Sunday, October 20, 2013

Organic bazaars come to small towns; farmers bypass middlemen

NEW DELHI: Organic food, fancied by the health-conscious metropolitan elite, is finding customers in smaller towns ranging from Aurangabad to Shantiniketan and Kanyakumari. Many farmers are selling organic vegetables in small towns at a relatively small premium over the chemical-laden vegetables, and are making money by bypassing middlemen.

In Aurangabad, dozens of farmers set up stalls for organic vegetables every Sunday for their regular buyers - not the expat in a Mercedes, but the local postman, schoolteacher, a manager of the nearby state-run bank and others.

Prices are up to 15% higher but business is brisk. "Our organic bazaar is for the common man. We feel that even a postman should be able to afford it," says Joy Daniel, who helps farmer set up their stalls in Aurangabad and is the director of the Institute for Integrated Rural Development (IIRD).

Farmers actively participate in three such weekly markets across the Marathwada and Vidarbha regions. Farmers and NGOs working in the region attribute the success to late Alexander Daniel, founder of IIRD, who helped set up such markets successfully in places like Ambajogai in Beed district, Umra in Hingoli district and Jintur in Parbhani district.

For customers, such markets have many attractions including availability of many types of vegetables. "Consumers come here largely to buy vegetables like Diwali bhendi, allu leaves, hadhga flower, cherry tomato, native varieties of bottle gourd and chival leaves. You will not find them in any modern retail or local vendor store," says Daniel.

In Kolkata's Salt Lake and Dum Dum areas, government officials, executives and businessmen are regular clients of organic vegetables, says Srikant Mondal, who organises such markets twice a week. "We have a few clients from Delhi and in future we can think of tying up with Delhi's organic bazaar," he says. He also gets local Bengali buyers. "People coming to us tell us that prices of organic vegetables in Delhi and Mumbai are so high, that they have to think twice before making any purchase. This is not the case here even though I sell it 20% higher than market price," he says.

Wednesday, October 16, 2013

New tools help developing nations market organic products abroad

NEW DELHI: Organic farmers in developing countries like India will have greater access to world markets with the recently launched tools that would help ease trade in organic agriculture products, a UN body said.

With organic trade expanding at the rate of 15-20 per cent per year, the new tools - Equitool and International Requirements for Organic Certification Bodies (IROCB) - will help streamline acceptance of products that are traded internationally, Food and Agriculture Organisation (FAO) said on it website.

Equitool is a guide to help decision-makers assess whether an organic production and processing standard applicable in one region of the world is equivalent, ie not identical but equally valid, to another organic standard. This tool facilitates trade while also safeguarding organic production according to local socio-economic and agro-ecological conditions, FAO said.

The second tool, IROCB is a minimum set of performance requirements for organic certification bodies that will enable import of products certified under foreign control systems.

According to FAO, more than 100 countries export certified organic products. But international organic trade is hindered by a multitude of standards, regulations and conformity assessment systems.

Noting on the current organic trade situation, the UN body said that products certified as organic under one system are not easily recognised as organic under another. This causes major headaches and costs for organic producers and exporters wishing to sell in different markets.

Wednesday, October 2, 2013

Organic Food Market in India Set for Incessant Growth



According to a recently published report by TechSci Research ‘India Organic Food Market Forecast & Opportunities, 2017’, the organic food market in India is expected to grow at the CAGR of around 19% during 2012-17. The growth in the market is also being contributed by the foray of several retail giants and online retailers in the Indian organic food market. Over the last few years, several players have started to offer organic food products through online channel. Some of the major online organic food retailers include: Farm2Kitchen, Big Basket, Best Organic etc.

Organic foods are produced through systematic farming methods that do not involve any usage of pesticides and harmful chemicals for production. India has around 4.2 Million hectares of land which is certified for organic farming. The emergence of organic farming is also creating a wide array of job opportunities. Increasing awareness towards nutritious and healthy food and changing lifestyle are surging the demand for organic food, particularly across the metro cities. Majority of the demand for organic food is being contributed by cities such as Mumbai, Chennai, Delhi, Gurgaon, Bengaluru and Pune.

The market is restrained by some factors such as a price conscious consumer base, extensive land available for farming which is not certified for organic farming etc. The certification for land to be considered fit for organic farming requires extensive documentation and is also an expensive and time consuming process.

The demand for organic food products is increasing in U.S., Europe and Japan. The health concerns in these countries are rising extensively; however, as a result of high cost of labor and less fertility of land, these countries rely on developing countries like India to meet their requirements for organic foods.
“The availability of different types of organic products, less dependency on chemical fertilizers, increasing government initiatives for promoting organic farming and increasing investments by corporate giants are likely to push the market for organic foods in India,” said Mr. Karan Chechi, Research Director with TechSci Research a research based global management consulting firm.”

‘India Organic Food Market Forecast & Opportunities, 2017’ has evaluated the future growth potential of organic food market in India and provides statistics and information on market structure, industry behavior trends. The report includes organic food market projections and demand forecasting. The report is intended to provide cutting-edge market intelligence and help decision makers to take sound investment evaluation. Besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges and opportunities available in organic food market in India.