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Govt thrust may spur growth of organic farming

G. Chandrashekhar

MUMBAI, Aug. 15

ORGANIC cultivation and agri-business in organic products is expected to receive a major boost in the country following a series of initiatives taken by the Government. The policy makers have now put a regulatory framework in place so as to ensure proper certification and export promotion.

Last year, the National Programme for Organic Production (NPOP) was released; and in May this year, the National Accreditation Programme was notified by the Ministry of Commerce. NPOP covered the national standards based on guidelines of International Fe deration of Organic Agriculture Movement, European Union standards and Codex Alimentarius standards.

Agricultural and Processed Food Products Export Development Authority (APEDA), Tea Board, Coffee Board and Spices Board have been designated as the accreditation agencies. To regulate the export of organic products, the Director General of Foreign Trade has issued a notification which will take effect from October 1, 2001.

APEDA has set up four model farms for aromatic rice, sugarcane, passion fruit and pineapple. While all the four farms have got organic certification, in case of rice the first harvest is reported to have been sold. APEDA is likely to seek the assistance of experienced exporters of organic products for marketing in either fresh or processed form.

In order to create awareness about organic products and business opportunities associated with them, State Governments have been activated to set up model organic farms as also educate farmers and non-government organisations (NGOs) about the economic be nefits of the new thrust. State government are expected to identify the product, location and an NGO for setting up and operating the model farm.

In a meeting exporters of organic products had with APEDA recently, several issues including strategies for promoting exports, constraints in setting up organic farms and certification, procurement of inputs and need for training came up for discussion.

Given the traditional agronomic practices followed by small farmers, Indian agri-products are known to be more organic than in most developed countries. Ironically, however, growers here have not been able to take advantage of it as a marketing propositi on because of the rigours of certification and cumbersome procedure for obtaining an organic certificate.

Now, with NPOP in place, the rigours are much less; but there is need for standardisation of inspection and certification costs at levels affordable for small farmers. Also, testing facilities for inputs such as seeds, fertilisers, water and soil have to be popularised and processing facilities have to be established in remote areas of cultivation.

In view of the hardships associated with organic cultivation and certification, belief is gaining ground that training programme and dissemination of market information is critical. Methods of cultivation and maintenance of farm record are essential. Far mers have to be educated not only about the product, but also about the market and its vicissitudes. In doing so, information technology can play a significant role.

Organic market analysts have forecast 20-30 per cent growth in global demand, and in some countries even up to 50 per cent. Presently, organic products market is an estimated $11 billion which is expected to multiply to $100 billion in the next 10 years with a major share of the growth taking place in the US and Japan.

Most producers of organic products seem to be chasing the export markets for obvious economic benefits. While it is perfectly valid business decision of individual producers, it may not be out of place to point out that the domestic market is too large t o ignore. Even conceding that the domestic market size for organic products is rather limited at present, recent experience in the export of commodities such coffee and tea should provide a valid lesson.

Tea and coffee producers serviced lucrative export markets and ignored the potential of the domestic market. Low international prices and slowdown in exports last two years have created unsettling conditions for the producers. It should not be repeated f or organic products.