SOON, NAFED TO SELL ORGANIC FOODS AT LOW PRICES ONLINE

NEW DELHI: Fancy organic food? Want them cheaper than market rates? The government will enter the online organic food market and sell a range of products, on sites such as Amazon and Grofers, through its main food-trading agency, the National Agricultural Cooperative Marketing Federation of India (Nafed).

“We have just taken a decision last week after necessary processes. We are tying up with online platforms such as Amazon and Grofers,” Nafed managing director Sanjeev Chadha told HT.

Chadha said products sourced and sold by Nafed or its associates will be cheaper than the usual rates for similar items. “Our products will be cheaper because we will reduce our margins. The main idea is to help organic vegetable growers, especially small farmers,” Chadha said. In business, margins refer to a firm’s total revenue minus total costs.

While many agri businesses have plunged into the organic food market because of their growing popularity among urban consumers, the Modi government also runs a scheme called the Paramparagat Krishi Vikas Yojana (PKVY) for small organic farmers. Nafed will source from small farmers too. It will sell products such as flax seeds, pumpkin seeds, normal and flavoured honey, as well as tea.under the PKVY, small organic producers, who mostly cater to the domestic market, self-certify their produce as “organic”. Although many definitions abound, organic produce is generally deemed as produce that is free from chemical inputs, such as fertilisers and pesticides. This has created a fad among urban consumers because of the perceived health benefits. For farmers, organic farming means reduced costs. Under PKVY, farmers need to pool in their patches of land. Once they pool in and reach the threshold of a hectare, they are eligible for aid.