ORGANIC FOOD AND PRODUCTS A GREAT BUSINESS OPPORTUNITY

CMA Raveendranath Kaushik. N and Dr. Ramana Gowda Business Consultant , rk.rkaushik@gmail.com

Abstract
Increasing Consciousness about conservation of environment as well as health hazard caused by agro chemicals has a brought a major shift in consumer preference towards safe and quality foods. Global consumers are increasingly looking forward towards safe food and hazard free environment. Especially in western world and G7 countries the present date trend of becoming vegetarian from non vegetarian has created greater demand for Organic foods. Besides, the change in mind set there is increasing demand through out the world for organic food and fiber. Indias 75% of net cultivated area is rain dependent organic food production. The major crops are cereals, pulses, oil seeds and fiber crop. Among the fruits and vegetables various crops such as mango, sapota, tamarind, etc and cluster beans tomato, gourds etc respectively are also organic in nature. Also, value added products such as Organic jaggery, spices and milk products are also produced. In support of this growing need for organic food, the Union Government and several State Government (North Eastern states, Kerala and Uttaranchal have been declared as Organic states) have come with a new policy of supporting organic cultivation to meet the domestic as well export needs by establishing agri export zones in potential location. Further, the technical know how and facilities for exports have been established by establishing KAPPAC,APEDA,NABARD and several crop specific boards such as Spice, Teak, Coffee and KHF which is apex body of Karnataka for fruits and vegetable production, marketing and processing. At present, the crops exported under organic produce and products are being highly appreciated for the standards and specification in several countries such as Middle East, Eastern Europe and several Asian countries. The Government of Karnataka has come out with the policy on Global Investor Meet for producing Organic food and products during 2011. In the month of July 2011, Dutch delegation signed the MOU with the government for the investment in the area of agriculture,horticulture,fiber,silk production and processing.

Introduction

Organic agriculture is not new to Indian farming community. Several forms of organic farming are being successfully practiced in diverse climate of the country. Much of the forest produce of economic importance like herbs, medicinal plants, honey and other commercialized products etc. by defaults comes under this category. Among all farming systems, organic farming has gained wide attention among the farmers, entrepreneurs and policy makers for valid reasons such as it minimizes the dependence on chemical inputs and it is labour intensive thus provides an opportunity to increased rural employment. Organic farming is also practiced in around 150 countries in the world and the area under organically managed is continuously growing. Another notable important system for the success of organic farming is the part of keeping the live stock at farms. Live stock plays major role in organic farming as intermediatory between the utilization of crop residue or fodder and the returns of the nutrient as manure. Thus, organic farming is therefore as inter dependent system making it knowledge based rather than input based farming.

Scenario

Off late, unfortunately some sections of people are often doubting organic farming and its sustainability and questions are being asked. 1. Can India achieve the target of food production by 2010 by changing over to organic farming? 2. Is there any hidden agenda by the developed countries misleading other developing countries? 3. Do we have sufficient organic manure to supply the plant nutrients received by the crop and cropping system under organic farming? 4. Is there a fear in the minds of the people that crop yields decline when we change over to organic farming? We do have answers for some of these questions although, a lot more need answers.

Status

Considering the merits in organic farming and to receive the traditional farming system, State Agricultural Universities have started under Graduate and Post-Graduate courses besides the ICAR started both-on farm and on-station research on organic farming in several agro ecological zones. In addition, several states developed policy on organic farming and few in North Eastern states are declared as organic states. The Govt. of Karnataka has established concept on organic village and several other programs which are closely monitored with a separate establishment in the department of Agriculture. Organic production and products are certified by several recognized agencies in the country and APEDA is the nodal organization at the National level entrusted with responsibility of various issues related to organic farming. The national steering committee has designated Coffee board, Tea board, Coconut development board and Directorate of Cashew and Coco development etc.,

for issuing the organic certificate. There are several international agencies to accredit and issue of organic certification is operation in India.

Research Gaps
In spite of organic certification producer and consumer are not guaranteed the as soon as now it is oriented. As such to ensure genuine organic produce and product the following research gaps to be bridged. 1. Development is necessary of protocol to diagnose the organic produce and product. 2. Methods to detoxify the inorganic chemicals in the soil to reduce the time of conversion period. 3. Identification of the appropriate management technologies and technologies and techniques required for the organic farming system. 4. Screening and standardization of various bio-control agents. 5 .Developing crops and varieties suitable for biotic and abiotic stress under organic farming system. 6. Prepare package of practices of Agri. / Horti. /Animal husbandry and other allied areas of organic Farming system. 7. The production guide lines of organic certified seed production of various crops. 8. Working out appropriate organic farming models suitable for different agro climatic zones. 9. Development of suitable guidelines for the various stock holders involved in organic farming. 10. Establishment of online information production technology is made available.

Commercial Organic Farming

The national Agricultural Policy aimed to strengthen the national economic growth through efficient marketing to accelerate foreign exports by establishing Agri-Export Zones as listed below for various crops in major crop-growing areas, for which technical know-how and facilities for export will be provided. Therefore, there is a shift from sustainable to commercial organic agriculture as there is a better income from organic crop production. Agri-export zones of India Andhra Pradesh Assam Bihar Himachal Pradesh Jammu and Kashmir Jharkhand Karnataka Kerala Madhya Pradesh Maharashtra Orissa Sikkim Uttar Pradesh Uttarkhand West Bengal Mango pulp, fresh vegetables, grapes Fresh and processed ginger Litchi Apple, Apple, walnut Vegetables Gherkins, flowers Horticultural products Potato, onion, garlic seed spices Mango, grape, onion, flowers, orange Ginger, turmeric Flowers(orchids), cherry, pepper, ginger Mango potato, vegetables Litchi, flowers, medical and aromatic plants Litchi, Pineapple, potato, mango, vegetables

Under this AEZ program, India exported large number of commodities to various countries and major organic products exported during 2004 and 05 are as follows Products Production (M.T) 3009 44520 Export QTY (M.T) 3814 1876 Value (Rs. Lakhs) 2318.80 4788.63 Destination

Honey Tea

Spices

67893

350

516.66

Coffee 9194 Rice 3236 Others 250007 Total 377859 Source: APEDA, (2004-05)

162 1070 1072 8344

146.63 164.59 1598 9533.31

Germany , USA Germany, srilanka, Japan, USA, Australia, U.K, Netherlands Italy, USA, France, Switzerland, Taiwan, Japan Germany & U.K U.K, Germany Europe, USA

The Recent Strategies on export show that area under certified organic production is 2.5m.ha with total certified product of 115238 M.T. Of this 6472 M.T Exported to Various Countries. The Export Valued 15.5 million US dollars comprising of 31 organic products. There were 158 certified processing units involved in this industry. In spite of all the Government efforts, in promoting organic production, processing facilitating export contributing one digit in the global organic market. Therefore there is a need to augment production, processing, packing and export at the farmers level. With this approach farmers are put to less difficulty and also help the export based on the demand. Commercialization of OFS is the integration of time tested traditional practice under scientific management are essential part of commercial production. The package includes several methods, like sheep penning. Integration of Biomass and crop residue management, use of Bio-fertilizer, Vermi-composting, INM, IPM, Farming system, Eco-friendly pest management, use of Bio-control agents, contract farming, establishing operations units, establishing organic associations and their own retail outlets, hiring Consultants and promotion through soil health centers will boost the Agri. Export.

Conclusion
The vast experience of the Indian farm in organic farms over centuries is the greatest opportunity to produce qualitative produce & products. Off late the state government has come with a policy of contract farming as a result some European countries have taken up the commercial production of fruits and vegetables. Due to diversity of climate, soil and good water for irrigation it is possible to produce topical, temperate and direct fruits and vegetables which have export value through out the world with this great potential India has become a hub for organic farming in the 21st century. All the above mentioned benefits ensure the safest and most profitable production which needs to be harnessed by the global investors.