Growing organic market beckons to India’s rural farmers

Indian farmers have started to reap dividends from their budding interest in organic farming. It wasn’t long back, around seven years ago, when Indian farmers started to go organic.

In 2006-07, around 4.32 lakh ha reported organic produce — a large portion came from wild and non-agricultural land — which has now reached around 11 lakh ha, as per the recent report ‘The World of Organic Agriculture, 2013’ by FiBL and IFOAM (Research Institute of Organic Agriculture and International Federation of Organic Agriculture Movements).

The current market for organic foods in India is pegged at Rs.2,500 crore, which according to ASSOCHAM, is expected to reach Rs.6,000 crore by 2015.

It’ll still leave us at 1% of the global market. Thus, a huge potential is seen in the nascent Indian organic sector.

“Apart from states like Sikkim or MP, we’re seeing a rising interest in Gujarat, Karnataka, Andhra Pradesh, UP and Bihar,” says Chandra.

India outnumbers every other country in terms of organic producers – with an estimated 5,47,591.

Organic products, which until now were mainly being exported, are now finding consumers in the domestic market.

“Even Tier II cities like Nagpur, Allahabad, Gorakhpur and Bhatinda show an increase in organic consumption,” says Sunil Kumar, AGM at Morarka Rural Research Foundation.

According to a survey of 1,000 consumers in ten cities done by Morarka Organic Foods, around 30% of Indian consumers preferred organic products and were even prepared to pay 10 to 20% more for them.

“Soil abused by chemical fertiliser excesses takes more time to produce comparable yields. Although, the cost of organic cultivation is much less, reducing cost incurred in purchasing costly inputs,” says Rohitashwa Ghakar, Project Head, International Competence Centre for Organic Agriculture.