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G.K. Nair

`India has potential to corner moderate share of demand growth'

Kochi March 23 Ever increasing demand for organic foods and drinks of late in the world market has outstripped supply despite tangible growth in organic farmland in Latin America, Asia and Africa since 2000. Short supply is felt in North America and hence US-based companies "are currently scouring the globe for organic ingredients," according to Organic Monitor.

Countries such as the US, Singapore and Switzerland having consumers with high disposable income are pushing the demand up.

Consultancy report

The G-7 countries, it said, account for 80 per cent of total sales even though they have only 12 per cent of international farmland. In a report, a UK-based consultancy has projected that the sales of organic foods and drinks may touch $40 billion soon as there is an increase in the number of consumers seeking healthy and nutritious products.

According to the consultancy, imports of organic ingredients such as nuts, beans and seeds from Turkey, China and Brazil have increased while herbs and spices are arriving from Paraguay, India and Ethiopia. Organic fresh fruits and vegetables are increasingly coming from African and Asian countries, it said. Short supply is faced by European countries also where demand for organic foods are on the rise.

India has the potential to corner a moderate share of this growing demand, official sources here pointed out. Though there have been some movements in organic farming since 2000, the sector continues to remain scattered and its development lags far behind its actual potential, they told Business Line.

Organic Approach

A large number of farmer groups, companies, NGOs, development agencies and government bodies promote organic farming in one way or the other.

For many Indian farmers, the organic approach might 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, they said.

In 2000, an agricultural export promotion agency under the Ministry of Commerce has taken the lead in developing the National Programme for Organic Production (NPOP), framing national standards and certification guidelines.

global Certification

Besides, international certifiers such as IMO, SKAL, and Ecocert with offices in India, and some Indian organic certification bodies have also been accredited under NPOP, the largest of them being INDOCERT.

Meanwhile, the Ministry of Agriculture has also come up with plans for a national project for organic farming. However, the progress has yet to pick up pace with the growing demand, they added.

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