THE ASSOCIATED CHAMBERS OF COMMERCE AND INDUSTRY OF INDIA
October15,2015,Shangri-La,NewDelhi
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4 PRODUCTION 4 CERTIFICATION 4 MARKETING
th5 NationalConferenceon
rganic World ADVANTAGE INDIA
Agricultural and ProcessedFood Products Export Development Authority
Ministry of Agriculture & Farmers WelfareGovernment of India
PARTNERS
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Organic agriculture has been widely recognized world over as a more sustainable solu�on to agriculture problems by restoring soil health, enhancing human health and minimizing nega�ve impacts on the environment. With increasing health consciousness, environmental concerns and awareness; organic agriculture promises a robust growing interna�onal and domes�c market.
India has the advantage in terms of rich gene�c pool, availability of technology to produce and process organic food, manpower and large domes�c and export market. The northeastern region, where agricultural produc�on is predominantly organic, could be instrumental in increasing India's agricultural export. India has a huge poten�al to become a major exporter of organic food products. However, there are certain roadblocks and challenges to be met before India takes on to the world organic market.
In view of this ASSOCHAM in associa�on with Ministry of Agriculture and Farmers Welfare had organized “5th Na�onal Conference on Organic World: Advantage India- Produc�on, Cer�fica�on and Marke�ng” held on October 15, 2015 at Hotel Shangri-La, New Delhi.
The program was supported by Ministry of Agriculture and Farmers Welfare, Government of India, Agricultural and Processed Food Products Export Development Authority (APEDA), 24 Mantra Organic – Sresta Natural Bioproducts Private Limited, Interna�onal Panaacea Limited, Yes Bank, TechSci Research, Jain Irriga�on Systems Limited, Safal - Mother Dairy Fruit & Vegetable Private Limited and Interna�onal Competence Centre for Organic Agriculture (ICCOA).
The event was inaugurated by Shri Mohanbhai Kalyanjibhai Kundariya, Hon'ble Minister of State for Agriculture & Farmers Welfare, Government of India. Other dignitaries present in the Inaugural Session were Shri Siraj Hussain, IAS, Secretary, Ministry of Agriculture & Farmers Welfare, Government of India, Shri Ni�n Puri, Senior President & Country Head, Food and Agribusiness Research Management, YES Bank Limited, Shri Rajashekar Reddy Seelam, Founder & Managing Director, 24 Mantra Organic - Sresta Natural Bioproducts Pvt. Ltd., Shri Anil Jain, Chairman, ASSOCHAM Council on Agriculture and Food Security and Dr Om S Tyagi, Senior Director, ASSOCHAM.
Recommenda�ons emerged from the conference are as follows:
• Poten�al Growth & Awareness: There is a huge poten�al for growth and development of organic farming in India owing to factors like soil health deteriora�on, change in climate, decline in per-capita land availability and others. Organic Agriculture has a great poten�al to increase produc�vity and increased yields, decrease suscep�bility to drought, pests and flooding, decrease dependence on the use of fossil fuel, raise groundwater levels, increase soil fer�lity and make the soil more resilient to erosion. Therefore, there is a pressing need to create awareness about poten�al of organic farming prac�ces and organic food products.
• Organic Seed: Access to quality organic seeds of required varie�es is a major challenge for farmers. Ensuring supply of quality seeds of the required varie�es is needed. Farmers and seed promo�ng agencies need to work in this area. Produc�on of organic seeds at a large scale through Government departments/ SAUs is strongly recommended. It is also impera�ve that R&D in new varie�es being undertaken by Scien�sts should also consider these are tested under organic agriculture condi�ons.
• Soil Health: Appropriate soil management and maintenance of soil fer�lity are fundamental to the success of organic farming. Management of organic farms should ensure regular inputs of manures and a level of microbial ac�vity sufficient to breakdown organic ma�er and ensure con�nuous and efficient nutrient cycling. The soil quality parameters showed improvement with organic farming as compared to conven�onal farming. Of course, it varies with climate, soil and crop condi�ons. Under organic farming, yield of most of the crops decreases in comparison to conven�onal farming par�cularly during conversion period. The aim of organic farming is to maintain these soil fer�lity levels by efficient recycling of farmyard manure, slurry and or compost that is normally generated on the farm. The efficient storage and spreading of farmyard manure, slurry or compost is
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vital to organic farming. Farmers need high produc�on, low cost and good price for their produce to meet the requirements in comparison with conven�onal methods. Therefore, farmers must have to consider Soil Health and Moisture Analysis. Take up such crops which can be sustained by soil. They may select organic product which has assured market and higher price. Government should develop more & more cost effec�ve& easy handling tes�ng kits for organic farmers to test their soil & other parameters.
• Adop�ng Tradi�onal Cultural Prac�ces with Modern Technology: Encourage & enhance tradi�onal farming through land and animal wealth with the help of modern technology. Bio pes�cides, bio- fer�lizers, vermicompost, green manuring, crop rota�ons, inter cropping, mulching needs to be encouraged. Awareness programs regarding use of organic manures should be promoted. Regula�on and implemen�ng quality norms for bio-fer�lizers need to be made stronger and implemented effec�vely
• Following One Na�onal Standard & Simplify Cer�fica�on Process: Organic Agriculture is an 85 billion dollar industry and world leaders are United States, Europe etc. The biggest challenge is the adultera�on in this industry and biggest asset is water efficiency. Government should give more control to APEDA and focus should be on one na�onal standard across the organic industry to promote healthy growth and exports, like Na�onal Programme For Organic Produc�on (NPOP) from APEDA. Stringent cer�fica�on process is required to strengthen exports and to create grip in the domes�c market. However, it needs to be simplified to encourage farmers to go organic. High cost for cer�fica�on and complexity for maintaining records is a challenge for farmers. Farmer training on record keeping is recommended to ease out the process.
• Focus on Region Specific Farming: Land in the North-Eastern region of India is rich in organic nutrients. In addi�on, clima�c condi�ons in these regions are suitable for organic cul�va�on of beverages, fruits and vegetables. However, the Government has not been able to tap the topographical opportuni�es offered by the region. Further, the budget alloca�on towards developing organic farming in the region has been insignificant. States such as Haryana and Punjab offers opportuni�es in rice produc�on due to high land fer�lity as a result of alluvial soil. In addi�on, availability of irriga�on facili�es in the northern region of India presents strong growth opportuni�es for organic farming in the future. Thus, Government should focus on boos�ng and incen�vizing region specific organic farming to ensure consistent growth of organic food market in India.
• Focus on Organic Pulses & Food Grains: Organic pulses and food grains account for the largest revenue share in India organic food market. High demand for pulses and food grains in both domes�c and export market has led to considerable increase in produc�on levels of these organic products in the country. Moreover, owing to longer shelf lives of these products, their export and storage is more feasible and convenient compared to other segments of organic food. This is because the extra costs that may be required for preserva�on of food products are eliminated. Hence, on account of commercial viability and profitability, it is recommended that organic food producers should focus on this segment to maximize their earnings.
• Increasing Awareness of Cer�fied Organic Food Products in India: In 2015, the level of awareness about organic food products in India is extremely low, and is limited to the consumers in metro ci�es. Further, the consumers in the Tier 1 ci�es are also unaware of the different cer�fica�on bodies involved in cer�fying the organic food products, which acts as a major bo�leneck to the purchase of organic food products. In addi�on, farmers engaged in organic produce cul�va�on are largely unaware of new organic farming techniques and methods. Consequently, companies, in collabora�on with the government, should organize awareness and training programs for farmers as well as consumers. This would result in op�mum u�liza�on of resources, cul�va�on of be�er quality food products, and overall increase in produc�vity as well as consump�on
• Tapping Export Poten�al: The export margins of organic industry margins vary between 10% to 100%. Further, the demand from North America and Europe for organic food products is con�nuously increasing. In addi�on,
Middle-East & East Asia are rapidly emerging as a poten�al export markets. Being strategically located between the two regions, India offers an opportunity to organic food suppliers to expand their reach in these markets. Therefore, organic food producers are recommended to concentrate on the Middle East and South East Asian markets, which have high concentra�ons of high net worth individuals.
• Marke�ng, Brand Building & Promo�on: It is difficult to differen�ate between organic and inorganic products. Hence, increased awareness, compara�ve study, benefits and harmful effects of organic and inorganic products needs to be promoted in a big way. Developing a separate market channel for organic produce alongside the tradi�onal produce i.e., organic Mandi is a way forward. Investment in developing market intelligence is required. Just like Basma� Rice & Darjeeling Tea, India should also promote “Organic products from India” in global markets. India can offer a large range of product categories & cheaper value addi�on possibili�es.
• Develop Cost Effec�ve Domes�c Market: Educa�on programs to develop consumer awareness in domes�c market need to be focused. Demand & supply is linked, as demand increases, the produc�on will also increase. Be�er promo�on & brand building will create a steady domes�c market for organic products. Produc�on should be market driven and at the same �me cost effec�ve products should be easily available to customers.
Following the policy context strong ini�a�ves need to be taken in research and outreach. Strong research accompanied by the use of emerging innova�ve approaches of extension through use of mul�media (mobile phones, TV, digital cameras, etc.) can poten�ally make a strong impact on the farmer awareness and appropriate use of organic technology. The organic input industry should be supported with strong research support, possibly in collabora�on or Public Private Partnerships (PPP) with ICAR units or State Agricultural Universi�es (SAUs). The industry evidences below capacity performance appropriate financial subsidies need to be given to ensure financial sustainability so that the units do not close down due to losses. On the other hand, farmer educa�on about organic farming will raise the demand for organic input leading to further growth of the input companies. It is cri�cal to develop and implement the quality norms for organic inputs.
• Develop Strong Supply & Value Chain: The organic input industry should be supported with strong research support, possibly in collabora�on or Public Private Partnerships (PPP) with ICAR units or State Agricultural Universi�es (SAUs).The industry evidences below capacity performance appropriate financial subsidies need to be given to ensure financial sustainability so that the units do not close down due to losses. On the other hand, farmer educa�on about organic farming will raise the demand for organic input leading to further growth of the input companies. It is cri�cal to develop and implement the quality norms for organic inputs.
To develop state of the art processing units for value addi�on of organic produce, Government should devise appropriate financial schemes for this small but poten�al industry to compete in global markets.
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The Associated Chambers of Commerce and Industry of IndiaASSOCHAM Corporate Office:
5, Sardar Patel Marg, Chanakyapuri, New Delhi-110 021 • Tel: 011-46550555 (Hun�ng Line)
Fax: 011-23017008/09 • Email: [email protected] • Website: www.assocham.org
