Organic Farming

1 Gaurav Saha (ABM15008)

2 Shalav Saket (PGP34382)
3 Swati Khandelwal (PGP34096)
Contents
1 2 3 4 5

What is History Conventional/ Benefits of Organic

Organic Modern Organic Farming
Farming? Farming Farming Scenario in
India
What is Organic Farming?
Organic Farming is a holistic production management system which promotes and
enhances agroecosystem health including biodiversity, biological cycles, and soil biological
activity.

The term "organic" is best thought of as referring not to the type of inputs used, but to
the concept of the farm as an organisms, in which all the components - the soil minerals,
organic matter, microorganisms, insects, plants, animal and humans - interact to create
coherent,self-regulating and stable whole. Reliance on external inputs, whether chemical
or organic, is reduced as far as possible.
Organic Crop Share in India (2009-10) Organic area in India (Million Ha)
5.55 5.71
9% Cotton

4.72 4.9
6%
29% Other cereals and 4.43
millets
Oil Seeds and
Soybean
Spices
30%
Fruits and
9%
Vegetables
Herbal and
11% Medicinal
6%
Others
2010-11 2011-12 2013-14 2014-15 2015-16
History of Organic Farming

• Organic farming was practiced in India since

thousands of years. Agriculture was practiced using
organic techniques, where the fertilizers, pesticides,
etc., were obtained from plant and animal products.

• Post-independent India witnessed severe food crisis.

• India depended on heavy imports of food-for-aid from

western countries.

• Green Revolution introduced in 1970’s changed the

situation from food importer to food exporter by 1990
Conventional/Modern Agriculture

• Modern agriculture uses pesticides,

herbicides, rodenticides, fungicides and
other chemicals to produce the food.

• The produced food contains chemical and in-

organic fertilizers residues and is harmful to
the human health.

• It creates “Dead Soil” that is detrimental to

future farming

• The industrial nitrogen fixation (INF) is 40

MT/year which contributes only 15.3% of total
nitrogen fixation. On the other hand, the
quantity of biological nitrogen fixation (BNF) is
175 MT/year which contributes 67.3% of the
total amount.
How ‘Modern Farming' affects our world?
• Land exhaustion – Loss of soil fertility
• Nitrate run-off – water contamination
• Soil erosion
• Soil compaction
• Loss of cultivated biodiversity
• Threat to indigenous seeds and animal
breeds and species
• Habitat destruction
• Contaminated food
• Control of agriculture inputs and food
distribution channel
• Threat to individual farmers
Benefits of Organic Farming:
Environmental Benefits Organic Farmer’s Viewpoint
• The compound annual growth rate in yield of
important crops in India is going to decline
gradually even after use of chemicals.
• The industrial nitrogen fixation (INF) is 40
MT/year which contributes only 15.3% of
total nitrogen fixation. On the other hand,
the quantity of biological nitrogen fixation
(BNF) is 175 MT/year which contributes
67.3% of the total amount.
• The productivity of organic farming may be
less in initial years, but the yields increased
progressively under organic farming equating
the yields under inorganic farming by sixth
year.

Yield Gross Income

12 25,000
20,000 20000
10
17500 20,000

8 15000
12500 15,000
11250
6 10,000
10,000
4

5,000
2
10 5 5.75 6.25 7.5 8.75 10
0 0
India: Global Leadership
Organic Crop Share in India (2009-10) Market Size of Organic F&B (₹ million)

13% 520
460
India
380
42% Ethopia
15% 300
Mexico
Uganda 160
Phillipines 100
15%

15%
2011 2012 2013 2014 2015 2016

Red-Tapism … again! Key Highlights

• The organic markets in India are largely spread across the

food and beverages, health and wellness, beauty and
personal care and textile industries. The highest growth is
observed in the organic food segment, followed by textile,
beauty and personal care. The current Indian domestic
market is estimated at INR40,000 million which is likely to
increase by INR100,000 million — INR120,000 million by
2020 with a similar increase in exports.
• Organic packaged food and beverages is an emerging niche
market in India and its primary consumers are high-income
urbanites. The total market size for organic packaged food
in India in 2016 was INR533 million, growing at 17% over
2015, and is expected to reach INR871 million by 2021.
Opportunities
Opportunity Framework Government of India Schemes

Global Opportunity Key Growth Drivers

• Increasing Health Awareness.

• Rising Disposable Income.
• Urbanisation and Working Population.
• Increasing Support from Govt. of India.
• Technological Developments.
• Increasing Demand for Organic Food.
• Increasing use of Online Marketing Channels.
• Increasing Investment in Organic Food
Companies.
• Introduction of new Product Categories.
Challenges
4V Transformation Framework
Producer Level
• Certification Process.
• Certification Standards.
• Lack of market for Pre-Certification
Process.
• Lack of Standardisation for the
Certification of different Commodities.
• Lack of Incentives for farmers.
• Lack of Standardized Organic
Agriculture inputs and Subsidy on
Organic Inputs.
• Lack of Organic Research and
Extension.
Processor Level
• Supply Chain Bottlenecks.
• Global Competitiveness.
• Lack of Proper Branding and
Packaging.
• High Marketing Expenses associated.
• High SG&A Expenses associated.
• ‘Push’ driven Supply Chain.
• Volatile Demand and Supply.
Remarks
Comprehensive value chain development
can cut down operation cost and make
the organic market profitable and scalable
while bringing down the cost of
cultivation simultaneously. The problems
in the value chain and prospective
solutions can be understood through the
4V framework developed by EY. This
framework deals with the
problems at each stage, namely:
• Production
• Harvesting and collection
• Processing and packaging
• Marketing distribution
Consumer Level
• Lack of awareness among Consumers.
• High Cost of Organic Food Products.
• Limited availability of Organic Food
Products.