Agri Business

By 2020, area under organic farming may treble to 20 lakh hectares

Virendra Pandit Ahmedabad | Updated on January 15, 2018 Published on April 04, 2017

Among the organic crops in India, the largest area is under cotton cultivation. Other popular organic products include fruits and vegetables, cereals, basmati rice, tea, coffee and milk

High cost of logistics, certification continue to make products expensive

With organic farming reviving across India, and the world, the area under such cultivation is expected to increase from 7 lakh hectare (ha) now to 20 lakh ha by 2020.

Before the onset of Green Revolution in the 1960s, organic farming was widely in use, but productivity was low. India was forced to depend on imports due to acute shortages. During the Revolution (1960s-1980s), food production increased but its benefits did not reach farmers.

Besides, soil fertility and ground water quality and volumes, due to excessive use of fertilisers and irrigation, were impacted very negatively.

“In the 1980s, farmers revived organic farming and, in the 1990s they discovered new commercial opportunities,” Manoj Kumar Menon, Executive Director, International Competence Centre for Organic Agriculture (ICCOA), Bengaluru, told BusinessLine.

“In 2001, the Government of India announced a national policy on growth of organic products. The confirmed area under certified organic farming increased from just 42,000 ha in 2003-04 to 7 lakh ha now. In fact, in 2016-17, the overall area under certified management for organic farming is 11.8 lakh ha, including area under-conversion in Year-1, Year-2 and Year-3 stages.”

Among the organic crops, the largest area, at 3.8 lakh ha, is under cotton cultivation. Other popular organic agro-products include high-value soyabean, fruits and vegetables, cereals and basmati rice, tea, coffee and milk, he said.

The high cost of certification is a major reason for these products being expensive. Besides, issues like logistics and supply chain management also add to the price. This is because organic production centres are few in numbers and scattered over far-flung areas, unlike conventional centres see lower costs due to higher volumes. Thus, organic products are priced anywhere between 20 per cent and 75 per cent higher than the conventional ones.

The Indian market for organic products is export-focused. Out of the estimated ₹5,000-crore market, ₹3,800 crore comes from exports. It is expected to cross the $1.50 billion (about ₹10,000 crore) mark by 2020.

Global demand

The global demand for organic products is growing at 20-25 per cent per annum. India’s market itself is growing at 40-50 per cent. The worldwide sales is expected to increase from $80 billion in 2015 to $100 billion in 2017.

ICCOA is partnering with the Karnataka government to host the ‘National Trade Fair 2017 - Organics and Millets’ in Bengaluru from April 28-30.

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Published on April 04, 2017
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