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Organic food exports from India are increasing with more farmers shifting to organic farming. With the domestic consumption being low, the prime market for Indian organic food industry lies in the US and Europe. India has now become a leading supplier of organic herbs, organic spices, organic basmati rice, etc.
RCNOS recently published a report tilted ‘Food Processing Market in India (2005)’. According to its research, exports amount to 53% of the organic food produced in India. This is considerably high when compared to percentage of agricultural products exported. In 2003, only 6-7% of the total agricultural produce in India was exported.
Exports is driving organic food production in India
The increasing demand for organic food products in the developed countries and the extensive support by the Indian government coupled with its focus on agri-exports are the drivers for the Indian organic food industry.
Organic food products in India are priced about 20-30% higher than non-organic food products. This is a very high premium for most of the Indian population where the per capita income is merely USD 800. Though the salaries in India are increasing rapidly, the domestic market is not sufficient to consume the entire organic food produced in the country. As a result, exports of organic food is the prime aim of organic farmers as well as the government.
The Indian government is committed towards encouraging organic food production. It allocated Rs. 100 crore or USD 22.2 million during the Tenth Five Year Plan for promoting sustainable agriculture in India.
APEDA (Agricultural and Processed Food Export Development Authority) coordinates the export of organic food (and other food products) in India. The National Programme for Organic Production in India was initiated by the Ministry of Commerce. The programme provides standard for the organic food industry in the country. Since these standards have been developed taking into consideration international organic production standards such as CODEX and IFOAM, Indian organic food products are being accepted in the US and European markets. APEDA also provides a list of organic food exporters in India.
Organic food costs in India are expected to decrease driving further exports in future
Organic food production costs are higher in the developed countries as organic farming is labor intensive and labor is costly in these countries. However, in a country like India, where labor is abundant and is relatively cheap, organic farming is seen as a good cost effective solution to the increasing costs involved in chemical farming. Currently most of the organic farmers in India are still in the transition phase and hence their costs are still high. As these farmers continue with organic farming, the production costs are expected to reduce, making India as one of the most important producers of organic food.
Organic food products exported from India include the following:
- Organic Cereals: Wheat, rice, maize or corn
- Organic Pulses: Red gram, black gram
- Organic Fruits: Banana, mango, orange, pineapple, passion fruit, cashew nut, walnut
- Organic Oil Seeds and Oils: Soybean, sunflower, mustard, cotton seed, groundnut, castor
- Organic Vegetables: Brijal, garlic, potato, tomato, onion
- Organic Herbs and Spices: Chili, peppermint, cardamom, turmeric, black pepper, white pepper, amla, tamarind, ginger, vanilla, clove, cinnamon, nutmeg, mace,
- Others: Jaggery, sugar, tea, coffee, cotton, textiles
Given below are the sales of various organic food products that were exported from India in 2002.
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Organic Food Item
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Sales (tons)
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Tea
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3000
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Coffee
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550
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Spices
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700
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Rice
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2500
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Wheat
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1150
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Pulses
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300
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Oil Seeds
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100
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Fruits and Vegetables
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1800
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Cashew Nut
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375
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Cotton
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1200
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Herbal Products
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250
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Total
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11,925
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Organic Source: Org-Marg
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Further Reading:
Rediff
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