Assocham Bulletin - - INDUSTRY -

nion Agri­cul­ture and Farm­ers Wel­fare Min­is­ter, Mr. Radha Mo­han Singh stressed that 'Or­ganic farm­ing' should be pro­moted with the same spirit as 'Green Rev­o­lu­tion' as In­dia is the coun­try with the most or­ganic pro­duc­ers, said at the ASSOCHAMevent held in New Delhi.

He said that the coun­try should progress to be a or­ganic na­tion and chem­i­cal-free coun­try. Prime Min­is­ter has also urged farm­ers in the past to cut use of chem­i­cal fer­til­iz­ers like urea by half to im­prove soil health, said, Mr. Radha Mo­han Singh, Union Min­is­ter for Agri­cul­ture, Min­istry of Agri­cul­ture and Farm­ers Wel­fare.

Or­ganic farm­ing is a way of farm­ing, which ex­cludes the use of chem­i­cal fer­til­iz­ers, in­sec­ti­cides, etc. It is pri­mar­ily based on the prin­ci­ples of use of nat­u­ral or­ganic in­puts and bi­o­log­i­cal plant pr otect ion mea­sures. Dur­ing the last six years, In­dia has been in­creas­ingly sup­port­ing PGS (Par­tic­i­pa­tory Guar­an­tee Sys­tem) for its na­tional mar­ket, de­vel­op­ing a unique ex­am­ple of large-scale govern­ment-fa­cil­i­tated PGS pro­gram, co­or­di­nated by its Na­tional Cen­tre for Or­ganic Farm­ing, un­der the Min­istry of Agri­cul­ture.

'The govern­ment can­not pro­mote or­ganic farm­ing alone. There are many NGOs and or­ga­ni­za­tions that have a cru­cial role to play'. The data needs to be sys­tem­at­i­cally col­lected through sci­en­tific meth­ods and cer­ti­fi­ca­tion­should be im­proved.

Ajoint study byASSOCHAMEYre­vealed that the mar­ket size for In­dian or­ganic pack­aged food is ex­pected to cross. INR 871mil­lion by 2021from INR533 mil­lion in 2016, grow­ing at a rate of 17%. The sub­stan­tial growth of this sec­tor is at­trib­uted to an ex­pand­ing ur­ban pop­u­la­tion base, ris­ing health con­cerns, grow­ing con­sumer spend­ing on food prod­ucts and de­te­ri­o­ra­tion of food qual­ity, the joint study noted.

Or­ganic pack­aged food and bev­er­ages is an emerg­ing niche mar­ket in In­dia and its pri­mary con­sumers are high-in­come ur­ban­ites. As de­mand for or­ganic food in the metro cities in­crease, the com­pa­nies in this sec­tor are wit­ness­ing no­table growth with the en­try of sev­eral new play­ers in the or­ganic food mar­ket such as Con­scious Foods, Sresta, Eco Farms, Or­ganic In­dia, Nav­danya and Mo­rarka Or­ganic Foods, said the AS­SOCHAM-EYjoint report ti­tled, 'The In­dian Or­ganic Mar­ket: A new par­a­digm in agri­cul­ture', which was re­leased dur­ing the con­fer­ence: 'Or­ganic

World: Ad­van­tage In­dia', at New Delhi.

In­dia-based Sresta Nat­u­ral Bio­prod­ucts Pvt. Ltd. has emerged as the mar­ket leader, with 37% value share of the pack­aged or­ganic food mar­ket and 7.8% share of the pack­aged or­gan­icbev­er­age mar­ket. It has in­creased its share in the or­ganic food mar­ket in re­cent years, while smaller niche play­ers have taken sig­nif­i­cant share away from it in the or­ganic bev­er­age mar­ket, adds the study.

"In ad­di­tion to the grow­ing do­mes­tic mar­ket, In­dia is the sec­ond largest ex­porter of or­ganic prod­ucts in Asia af­ter China. The in­creas­ing ex­port mar­ket cou­pled with the Govern­ment's sup­port has made or­ganic cul­ti­va­tion in In­dia highly suc­cess­ful", said Mr. Amit Vat­syayan, Part­ner, EY. In­dian or­ganic food ex­ports were es­ti­mated at US$299 mil­lion dur­ing 2015-16with to­tal vol­ume of 263,688MT.

The ma­jor ex­port des­ti­na­tions were the US, Euro­pean Union, Canada and New Zealand. It is as­sumed that most of the re­main­ing quan­tity is sold in lo­cal mar­kets. Oil seeds com­prised half of In­dia's over­all or­ganic food ex­port, fol­lowed by pro­cessed food prod­ucts at 25%, noted the pa­per.

Ac­cord­ing to the study, In­dia cur­rently holds the ninth po­si­tion among 178coun­tries that ac­tively prac­tice or­ganic agri­cul­ture. At present, the coun­try is home to more than 835,000 or­ganic pro­duc­ers, 699 pro­ces­sors, 669 ex­porters and 1.49 mil­lion ha

In­dia has a re­mark­able po­ten­tial to pro­duce all va­ri­eties of or­ganic prod­ucts, ow­ing to the ex­is­tence of var­i­ous agro­cli­matic zones within its bor­ders. The to­tal area un­der or­ganic cer­ti­fi­ca­tion was 5.71 mil­lion ha in 2015●16. This in­cluded 26% cul­tivable area with 1.49 mil­lion ha and 74% (4.22 mil­lion ha) for­est and wild area for col­lec­tion of mi­nor for­est pro­duce.

area un­der or­ganic cul­ti­va­tion. How­ever, with only a mea­gre 0.4% of the to­tal agri­cul­tural land area des­ig­nated for or­ganic cul­ti­va­tion, the in­dus­try presents ex­ten­sive scope for ex­pan­sion.

In­dia has a re­mark­able po­ten­tial to pro­duce all va­ri­eties of or­ganic prod­ucts, ow­ing to the ex­is­tenceof var­i­ous agro­cli­matic zoneswithin its bor­ders. Theto­tal area un­der or­ganic cer­ti­fi­ca­tion was 5.71 mil­lion ha in 2015-16. This in­cluded 26% cul­tivable area with 1.49 mil­lion ha and 74%(4.22mil­lion ha) for­est and wild area for col­lec­tion of mi­nor for­est pro­duce.

Among the states, 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 (1.04lakh 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, high­lighted the study.

In terms of or­ganic crops, the com­bined share of the top 10 cat­e­gories of or­ganic food crops is around 99%. The top four cat­e­gories (with a share of around 85%) in­clude sugar, oil seed, fiber and ce­re­als and mil­lets.

"Ac­cord­ing to the find­ings, metropoli tan ci ties have wit­nessed a 95% in­crease in de­mand in the last five years," said Mr. Vat­sysyan. "Many or­ganic food com­pa­nies are adopt­ing the on­line route to ex­pand their con­sumer base. The brick and mor­tar or­ganic stores are usu­ally lo­cated in metro and mini metro cities. Th­ese com­pa­nies are reach­ing out to the rest of the con­sumers through on­line chan­nels," he added.

Many or­ganic food com­pa­nies are com­ing up with new prod­uct cat­e­gories and va­ri­eties to pro­vide con­sumers with suf­fi­cient choices. Apart from fruits, veg­eta­bles, teas, pulses and spices, com­pa­nies have also in­tro­duced readyto-eat snacks, cook­ies, medic­i­nal plants and herbs, and juices. Ad­di­tion­ally, in­creased or­ganic al­ter­na­tives can be ob­served in es­tab­lished prod­uct cat­e­gories.

Mr. San­deep Ja­jo­dia, Pres­i­dent, AS­SOCHAM wel­comi Agri­cul­ture and Farm­ers Wel­fare.

Mr. Radha Mo­han Singh, Union Min­is­ter for Agri­cul­ture and Farm­ers Wel­fare with awardees.

Mr. Radha Mo­han Singh, Union Mi­nis~r for Agri­cul­ture and Farm­ers Wel­fare re­leas­ing the AS­SOCHAM-EY report ti­tled 'The In­dian Or­ganic Mar­ket: A New Par­a­digm in Agri­cul­ture' along with (L-R)Mr. D. S. Rawat, Sec­re­tary Gen­eral, AS­SOCHAM, Dr. Tarun Baja}, Gen­eral Man­ager, APEDA, Dr. H. P Singh, Chair­man, Na­tional Coun­cil on Agri­cul­ture and Food Se­cu­rity, Mr. San­deep Ja­jo­dia, Pres­i­dent, AS­SOCHAM, Ms Neer­aja Adi­dam, Joint Sec­re­tary, Min­istry of Agri­cul­ture and Farm­ers Wel­fare and Mr. Amit Vat­syayan, Pamer, Ad­vi­sory Ser­vices, EY In­dia.

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