| India's
organic farm production is increasing every year to
meet rising export demand, but has found little favour
with local consumers as costs continue to be high, officials
and retailers said.
Organic farming is a set of simple practices without
the use of chemicals and ensures healthy food is produced
without harming the environment.
"There is great demand from exporters but in
India people still do not prefer it because it comes
expensive," H.R. Jai Ram, who owns Era Organics,
a certified retail outlet in Bangalore, said over the
telephone.
Organic farming is becoming popular with farmers and
certified area under cultivation has risen 40 percent
in 2006/07 from 2.5 million hectares a year earlier.
Production in 2005/06 was 0.29 million tonnes and is
seen rising more than 20 percent in 2006/07.
Exports rose to 1.8 billion rupees in 2006/07, an
increase of 20 percent from previous year.
While India now accounts for a mere 0.2 percent of the
$250 billion world organic food market, exports are
seen growing 40-50 percent annually, data from the Agricultural
and Processed Food Products Export Development Authority
of India (APEDA) showed.
"It is picking up fast and our credibility in the
world has also increased," Sanjay Dave, director
of APEDA, said.
India largely exports organic honey, tea, spices and
rice to the European Union and the U.K.
Organic food consumption in India is very low targeting
a narrow band of high-end consumers but retailers are
optimistic that brand-building and promotion could lift
sales at home.
"Another problem is that no one has gone for
promotion of these foods, so awareness level here is
very low," said Vishal Jalan, chief executive officer
of Aricha Trading Co., which recently opened its organic
retail outlet in Delhi.
Aricha Retail sells 10 varieties of spices and has
a sales target of 1.5 million rupees per month.
Global retail sales are growing at 20 percent a year
and are estimated to touch $102 billion by 2020, a study
by Rabobank International showed. However, the local
market is still unorganised and no industry data is
available.
Organic farming involves expensive farm inputs like
bio-pesticides, manure, bio-fertilisers. Added to this,
farm certification cost by government-approved agencies
makes the final produce dearer, growers said.
Price premium for organic products over ordinary ones
is at 25-30 percent, Dave said. So, a kilogram of the
healthier, natural bio-apple costs 130 rupees against
the ordinary variety which is available at 90 rupees.
Though expensive, officials and growers believe this
technique could also help solve the country's production
stagnation woes as it restores soil nutrients and enhances
its fertility.
"Initially, the investments are high. It is more
labour intensive and there are problems because of lower
soil fertility," said D.D. Bharamagoudra, president
of the Organic Farming Association of India.
"But the cost of cultivation should come down
with time as the main focus is on sustainability."
|
