Organic Agriculture in India Challenges & Prospects

Union Bank School of Management

MEP-4

Over view
Introduction Agriculture in India Concept of Organic Farming Conventional Farming V/s Organic Farming Constraints & Challenges Prospects of Organic Farming Recommendations & Conclusion

Agriculture in India

Pre Green Revolution Era

Green Revolution Era

-Mention of several manures in Arthashastra and in Vedas -At least one third of what You takeout from soils must be returned to soil Holy Quran

-Food security
-

Present Day Scenario (Organic Farming)

Excessive Synthetic Fertilizers and pesticides for maximum output

-Reliable yields -contains more vitamins, minerals, enzymes - improves the soil quality - high demand

-The pesticide residue persistence in Agricultural produce, animal, feed, irrigation water

Agriculture in India
India Agriculture production hub ?? Contributes nearly 14% of GDP 60 % sown is dependent on rainfall India is the largest producer in the world of milk, cashew nuts, coconuts, tea second largest producer of wheat, rice, sugar, groundnut World's largest cattle population

Average growth of Agriculture and allied sector during the tenth five year plan was meager 2.4 %

Agriculture in India
Growing Concerns

Stagnation and Low Productivity

Small land holding

Inadequate irrigation facilities

Unemployment & Poverty Socio-economic backwardness

" 1,500 farmers committed mass suicide in India after having been driven into debt by crop failure "

Concept of Organic Farming

Basic know how .
inputs pest control

Avoid usage of Synthetic chemical inputs

Natural and farm resources

Environm ent & Local farming system

Organic Farming

Biological diversity

Nutrients rich yield

Organic Farming - Why

Natural controls of pests and diseases Improves soil structure

Prevents the soil erosion Premium quality product Pollution free approach

Low input cost About one million people suffer from pesticides poisoning. 20000 die every year due to the toxic effect of the chemicals used in agriculture. The crop loss due to pest is still 15000 crores.

Conventional V/s Organic Agriculture

Conventional Farming Organic Farming

Against Nature Soil structure destroyed More chemical residues present in crops Low quality produce Highly fluctuation in yield

Harmony with Nature Soil structure improves No chemical residues Premium quality Satisfactory and reliable yield

Implications Conventional to organic Conversion

transition from conventional to organic farming YEAR 1 YEAR 2 YEAR 3 & 4

Costs tend to initially be slightly higher as farmers invest (mostly labor) to adjust their fields to organic standards

After the first year of conversion, yields climbed steadily and tend to approach the baseline yields of the previous system

By the third and fourth years, when certification occurs farmers have received an average 20%-30% higher prices

Yields have tended to suffer by about one-third immediately after conversion as both farmer and soils adapt

Initially, the selling price tends not the change since organically managed crops can always be sold as conventional.

Organic Agriculture
Productivity of crops (t/ha) in organic versus inorganic farming
State Maharashtra Crop Vegetables Fruits Rice Wheat Karnataka Soya bean Sugarcane Ground nut Kerala Banana Coconut Coffee Tamilnadu Cashew Mango Cotton Uttarakhand Potato Organic Farming 11.00 11.40 2.00 1.20 0.90 120 1.2 23.6 31000 nuts 1.23 1.3 8.00 0.60 12.00 Inorganic Farming 13.00 13.60 2.50 1.50 1.10 140 1.4 27.2 30500 nuts 1.31 1.00 6.00 0.80 15.00

Source: Indian Institute of Soil Sciences, Bhopal (Journal Current Science 10th May 2010)

Organic Agriculture
Cost of cultivation (Rs/ha) in organic versus inorganic farming
State Maharashtra Crop Vegetables Fruits Rice Wheat Karnataka Soya bean Sugarcane Ground nut Kerala Banana Coconut Coffee Tamilnadu Cashew Mango Cotton Uttarakhand Potato Organic Farming Inorganic Farming 25000 70000 10000 8000 7200 55000 13000 61000 50000 40000 12500 25000 10000 20000 26000 78000 11500 9000 7800 60000 14500 75000 60000 54000 14000 30000 10000 18000 % of Increase or Decrease -3.8 -10.2 -13 -11.1 -7.7 -8.3 -10.3 -18.6 -16.6 -25.9 -10.7 -16.6 0.00 +11.1

Source: Indian Institute of Soil Sciences, Bhopal (Journal Current Science 10th May 2010)

Organic Agriculture
.... trends in developing/developed economies
Criteria India 11,83,000 Tea, rice, bananas, cotton, wheat, spices (mainly pepper and ginger), coffee, nuts, pulses, and herbal products Australia 120,00,000 Cereals, Grains, fruits, vegetable, Coffee, dry fruits, body care, cosmetics & health care products Kenya 1,82,000 Vegetables, fruits, coffee, beans, nuts, essential oils, dried herbs, cosmetics and pharmaceutical products

Area under Organic Farming (Hac)

Major Organic Crops

Farming Methods

Use of organic manure composting Green manuring Pests managed through Neem Crop rotation Mulching

Mixed cropping & crop rotation - highly effective method for pest management & nutritional health of the soil Compost made of water hyacinth

Trees are excellent for fuel wood and charcoal

India Global footprints

Organic farming exports India 2007-2008 Exports Market Share Area $ 101 mn 0.2 % 8.65 lakh ha Vision India 2012 $ 1 bn 2.5% 20 lakh ha

State

Exports (Metric ton)

1232 937 476 471 541 521 375 6472

Kerala West Bengal Karnataka TamilNadu Punjab HimachalPradesh Maharasthra India (Total) Source: www.apeda.gov.in

Organic Food Markets

.World Top ten domestic markets for organic food 2009 World Top ten domestic markets for organic food 2009 Million Euros 17835

5800 3041 2065 1500 1284 1023 1000 905 868

Source: www. fibl.org/IFOAM Survey 2011

Constraints & Challenges

weighing the potential of Organic Agriculture

Constraints

&

Government Support Lack of Financial support Undefined Market structure Consumer awareness Training Certification cost Low yield in early stages Dependency on Animal Agriculture Labour Intensive

Challenges

Transition time to organic Policy Initiatives Marketing of produce Infrastructure and Funds for scientific studies

Prospects of Organic Farming in India Growing Demand Health Conscious Rising Income levels Awareness among farmers Selling of organic produce at premium Rising demand for exports Environmental friendly Keep farmer community healthy
The market for organic produce from and within India is expected to grow six to seven times in the next five years - INR 40 billion by 2012

Recommendations & Conclusion

Intensive campaign
Organic Mela s State wide awareness programmeson the advantages of organic produce

Channels for marketing of organic produce Direct marketing / linkages by farmers groups with end user institutions Organic farm produce outlets

Availability of quality organic manure to the farmers Ensure markets for good quality input materials at reasonable price Link organic municipal solid waste to farms > organic matter recycling

Recommendations & Conclusion

Compact Area Group approach in organic farming
Organic farmers groups, clubs, SHG s and cooperatives

Develop a simple certification process

Required simple documentation process

Provide financial incentives for promoting organic farming

Interest-free loans to especially small and marginal farmers

Interest-free loans to especially small and marginal farmers Assistance during conversion period

Organic Agriculture

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