The Rise of Organic Farming in India: Profitable Crops, Costs & Business Guide

Organic farming is a production system that prohibits the use of synthetically produced agro-inputs (fertilizers and pesticides). Instead, it relies on organic material (such as crop residues, animal residues, legumes, and bio-pesticides) for “maintaining soil productivity and fertility and managing pests under conditions of sustainable natural resources and a healthy environment.” 1

Eliminating synthetic or chemical-based inputs is, however, only one aspect of the organic production system. More importantly, it emphasizes a whole-system approach in which all the individual components (soil minerals, organic matter, microorganisms, insects, plants, animals, and humans) create a sustainable and self-regulating ecosystem. The National Organic Standards Board of the United States Department of Agriculture (USDA) defines it as “an ecological production management system that promotes and enhances biodiversity, biological cycles, and soil biological activity. It is based on the minimal use of off-farm inputs and management practices that restore and enhance ecological harmony.” 2

As a system, it entails several components with specific and integrated functions. The use of cover crops, green manures, animal manures, crop rotations, mixed farming, organic manure, and compost is encouraged to improve soil fertility, maximize biological activity, and maintain long-term soil health. Similarly, weeds are managed by using crop rotations, good crop husbandry, and biological controls. Pests and diseases are managed using diversity, bio-intensive pest management, and other biological controls. Finally, it emphasizes reducing external off-farm inputs and focusing on conserving the biodiversity of the agricultural system and the surrounding environment

What Is Organic Farming?

Organic standards, in which the definition is set out for practical application, stipulate not only the prohibition of the use of certain inputs but also usually dictate a range of practices to be followed that will ensure a farm maintains its sustainable productive capacity. In other words, farms on which no synthetic fertilizers and pesticides are used but where no alternative measures are taken to cope with fertility and pest issues are not necessarily accepted as organic. The factors required to classify as organic agriculture depend partly on local circumstances in terms of needs and availability of resources. For example, in a country where organic agriculture is not widely adopted, and where no organic seedlings are available, seedlings originating in conventionally managed enterprises may be used on an interim basis. Similarly, in such a situation, manure may not always be available from organic farms, and sourcing it from conventional farms may sometimes be allowed. Restrictions, such as the requirement to compost the material, may be in force. Since no technology is available to determine whether organic standards have been adhered to, certification of the production process at the farm level, as opposed to product certification, was specifically chosen to ensure that organic products were indeed grown according to organic standards. Consequently, the certification process is complicated, since it includes ascertainment that the farmer has incorporated a number of practices to cope with soil fertility and pests, as appropriate, in the particular area where the farm is located.

Although minimum standards have been set for many countries, standards differ between countries. However, if fundamental differences are found between local standards and those of IFOAM, an organization with those standards, they would be deemed unacceptable by IFOAM and hence by many traders in organic products. As mentioned before, the aim of organic agriculture is to stimulate biological processes in order to encourage nutrient needs of crops and livestock and pest management. Since conditions influencing these factors are not the same in all countries, differences in standards are acceptable. In fact, from an economic point of view, total homogeneity of standards worldwide would be rather inefficient. At present, the FAO/WHO Codex Alimentarius Commission is developing internationally applicable organic agriculture standards to protect consumers against deception and fraud. The Codex definition of organic agriculture is quoted in Box 3. The Codex Alimentarius Commission will also assist in harmonizing national legislation and settling international disputes on trade in organic produce.

Why Organic Products Are in High Demand

Organic production was first limited to fruits, vegetables, and dairy products. People had slowly started adapting these goods for their children, as they bore no harmful chemicals and were lead-free.

Due to growing awareness about how adulterated food can cause life-threatening diseases, the organic market started to rise.

It has now extended to food grains, pulses, cereals, tea, spices, and even oil seeds. Due to its increasing demand now, it is easily accessible in multi-brand retail stores and supermarkets.

Before 5 years, the ratio of exports and domestic use of organic food was 75:25. Now, it is almost equal. The highest growth is observed in organic foods when it comes to organic markets in India that also comprise beauty, personal care, health, and textile industries. The current certified and organized organic market is approximately Rs 2,500 crore and has been growing at a CAGR of 20%.

The organic food industry has a very promising future. There is a possibility of a lot of start-ups, and given the huge size of the Indian food market, many brands/companies want to diversify by dealing in organic foods. The trend of organic food right now is mainly popular in urban metros like Bangalore, Mumbai, and Delhi.

Most Profitable Organic Crops

Top Most Profitable Crops in India is 

 Sugarcane

 Coffee

 Ginger

Certification & Licensing Guide 

Organic farming certification in India is governed by the National Programme for Organic Production (NPOP) under the Ministry of Commerce & Industry.  The National Programme for Organic Production (NPOP) provides for standards for organic production, systems, criteria and procedures for accreditation of certification bodies, the National (India Organic) Logo, and the regulations governing its use. The standards and procedures have been formulated in harmony with other international standards regulating the import and export of organic products. Farms that have obtained Organic Farming Certification and adhere to the norms specified by the National Programme for Organic Production will be allowed to use the following India Organic logo on the produce.

How to Sell Organic Products Online

The Expert Market Research reports show that the organic food market in India alone will reach a value of USD 4082 million by 2028.

India actually competes with Japan and Korea for the faster-growing cosmetic market in India.

This is proof that not only is it profitable, but since it’s relatively a niche market, online sellers have an incredible advantage in these fast-growing segments. 

Starting an eCommerce business requires planning and analyzing various factors.

Here’s how you can sell organic products online and start a successful eCommerce business:

1. Choose a niche
2. Source products
3. Sort out legal requirements
4. Create product images
5. Start an online store
6. Market your organic products

India’s Future in Organic Agriculture

Organic farming in India is poised for significant growth as the nation responds to the global demand for sustainable agriculture and healthier food options. The shift towards organic practices reflects a broader movement toward environmental conservation, biodiversity preservation, and consumer awareness of health and well-being. This blog explores the trends and innovations shaping the future of organic farming in India, highlighting the role of companies like Humic Factory in driving these advancements.

The Rise of Organic Farming in India

India has a rich tradition of organic farming, rooted in the ancient practices of sustainable agriculture. However, with the Green Revolution in the 1960s, the use of chemical fertilizers and pesticides became prevalent, leading to significant increases in agricultural productivity but also causing soil degradation, water pollution, and health concerns.

In recent years, there has been a growing recognition of the negative impacts of chemical-intensive farming. This has spurred a revival of interest in organic farming, which emphasizes the use of natural inputs, biodiversity, and ecological balance. The Indian government has also played a crucial role in promoting organic farming through initiatives like the National Programme for Organic Production (NPOP) and Paramparagat Krishi Vikas Yojana (PKVY).

The rise of organic farming in India is driven by several factors:

1. Increasing Consumer Awareness.
2. Government Support: 
3. Export Opportunities: 
4. Environmental Concerns:

Conclusion

India is rapidly emerging as a global leader in organic farming. The organic farming sector has shown exponential growth over the last few years, fueled by increasing consumer awareness and government initiatives.

• Growing Domestic Demand: With rising health awareness, Indian consumers are now more inclined to purchase organic products. Organic food markets are expanding, particularly in urban centers like Delhi, Mumbai, and Bengaluru. E-commerce platforms are also playing a vital role in making organic products more accessible.

• Export Opportunities: India is one of the largest exporters of organic produce in the world. Indian organic products, particularly organic tea, spices, rice, and cotton, are highly sought after in countries like the USA, Germany, and Canada. This demand is driving more Indian farmers to adopt organic practices.

• Government Support: The Indian government has launched various schemes and programs to promote organic farming, such as the Paramparagat Krishi Vikas Yojana (PKVY) and the National Programme for Organic Production (NPOP). These initiatives offer subsidies, training, and certification assistance to farmers, making it easier for them to transition to organic farming.

• Favorable Climate Conditions: India’s diverse agro-climatic conditions make it ideal for organic farming. With proper management, India has the potential to grow a wide variety of organic crops, catering to both domestic and international markets.

• Scope for Technological Innovation: The use of modern technology in organic farming, such as precision farming and organic pesticides, is helping farmers increase productivity while maintaining sustainability. The integration of technology will further boost organic farming in India.