its
Secretariat.
32
The
The NGO sector in India is very strong and has established close link with large number
of marginal and small farmers. Many NGOs are engaged in promotion of organic
34 Role of Telangana State Government in Encouraging Organic Farming
33
v. To grant certificates and license for the use of certification mark under the Organic Production
Certification Mark Regulation Act, 2002 and as per the procedures prescribed by TSOCA.
vi. To carry out educational programmes to promote use of certified organic products including
publication of list of operators and provide such information to NAB (APEDA).
b. Introducing Soil Health Management scheme:
Apart from the establishment of TSOCA, Telangana state government is introducing soil health
management to encourage the farmers to adopt organic farming. This scheme helps the farmers
to test the soil and based on the results, some recommendations are given to improve soil
fertility and economic return to farmers. The main objective of this scheme is to improve soil
health through Sustainable Organic Farming. SHM will aim at promoting location as well as
crop specific sustainable soil health management including residue management, organic
farming practices by way of creating and linking soil fertility maps with macro- micro nutrient
management, appropriate land use based on land capability, judicious application of fertilizers
and minimizing the soil erosion (Agriculture Action Plan).
35
Why 24 Mantra?
FARM TO FORK - Buying 24 Mantra from Sresta means you are a votary of the healthy,
nutritious movement. Like our farmers and us, you have decided to keep the planet in a
sustainable state. Reduce the harmful chemicals and pesticides, keep the air and water clean
and of course, keep the soil alive.
From our end, we are monitoring the organic methods and assuring from seed to kitchen, every
detail is given the attention it deserves. Actually, our practices stem from our values and beliefs
– adhering to organic integrity, earning your trust, and creating a sustainable platform for our
farmer friends.
UNIQUE PRACTICES - Detail, care, authenticity and traceability a Sresta promise.
We are basically farmers. We know how it is to be on an Indian farm- the challenges, weather,
soil, and all the related practices. Our goal is to cultivate the land, the way nature loves it.
Without pesticides, fertilizers
are mandatory for us. Organic being a way and a well-practiced and detailed one at that
demands we adhere to the principles of natural balance. Crops are grown the natural way,
pests, weeds and more are attended to with natural homegrown solutions. Our farmers nurture a
soil rich in organisms. In fact, our practices and partnering with them work towards keeping
the soil alive and in a balance. Composting, pest control, is through natural farm resources. Our
farmers and we know the climate and cycles of nature. Wherever needed and whenever sought,
we provide guidance from the planet to the crop, rotation of crops and processes of harvest and
storage.
Our role is to ensure that organic practices are done systematically and consistently.
Over the years, we have perfected the micromanagement of all the relevant aspects. From
the farm to your fork, it is organic all the way.
36
FARMER CARE
Farmers are our foundation. On them rests our organic journey. Therefore, understanding the
farmer, creating processes that protect their interest, and encouraging them to be part of the
organic way is something we have accomplished over the last few years.
Having found the ideal farmer, our next step is to ensure they are productively engaged. We
encourage them to collectivize and educate them on an ongoing basis. With credit indebtedness
for cultivation totally absent in organic farming, we adhere to the highest levels of ethics and
transparency. The farmers enjoy the reassurance of a minimum profitable price or a market
price + premium whichever is higher. Protected from the vagaries of the market, they are also
saved the burden of being cheated while weighing (we have electronic balances) and
deductions are an exception.
24 MANTRA PRODUCTS:
37
Chapter – 4
Data Analysis and Interpretation
38
1. Frequency Distribution of the respondents – Gender wise
Table – 4.1 Frequency Distribution of the respondents – Gender wise
INTERPRETATION:
From the above table and diagram, it is observed that 59are male and 41 are female
respondents under the study.
39
2.Frequency Distribution of respondents – Age wise
Table No – 4.2 Frequency Distribution of respondents – Age wise
45
40
35
30 <20 (43)
25 21-30 (25)
20 31-40 (17)
15 >40 (15)
10
0
Respondents
INTERPRETATION:
From the above table and diagram, it is observed that <20 years are 43, 21-30 years are 25,
31-40 years are 17, 31-40 years are 17, >40 years are 15 under the study.
40
3.Frequency Distribution of Respondents – Marital Status
Table No – 4.3 Frequency Distribution of Respondents – Marital Status
50
40
Un married (43)
30 Married (54)
Divorced (2)
20 Widowed (1)
10
0
No of Respondents
INTERPRETATION:
From the above table and diagram,Majority of the respondents 54 are married and 43 are unmarried
and 2 are the divorced. A very less proportion of the sample respondents 1 are widowed under the
study.
41
4.Frequency Distribution of Respondents-Family Structure
Graph No-4.4 Frequency Distribution of Respondents-Family Structure
70
60
50
40 Joint (32)
Nucleus (68)
30
20
10
0
No ofRespondents
INTERPRETATION:
The majority of respondents fall under nucleus family structure i.e., small family with 4
members. Overall, 68 of them have nucleus family structure and 32 are joint family under the
study.
42
5.Frequency distribution of Educational Qualifications
Chart No – 4.5: Frequency distribution of Educational Qualifications
80
70
60
20
10
0
No of Respondents
INTERPRETATION:
From the above table and diagram,Overall, 81 of them have Degree and above educational
qualification,9 of them have Intermediate Qualification, 5 0f them have up to ssc, 5 of them have ssc
under the study.
43
6.Frequency distribution of Occupation of the respondents
Table No – 4.6 Frequency distribution of Occupation of the respondents
Occupation No of Respondents
Pvt Employee 49
Self-Employee 19
Business 12
Govt Employee 8
House Wife 7
Student 5
Total 100
Source: Primary Data
50
0
No of respondents
INTERPRETATION:
From the table and diagram, majority of the respondents are working as Private Employee 49
and 19are self – employee, 12 are Business, Government Employee are 8, House wife’s are 7
and Students are 5 under the study.
44
7.Frequency distribution of– Income the respondent’s level the respondents wise
Table 4.7: Frequency distribution of– Income the respondent’s level the respondents wise
No of
Income Level P.M (in Rs)
Respondents
10001-20000 30
20001-40000 25
40001-60000 25
above 60000 20
Total 100
Source: Primary Data
Graph No – 4.7(a): Frequency distribution of– Income the respondent’s level the respondents wise
35
30
25
20 1001-20000 (30)
20001-40000 (25)
15 40001-60000 (25)
above 60000 (20)
10
0
No of Respondents
Interpretation:
From the table and diagram, it is may he observe that majority of the respondent’s 30 income
falls under Rs. 10, 001- Rs. 20, 000 and 25 of the respondent’s income level falls under Rs.
20,001 – Rs. 40, 000 and 25 of the respondent’s income level falls underand 20 of the
respondent’s income level falls underabove Rs. 60, 000under the study.
45
8.Frequency distribution of the respondents- Residential area wise
Table No – 4.8 Frequency distribution of the respondents- Residential area wise
North Hyderabad 27
South Hyderabad 31
East Hyderabad 30
West Hyderabad 12
Total 100
Source: Primary Data
30
25
0
No of Respondents
INTERPRETATION:
From the table and diagram, majority of the respondents 31 of them belongs South Hyderabad
and 30 of them belongs in East Hyderabad and 27 of the respondents are belongs at North
Hyderabad and 12 of them belongs in West Hyderabadunder the study.
46
9.Frequency distribution of Food Habits of the respondents
Table No – 4.9 Frequency distribution of Food Habits of the respondents
70
60
50
20
10
0
No of Respondents
INTERPRETATION:
From the table and diagram, 73 of them comes under both veg & non – vegetarian category.
Only 27 of them comes under vegetarian under the study.
47
10.Frequency distribution of No of Earners in Family
Table No – 4.10 Frequency distribution of No of Earners in Family
35
30
25
Only one (33)
20 Two Members (37)
Three Members (20)
15
Above Three Members (10)
10
0
No of Respondents
INTERPRETATION:
From the table and diagram, it may observe that 33 states only one member is earning in the
family, two members earning families are 37 compared to other categories. 20 families earn 3
members and above 3 members earning in the familyunder the study.
48
11.Frequency distribution Awareness on Organic Food Products
Table No – 4.11 Frequency distribution Awareness on Organic Food Products
Awareness No of Respondents
Yes 84
No 16
Total 100
80
70
60
50
Yes (84)
40
No (16)
30
20
10
0
No of Respondents
INTERPRETATION:
From table and diagram, it is observed that 84 are Yes and 16 are No respondents under the
study.
49
13.Frequency Distribution of Source of Information to know Organic Food Products
Table No – 4.13 Frequency Distribution of Source of Information to know Organic Food
Products
Source of
Information No of Respondents Percent
Own Interest 40 40
Family Members 29 29
Through Internet 16 16
Doctor Suggestion 3 3
Advertisement 8 8
Magazines 3 3
Through this
1 1
Questionnaire
20
Through Internet (16)
10
No of Respondents
Interpretation:
From table and diagram, Majority of the respondents 40 are self-reliable & with their Own
Interest know the Organic Food Products. Through the Family Members 29, via Internet 16, by
Doctor Suggestions 3 and watching Advertisement 8 are the few sources of information to
know the Organic Food Products. Interestingly, 1 of the respondent’s states that through this
questionnaire to know the Organic Food Productsunder the study.
50
14.Frequency Distribution of Mode of Purchase by the consumers
Table No – 4.14 Frequency Distribution of Mode of Purchase by the consumers
Mode of Purchase No of Respondents
Online 23
Offline 45
Both 32
Total 100
Source: Primary Data
45
40
35
30
Online (23)
25
Ofline (45)
20
Both (32)
15
10
0
No of Respondents
Interpretation:
From the table and diagram, 45of the respondents buy the Organic Food Products Offline, 32
purchase both Online and Offline. 23 of the respondents buy Organic Food Products through
Online only under the study.
51
15.Decision Makers in Buying Organic Food Products in HH
Table No – 4.15 Decision Makers in Buying Organic Food Products in HH
Decision Maker in HH No of Respondents Percentage
I, Myself 49 49
My Partner 18 18
My Children 5 5
My Parents 26 26
Maid / Cook 2 2
100 100
49 49
26 26
18 18
5 2 5 2
No of Respondents Percent
INTERPRETATION:
From the table and diagram, the majority of the respondent’s 49 opted I, Myself,18 depending
on the partner’s decision to buy Organic Food Products, 5 opted my children, 26 stated that
buying decisions made by Parents, 2 of the respondents opted maid/cookunder the study.
52
16.Consumer Buying Behaviour towards Organic Food Products
Table No – 4.16 Frequency distribution of Actual consumer buying behavior towards
Organic Food Products
S. Statistical
Actual Buying Behavior SDA DA NS Agree SA Total
No Tool
I have been a regular buyer of Frequency 20 30 30 10 10 100
1
organic food products. Percent 20 30 30 10 10 100
I still buy organic food even Frequency 15 35 20 10 20 100
2 though conventional
Percent 15 35 20 10 20 100
alternatives are on sale.
I never mind paying premium Frequency 25 35 15 21 4 100
3
price for organic products Percent 25 35 15 21 4 100
I purchase Millets for Nutrition Frequency 40 30 15 10 5 100
4
and Health purpose Percent 40 30 15 10 5 100
I purchase Food Products for Frequency 20 40 15 15 10 100
5 Sustain Good Health and Taste
Percent 20 40 15 15 10 100
purpose.
I regular purchase different Frequency 20 35 15 10 20 100
6 quantity of Food Products to
Percent 20 35 15 10 20 100
consume in my diet.
I strongly believe that Organic Frequency 30 40 10 5 15 100
Food Products are Quality
7
Compare to Conventional Percent 30 40 10 5 15 100
Food Products.
I know the difference between Frequency 10 45 10 20 15 100
Organic grown Food Products
8
with conventional Food Percent 10 45 10 20 15 100
Products
I purchase the Organic Food Frequency 20 40 14 19 7 100
Products like Millets &Food
9
Products according to my Percent 20 40 14 19 7 100
budget allocation
53
Graph No – 4.16(a): Frequency distribution of Actual consumer buying behavior towards
Organic Food Products
INTERPRETATION:
Regular Buyer of Organic Food Products: 10% strongly agree and 10% agree that they are
regular buyer of Organic Food Products compared to another category.
Prefer Organic Food Products over Conventional Products: most of the respondent 10% of the
respondents opted that they prefer Organic Food Products over conventional products. A total
sample of 100 consumers is considered under this section.
Readiness to pay High Premium:4% of the consumers ready to pay high premium compared to
conventional Organic Food Products like Food Products.
Consumption of Organic Millets for Nutrition and Health purpose: 5% of the consumers buy
Organic Millets for nutrition and health purpose compared to other category of the consumers.
Consumption of Organic Food Products for Sustain Health and Taste: 15% agree and 10%
strongly agree that consumers purchase Organic Food Products for sustain health and taste.
Quality is high in Organic Food Products over Conventional Food Products: 5% strongly agree
and 15% agree to purchase Food Products over conventional products as better quality.
54
Distinguish the difference in Organic Food Products and Conventional Food Products: 20%
agree and 15% are strongly agreed that they know the difference between organic grown Food
Products with conventional Food Products.
Purchase Organic Food Products according to Budget Amount: 19% strongly agree and 7%
agree that the consumers purchase Organic Food Products according to their budget allocation.
55
Chapter – 5
Summaries of Findings and Suggestions, Conclusion
56
5.1Findings:
Gender: The present study confined to Hyderabad city and classified into 4 zones and final
sample size is determined as 997. Out of which, 59.2% are male and 40.8% are female
consumers.
Age (in Years): considering the age group of the respondents, 43.2% of them fall under <20
years. The study is conducted in the Hyderabad city and young population is very high in the
city. 25.4% of the respondents fall under the age group of 21-30. 17.5% of the sample
respondents are 31-40 age groups. Only 13.9% of the select respondent’s age group is above 40
years.
Marital Status: Majority of the respondents 53.7% is married and 43.3% are unmarried under
the study. A very less proportion of the sample respondents 0.7% are widowed. Total numbers
of the respondents are 997 under the study.
Family structure: table 4.4 shows that the majority of respondents fall under nucleus family
structure i.e., small family with 4 members. Overall, 62.1% of them have nucleus family
structure and 37.9% are joint family under the study. A total number of respondents select
under the study is 997.
Educational Qualification: the study is based on convenient random sampling. Considering
the Educational Qualification, 810 (81.2%) possess Degree and above educational
qualification. 90 (9%) of the select sample respondents have Intermediate Qualification.
Occupation: based on the data shown in table 4.6, majority of the respondents are working as
Private Employee 491 (49.2%) and 188 (18.9%) are self – employee, 128 (12.8%) are
Business, Government Employee are 76 (7.6%), House wife’s are 68 (6.5%) and Students are
46 (4.6%).
Monthly Income Level: the study revealsthat majority of the respondent’s 297 (29.8%)
income falls under Rs. 10, 001- Rs. 20, 000. 245 (24.6%) and 248 (24.9%) of the respondent’s
income level falls under Rs. 20,001 – Rs. 40, 000 and Rs. 40,001- Rs.60,000 respectively. 207
(20.8%) of the respondent’s income level is above Rs. 60, 000. Total sample size is confined to
997 under the study.
Residential Area: The study was conducted under Greater Hyderabad Municipal Corporation,
majority of the respondents 309 (31%) of them belongs South HYDERABAD and 302 (30%)
of
57
them residing in East HYDERABAD. 269 (27%) and 117 (11.7%) of the select respondents
are residing at North HYDERABAD and West HYDERABAD area respectively under the
study.
The study is based on Multi – Stage random sampling technique. Thus, area is divided into
four sub – areas in the present study.
Food Habits: the studyfinds that most of the respondent’s consume vegetarian and non –
vegetarian food. 724 (72.6%) of them comes under both veg & non – vegetarian category. Only
273 (27.4%) of them comes under vegetarian and the total sample size is 997.
No. of Earners in Family: table 4.10 shows that, majority of the respondent’s earners in the
family are 327 (32.8%) states only one member, two members earning families are 365(36.3%)
compared to other categories. 199 (20%) families earn 3 members and above 3 members
earning in the family are 106 (10.6%).
Consumer Awareness and Frequency of Purchase Organic Food Products
Consumer awareness on Organic food products is very high under the study and half of the
male and one third of the female respondents have awareness on Organic food products. The
study also found that, there is no significant difference in awareness on organic food products
between male and female.
Sources of Information about Organic food products, majority of the respondents are self-
interested and motivated to get awareness and knowledge.
Based on the CV Statistical methods, ranks are assigned to the reasons to buy organic food
products. Quality of food and environmentally friendly are the major reasons driven to
purchase the organic food products by the respondents under the study.
After identifying the reasons to buy organic food products, it is essential to know the mode and
place of purchase of organic food products. Majority of the respondents buy the organic food
products by offline and purchased from super markets.
Majority of the respondents buy organic food products occasionally and they are self-decision
makers.
58
5.2 Suggestions:
Consumers prefer to buy organic millets and pulses compared to other organic food products
like vegetables, fruits, dry fruits, honey and beverages. This creates an opportunity to different
stake
holders to encourage the consumers to buy different organic food products by offering various
sales promotion techniques.
Consumers are searching for Information about Organic Food Products through internet and
friends & family recommendations. It’s very important to organic producers and retailers to
enhance the communication and brand through different channels.
In this study, there is a need to increase the awareness on organic food products in Hyderabad
city.
59
5.3 Conclusion:
Today’s consumers’ life style is dynamic and changing rapidly time to time. Rising health
awareness, higher disposable income and increasing number of modern retail outlets across the
country are the major growth drivers for the organic food segment. Majority of the respondents
stated that Quality of foods and Environment friendly are the main reasons to buy organic food
products. Subsequently, it is observed that most of the consumers prefer to buy organic millets
and pulses. The study concludes by stating that Food safety concerns play a significant factor
in consumer buying behavior. It is observed that most of the consumers have exhibited high
degree of satisfaction towards the organic millets and pulses and are likely towards
recommending it to others. On the other side the sample populations hesitate to buy organic
food products due to reason such as low trust and non-availability of organic millets and
pulses. Majority of the respondents purchase Pulses for Sustain Good Health and Taste purpose
and interested to buy even though conventional alternatives are on sale. The study concludes
by stating that marketers and farmers of organic food educate and create the awareness to
consumers on organic food products.
60
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62
Appendix – I: Questionnaire
63
15. Who is responsible for doing food shopping in your household?
I, Myself My Partner (Husband / Wife)
the appropriate one by using a ✓ mark against the statement. The scale consists of 1-5, indicates
I strongly believe that Organic Millets and Pulses are Quality Compare
7
to Conventional Millets and Pulses.
I know the difference between Organic grown millets and pulses with
8
conventional millets and pulses
I purchase the organic food products like Millets & Pulses according to
9
my budget allocation
64