Organic Farming in India

Organic Farming in India

Organic Farming in India

Organic Farming in India

December 15, 2010

It is important to understand the term 'organic farming before we take into account organic farming practices in India. The term organic farming' means farming methods that are carried out without the use of artificial fertilizers and pesticides. Organic farming is being practiced in India for the last few decades. Studies conducted by Rabo India on organic farming reveal that around 65% of India's farms are organic by default. The irony lies in the fact that most of the small farmers coming from remote areas have no access to chemical fertilizers or some continue to pursue the same farming practices as their forefathers did and as a result their farms are organic. While in other cases natural pesticides and fertilizers are so costly that farmers cannot afford them. This implies that most of our country's farm produce is organic. We then wonder whether all the food that we consume is organic. The fact of the matter is that conventionally we do not consume organic food. If no, the next question that comes to our minds is why do we not consume organic food?

There has been an ongoing debate on whether organic food is much healthier, more pure and superior in taste than the conventional food we consume. Different people may have different views but it is necessary to address certain problems that the organic industry faces in India.

Certification

Organic food in order to prove that it is organic needs certification. In India even if farms are organic, farmers find it difficult to sell their produce since they lack the certification. Since certification in India requires farmers to pay hefty fees and secondly due to the process being cumbersome, most of the farms in India are organic but uncertified. So the crux of the problem here is proving that the products are organic.

Exports

The world market for organic foods is estimated at approximately $26 billion dollars. Responding to this demand, the Indian Central Government had formed the National Institute of Organic farming in October 2003 in the town of Ghaziabad in Madhya Pradesh with an intention of formulating rules, regulations and standards of certification for organic products that would be at par with international norms. But as mentioned above, certification being mandatory for exports, India's share in global exports remains miniscule. But exports have been rising considerably after the Tenth Planning Commission gave a priority status to this particular sector. Exports rose to $125 m from $12m in a period of eight years.

Currently organic goods that enter the export market include nuts, spices, herbs, cocoa, oil crops, teas and non-food items like livestock, cut flowers, cotton and potted plants.

Pricing

In India, organic food costs about 20 to 30% higher than non-organic food. The reason why organic food is dearer than non-organic food is the usage of natural chemicals that reduces yield of the crop. Lower yields translate into lesser produce pushing up prices. The government's ignorance towards this sector in terms of providing incentives is another factor. As mentioned above certification fees also have to be recovered which the end-users pay in the form of high prices. Consumers will not be ready to pay high prices till they are convinced that the product is superior. Thus the farmers face great difficulty in selling organic produce. Thus marketing these products has become very essential.

The main inhibitors to India's organic production can be summarized as under-developed infrastructure, higher transaction costs and lengthy procedures for certification, low awareness about organic products in the markets and lack of marketing techniques.

Possible Solutions:

The government's role is very important here. The Indian government who is so keen on making Indian agriculture organic needs to provide incentives to farmers in the form of subsidies for certification fees. Banks also need to provide insurance and easy loans to farmers. It is ironical that farmers who produce natural and healthy products need to pay more which in turn escalates prices of their products than farmers who produce inorganic food that could pose danger to health.

Today, if all conventional farming was to be substituted with organic farming the question that arises is whether pure organic food would suffice the growing population. If more and more people get convinced about the benefits of organic food the demand would outstrip the supply and organic yields would have to increase in order to cope up with the increasing demand. With advanced technologies, these issues could be addressed. The economic theory of production if implemented here correctly would help achieve increasing returns to scale that would increase production with lesser inputs. But in reality organic practices need to experiment with novel methods to achieve the above. In a utopian model conventional produce could be used only as a buffer stock in times of emergency situations and inorganic farming could be phased out completely. Currently India ranks 7th in the world in terms of total land under organic farming, according to the FiBL & IFOAM survey statistics. So India has been a major organic producer for the last couple of years and the endeavor towards achieving less dependence on inorganic farming must continue.

Rashmi Ponkshe

POST COMMENT

Munsiyari,Uttrakhand,india Best Weekend Place near mumbai Matheran,Maharashtra,India Hill station Near Mumbai, Lonavla ,Maharashtra,india Kakkabe,Karnataka,india BMW 520d Saloon's Indian Launch Honnermadu,Karnataka,india Bheemeshwari,Karnataka,india India, a United Nation With Diversity in Everything Medanta – A Super Specialty Hospital in India Domestic Air Tickets to India Air ticket booking to India Tickets to India Medanta – A Trusted Urology Hospital in India