The Hindu Business Line : Organic food growth up on consumer awareness

This is evident from the 5-7 per cent growth in worldwide sales of organic foods last year to $26.5 million from $25 million the year before, according to the London-based Organic Monitor.

The highest growth rate was recorded in North America, whereas most West European countries registered a low growth rate of five per cent.

However, the Asia-Pacific region, Latin America and Eastern Europe showed a high percentage growth, the study said.

The European market is the largest single market after the US for organic foods, while Germany remained the leader in Europe.

"The extension of the range of organic products offered by the retail trade and the opening of more organic supermarkets will also ensure regular growth throughout Europe in the coming years," it said.

The worldwide area of organically farmed land at the beginning of 2004 was 24 million hectares. The largest area under organic farming is Australia with 10 million ha followed by Argentina at 3 million ha , Italy over one million ha and the US 1 million ha. In Asia 8,80,000 ha and in Africa 3,20,000 ha are under organic farming.

Production in Asia and Africa are not only exported to the industrial countries, but domestic markets are also developing.

According to the study, the development of organic agriculture in the developing countries was frequently induced by the demand in the industrial countries.

"What we are experiencing now is that many markets like those in India, for example, are becoming independent and serve the growing demand in their own country," says Dr Helga Wilier of FiBL.

This growing demand, he said, would also ensure worldwide growth in organic agriculture in the coming years.

According to Mr Frank Eyhorn of FiBL, organic farming in India is experiencing a real boom.

For many Indian farmers, he pointed out, the approach seems to offer a new option for ensuring their livelihood, as they can reduce production costs and, at the same time, gain access to markets with better prices for their products.

In many crops, yields reach similar (though altogether mostly low) levels as in conventional fields, once farmers have succeeded in reversing the trend of deteriorating soil fertility through organic management practices. Latest data from a research project on organic and conventional cotton farmers in central India confirms the favourable economy of organic farms.

However, the Indian organic sector is still scattered and its development lags far behind its actual potential. The main bottleneck is development of markets, an official source here said.

While India could have a growing share in supplying export markets, the Indian domestic market for organic food appears as a `sleeping giant', which needs to be awakened.

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