India’s organic exports jump
NEW DELHI: Export of organic farm products jumped 51% in 2020-21 year on year, official data shows, as Indian food firms expanded their global footprints despite pandemic-related disruptions on the back of growing demand.india’s area under certified organic cultivation, at 4.3 million hectares as on March 31 last year, is still a fraction of the total sown area. Yet, the country is now among top 10 organic produce exporting nations. “This points to a vast potential to grow,” said K Srinivas, partner of the consulting firm KPMG.
The Narendra Modi-led government is pushing farmers to adopt organic and so-called zero-budget natural farming, but a majority of Indian farmers relies on conventional heavily subsidised, chemical-based agriculture. India spends nearly ₹1.4 lakh crore on fertiliser subsidies, whose prices rose to multi-year highs in FY22. Farmers in many states are demanding a legal guarantee for minimum prices due to rising input costs and falling incomes from conventional farming. Organic farming refers to cultivation that is free from any chemical-based inputs such as pesticides and fertilisers. Research shows that organic foods are more nutritious and healthier as well as good for the environment.
Outbound shipments, of a range of items, from cheese to fresh horticultural produce, stood at 9.9 lakh metric tonne in 2020-21 and the country aimed at 10% global share by 2030, Priya Ranjan, joint agriculture secretary, said. India producers exported their organic products to the US, European Union, Canada, Great Britain, Korea Republic, Israel, Switzerland, Ecuador, Vietnam and Australia in the current financial year.
“We have targeted a 10% export share in global fruits and vegetable market by 2030,” he said. Ranjan recently joined the India Pavilion at EXPO2020 Dubai to showcase India’s organic farming potential.
The global retail market is growing at 20% annually and estimated to be $102 billion currently, a Rabobank International report showed. India allows two modes of certification for organic farming, including the option of self-certification.
A recent official study to analyse the impact of the Paramparagat Krishi Vikas Yojana (PKVY), a federal scheme for organic producers, showed that small and marginal farmers, who can’t afford costly agricultural inputs, are turning a new leaf by going organic because of lower costs and higher margins.small farmers cultivate lands of between one and two hectares. Marginal farmers cultivate up to just one hectare (2.5 acres).
Under PKVY, farmers need to pool in their patches of land to enable economies of scale. The average cluster size was 69 acres and the average number of farmers in each was 54.6, which meant small farmers managed to achieve operational scales.