History
The organic movement began in the early 1930s and early 1940s as a reaction to agriculture's growing reliance on synthetic fertilizers. Artificial fertilizers had been created during the 18th century, initially with superphosphates and then ammonia derived fertilizers mass-produced using the Haber-Bosch process developed during World War I. These early fertilizers were cheap, powerful, and easy to transport in bulk. Similar advances occurred in chemical pesticides in the 1940s, leading to the decade being referred to as the 'pesticide era'.
Sir Albert Howard is widely considered to be the father of organic farming.[5] Further work was done by J.I. Rodale in the United States, Lady Eve Balfour in the United Kingdom, and many others across the world.
As a percentage of total agricultural output, organic farming has remained tiny since its beginning. As environmental awareness and concern increased amongst the general population, the originally supply-driven movement became demand-driven. Premium prices from consumers and in some cases government subsidies attracted many farmers into converting. In the developing world, many farmers farm according to traditional methods which are comparable to organic farming but are not certified. In other cases, farmers in the developing world have converted for economic reasons [5]. As a proportion of total global agricultural output, organic output remains small, but it has been growing rapidly in many countries, notably in Europe.
Much before the awareness about the Organic farming through the movements began, there was a well developed Organic farming system in India. Ancient Indian texts describe the methods of Organic farming. This is being practiced even today in many of the villages in India. Sanjeevan system is an example of such organic farming method. [6]
Methods
"An organic farm, properly speaking, is not one that uses certain methods and substances and avoids others; it is a farm whose structure is formed in imitation of the structure of a natural system that has the integrity, the independence and the benign dependence of an organism"
—Wendell Berry, "The Gift of Good Land"
[edit] Soil management
Enhancing soil health is important for organic farmers,[7] but providing enough nutrients, particularly nitrogen, is often a challenge for organic farmers.[8] Plants primarily need nitrogen, phosphorus, and potassium. Crop rotation and green manure help to provide adequate nutrition. Intercropping, which is sometimes used for insect and disease control, can also increase soil nutrients. Cover cropping, application of compost, and mulching can also increase organic matter. Organic farmers can also use certain processed fertilizers such as seed meal and various mineral powders such as rock phosphate and
greensand, a naturally occurring form of potash which provides potassium. Altogether these methods help to control erosion, promote biodiversity, and enhance the health of the soil. In some cases pH may need to be amended. Natural pH amemdments include lime and sulfure, but in the U.S. some synthetically compounds such as iron sulfate, aluminum sulfate, magnesium sulfate, and soluble boron products are allowed in organic farming
[edit] Standards
Main article: Organic certification
Standards regulate production methods and in some cases final output for organic agriculture. Standards may be voluntary or legislated. As early as the 1970s organic producers could be voluntarily certified by private associations. In the 1980s, governments began to produce organic production guidelines. Beginning in the 1990s, a trend toward legislation of standards began, most notably with the 1991 EU-Eco-regulation developed for European Union[15], which set standards for 12 countries, and a 1993 UK program. The EU's program was followed by a Japan program in 2001, and in 2002 the United States created the National Organic Program (NOP).[16] As of 2007 over 60 countries have regulations on organic farming (IFOAM 2007:11). In 2005 IFOAM created the Principles of Organic Agriculture, an international guideline for certification criteria.[17] Typically the agencies do not certify individual farms, but rather accredit certification groups.
Materials used in organic production and foods are tested independently by the Organic Materials Review Institute.
[edit] Composting
Under USDA organic standards, manure must be subjected to proper thermophilic composting and allowed to reach a sterilizing temperature. If raw animal manure is used, 120 days must pass before the crop is harvested.[18]
[edit] Economics
The economics of organic farming, a subfield of agricultural economics, encompasses the entire process and effects of organic farming in terms of human society, including social costs, opportunity costs, unintended consequences, information asymmetries, and economies of scale. Although the scope of economics is broad, agricultural economics tends to focus on maximizing yields and efficiency at the farm level. Mainstream economics takes an anthropocentric approach to the value of the natural world: biodiversity, for example, is considered beneficial only to the extent that it is valued by people and increases profits. Some governments such as the European Union subsidize organic farming, in large part because these countries believe in the external benefits of reduced water use, reduced water contamination by pesticides and nutrients of organic farming, reduced soil erosion, reduced carbon emissions, increased biodiversity, and assorted other benefits.
Organic farming is labor and knowledge-intensive whereas conventional farming is capital-intensive, requiring more energy and manufactured inputs. Organic farmers in California have cited marketing as their greatest obstacle.[19]
[edit] Geographic producer distribution
The markets for organic products are strongest in North America and Europe, which as of 2001 are estimated to have $6 and $8 billion respectively of the $20 billion market (2003:6). However, as of 2007 organic farmland is distributed across the globe. Australasia has 39% of the total organic farmland with Australia's 11.8 million hectares, but 97 percent of this land is sprawling rangeland (2007:35), which results in total sales of approximately 5% of US sales (2003:7). Europe has 23 percent of total organic farmland (6.9 million hectares), followed by Latin America with 19 percent (5.8 million hectares). Asia has 9.5 percent while North America has 7.2 percent. Africa has a mere 3 percent. See also Organic farming by country.
Besides Australia, the countries with the most organic area are Argentina (3.1 million hectares), China (2.3 million hectares), and the United States (1.6 million hectares). Much of Argentina's organic farmland is pasture, like that of Australia (2007:42). Italy, Spain, Germany, Brazil, Uruguay, and the UK follow the United States by the amount of land managed organically (2007:26).
[edit] Growth
As of 2001, the estimated total market value of certified organic products was estimated to be $20 billion. By 2002 this was $23 billion and by 2007 more than $46 billion according to Organic Monitor (Willer/Kilcher 2009).
In recent years both Europe (2007: 7.8 million hectares/European Union: 7.2 million hectares) and North America (2007: 2.2 million hectares) have experienced strong growth in organic farmland. However, this growth has occurred under different conditions. While the European Union has shifted agricultural subsidies to organic farmers in recognition of its environmental benefits, the United States has taken a free market approach[20]. As a result, as of 2007 4 percent of the European Union's farmland was organically managed compared to just 0.6 percent of United States farmland (Willer/Kilcher 2009).
IFOAM's most recent edition of The World of Organic Agriculture: Statistics and Emerging Trends 2009 lists the countries which had the most hectares in 2007. The country with the most organic land is Australia with more than 12 million hectares, followed by Argentina, Brasil and the US. In total 32.2 million hectares were under organic management in 2007. For 1999 11 million hectares of organically managed land are reported (Willer/Kilcher 2009).
[edit] Productivity and profitability
A 2006 study suggests that converted organic farms have lower pre-harvest yields than their conventional counterparts in developed countries (92%) and that organic farms have higher pre-harvest yields than their low-intensity counterparts in developing countries (132%). The researcher attributes this to a relative lack of expensive fertilizers and pesticides in the developing world compared to the intensive, subsidy-driven farming of the developed world. Nonetheless, the researcher purposely avoids making the claim that organic methods routinely outperform green-revolution (conventional) methods.[21] This study incorporated a 1990 review of 205 crop comparisons which found that organic crops had 91% of conventional yields.[22] A major US survey published in 2001, analyzed results from 150 growing seasons for various crops and concluded that organic yields were 95-100% of conventional yields.[23]
Lotter (2003:10) reports that repeated studies have found that organic farms withstand severe weather conditions better than conventional farms, sometimes yielding 70-90% more than conventional farms during droughts. A 22-year farm trial study by Cornell University published in 2005 concluded that organic farming produces the same corn and soybean yields as conventional methods over the long-term averages, but consumed less energy and used zero pesticides. The results were attributed to lower yields in general but higher yields during drought years.[24] A study of 1,804 organic farms in Central American hit by Hurricane Mitch in 1998 found that the organic farms sustained the damage much better, retaining 20 to 40% more topsoil and smaller economic losses at highly significant levels than their neighbors.[25]
On the other hand, a prominent 21-year Swiss study found an average of 20% lower organic yields over conventional, along with 50% lower expenditure on fertilizer and energy, and 97% less pesticides.[26] A long-term study by U.S Department of Agriculture Agricultural Research Service (ARS) scientists concluded that, contrary to widespread belief, organic farming can build up soil organic matter better than conventional no-till farming, which suggests long-term yield benefits from organic farming. [27] An 18-year study of organic methods on nutrient-depleted soil concluded that conventional methods were superior for soil fertility and yield in a cold-temperate climate, arguing that much of the benefits from organic farming are derived from imported materials which could not be regarded as "self-sustaining".[28]
While organic farms have lower yields, organic methods require no synthetic fertilizer and pesticides. The decreased cost on those inputs, along with the premiums which consumers pay for organic produce, create higher profits for organic farmers. Organic farms have been consistently found to be as or more profitable than conventional farms with premiums included, but without premiums profitability is mixed (Lotter 2003:11). Welsh (1999) reports that organic farmers are more profitable in the drier states of the United States, likely due to their superior drought performance.[29]
In 2008 the UN Environmental Programme (UNEP) and UN Conference on Trade and Development (UNCTAD) issued a report which stated that "organic agriculture can be more conducive to food security in Africa than most conventional production systems, and that it is more likely to be sustainable in the long-term".[30] The report assessed 114 projects in 24 African countries, finding that "yields had more than doubled where organic, or near-organic practices had been used" and that soil fertility and drought resistance improved.[31]
In 2009, a review concluded that organic production was more profitable in Wisconsin, when including price premiums.[32]
Wednesday, June 24, 2009
what is orgainc food and its benifit???
In spite of the increasing popularity of Organic food these days, most of the people do not have a clear idea regarding the definition of organic food. In simple words, Organic foods are those foods that are produced, processed and packaged without using chemicals. They have been accepted due to their perceived health benefits over conventional food. The organic industry is growing rapidly and has caught the attention of farmers, manufacturers and, above all, consumers. Some of the popular organic food items include organic tea, organic coffee, organic wine, organic meat, organic beef, organic milk, organic honey, organic vegetables, organic fruits, organic rice, organic corn, organic herbs, organic essential oils, organic coconut oil and organic olive oil.
Organic foods protect from heart disease and cancer, as they contain Phenolic compounds. Organic food ensures high food quality, which other conventional foods cannot give. Organic food is natural and fresh, and thus, it is tasty. Many people prefer to grow organic food in their home gardens, because it costs about 20% more than the conventional food. Organic gardening uses organic seeds, organic fertilizers, compost, organic root stimulators, and organic pest control. It has been claimed by health experts that organic food is more nutritious. Some of the features that can be associated with organic food are quality, good taste, proper selection of crop varieties etc.
Advantages of Organic food
• Organically grown foods are natural, without any sprayed chemical.
• Organically grown foods are nutritious and full of taste although they may not look as colorful and well presented as shop produce.
• Organic foods put less burden on environment. Growing foods organically can protect the topsoil from erosion and is a great way of getting closer to nature.
Tips for Organic Food Customers
• Search for the label / logo of the certification body that has monitored and approved the production and processing of the food item as organic.
• Keep yourself updated about the organizations that are authorized to sell organic food in your region.
• Check out the prices of different food items in different stores and buy accordingly. The price of organic food varies from 10% to even 200% depending upon the place from the shopkeeper has bought the product.
Health Benefits of Organic Food
Organic food is termed as certified food, which is produced in accordance with some production standards. It is grown in organic farms and vigorously monitored by the officials of a certification body, during the production.
Benefits of Raw Organic Food
Organic food consumption has become the trend of the time, owing to the multiple health benefits that it offers. Organic food is absolutely natural and is packed with loads of vital nutrients required by the body.
Health Benefits Of Organic Food
Organic food is termed as certified food, which is produced in accordance with some production standards. It is grown in organic farms and vigorously monitored by the officials of a certification body, during the production. Unlike natural food, organic food stuffs are generally grown without the use of pesticides and chemical fertilizers. They are often labeled to differentiate them from the natural ones, because both are similar in terms of color, size and shape. Organic food not only involves fruits, vegetables and grains, but also the products derived from livestock.
Initially, organic foods were grown at small family-run farms. This restricted their availability to a great extent. The organic foods were available only in small stores and farmers' markets. With the increasing demand and the advancement in the field of agriculture, organic foods are now available in many countries of the world. Pricy though, more and more people are switching to organic food. The superior taste of organic food, perhaps, motivates people to consume them. Apart from the fact that it tastes better than the natural food, organic food has certain benefits on the overall health of the people as well. Check out the article to know all about the health benefits of organic food.
Organic Food Advantages
• Studies suggest that organic food tend to contain 10-50% higher amount of phyto nutrients as compared to the conventional food.
• Reduced risk of health problems is often associated with the consumption of organic food.
• Officials from the certification bodies visit the farm or plant, where the organic food stuffs are processed, to check whether the food is produced in accordance with the production standards set by them or not. This makes the organic food advantageous over its natural counterpart.
• Since organic foods generally carry labels, you will be able to differentiate them from others and choose accordingly.
• Organic food stays longer, without decaying, than the natural food.
• Since organic foods are treated with manure, they are considered better than the natural food, which are often treated with pesticides, herbicides and chemical fertilizers, when they are grown in farms.
• Organic food contains phenolic compounds, which protects our heart from cardiovascular diseases and reduces the risk of cancer.
• The farm animals in an organic farming are reared without the use of growth hormones. Farmers ensure that the animals are given a healthy and balanced diet. This makes such animal products tastier and healthier to eat, as compared to those produced in the conventional way.
• Fruits and vegetables grown in organic farms are found to have more antioxidants as compared to those grown by the conventional method of agriculture.
Benefits of Eating Raw Organic Food
Organic food consumption has become the trend of the time, owing to the multiple health benefits that it offers. Organic food is absolutely natural and is packed with loads of vital nutrients required by the body. One of the major benefits of eating raw organic food is that, not only it tastes better than conventional foods, but also contains a far greater quality, that makes it more nutritious. Read further to explore information about the raw organic food benefits…
Going in for raw organic food serves as the perfect health improving remedy. A person tends to feel more energized after having consumed raw organic food and organic food also aids in helping you lose weight faster. Raw food gets easily absorbed in the body, thus helps in ensuring smooth bowel movements. Raw food ensures that the nutritional value of the food remains enzymatically and nutritionally intact.
Cooking food often deteriorates the nutritional value of food, by leading to a loss of vital nutrients and enzymes. Heat tends to change the very composition of fat, protein, and carbohydrates. Also the cooking tends to interfere with the bioelectrical energy, necessary for sustaining life. Eating raw organic food goes a long way in cleansing your bloodstream and eliminating the waste products that are responsible for the formation of toxins in the body. So, incorporate raw organic food in your daily meals and improve your health fitness.
Organic means our food is not grown in cocktail of chemicals that means chemical fertilisers or chemical pesticides (either used on the crop or already present in the soil owing to their use for decades) and is also not genetically modified or genetically engineered. Science says Fresh Organic Produce contains many more vitamins, minerals and enzymes. Organic products protect us from toxic and chemical induced diseases while nourishing our bodies to promote good health. Non-organic food only appears to be cheaper, but it costs us our health, our farmland, our eco-systems and taxes to pay for the disasters that chemical farming create. Chemical farming has led to dramatic erosion of the soil, killing off whole species of birds and near extinction of some of our beautiful wildlife. Sustainable Organic Agriculture is already feeding people around the world. Chemical farming can seriously damage farmer's health.
Organic foods protect from heart disease and cancer, as they contain Phenolic compounds. Organic food ensures high food quality, which other conventional foods cannot give. Organic food is natural and fresh, and thus, it is tasty. Many people prefer to grow organic food in their home gardens, because it costs about 20% more than the conventional food. Organic gardening uses organic seeds, organic fertilizers, compost, organic root stimulators, and organic pest control. It has been claimed by health experts that organic food is more nutritious. Some of the features that can be associated with organic food are quality, good taste, proper selection of crop varieties etc.
Advantages of Organic food
• Organically grown foods are natural, without any sprayed chemical.
• Organically grown foods are nutritious and full of taste although they may not look as colorful and well presented as shop produce.
• Organic foods put less burden on environment. Growing foods organically can protect the topsoil from erosion and is a great way of getting closer to nature.
Tips for Organic Food Customers
• Search for the label / logo of the certification body that has monitored and approved the production and processing of the food item as organic.
• Keep yourself updated about the organizations that are authorized to sell organic food in your region.
• Check out the prices of different food items in different stores and buy accordingly. The price of organic food varies from 10% to even 200% depending upon the place from the shopkeeper has bought the product.
Health Benefits of Organic Food
Organic food is termed as certified food, which is produced in accordance with some production standards. It is grown in organic farms and vigorously monitored by the officials of a certification body, during the production.
Benefits of Raw Organic Food
Organic food consumption has become the trend of the time, owing to the multiple health benefits that it offers. Organic food is absolutely natural and is packed with loads of vital nutrients required by the body.
Health Benefits Of Organic Food
Organic food is termed as certified food, which is produced in accordance with some production standards. It is grown in organic farms and vigorously monitored by the officials of a certification body, during the production. Unlike natural food, organic food stuffs are generally grown without the use of pesticides and chemical fertilizers. They are often labeled to differentiate them from the natural ones, because both are similar in terms of color, size and shape. Organic food not only involves fruits, vegetables and grains, but also the products derived from livestock.
Initially, organic foods were grown at small family-run farms. This restricted their availability to a great extent. The organic foods were available only in small stores and farmers' markets. With the increasing demand and the advancement in the field of agriculture, organic foods are now available in many countries of the world. Pricy though, more and more people are switching to organic food. The superior taste of organic food, perhaps, motivates people to consume them. Apart from the fact that it tastes better than the natural food, organic food has certain benefits on the overall health of the people as well. Check out the article to know all about the health benefits of organic food.
Organic Food Advantages
• Studies suggest that organic food tend to contain 10-50% higher amount of phyto nutrients as compared to the conventional food.
• Reduced risk of health problems is often associated with the consumption of organic food.
• Officials from the certification bodies visit the farm or plant, where the organic food stuffs are processed, to check whether the food is produced in accordance with the production standards set by them or not. This makes the organic food advantageous over its natural counterpart.
• Since organic foods generally carry labels, you will be able to differentiate them from others and choose accordingly.
• Organic food stays longer, without decaying, than the natural food.
• Since organic foods are treated with manure, they are considered better than the natural food, which are often treated with pesticides, herbicides and chemical fertilizers, when they are grown in farms.
• Organic food contains phenolic compounds, which protects our heart from cardiovascular diseases and reduces the risk of cancer.
• The farm animals in an organic farming are reared without the use of growth hormones. Farmers ensure that the animals are given a healthy and balanced diet. This makes such animal products tastier and healthier to eat, as compared to those produced in the conventional way.
• Fruits and vegetables grown in organic farms are found to have more antioxidants as compared to those grown by the conventional method of agriculture.
Benefits of Eating Raw Organic Food
Organic food consumption has become the trend of the time, owing to the multiple health benefits that it offers. Organic food is absolutely natural and is packed with loads of vital nutrients required by the body. One of the major benefits of eating raw organic food is that, not only it tastes better than conventional foods, but also contains a far greater quality, that makes it more nutritious. Read further to explore information about the raw organic food benefits…
Going in for raw organic food serves as the perfect health improving remedy. A person tends to feel more energized after having consumed raw organic food and organic food also aids in helping you lose weight faster. Raw food gets easily absorbed in the body, thus helps in ensuring smooth bowel movements. Raw food ensures that the nutritional value of the food remains enzymatically and nutritionally intact.
Cooking food often deteriorates the nutritional value of food, by leading to a loss of vital nutrients and enzymes. Heat tends to change the very composition of fat, protein, and carbohydrates. Also the cooking tends to interfere with the bioelectrical energy, necessary for sustaining life. Eating raw organic food goes a long way in cleansing your bloodstream and eliminating the waste products that are responsible for the formation of toxins in the body. So, incorporate raw organic food in your daily meals and improve your health fitness.
Organic means our food is not grown in cocktail of chemicals that means chemical fertilisers or chemical pesticides (either used on the crop or already present in the soil owing to their use for decades) and is also not genetically modified or genetically engineered. Science says Fresh Organic Produce contains many more vitamins, minerals and enzymes. Organic products protect us from toxic and chemical induced diseases while nourishing our bodies to promote good health. Non-organic food only appears to be cheaper, but it costs us our health, our farmland, our eco-systems and taxes to pay for the disasters that chemical farming create. Chemical farming has led to dramatic erosion of the soil, killing off whole species of birds and near extinction of some of our beautiful wildlife. Sustainable Organic Agriculture is already feeding people around the world. Chemical farming can seriously damage farmer's health.
organic food week....
It takes 20 minutes of hunting and asking around to get to the two shelves at Food Bazaar assigned to organic foods. The section is unidentified and the selection little more than cereals and pulses. There are only two brands on offer, both uncertified.
Customers walk past, seemingly unaware of the "green" offerings. Nina Goyal is one of the few who stops at the section. "I come here for a few specific items," she says, "if I were to change my entire monthly supplies to organic, the expenditure would be unjustifiable."
This one instance is as representative of the domestic market for organic produce as it gets -- inadequate retail presence, little to no certified branded produce, an incomplete range, uncompetitive price points, and government policies that are skewed towards exports.
Central strategy on organic foods has always slanted toward the global market, leaving the critical mass of domestic consumers out in the cold. Currently, about 70 per cent of organic agriculture items produced in India are being exported. Why, you ask? Big bucks, clearly. Organic products fetch a 20-30 per cent higher price than inorganic products in the world market.
According to the Indian Competence Centre for Organic Agriculture, the global market for organically produced foods is $26 billion and is estimated to increase to $102 billion by 2020.
As part of 10th Five Year Plan (2002-07), the government earmarked Rs 100 crore (Rs 1 billion) for the promotion of sustainable agriculture in the country, but the main components of this initiative have benefited exports, from the establishing of national organic standards under NPOP (National Programme for Organic Production), putting in place a system of certification for products, and establishing APEDA (Agricultural and Processed Food Export Development Authority) as the nodal agency to promote exports opportunities.
Domestic retail avenues for organic produce have traditionally been the odd cottage emporium, fruit mart, bakery and kirana store along with an upmarket provision store here and a delicatessen there.
Today, however, marginal growth is slowly becoming evident in the increase in organised producers, retailers and product offerings in the market, where before the movement had been driven entirely by the spirit of individual initiatives of the farmers, the odd entrepreneur and non-governmental organisations.
Dr Vandana Shiva, physicist and economist, spearheaded the cause of sustainable farming by establishing Navdanya two decades ago, a movement for biodiversity conservation and farmers' rights. One of its seminal contributions to fair trade practices has been the marketing of organic agricultural produce directly from farmers to consumers.
Mayaji, director, Navdanya, claims the sector has sustained itself through the marginal farmer. "They would tell us 'We are being compelled to adopt chemical-based farming because of government policies, but we will always keep a portion of the land organic for self-consumption' -- that is the kind of farmer we exist for," she says.
Besides marketing produce through their two outlets in New Delhi and one in Dehra Dun, Navdanya has just initiated an organic food awareness campaign among schoolchildren in Delhi, inviting them to learn to cook organically at its Slow Food caf� in Hauz Khas. "We teach them to make organic burgers with nine grain and whole wheat buns," laughs Mayaji.
Sustainability for one-off shops has always been an issue. Nikhil and Jigna Shah started Greenway in 1997 when there were no others retailing organic produce in Mumbai. They source directly from 20 marginal farmers, and processing is done in small quantities at home.
"Our lateral growth has been great in terms of more products and greater awareness, but vertical growth is stubborn and we've had to persevere to stay afloat." Nikhil is passionate about their work and claims that their customers are just as enthused; they rarely ask for certification evidence or question sources.
"There is no certification for inorganic products so why should there be for organic products? If you buy wheat from a store, you buy on the basis of the sheer fact that it is branded, you don't ask whether it has been blended with chemicals and in what quantities."
When organic farmers and traders are operating in an anonymous market, certification is developed to show and guarantee to consumers that a product has been produced in consistency with organic standards.
While certification has provided Indian-produced organic products with inroads into foreign markets, domestic bound produce is largely uncertified, owing to the fact that most producers are either small or marginal farmers, small cooperatives or fair trade companies.
Under current government policy, it takes approximately three years for a farm in conversion to be certified as organic, and costs are hefty for the small farmer.
While internationally, our exports cannot hold ground without certification, uncertified brands in India have had some success. Conscious Foods was born in 1999 from Kavita Mukhi's desire to feed her family with safe, pure food.
"The farmers I sourced from were all small farmers, there was no talk of certification in those days, and we just bought from whoever we believed to be true. I bought for self-consumption and tried to sell the excess. We still don't certify our products because our mission has been to support the small and marginal farmers."
There seem to be other attributes that inspire confidence among her buyers, such as the brightly colour-coded labeling -- green for spice, mustard for cereals and pulses, red for snacks -- the interesting play with bottle shapes and sizes, and stories about indigenous producers printed on the label.
"We never compromise on quality, we have a centralised sorting, cleaning and packing workshop, and the 10 women we employ wear masks, gloves and hair nets." Conscious Foods grows for the domestic market. Mukhi clarifies, "Why should the best produce be exported while we eat unhealthy pesticide laced food?" She continues, "We would love to start a stand-alone store but currently our volumes are not substantial enough."
These sketchy patterns of retail are metamorphosing into more organised retail, albeit slowly. With an estimated 2-3 million potential consumers of organic agricultural products in India, the problem has always been the absence of organised marketing and retailing.
In developed countries, especially in Europe and the US, every supermarket has a green line where a complete range of certified organic products is available. India is just beginning to manage a toehold in some supermarkets.
Food Bazaar, the foods division of Pantaloon [Get Quote] Retail, is based on a comprehensive food and grocery store format and has 32 outlets and 200,000 sq ft of retail space across India. The organic range stocked is inadequate but Damodar Mall, head of the food division, says, "It's a beginning. The customer is moving in small steps and formats like ours will have to take the lead."
Mall claims the organic range is not complete because they are dependent on local, small brand initiatives; there just aren't enough big certified brands.
Fabindia is hoping to change that. The Rs 100 crore (Rs 1 billion) apparel and home furnishings retailer ventured into organic foods earlier this year when it test-marketed its organic range in New Delhi.
According to Jashwat Purohit, head of Fabindia's organic foods business, the organics segment will grow from 1 per cent of its annual turnover in the first year to 5 per cent in the third year.
"Our goal is to be able to offer customers a complete organic lifestyle. It doesn't seem enough for us to offer only select items; we are constantly adding to our range. We started with 75 products but now have around 200 certified products," he states.
However, the supply chain is still testy. Says Purohit, "This is a huge challenge; organic projects are scattered across the country and we are faced with many challenges -- quality, consistency, transport, storage, shelf life -- and so have had to partner with only very reliable suppliers who can consistently deliver the quality we want."
Fabindia's short-terms plans are to offer fresh fruit and vegetables, and long-term plans include bakery and dairy products. "We hope to be in all our stores by the end of this year, which are in every major city across the country," Purohit says.
Even large exporters are now looking homeward to fill the gaps. As export markets get saturated and oversupplied, especially in markets like tea, and premiums get squeezed, domestic markets are bound to be targeted.
Says R B Singh, chief executive officer, IITC Organic, a Rs 30 crore (Rs 300 million) Lucknow-based producer and exporter of organic products, "In a year or two, we intend to be the leading domestic organic brand. We predict that five years down the line, India will be both a major organic foods producer as well as consumer. It is awareness and education in the Western countries that has brought about an unprecedented demand for organic foods. India will follow suit as public information and education grows."
Increased public health consciousness and increased visibility will help, but there has to also be a shift in mindset. Says Rehan Padamsee, a loyal customer of Conscious Foods, "Consumers have to understand that consistency, standardisation and all-year availability cannot be stringently observed with organic food. I learned from the Slow Food Movement (an international food movement that came into being in Paris in 1989 that preserves agricultural biodiversity, traditional foods and promotes seasonal consumption) to try and eat traditionally and seasonally."
Nikhil Shah agrees, "Customers need to undergo a paradigm shift; they cannot expect every tomato to look alike without chemical intervention. When I take rice from a farmer and see insects in it, I don't reject it, I just make sure I dry it in the sun and package it again."
It's not just consumer sensitivity that will affect the upshot; price parity is a big deterrent for potential consumers. Says Padamsee, "I believe that it is my right to eat healthy food and I shouldn't have to pay a premium for it. I think more people would convert if there was a better price parity."
Godrej [Get Quote] AgroVet's retail product, Nature's Basket, is also looking into the possibility of test marketing certified organic produce through its outlets, but according to R S Vijan, executive vice president, when they test-marketed organic chikoos and coconuts, the sales response was slow as customers were not ready to pay the price differential of 15-20 per cent between organic and non-organic fruits.
Arguably, once a farmer converts from chemical-based farming to organic farming, costs should come down. Mayaji responds, "Organic products are more expensive now because farmers are still in the conversion period when yields are low, even though inputs are cheaper. Because inorganic farming is so heavily subsidised, when we started buying from farmers, we needed to ensure that the farmer didn't suffer, so we paid a premium and continue to do so."
Also, currently, the market is in its infancy and as such does not benefit from economies of scale. Mall agrees, "We believe the premium will come down as sales go up. Growers will improve their yields over time, and consumers' demand will grow. With critical demand, mass prices will drop. But as a retailer, we can only participate in the trend, not force it."
In all this however, small farmers still have no significant retail platforms unless picked up by cooperatives or NGOs. Attempts at marketing organically grown produce are still mostly by word of mouth, filling individual orders that were phoned in and home-delivered like the Alibag organic farmers' cooperative who use the home-delivery basket scheme -- but these are difficult, expensive and eventually quite ineffective methods of selling.
Trade fairs and fair price markets are few and far between, and usually too localised to have a large impact. For the first time, ICCOA, with the government of Karnataka and APEDA, is organising a pan-Indian trade fair in Bangalore this November.
India Organic 2005 promises to be visited by large buyers; what is noteworthy is a section reserved for uncertified farmers.
Nikhil Shah is optimistic: "The farmers are waiting excitedly; they're ready for the boom." Edward Bastin, advisor to Fabindia's pilot project, Organic Fresh Direct, adds, "We promote factors that have fuelled demand in more mature markets -- public health consciousness, increased exposure to organic food, a reduction in the price premium and active marketing.
Although any one of these factors is likely to stimulate interest, it is the simultaneous occurrence of all of them that will really work." Until then, all the excitement will amount to a little more than a whisper.
Organically speaking...
Customers need to undergo a para-digm shift; they cannot expect every tomato to look alike without chemical intervention. When I take rice from a farmer and see insects in it, I don't reject reject it, I just make sure I dry it in the sun and package it again.
Nikhil Shah, founder, Greenway
We exist for the marginal farmers who would keep a portion of the land organic for self-consumption, despite being compelled to adopt chemical-based farming because of government policies.
Mayaji, director, Navdanya
It is awareness and education in Western countries that has brought about an unprecedented demand for organic foods. India will follow suit as public information and education grows.
R B Singh, CEO, IITC Organic
Consumers have to understand that consistency, standardisation and all-year availability cannot be stringently observed with organic food. Also, it's my right to eat healthy food and I shouldn't have to pay a premium for it. I think more people would convert if there was a better price parity.
Rehan Padamsee, Consumer
Customers walk past, seemingly unaware of the "green" offerings. Nina Goyal is one of the few who stops at the section. "I come here for a few specific items," she says, "if I were to change my entire monthly supplies to organic, the expenditure would be unjustifiable."
This one instance is as representative of the domestic market for organic produce as it gets -- inadequate retail presence, little to no certified branded produce, an incomplete range, uncompetitive price points, and government policies that are skewed towards exports.
Central strategy on organic foods has always slanted toward the global market, leaving the critical mass of domestic consumers out in the cold. Currently, about 70 per cent of organic agriculture items produced in India are being exported. Why, you ask? Big bucks, clearly. Organic products fetch a 20-30 per cent higher price than inorganic products in the world market.
According to the Indian Competence Centre for Organic Agriculture, the global market for organically produced foods is $26 billion and is estimated to increase to $102 billion by 2020.
As part of 10th Five Year Plan (2002-07), the government earmarked Rs 100 crore (Rs 1 billion) for the promotion of sustainable agriculture in the country, but the main components of this initiative have benefited exports, from the establishing of national organic standards under NPOP (National Programme for Organic Production), putting in place a system of certification for products, and establishing APEDA (Agricultural and Processed Food Export Development Authority) as the nodal agency to promote exports opportunities.
Domestic retail avenues for organic produce have traditionally been the odd cottage emporium, fruit mart, bakery and kirana store along with an upmarket provision store here and a delicatessen there.
Today, however, marginal growth is slowly becoming evident in the increase in organised producers, retailers and product offerings in the market, where before the movement had been driven entirely by the spirit of individual initiatives of the farmers, the odd entrepreneur and non-governmental organisations.
Dr Vandana Shiva, physicist and economist, spearheaded the cause of sustainable farming by establishing Navdanya two decades ago, a movement for biodiversity conservation and farmers' rights. One of its seminal contributions to fair trade practices has been the marketing of organic agricultural produce directly from farmers to consumers.
Mayaji, director, Navdanya, claims the sector has sustained itself through the marginal farmer. "They would tell us 'We are being compelled to adopt chemical-based farming because of government policies, but we will always keep a portion of the land organic for self-consumption' -- that is the kind of farmer we exist for," she says.
Besides marketing produce through their two outlets in New Delhi and one in Dehra Dun, Navdanya has just initiated an organic food awareness campaign among schoolchildren in Delhi, inviting them to learn to cook organically at its Slow Food caf� in Hauz Khas. "We teach them to make organic burgers with nine grain and whole wheat buns," laughs Mayaji.
Sustainability for one-off shops has always been an issue. Nikhil and Jigna Shah started Greenway in 1997 when there were no others retailing organic produce in Mumbai. They source directly from 20 marginal farmers, and processing is done in small quantities at home.
"Our lateral growth has been great in terms of more products and greater awareness, but vertical growth is stubborn and we've had to persevere to stay afloat." Nikhil is passionate about their work and claims that their customers are just as enthused; they rarely ask for certification evidence or question sources.
"There is no certification for inorganic products so why should there be for organic products? If you buy wheat from a store, you buy on the basis of the sheer fact that it is branded, you don't ask whether it has been blended with chemicals and in what quantities."
When organic farmers and traders are operating in an anonymous market, certification is developed to show and guarantee to consumers that a product has been produced in consistency with organic standards.
While certification has provided Indian-produced organic products with inroads into foreign markets, domestic bound produce is largely uncertified, owing to the fact that most producers are either small or marginal farmers, small cooperatives or fair trade companies.
Under current government policy, it takes approximately three years for a farm in conversion to be certified as organic, and costs are hefty for the small farmer.
While internationally, our exports cannot hold ground without certification, uncertified brands in India have had some success. Conscious Foods was born in 1999 from Kavita Mukhi's desire to feed her family with safe, pure food.
"The farmers I sourced from were all small farmers, there was no talk of certification in those days, and we just bought from whoever we believed to be true. I bought for self-consumption and tried to sell the excess. We still don't certify our products because our mission has been to support the small and marginal farmers."
There seem to be other attributes that inspire confidence among her buyers, such as the brightly colour-coded labeling -- green for spice, mustard for cereals and pulses, red for snacks -- the interesting play with bottle shapes and sizes, and stories about indigenous producers printed on the label.
"We never compromise on quality, we have a centralised sorting, cleaning and packing workshop, and the 10 women we employ wear masks, gloves and hair nets." Conscious Foods grows for the domestic market. Mukhi clarifies, "Why should the best produce be exported while we eat unhealthy pesticide laced food?" She continues, "We would love to start a stand-alone store but currently our volumes are not substantial enough."
These sketchy patterns of retail are metamorphosing into more organised retail, albeit slowly. With an estimated 2-3 million potential consumers of organic agricultural products in India, the problem has always been the absence of organised marketing and retailing.
In developed countries, especially in Europe and the US, every supermarket has a green line where a complete range of certified organic products is available. India is just beginning to manage a toehold in some supermarkets.
Food Bazaar, the foods division of Pantaloon [Get Quote] Retail, is based on a comprehensive food and grocery store format and has 32 outlets and 200,000 sq ft of retail space across India. The organic range stocked is inadequate but Damodar Mall, head of the food division, says, "It's a beginning. The customer is moving in small steps and formats like ours will have to take the lead."
Mall claims the organic range is not complete because they are dependent on local, small brand initiatives; there just aren't enough big certified brands.
Fabindia is hoping to change that. The Rs 100 crore (Rs 1 billion) apparel and home furnishings retailer ventured into organic foods earlier this year when it test-marketed its organic range in New Delhi.
According to Jashwat Purohit, head of Fabindia's organic foods business, the organics segment will grow from 1 per cent of its annual turnover in the first year to 5 per cent in the third year.
"Our goal is to be able to offer customers a complete organic lifestyle. It doesn't seem enough for us to offer only select items; we are constantly adding to our range. We started with 75 products but now have around 200 certified products," he states.
However, the supply chain is still testy. Says Purohit, "This is a huge challenge; organic projects are scattered across the country and we are faced with many challenges -- quality, consistency, transport, storage, shelf life -- and so have had to partner with only very reliable suppliers who can consistently deliver the quality we want."
Fabindia's short-terms plans are to offer fresh fruit and vegetables, and long-term plans include bakery and dairy products. "We hope to be in all our stores by the end of this year, which are in every major city across the country," Purohit says.
Even large exporters are now looking homeward to fill the gaps. As export markets get saturated and oversupplied, especially in markets like tea, and premiums get squeezed, domestic markets are bound to be targeted.
Says R B Singh, chief executive officer, IITC Organic, a Rs 30 crore (Rs 300 million) Lucknow-based producer and exporter of organic products, "In a year or two, we intend to be the leading domestic organic brand. We predict that five years down the line, India will be both a major organic foods producer as well as consumer. It is awareness and education in the Western countries that has brought about an unprecedented demand for organic foods. India will follow suit as public information and education grows."
Increased public health consciousness and increased visibility will help, but there has to also be a shift in mindset. Says Rehan Padamsee, a loyal customer of Conscious Foods, "Consumers have to understand that consistency, standardisation and all-year availability cannot be stringently observed with organic food. I learned from the Slow Food Movement (an international food movement that came into being in Paris in 1989 that preserves agricultural biodiversity, traditional foods and promotes seasonal consumption) to try and eat traditionally and seasonally."
Nikhil Shah agrees, "Customers need to undergo a paradigm shift; they cannot expect every tomato to look alike without chemical intervention. When I take rice from a farmer and see insects in it, I don't reject it, I just make sure I dry it in the sun and package it again."
It's not just consumer sensitivity that will affect the upshot; price parity is a big deterrent for potential consumers. Says Padamsee, "I believe that it is my right to eat healthy food and I shouldn't have to pay a premium for it. I think more people would convert if there was a better price parity."
Godrej [Get Quote] AgroVet's retail product, Nature's Basket, is also looking into the possibility of test marketing certified organic produce through its outlets, but according to R S Vijan, executive vice president, when they test-marketed organic chikoos and coconuts, the sales response was slow as customers were not ready to pay the price differential of 15-20 per cent between organic and non-organic fruits.
Arguably, once a farmer converts from chemical-based farming to organic farming, costs should come down. Mayaji responds, "Organic products are more expensive now because farmers are still in the conversion period when yields are low, even though inputs are cheaper. Because inorganic farming is so heavily subsidised, when we started buying from farmers, we needed to ensure that the farmer didn't suffer, so we paid a premium and continue to do so."
Also, currently, the market is in its infancy and as such does not benefit from economies of scale. Mall agrees, "We believe the premium will come down as sales go up. Growers will improve their yields over time, and consumers' demand will grow. With critical demand, mass prices will drop. But as a retailer, we can only participate in the trend, not force it."
In all this however, small farmers still have no significant retail platforms unless picked up by cooperatives or NGOs. Attempts at marketing organically grown produce are still mostly by word of mouth, filling individual orders that were phoned in and home-delivered like the Alibag organic farmers' cooperative who use the home-delivery basket scheme -- but these are difficult, expensive and eventually quite ineffective methods of selling.
Trade fairs and fair price markets are few and far between, and usually too localised to have a large impact. For the first time, ICCOA, with the government of Karnataka and APEDA, is organising a pan-Indian trade fair in Bangalore this November.
India Organic 2005 promises to be visited by large buyers; what is noteworthy is a section reserved for uncertified farmers.
Nikhil Shah is optimistic: "The farmers are waiting excitedly; they're ready for the boom." Edward Bastin, advisor to Fabindia's pilot project, Organic Fresh Direct, adds, "We promote factors that have fuelled demand in more mature markets -- public health consciousness, increased exposure to organic food, a reduction in the price premium and active marketing.
Although any one of these factors is likely to stimulate interest, it is the simultaneous occurrence of all of them that will really work." Until then, all the excitement will amount to a little more than a whisper.
Organically speaking...
Customers need to undergo a para-digm shift; they cannot expect every tomato to look alike without chemical intervention. When I take rice from a farmer and see insects in it, I don't reject reject it, I just make sure I dry it in the sun and package it again.
Nikhil Shah, founder, Greenway
We exist for the marginal farmers who would keep a portion of the land organic for self-consumption, despite being compelled to adopt chemical-based farming because of government policies.
Mayaji, director, Navdanya
It is awareness and education in Western countries that has brought about an unprecedented demand for organic foods. India will follow suit as public information and education grows.
R B Singh, CEO, IITC Organic
Consumers have to understand that consistency, standardisation and all-year availability cannot be stringently observed with organic food. Also, it's my right to eat healthy food and I shouldn't have to pay a premium for it. I think more people would convert if there was a better price parity.
Rehan Padamsee, Consumer
organic food week....
It takes 20 minutes of hunting and asking around to get to the two shelves at Food Bazaar assigned to organic foods. The section is unidentified and the selection little more than cereals and pulses. There are only two brands on offer, both uncertified.
Customers walk past, seemingly unaware of the "green" offerings. Nina Goyal is one of the few who stops at the section. "I come here for a few specific items," she says, "if I were to change my entire monthly supplies to organic, the expenditure would be unjustifiable."
This one instance is as representative of the domestic market for organic produce as it gets -- inadequate retail presence, little to no certified branded produce, an incomplete range, uncompetitive price points, and government policies that are skewed towards exports.
Central strategy on organic foods has always slanted toward the global market, leaving the critical mass of domestic consumers out in the cold. Currently, about 70 per cent of organic agriculture items produced in India are being exported. Why, you ask? Big bucks, clearly. Organic products fetch a 20-30 per cent higher price than inorganic products in the world market.
According to the Indian Competence Centre for Organic Agriculture, the global market for organically produced foods is $26 billion and is estimated to increase to $102 billion by 2020.
As part of 10th Five Year Plan (2002-07), the government earmarked Rs 100 crore (Rs 1 billion) for the promotion of sustainable agriculture in the country, but the main components of this initiative have benefited exports, from the establishing of national organic standards under NPOP (National Programme for Organic Production), putting in place a system of certification for products, and establishing APEDA (Agricultural and Processed Food Export Development Authority) as the nodal agency to promote exports opportunities.
Domestic retail avenues for organic produce have traditionally been the odd cottage emporium, fruit mart, bakery and kirana store along with an upmarket provision store here and a delicatessen there.
Today, however, marginal growth is slowly becoming evident in the increase in organised producers, retailers and product offerings in the market, where before the movement had been driven entirely by the spirit of individual initiatives of the farmers, the odd entrepreneur and non-governmental organisations.
Dr Vandana Shiva, physicist and economist, spearheaded the cause of sustainable farming by establishing Navdanya two decades ago, a movement for biodiversity conservation and farmers' rights. One of its seminal contributions to fair trade practices has been the marketing of organic agricultural produce directly from farmers to consumers.
Mayaji, director, Navdanya, claims the sector has sustained itself through the marginal farmer. "They would tell us 'We are being compelled to adopt chemical-based farming because of government policies, but we will always keep a portion of the land organic for self-consumption' -- that is the kind of farmer we exist for," she says.
Besides marketing produce through their two outlets in New Delhi and one in Dehra Dun, Navdanya has just initiated an organic food awareness campaign among schoolchildren in Delhi, inviting them to learn to cook organically at its Slow Food caf� in Hauz Khas. "We teach them to make organic burgers with nine grain and whole wheat buns," laughs Mayaji.
Sustainability for one-off shops has always been an issue. Nikhil and Jigna Shah started Greenway in 1997 when there were no others retailing organic produce in Mumbai. They source directly from 20 marginal farmers, and processing is done in small quantities at home.
"Our lateral growth has been great in terms of more products and greater awareness, but vertical growth is stubborn and we've had to persevere to stay afloat." Nikhil is passionate about their work and claims that their customers are just as enthused; they rarely ask for certification evidence or question sources.
"There is no certification for inorganic products so why should there be for organic products? If you buy wheat from a store, you buy on the basis of the sheer fact that it is branded, you don't ask whether it has been blended with chemicals and in what quantities."
When organic farmers and traders are operating in an anonymous market, certification is developed to show and guarantee to consumers that a product has been produced in consistency with organic standards.
While certification has provided Indian-produced organic products with inroads into foreign markets, domestic bound produce is largely uncertified, owing to the fact that most producers are either small or marginal farmers, small cooperatives or fair trade companies.
Under current government policy, it takes approximately three years for a farm in conversion to be certified as organic, and costs are hefty for the small farmer.
While internationally, our exports cannot hold ground without certification, uncertified brands in India have had some success. Conscious Foods was born in 1999 from Kavita Mukhi's desire to feed her family with safe, pure food.
"The farmers I sourced from were all small farmers, there was no talk of certification in those days, and we just bought from whoever we believed to be true. I bought for self-consumption and tried to sell the excess. We still don't certify our products because our mission has been to support the small and marginal farmers."
There seem to be other attributes that inspire confidence among her buyers, such as the brightly colour-coded labeling -- green for spice, mustard for cereals and pulses, red for snacks -- the interesting play with bottle shapes and sizes, and stories about indigenous producers printed on the label.
"We never compromise on quality, we have a centralised sorting, cleaning and packing workshop, and the 10 women we employ wear masks, gloves and hair nets." Conscious Foods grows for the domestic market. Mukhi clarifies, "Why should the best produce be exported while we eat unhealthy pesticide laced food?" She continues, "We would love to start a stand-alone store but currently our volumes are not substantial enough."
These sketchy patterns of retail are metamorphosing into more organised retail, albeit slowly. With an estimated 2-3 million potential consumers of organic agricultural products in India, the problem has always been the absence of organised marketing and retailing.
In developed countries, especially in Europe and the US, every supermarket has a green line where a complete range of certified organic products is available. India is just beginning to manage a toehold in some supermarkets.
Food Bazaar, the foods division of Pantaloon [Get Quote] Retail, is based on a comprehensive food and grocery store format and has 32 outlets and 200,000 sq ft of retail space across India. The organic range stocked is inadequate but Damodar Mall, head of the food division, says, "It's a beginning. The customer is moving in small steps and formats like ours will have to take the lead."
Mall claims the organic range is not complete because they are dependent on local, small brand initiatives; there just aren't enough big certified brands.
Fabindia is hoping to change that. The Rs 100 crore (Rs 1 billion) apparel and home furnishings retailer ventured into organic foods earlier this year when it test-marketed its organic range in New Delhi.
According to Jashwat Purohit, head of Fabindia's organic foods business, the organics segment will grow from 1 per cent of its annual turnover in the first year to 5 per cent in the third year.
"Our goal is to be able to offer customers a complete organic lifestyle. It doesn't seem enough for us to offer only select items; we are constantly adding to our range. We started with 75 products but now have around 200 certified products," he states.
However, the supply chain is still testy. Says Purohit, "This is a huge challenge; organic projects are scattered across the country and we are faced with many challenges -- quality, consistency, transport, storage, shelf life -- and so have had to partner with only very reliable suppliers who can consistently deliver the quality we want."
Fabindia's short-terms plans are to offer fresh fruit and vegetables, and long-term plans include bakery and dairy products. "We hope to be in all our stores by the end of this year, which are in every major city across the country," Purohit says.
Even large exporters are now looking homeward to fill the gaps. As export markets get saturated and oversupplied, especially in markets like tea, and premiums get squeezed, domestic markets are bound to be targeted.
Says R B Singh, chief executive officer, IITC Organic, a Rs 30 crore (Rs 300 million) Lucknow-based producer and exporter of organic products, "In a year or two, we intend to be the leading domestic organic brand. We predict that five years down the line, India will be both a major organic foods producer as well as consumer. It is awareness and education in the Western countries that has brought about an unprecedented demand for organic foods. India will follow suit as public information and education grows."
Increased public health consciousness and increased visibility will help, but there has to also be a shift in mindset. Says Rehan Padamsee, a loyal customer of Conscious Foods, "Consumers have to understand that consistency, standardisation and all-year availability cannot be stringently observed with organic food. I learned from the Slow Food Movement (an international food movement that came into being in Paris in 1989 that preserves agricultural biodiversity, traditional foods and promotes seasonal consumption) to try and eat traditionally and seasonally."
Nikhil Shah agrees, "Customers need to undergo a paradigm shift; they cannot expect every tomato to look alike without chemical intervention. When I take rice from a farmer and see insects in it, I don't reject it, I just make sure I dry it in the sun and package it again."
It's not just consumer sensitivity that will affect the upshot; price parity is a big deterrent for potential consumers. Says Padamsee, "I believe that it is my right to eat healthy food and I shouldn't have to pay a premium for it. I think more people would convert if there was a better price parity."
Godrej [Get Quote] AgroVet's retail product, Nature's Basket, is also looking into the possibility of test marketing certified organic produce through its outlets, but according to R S Vijan, executive vice president, when they test-marketed organic chikoos and coconuts, the sales response was slow as customers were not ready to pay the price differential of 15-20 per cent between organic and non-organic fruits.
Arguably, once a farmer converts from chemical-based farming to organic farming, costs should come down. Mayaji responds, "Organic products are more expensive now because farmers are still in the conversion period when yields are low, even though inputs are cheaper. Because inorganic farming is so heavily subsidised, when we started buying from farmers, we needed to ensure that the farmer didn't suffer, so we paid a premium and continue to do so."
Also, currently, the market is in its infancy and as such does not benefit from economies of scale. Mall agrees, "We believe the premium will come down as sales go up. Growers will improve their yields over time, and consumers' demand will grow. With critical demand, mass prices will drop. But as a retailer, we can only participate in the trend, not force it."
In all this however, small farmers still have no significant retail platforms unless picked up by cooperatives or NGOs. Attempts at marketing organically grown produce are still mostly by word of mouth, filling individual orders that were phoned in and home-delivered like the Alibag organic farmers' cooperative who use the home-delivery basket scheme -- but these are difficult, expensive and eventually quite ineffective methods of selling.
Trade fairs and fair price markets are few and far between, and usually too localised to have a large impact. For the first time, ICCOA, with the government of Karnataka and APEDA, is organising a pan-Indian trade fair in Bangalore this November.
India Organic 2005 promises to be visited by large buyers; what is noteworthy is a section reserved for uncertified farmers.
Nikhil Shah is optimistic: "The farmers are waiting excitedly; they're ready for the boom." Edward Bastin, advisor to Fabindia's pilot project, Organic Fresh Direct, adds, "We promote factors that have fuelled demand in more mature markets -- public health consciousness, increased exposure to organic food, a reduction in the price premium and active marketing.
Although any one of these factors is likely to stimulate interest, it is the simultaneous occurrence of all of them that will really work." Until then, all the excitement will amount to a little more than a whisper.
Organically speaking...
Customers need to undergo a para-digm shift; they cannot expect every tomato to look alike without chemical intervention. When I take rice from a farmer and see insects in it, I don't reject reject it, I just make sure I dry it in the sun and package it again.
Nikhil Shah, founder, Greenway
We exist for the marginal farmers who would keep a portion of the land organic for self-consumption, despite being compelled to adopt chemical-based farming because of government policies.
Mayaji, director, Navdanya
It is awareness and education in Western countries that has brought about an unprecedented demand for organic foods. India will follow suit as public information and education grows.
R B Singh, CEO, IITC Organic
Consumers have to understand that consistency, standardisation and all-year availability cannot be stringently observed with organic food. Also, it's my right to eat healthy food and I shouldn't have to pay a premium for it. I think more people would convert if there was a better price parity.
Rehan Padamsee, Consumer
Customers walk past, seemingly unaware of the "green" offerings. Nina Goyal is one of the few who stops at the section. "I come here for a few specific items," she says, "if I were to change my entire monthly supplies to organic, the expenditure would be unjustifiable."
This one instance is as representative of the domestic market for organic produce as it gets -- inadequate retail presence, little to no certified branded produce, an incomplete range, uncompetitive price points, and government policies that are skewed towards exports.
Central strategy on organic foods has always slanted toward the global market, leaving the critical mass of domestic consumers out in the cold. Currently, about 70 per cent of organic agriculture items produced in India are being exported. Why, you ask? Big bucks, clearly. Organic products fetch a 20-30 per cent higher price than inorganic products in the world market.
According to the Indian Competence Centre for Organic Agriculture, the global market for organically produced foods is $26 billion and is estimated to increase to $102 billion by 2020.
As part of 10th Five Year Plan (2002-07), the government earmarked Rs 100 crore (Rs 1 billion) for the promotion of sustainable agriculture in the country, but the main components of this initiative have benefited exports, from the establishing of national organic standards under NPOP (National Programme for Organic Production), putting in place a system of certification for products, and establishing APEDA (Agricultural and Processed Food Export Development Authority) as the nodal agency to promote exports opportunities.
Domestic retail avenues for organic produce have traditionally been the odd cottage emporium, fruit mart, bakery and kirana store along with an upmarket provision store here and a delicatessen there.
Today, however, marginal growth is slowly becoming evident in the increase in organised producers, retailers and product offerings in the market, where before the movement had been driven entirely by the spirit of individual initiatives of the farmers, the odd entrepreneur and non-governmental organisations.
Dr Vandana Shiva, physicist and economist, spearheaded the cause of sustainable farming by establishing Navdanya two decades ago, a movement for biodiversity conservation and farmers' rights. One of its seminal contributions to fair trade practices has been the marketing of organic agricultural produce directly from farmers to consumers.
Mayaji, director, Navdanya, claims the sector has sustained itself through the marginal farmer. "They would tell us 'We are being compelled to adopt chemical-based farming because of government policies, but we will always keep a portion of the land organic for self-consumption' -- that is the kind of farmer we exist for," she says.
Besides marketing produce through their two outlets in New Delhi and one in Dehra Dun, Navdanya has just initiated an organic food awareness campaign among schoolchildren in Delhi, inviting them to learn to cook organically at its Slow Food caf� in Hauz Khas. "We teach them to make organic burgers with nine grain and whole wheat buns," laughs Mayaji.
Sustainability for one-off shops has always been an issue. Nikhil and Jigna Shah started Greenway in 1997 when there were no others retailing organic produce in Mumbai. They source directly from 20 marginal farmers, and processing is done in small quantities at home.
"Our lateral growth has been great in terms of more products and greater awareness, but vertical growth is stubborn and we've had to persevere to stay afloat." Nikhil is passionate about their work and claims that their customers are just as enthused; they rarely ask for certification evidence or question sources.
"There is no certification for inorganic products so why should there be for organic products? If you buy wheat from a store, you buy on the basis of the sheer fact that it is branded, you don't ask whether it has been blended with chemicals and in what quantities."
When organic farmers and traders are operating in an anonymous market, certification is developed to show and guarantee to consumers that a product has been produced in consistency with organic standards.
While certification has provided Indian-produced organic products with inroads into foreign markets, domestic bound produce is largely uncertified, owing to the fact that most producers are either small or marginal farmers, small cooperatives or fair trade companies.
Under current government policy, it takes approximately three years for a farm in conversion to be certified as organic, and costs are hefty for the small farmer.
While internationally, our exports cannot hold ground without certification, uncertified brands in India have had some success. Conscious Foods was born in 1999 from Kavita Mukhi's desire to feed her family with safe, pure food.
"The farmers I sourced from were all small farmers, there was no talk of certification in those days, and we just bought from whoever we believed to be true. I bought for self-consumption and tried to sell the excess. We still don't certify our products because our mission has been to support the small and marginal farmers."
There seem to be other attributes that inspire confidence among her buyers, such as the brightly colour-coded labeling -- green for spice, mustard for cereals and pulses, red for snacks -- the interesting play with bottle shapes and sizes, and stories about indigenous producers printed on the label.
"We never compromise on quality, we have a centralised sorting, cleaning and packing workshop, and the 10 women we employ wear masks, gloves and hair nets." Conscious Foods grows for the domestic market. Mukhi clarifies, "Why should the best produce be exported while we eat unhealthy pesticide laced food?" She continues, "We would love to start a stand-alone store but currently our volumes are not substantial enough."
These sketchy patterns of retail are metamorphosing into more organised retail, albeit slowly. With an estimated 2-3 million potential consumers of organic agricultural products in India, the problem has always been the absence of organised marketing and retailing.
In developed countries, especially in Europe and the US, every supermarket has a green line where a complete range of certified organic products is available. India is just beginning to manage a toehold in some supermarkets.
Food Bazaar, the foods division of Pantaloon [Get Quote] Retail, is based on a comprehensive food and grocery store format and has 32 outlets and 200,000 sq ft of retail space across India. The organic range stocked is inadequate but Damodar Mall, head of the food division, says, "It's a beginning. The customer is moving in small steps and formats like ours will have to take the lead."
Mall claims the organic range is not complete because they are dependent on local, small brand initiatives; there just aren't enough big certified brands.
Fabindia is hoping to change that. The Rs 100 crore (Rs 1 billion) apparel and home furnishings retailer ventured into organic foods earlier this year when it test-marketed its organic range in New Delhi.
According to Jashwat Purohit, head of Fabindia's organic foods business, the organics segment will grow from 1 per cent of its annual turnover in the first year to 5 per cent in the third year.
"Our goal is to be able to offer customers a complete organic lifestyle. It doesn't seem enough for us to offer only select items; we are constantly adding to our range. We started with 75 products but now have around 200 certified products," he states.
However, the supply chain is still testy. Says Purohit, "This is a huge challenge; organic projects are scattered across the country and we are faced with many challenges -- quality, consistency, transport, storage, shelf life -- and so have had to partner with only very reliable suppliers who can consistently deliver the quality we want."
Fabindia's short-terms plans are to offer fresh fruit and vegetables, and long-term plans include bakery and dairy products. "We hope to be in all our stores by the end of this year, which are in every major city across the country," Purohit says.
Even large exporters are now looking homeward to fill the gaps. As export markets get saturated and oversupplied, especially in markets like tea, and premiums get squeezed, domestic markets are bound to be targeted.
Says R B Singh, chief executive officer, IITC Organic, a Rs 30 crore (Rs 300 million) Lucknow-based producer and exporter of organic products, "In a year or two, we intend to be the leading domestic organic brand. We predict that five years down the line, India will be both a major organic foods producer as well as consumer. It is awareness and education in the Western countries that has brought about an unprecedented demand for organic foods. India will follow suit as public information and education grows."
Increased public health consciousness and increased visibility will help, but there has to also be a shift in mindset. Says Rehan Padamsee, a loyal customer of Conscious Foods, "Consumers have to understand that consistency, standardisation and all-year availability cannot be stringently observed with organic food. I learned from the Slow Food Movement (an international food movement that came into being in Paris in 1989 that preserves agricultural biodiversity, traditional foods and promotes seasonal consumption) to try and eat traditionally and seasonally."
Nikhil Shah agrees, "Customers need to undergo a paradigm shift; they cannot expect every tomato to look alike without chemical intervention. When I take rice from a farmer and see insects in it, I don't reject it, I just make sure I dry it in the sun and package it again."
It's not just consumer sensitivity that will affect the upshot; price parity is a big deterrent for potential consumers. Says Padamsee, "I believe that it is my right to eat healthy food and I shouldn't have to pay a premium for it. I think more people would convert if there was a better price parity."
Godrej [Get Quote] AgroVet's retail product, Nature's Basket, is also looking into the possibility of test marketing certified organic produce through its outlets, but according to R S Vijan, executive vice president, when they test-marketed organic chikoos and coconuts, the sales response was slow as customers were not ready to pay the price differential of 15-20 per cent between organic and non-organic fruits.
Arguably, once a farmer converts from chemical-based farming to organic farming, costs should come down. Mayaji responds, "Organic products are more expensive now because farmers are still in the conversion period when yields are low, even though inputs are cheaper. Because inorganic farming is so heavily subsidised, when we started buying from farmers, we needed to ensure that the farmer didn't suffer, so we paid a premium and continue to do so."
Also, currently, the market is in its infancy and as such does not benefit from economies of scale. Mall agrees, "We believe the premium will come down as sales go up. Growers will improve their yields over time, and consumers' demand will grow. With critical demand, mass prices will drop. But as a retailer, we can only participate in the trend, not force it."
In all this however, small farmers still have no significant retail platforms unless picked up by cooperatives or NGOs. Attempts at marketing organically grown produce are still mostly by word of mouth, filling individual orders that were phoned in and home-delivered like the Alibag organic farmers' cooperative who use the home-delivery basket scheme -- but these are difficult, expensive and eventually quite ineffective methods of selling.
Trade fairs and fair price markets are few and far between, and usually too localised to have a large impact. For the first time, ICCOA, with the government of Karnataka and APEDA, is organising a pan-Indian trade fair in Bangalore this November.
India Organic 2005 promises to be visited by large buyers; what is noteworthy is a section reserved for uncertified farmers.
Nikhil Shah is optimistic: "The farmers are waiting excitedly; they're ready for the boom." Edward Bastin, advisor to Fabindia's pilot project, Organic Fresh Direct, adds, "We promote factors that have fuelled demand in more mature markets -- public health consciousness, increased exposure to organic food, a reduction in the price premium and active marketing.
Although any one of these factors is likely to stimulate interest, it is the simultaneous occurrence of all of them that will really work." Until then, all the excitement will amount to a little more than a whisper.
Organically speaking...
Customers need to undergo a para-digm shift; they cannot expect every tomato to look alike without chemical intervention. When I take rice from a farmer and see insects in it, I don't reject reject it, I just make sure I dry it in the sun and package it again.
Nikhil Shah, founder, Greenway
We exist for the marginal farmers who would keep a portion of the land organic for self-consumption, despite being compelled to adopt chemical-based farming because of government policies.
Mayaji, director, Navdanya
It is awareness and education in Western countries that has brought about an unprecedented demand for organic foods. India will follow suit as public information and education grows.
R B Singh, CEO, IITC Organic
Consumers have to understand that consistency, standardisation and all-year availability cannot be stringently observed with organic food. Also, it's my right to eat healthy food and I shouldn't have to pay a premium for it. I think more people would convert if there was a better price parity.
Rehan Padamsee, Consumer
Thursday, June 11, 2009
use your power and get sukoon...
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abhinav motivate you to do something...
Motivational truth
Jawaharal Nehru
Life is like the dice that, falling, still show a different face. So life, though it remains the same, is always presenting different aspects.
Alexis
Our life's a stage, a comedy: either learn to play and take it lightly, or bear its troubles patiently.
Palladas
The geat blessing of mankind are within us and within our reach; but we shut our eyes, and like people in the dark, we fall foul upon the very thing we search for, without finding it.
Seneca
(7 B.C. - 65 A.A.)
Govern thy life and thoughts as if the whole world were to see the one, and read the other.
Thomas Fuller
Most of the shadows of this life are caused by our standing in our own sunshine.
Ralph Waldo Emerson
Unrest of spirit is a mark of life; one problem after another presents itself and in the solving of them we can find our greatest pleasure.
Kal Menninger
Life is short, art long, opportunity fleeting, experience treacherous, judgment difficult.
Hypocrites
After the game,
the king and the pawn go into the same box.
Italian Proverb
Life is a tragedy for those who feel, and a comedy for those who think.
La Bruyere
Life is like a library owned by the author.
In it are a few books which he wrote himself,
but most of them were written for him.
Harry Emerson Fosdick
We make our fortunes, and we call them fate.
Earl of Beaconsfield
The best way to prepare for life is to begin to live.
Elbert Hubbard
Life's a voyage that's homeward bound.
Herman Melville
The whole of life is but a moment of time. It is our duty, therefore to use it, not to misuse it.
Plutarch
Life is a rich strain of music, suggesting a realm too fair to be.
George William Curtis
The boundaries which divide life from death
are at best shadowy and vague.
Who shall say where one ends,
and the other begins?
Edgar Alan Poe
One way to get the most out of life is
to look upon it as an adventure.
William Feather
There are no classes in life for beginners: right away you are always asked to deal with what is most difficult.
Rainer Maria Rilke
To live is like to love--all reason is against it, and all healthy instinct for it.
Samuel Butler
Life is a pure flame,
and we live by an invisible sun within us.
Sir Thomas Brown
As I grow to understand life less and less,
I learn to love it more and more.
Jules Renard
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