Organic food: Good potential for India

Till recently considered a niche area, organic foods and drinks have come a long way.

Huge increase in demand in global markets has caused major supply shortage problems in organic sector.

Even though there was considerable rise in organic farmland in Latin America, Asia and Africa since 2000, short supply is felt in North America and hence US-based companies are currently scouring the globe for organic ingredients, according to UK-based Organic Monitor, a business research and consulting company that specialises on the global organic and related product industries.

Consumers with high disposable income in the US, Singapore and Switzerland are pushing the demand up.

The G-7 countries account for 80 per cent of total sales even though they have only 12 per cent of international farmland.

According to market analysts and researchers, sales of organic foods and drinks may touch $40 billion soon, as there is an increase in the number of consumers seeking healthy and nutritious products.

Imports of organic ingredients such as nuts, beans and seeds from Turkey, China and Brazil have increased while herbs and spices are arriving from Paraguay, India and Ethiopia.

Organic fresh fruits and vegetables are increasingly coming from African and Asian countries in the global market. Short supply is faced by European countries, where demand for organic foods is on the rise.

India has the potential to grab a good share of this growing demand. Though there have been some movements in organic farming since 2000, the sector continues to remain scattered and its development lags far behind its actual potential.

A large number of farmer groups, companies, NGOs, development agencies and government bodies promote organic farming in one way or the other.

For many Indian farmers, the organic approach might offer a new option for ensuring their livelihood, as they can reduce production costs and, at the same time, gain access to markets with better prices for their products.