To give brief overview of Organic Agriculture.
To study advantages and disadvantages of Organic Farming.
To study the Global and Indian scenario of Organic Products.
To find out the companies dealing in Organic Products.
To study the market scenario of Organic Products in India
To study the SWOT analysis of Organic Products in India.
To find out the opportunities and challenges of Organic Product In India
2. Introduction
Why Organic
Advantages and Disadvantages
Global & Indian Scenario
Major Indian Organic Brand
Domestic Market
Export Market
Swot analysis
Opportunities
Challenges
Conclusion
2
Content
3. To give brief overview of Organic Agriculture.
To study advantages and disadvantages of Organic
Farming.
To study the Global and Indian scenario of Organic
Products.
To find out the companies dealing in Organic Products.
To study the market scenario of Organic Products in India
To study the SWOT analysis of Organic Products in India.
To find out the opportunities and challenges of Organic
Product In India
3
Objective
4. Definition of “Organic”
Organic foods are foods that are produced using methods
of organic farming– with limited modern synthetic inputs such
as synthetic pesticides and chemical fertilizers.
Organic food is produced using environmentally and animal
friendly farming methods.
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5. “ Organic products are grown under a system of agriculture
without the use of chemical fertilizers and pesticides with an
environmentally and socially responsible approach”.
Organic Agriculture
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6. Organic Agriculture is a sustainable and environment friendly
production system that offers cultural benefits
It relies on five capital assets for success: natural, social,
human, physical and financial and as such contributes to build
up stocks of these resources over a period of time.
This helps in dealing with many of the factors that lead to food
insecurity.
Cont..
6
7. Healthy food: Contains no toxic substances-safe
Natural & Good taste
Takes care of Environmental concerns of Farming
Better for Human health
WHY ORGANIC ?
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8. Main Principles of Organic Farming
Maintain long term Fertility of Soil
Avoid all forms of pollution that may result from
Agricultural Technology
Produce food stuff at high Nutritional quality and
sufficient quantity.
To make it possible for agricultural producers to earn
a living through their work and develop their
potentialities as human being.
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9. Four Pillars of Organic Farming
I. Organic standards
II. Certification/Regulatory mechanism
III. Technology package of practice
IV. Market network
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10. Indian Organic Certification Agency
Tamil Nadu Organic Certification Department (TNOCD)
Indian Organic Certification Agency
Lacon Quality Certification
Natural Organic Certification Agency
OneCert Asia Agri Certification
Bureau Veritas Certification India Pvt.
ECOCERT India Pvt. Ltd
SGS India Pvt. Ltd.
Control Union Certifications
Uttaranchal State Organic Certification Agency (USOCA)
APOF Organic Certification Agency
Food Cert India Pvt. Ltd
Rajasthan Organic Certification Agency (ROCA)
Aditi Organic Certifications Pvt. Ltd
Vedic Organic Certification Agency
Chhattisgarh Certification Society,
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11. Non-organic Farming Organic farming
Against Nature Harmony with Nature
Soil structure destroyed Soil structure improves
More chemical residues
present in crops
No chemical residues
Low quality produce Premium quality
Highly fluctuation in yield Reliable yield
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Table:1 Difference between organic & non-organic
12. Organic Farming
Advantages
Lower Input Costs
Improved soil structure
Premium price
Add value
Environmental friendly
Disadvantages
Lower Productivity
Time consuming
Required Skill
Production cost high
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13. Cereals: Rice, Ragi, Wheat, Maize, Jowar, millets
Pulses: Red gram dal, Green gram dal, and Bengal gram
Oil seed crop: Groundnut, Sunflower, Cotton, Safflower, Soya bean
Beverages : Coffee ,Tea
Spices : Turmeric, Ginger, Black and white pepper, Cardamom
Vegetables: Onion, Potato, Brinjal, Beans, Garlic, Gourds, Leafy
vegetables etc
Fruits : Mango, Banana, pomegranate, Pineapple .
Others: Sugar cane, medicine plant etc.
Major Organic Products in India
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14. Australia has the largest share of organic agricultural land it
33%. followed by Europe (27%) and Latin America (23%).
The country with the largest organic area is Australia (12 mha).
0.9 percent of the agricultural land is organic, and 7 countries
have more than ten percent organic agricultural land.
The total organic area in Asia is 2.9 mha. This constitutes 7% of
the world’s organic agricultural land.
Global organic sales reached $54.9 billion in 2009, up from,
$50.9 billion in 2008.(Acc.to Organic Monitor estimates 2010)
Current Global Status of Organic Products
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15. 1.6 million organic producers in the world.
160 countries of the World. (BioFach 2010 at
Nuremberg ).
Europe contributed to the largest share it revenue
of USD 27.8 billion in 2010.
The Asia-Pacific organic food market had a total
revenue of USD 3.5 billion in 2010 and had a
CAGR of 16.2 per cent between 2006-2010.
Cont..
15
Source: Report of YES Bank, Food and Agribusiness Dept. 2010
16. Table:2 Distribution of organic agricultural
land 2010
Country Land(%)
Northern America 7%
Africa 3%
Asia 7%
Australia 33%
Latin America 23%
Europe 27%
Source: FiBL-IFOAM Survey 2010
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18. Current status of organic products in India
India ranks 10th among the top ten countries in terms
of cultivable land under organic certification
The market for organic foods is annual growth rate
(CAGR) of 20-22 per cent.
The market for organic food including exports is
currently valued at Rs 1,000 crore.
The country produced around 3.88 million tones of
certified organic products in 2012, that includes
basmati, pulses, tea, coffee, spices and oilseeds.
Global organic food and beverages market is
expected to grow from USD 57.2 billion in 2010 to
USD 104.5 billion by 2015 with a CAGR of 12.8%. 18
19. cont…
Organic foods industry presently is metro-based, with about 95
per cent of the brands existing in top 10 metros like
Delhi, Kolkata, Mumbai, Pune, Chennai, Bangalore and other
tier II cities.
With rising spending power of the growing middle class in the
country and increased awareness towards chemical free food,
organic and natural products sector will grow significantly in
the coming years.
Government is promoting organic farming under National
Project on Organic Farming ( NPOF), National Horticulture
Mission (NHM) and Rashtriya Krishi Vikas Yojana (RKVY).
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21. Domestic Market
The total area under organic certification is 5.21 million
hectare in India.
The states organic farming are Madhya Pradesh has largest
area of organic farming are 4.40 lakh ha., Maharashtra 1.50
lakh ha. and Orissa 95,000 hector.
The state Gujarat has a 70538 ha. Organic land.
India is the largest organic cotton grower in world, and
accounts for 50 percent share of total world organic cotton
production.
Estimated Market size of organic fruits and dairy products at
present is USD 80 million and USD 20 million respectively.
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22. Cont…
The market for organic food is extremely backward in
India at present, with very few active brands and low
penetration even among urban consumers.
The growth in the market is also being contributed by
the foray of several retail giants and online retailers in
the Indian organic food market. Over the last few years,
several players have started to offer organic food
products through online channel. Some of the major
online organic food retailers include: Farm2Kitchen,
Big Basket, Best Organic, etc.
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26. Export Market
India organic producers and exporters are well aware
of the demand for organic products in developed
countries.
Major Products available for the export market are
rice, wheat, tea, spices, coffee, pulses, fruits &
vegetables, cashew nuts, cotton, oil seeds and
medicinal herbs.
The channels adopted for the export of organic
products, expect for tea, are mainly trough export
companies.
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27. Value of total export -USD 157.22 million .
Share of Exports to total Production :- 4% approx.
Increase in Export Value over previous year :- 33%
approx.
India has 5,70,000 producer in 2011 increasing up to
4,00,551 Organic producer in 2010 .
Present status of Organic Export from India
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Source: APEDA 2013
28. India exported 135 products year 2012-13 with the
total volume of 165262 Mt including 4985 Mt
organic textiles.
The organic agri export realization was around USD
374 million including USD 160 million organic
textiles registering a 4.38% growth over the previous
year.
Cont..
28
Source: APEDA 2013
29. Exports destination
Europe: Netherlands, United Kingdom, Germany, Belgium,
Sweden, Switzerland, France, Italy, Spain;
Americas: USA, Canada;
Asia : Japan, Singapore
Middle East: Saudi Arabia, UAE;
Australia
Africa: South Africa
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30. Organic Products Export
Oil seeds (41%) lead among the products exported
followed by Sugar Cane (26%), Processed food
products (14%), Basmati Rice (5%), Other cereals &
millets (4%), Tea (2%), Spices (1%), Dry fruits (1%)
and others.
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33. Wide variety of fruits and
vegetables and other
commodities can be grown
organically
Safety food
Differentiation can be easily
created.
Farmers as well as
Government interests are
rising in organic
Short shelf life varieties
Lack of farmer awareness about
agricultural practices, products
and technologies for organic
farming
Lack of market information.
Inadequate post harvest
management and related
specialized infrastructure to
support organic food production
Certification
Strengths Weaknesses
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34. Opportunities Threats
Favorable government vision
Price –premiums in different
markets
Export opportunities in new
product/market( section ).
Big retail stores/chains opening
up
Rising demand for organic
products
Private sector keen to join
organic chain value chain
Non-tariff barriers may
be imposed by developed
nations
Threat of inflation and
recession
Costly and complex
organic certification
process
Low awareness about
organic inputs
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35. Opportunities
Growing health awareness
Environmental improvements
Public health improvements
Combat global warming
Local supplies of organic foods
Big and growing market potential
Growing purchasing power of consumers
35
36. Challenges
Quality and safety standards
Market intelligence
Brand promotion
Farmers’ knowledge
Capacity building of stakeholders
Demand and supply balance
Lack of access and non-availability of inputs
Supply chain linkages
Certification 36
37. Government Initiatives
Training programs for producers and certification agencies;
Setting up set of guidelines , referred to as “National Programme for
Organic Production (NPOP)”
Improving the quality of research and development;
Setting up a research institution aimed at improving different
aspects of organic production;
Promoting certification programs;
Developing national policies for organic production;
Improving the quality of products, packaging, logistic infrastructure
and technical support.
Providing subsidies for promoting organic farming
Promoting Indian organic products at international fairs (e.g. Bio-
Fach) and promotional programs in the media (e.g. video films);
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38. Conclusion
The Indian Organic markets is at infant in it’s growth.
India can take advantages of growing opportunities in
Organic sector. Making use of varied agro climatic
condition and traditional Organic resource and
Farming practice. The major challenges in market of
Organic product are quality and safety standards,
certification and supply chain linkages. India is a
potential one of the largest producer of Organic
produced. But there urgent need to overcome the
challenges of markets and take the advantages of
emerging opportunities.
38
39. Books:
Joshi M.(2012),”New Vistas of Organic Farming”
, Scientific publishers (INDIA) Jodhpur ,P:383-392.
Modi H.A.,(2012)”Sustainable Organic
Agriculture”, Avishkar Publisher (India), Jaipur, P 1-
10.
Singh A.K.,(2007), “Conversion to Organic
Agriculture”, International book Publisher Co.,
Lucknow, 317-327 P.
39
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