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Environmental Management
   Term Paper Presentation
   Organic Agriculture in India




                    Group -
         Submitted to: Prof. K. Balooni
                Group 5, Section D

Anupam                               Mahesh
         Deep 199   Daisy 197                 Neeti 225
  193                                 221
Agriculture in India


Pre Green Revolution Era
                                         Green Revolution Era                             Present Day Scenario
- Ramayana
                                         - Use of plant protection
- Mention of several manures like oil                                                       (Organic Farming)
cake, excreta of animals in              chemicals including all pesticides like
Arthashastra                             fungicides, insecticides, weedicides were   - contains more
- Mention of organic manure in Rig       used extensively to protect plant from      vitamins, minerals, enzymes,
Veda, Green Manure in Atharva Veda,      pest                                        trace
etc                                      and diseases
                                                                                     elements and even cancer
- Mention of “Kamdhenu”, the             - the pesticide residue persistence in
                                                                                     fighting antioxidants
celestial cow & its importance in soil   agricultural produce, food commodities,
fertility                                animal, feed, fodder, animal                - Higher yields
- At least one third of what you take    products, irrigation water are              - improves the soil quality
out from soils must be returned to it
                                         matter of serious concern as their          - high demand
implying recycling or post-harvest
                                         presence
residue – Holy Quran
                                         is more than maximum residue limit




3/18/2010                                                                                                           2
Agriculture in India
Trends in developing economies ….

  Criteria             India                 Bangladesh              Kenya
  Agricultural         •18.6% of the GDP     •13–15% of              • > 50 % of export
  Overview             and involves 60% of   Bangladesh's annual     earnings & 24 % of
                       the total labour      export earnings &       GDP
                       force                 20% of the              •sector includes
                       •largest overseas     country's GDP,          large-scale
                       exporter of cashews   employing 60% of        commercial farms,
                       and spices            the total labour        plantations &
                                             force                   specialist
                                             •Land is fertile, but   horticultural units
                                             yields are usually
                                             low due to a lack of
                                             capital for input

  Area under Organic 28,00,000               17,77,000               1,82,000
  Farming (Million Ha)


  3/18/2010                                                                                3
Agriculture in India
                                                                  ….. trends in developing economies
Criteria               India                         Bangladesh                    Kenya
No. of Organic Farms   332                           100                           300000

Major Organic Crops    Tea, rice, bananas, cotton,   Tea, Shrimps, Cotton, Rice    Vegetables, fruits, coffee,
                       wheat, spices (mainly                                       beans, nuts, essential oils,
                       pepper and ginger), coffee,                                 dried herbs, cosmetics and
                       nuts, pulses, and herbal                                    pharmaceutical products
                       products



Initiatives            NPOP, INDOCERT, ICCOA,        NayaKrishi Aandolan           KOFA, KOPA
                       etc.
Farming Methods        •Use of organic manure        •Mixed cropping & crop        •Trees are excellent for fuel
                       •Aerobic & anaerobic          rotation - highly effective   wood and charcoal
                       composting                    method for pest
                       •Green manuring               management & nutritional
                       •Pests managed through        health of the soil
                       neem                          •Compost made of water
                                                     hyacinth




   3/18/2010                                                                                                4
Agriculture in India
   India – Agriculture production hub ??


 Agriculture & allied sector
contributes nearly 22 per cent of
GDP
 60 % of the area sown is
dependent on rainfall
 India is the largest producer in
the world of milk, cashew nuts,
coconuts, tea, ginger, turmeric and
black pepper
second largest producer of wheat,
rice, sugar, groundnut and inland
fish
 World's largest cattle population
(281 million)


“ Average growth of Agriculture and allied sector during the tenth five year plan was meager
                                           2.4 % ”
Agriculture in India
                                  Growing Concerns


Economical or environmental sustainability ?

 Agriculture subsidies - helping or hampering ?

 Small land holdings – fragmentation

 Inadequate irrigation facilities

 Slow progress in implementing land reforms

 Modern agriculture practices - awareness, cost, land size ?

 Socio-economic backwardness


" 1,500 farmers committed mass suicide in India after having been driven into debt by crop
  3/18/2010                                                                             6
                                        failure "
Agriculture in India
                               Recent Policies & Initiatives

      Farming
      Practices                 Focus on organic, bio-dynamic farming


                                Agriculture credit, Kisan Credit,
      Farmers
                                Special rehabilitation package for distressed farmers
                                 Agriculture debt waiver and debt relief scheme 2008
                                Rashtriya Krishi Vikas Yojana
     Awareness                   Agri - marketing
                                Kisan call centers
     Improved
                                Technology Mission on oil seeds (TMOP), pulses and
      Quality
                                maize
       Seeds

       Food                      National food security mission (NFSM)
      security                   National horticulture mission


“ Around 55% of the farms in India are organic by default as majority of the farmers cannot
  3/18/2010                                                                             7
                            afford to buy chemical fertilizers”
Agriculture in India
                          Policy initiatives under consideration



 Cooperatives

 Amendment of Seeds Act, 1966

 The pesticides Management Bill, 2008




“ Around 55% of the farms in India are organic by default as majority of the farmers cannot
  3/18/2010                                                                             8
                            afford to buy chemical fertilizers”
Concept of Organic Farming
Basic know how ….
                                inputs
                                              pest control
                     Natural
   Avoid            and farm             Environm
  usage of          resources               ent &
  chemical                                  Local
   inputs                                 farming
                                           system



             Organic Farming




     Biological
   diversity and         Nutrients rich
   heterogeneity             yield


 “ Around 55% of the farms in India are organic by default as majority of the farmers cannot
   3/18/2010                                                                             9
                             afford to buy chemical fertilizers”
India – Global footprints
                                                    … Organic farming exports


          India 2008-2009       Vision India 2012
Exports       $ 87 mn                   $ 1 bn
Market          0.2 %                    2.5%
Share
 Area        8.65 lakh ha             20 lakh ha



     State              Exports (Metric ton)
     Kerala                    1232
  West Bengal                   937
    Karnataka                   476
   Tamil Nadu                   471
     Punjab                     541
Himachal Pradesh                521
  Maharasthra                   375
  India (Total)                6472
Stake holders in Organic Agriculture
                                   Government
Regulations                Policies                 Research             Extension


 NGOs supporting Org. Agriculture                      Organic Competence Centre

•Representing farmer’s interests               • Collect info and knowledge
• Information extension                        • Documentation & dissemination
• Market development promotion                 • Training & extension services
eg. OFAI, BAAI, SOA                            • Policy initiatives, networking (ICCOA)


       Producer Organizations                              Certification Bodies
• Cooperatives                                 • Inspection
•Producer groups                               • Certification
• Companies, projects                          • Standard development
eg. PDS, Ecofarms, Agrocell, Maikaal           e.g. IMO, SKAL, Ecocert, APOF


  Farmers                              Processors                         Traders

                                       Consumers
Maintaining quality through supply chain
SCM model in organic agriculture …..

                                        Farmer Selection
                                        Site – Externality
                                     Trust – Transaction Cost




               Neutral 3rd party
                 certification            Supply                 Quality Inputs – Seed
                                                                 Certification Agency
                    Cost ?               Chain and
                                          Quality
                                         Measures

                     Harvesting/Threshing/Stor
                                age                          Technology Checks
                                                              e.g., Basmati Rice
                          Clean Equipment
Implications – Conventional to organic Conversion
                                          ……… transition from conventional to organic farming

               YEAR 1                               YEAR 2                            YEAR 3 & 4




                                      After the first year of conversion,      By the third and fourth years,
Costs tend to initially be slightly
                                      yields climbed steadily and tend         when certification occurs
higher as farmers invest (mostly
                                      to approach the baseline yields of       farmers have received an
labor) to adjust their fields to
                                      the previous system                      average 20%-30% higher prices
organic standards



Yields have tended to suffer by       Initially, the selling price tends not
about one-third immediately           the change since organically
after conversion as both farmer       managed crops can always be sold
and soils adapt                       as conventional.
Conventional V/s Organic Farming
Benefits and risks associated …

            Income = (Yield x Price) x Risk Factor – Production Costs
                    Stabilized Yield   Reduced Risk – Production,   Reduce Input Cost
                                       biological, Financial,
                                       Price fluctuation etc

Conversion Benefits
 Improved the net-farm incomes

 Reduced the risk of pesticide poisonings, lead to more self-sufficiency

 Improved food safety and reduced vulnerability, and improved the access to networks
 supporting knowledge exchange and political participation.

Risks

 Risk and uncertainty related to the conversion period, such as temporarily declining yields
  and the lack of experiences and information
Limitations, Potential & Challenges
                                      … weighing the potential of Organic Agriculture

               • Market Information
               • Training
Limitation     • Storage Facility
               • Consumer awareness
               • Government Support
               • Certification cost

               • Geographical
               • Climatic
Potential      • Ill Soil
               • Decreased Yield
               • Growing demand


               • Policy Initiatives
               • Integrated Universities
Challenges     • Infrastructure and Funds for
                 scientific studies
Organic farming in Dry lands of India
Issues and promotional strategies …
Issues
                                                                               Soil and
     Land              Food                                      Wind
                                        Employment                             Climate
  Degradation         Security                                  Erosion
                                                                              Condition

                       India's National Project on Organic Farming
                       (NPOF 2005) has given top priority to the dry
                       lands

                            Initially promote non-certified
                            organic farming

     Promotional                 Integrate efforts of supporting
      Strategies                 agencies

                                      Encourage decentralized input
                                      supply

                                         Develop organic farming cluster of
                                         villages
Agripreneurs: Business Opportunity ?
                                                   … an example of alumni of IIM Kozhikode



     Orex Health Foods
     Established: September, 2009
     Founder : Chaitanya Varma, IIMK, Batch of 2008
     Owns three organic ready-to-eat food outlets
     Serves IT Business Parks in Hyderabad
     Handling Certification Cost
     NGO Vested Interests
     Unavailability of whole range of organic food
     Deadlock in Demand and Supply


  “ India was exporting organic products to the value of only Rs 730 million in 2003 and in 2007
this figure touched Rs 3000 million constituting almost 0.2 percent of the organic world market ”
North East India: Organic Farming
Case Study …


•   The seven sisters :-land surface of 262230
    km2-80% dependence on organic farming
•   Jhum cultivation: Traditional method
•   Around 70.77% cropped area under shifting
    cultivation
•   Large areas covered with forest




                   Rapid
                 population                       Threat to
                growth: food                        forest
               insufficiency?                    resources??
                      ?
North East India: Salient features
Socio-Cultural
• integrated with the socioeconomic fabric of rural society
• Community based practice-equity
• Almost completely lacking in feudal fetters
• plays a central role in uniting villages and clans, and integrating the people
• egalitarian mode of production, with women playing an important
  economic role

Economy
• Food sufficiency rather than income generation
• No market structure; only 2% of boundaries shared with mainland India
• Prevents them from being subject to the whims of the larger capital
  market
• local modes of commerce



Ecological
• Sustainable
• Appropriate crop-mix or short-duration crops (particularly leguminous) for
  maintenance and enhancing of the soil fertility status
North East India: Case study
                           NAGALAND
                   •Pre-capitalist livelihood
                   generation activity for food
                   sustenance
                   •gross state domestic product is
                   $1.4 billion in current prices
                   •90% population dependent on
                   agriculture
                   •Driven by sustainability
                   • Local market


                           MOKOKCHUNG
                   •Usurpation of forest resources
                   •Indian Government’s new “Look
                   East” policy with respect to trade
                   and commerce-negative impact
                   on jhum
                   •Military insurgency, land for
                   jhum occupied, by the armed
                   Indian state
North East India: Case study
                                      … conflict over Jhum cultivation


                            Society    of    scientists:
                            Sustainability of jhum
                            cultivation, Food insecurity
                            of the local population due
                            to the wrenching away of
                            their primary mode of
                            sustenance




Trade promoting entities,
private entities: wishing
to utilize the land for
specific   profit-making
ventures???
North East India: Case study - Solution

  Alder based Jhum
  cultivation in Nagaland



                                             Aji


                                        Ngui Assoni: Rice Fish Cultivation in
                                        Arunachal Pradesh


Fixed        Annual     Annual     Annual     Return to   Return to  Profit to
capital (Rs) investment turnover   profit     fixed       investment turn over
             (Rs)       (Rs)       (Rs)       capital     (%)        (%)
                                              (%)

62000       25277       74000      48723      78.58       192.75     65.84
North East India: Future
Harnessing the potential ….


                              Potential to be largest organic food
                              producer and major export center for
                              global organic market



                              The synergy between comparative
                              advantage and price-competitiveness



                              Public-private partnership should be
                              encouraged and state government
                              must come forward to create
                              investment friendly environment
Consumer Analysis - Kozhikode

                          Only organic                             Exports are increasing very fast and
                          store in city,
                          established                              demand increase will need atleast
                            6 months                               doubling of production in coming years
                               ago

     Cereals                                        Awareness
                                                                   Very less effort from government side.
    supplied                                          among        Villages and farmers have to take initiative
      from                                          public very    to shift to organic farming. First few years
    Kolhapur              Element                      low         very bad
                          Organic
                            Store
                                                                   Internal bickering between Finance
                                                                   minister, an organic farmer and
                                            Farmers in             Agricultural minister harming the state
                                             Waynad
           Major factor
                                           supply spices
           – price and
                                            under free
           not healthy
                                               trade
              living
                                            agreement
                                              Kerala
                                                                   Strong integrated policy initiatives needed


Reference: Mr. Sudarsanan Nair, Element Organic Store, Kozhikode

“ India should target to reach at least Rs 40 billion by 2012 (domestic market and exports),
thereby capturing approximately 2.5 percent of the current global market for organic products”
Recent developments ……

“GB Pant Agricultural University in Uttarakhand does        “ Kerala declared some
extensive research in this area ….”                         areas in Wayanad and
                                                            Idukki hill districts as fully
                                                            organic ... ...   ”
 “It has enrolled about 52,000
 farmers and earmarked 71,000
 hectares across the state to use         “ Karnataka government has set up an
 only organic material for growing        organic farming mission with budgetary

 crops, vegetables and fruits ....   ”    support of Rs.100 crore this fiscal .....   ”

“When government banned rice             “ This is the beginning in the government’s
exports, the farmers who had             efforts at declaring some panchayats as
cultivated organic rice incurring        fully organic by next year, leading to
more expenses faced huge                 conversion of the whole State as organic in
losses ….   ”                            the long run .....   ”
Policy / Initiatives in Kerala

                              Kerala has an accredited organic certifying agency
                              catering to the needs of the farmers.




                              launched two brands, namely ‘Kerala Organic’ and
                              ‘Kerala Naturals’ to market organic farm produces



                              Marketing of organic produce is also being experimented
                              in many places like Organic Bazaar in
                              Thiruvananthapuram, Eco-shops in Thrissur and
                              Kozhikode and, Jaiva Krishi Sevana Kendram in Kannur



                              Self help groups of women are encouraged to undertake
                              organic farming of vegetables in some panchayats.



”520 small and medium farmers in Marappanmoola village of wayanad district, owning on an
average less than 2 hectares of land have organized themselves & now cultivate a mixed variety
Organic Policy in India & Recommendations


Ensure seed sovereignty of the farmers

• GM free villages
• Availability of Affordable and locally suitable seeds


Compact Area Group approach in organic farming

• Organic farmers groups, clubs, SHG’s and cooperatives


Improve soil quality and ensure water conservation measures

• protect traditional water , rain water conservation
• testing facilities for soil, water, micronutrients and microorganisms


Conserve and improve agro-biodiversity

• Kaipad, Pokkali and Kole as “agricultural heritage of Kerala”
Organic Policy in India & Recommendations

Intensive campaign

• Organic Mela’s
• state–wide awareness programmes on the advantages of organic produce
• workshops, seminars for consumers, teachers, traders, farmers, government officials

Channels for marketing of organic produce

•   direct marketing / linkages by farmers groups with end user institutions
•   existing vegetable, fruits and grocery vendors
•   organic farm produce outlets
•   Tourism industry source organic produce

Availability of quality organic manure to the farmers

• crop rotation, tree crops, cover crops, leguminous crops, green manure
• Link organic municipal solid waste to farms –> organic matter recycling

Ensure farm inputs for organic farming

• ensure markets for good quality input materials at reasonable price
• training for local resource persons
Organic Policy in India & Recommendations

         encourage the use of organic farm produce in food industry


         Develop a simple certification process

         • “Jaiva Keralam” developed as a brand

         Provide financial incentives for promoting organic farming

         • interest-free loans toespecially small and marginal farmers
         • assistance during conversion period

         Introduce organic farming in education institutions

         • Introduce organic farming in educational institutions through academic inputs

         Integrate of various departments, local self-governments and
         organizations


“ 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 ”
Dispelling myth of un-sustainability
Example of Cuba ….


          Food and Agriculture Organization says

          • Conversion of global agriculture to organic management
            would result in a global agricultural supply of 2640 to 4380
            kcal/person/day, increase production by 56 per cent
          • Organic farms use 33 to 56 per cent less energy per ha
            than conventional farms

          An example of Cuba

          • A country with 42,402 sq. miles of land and with 11.3
            million people, is completely organic
Questions ??

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EM Term Paper: Organic Farming in India

  • 1. Environmental Management Term Paper Presentation Organic Agriculture in India Group - Submitted to: Prof. K. Balooni Group 5, Section D Anupam Mahesh Deep 199 Daisy 197 Neeti 225 193 221
  • 2. Agriculture in India Pre Green Revolution Era Green Revolution Era Present Day Scenario - Ramayana - Use of plant protection - Mention of several manures like oil (Organic Farming) cake, excreta of animals in chemicals including all pesticides like Arthashastra fungicides, insecticides, weedicides were - contains more - Mention of organic manure in Rig used extensively to protect plant from vitamins, minerals, enzymes, Veda, Green Manure in Atharva Veda, pest trace etc and diseases elements and even cancer - Mention of “Kamdhenu”, the - the pesticide residue persistence in fighting antioxidants celestial cow & its importance in soil agricultural produce, food commodities, fertility animal, feed, fodder, animal - Higher yields - At least one third of what you take products, irrigation water are - improves the soil quality out from soils must be returned to it matter of serious concern as their - high demand implying recycling or post-harvest presence residue – Holy Quran is more than maximum residue limit 3/18/2010 2
  • 3. Agriculture in India Trends in developing economies …. Criteria India Bangladesh Kenya Agricultural •18.6% of the GDP •13–15% of • > 50 % of export Overview and involves 60% of Bangladesh's annual earnings & 24 % of the total labour export earnings & GDP force 20% of the •sector includes •largest overseas country's GDP, large-scale exporter of cashews employing 60% of commercial farms, and spices the total labour plantations & force specialist •Land is fertile, but horticultural units yields are usually low due to a lack of capital for input Area under Organic 28,00,000 17,77,000 1,82,000 Farming (Million Ha) 3/18/2010 3
  • 4. Agriculture in India ….. trends in developing economies Criteria India Bangladesh Kenya No. of Organic Farms 332 100 300000 Major Organic Crops Tea, rice, bananas, cotton, Tea, Shrimps, Cotton, Rice Vegetables, fruits, coffee, wheat, spices (mainly beans, nuts, essential oils, pepper and ginger), coffee, dried herbs, cosmetics and nuts, pulses, and herbal pharmaceutical products products Initiatives NPOP, INDOCERT, ICCOA, NayaKrishi Aandolan KOFA, KOPA etc. Farming Methods •Use of organic manure •Mixed cropping & crop •Trees are excellent for fuel •Aerobic & anaerobic rotation - highly effective wood and charcoal composting method for pest •Green manuring management & nutritional •Pests managed through health of the soil neem •Compost made of water hyacinth 3/18/2010 4
  • 5. Agriculture in India India – Agriculture production hub ??  Agriculture & allied sector contributes nearly 22 per cent of GDP  60 % of the area sown is dependent on rainfall  India is the largest producer in the world of milk, cashew nuts, coconuts, tea, ginger, turmeric and black pepper second largest producer of wheat, rice, sugar, groundnut and inland fish  World's largest cattle population (281 million) “ Average growth of Agriculture and allied sector during the tenth five year plan was meager 2.4 % ”
  • 6. Agriculture in India Growing Concerns Economical or environmental sustainability ?  Agriculture subsidies - helping or hampering ?  Small land holdings – fragmentation  Inadequate irrigation facilities  Slow progress in implementing land reforms  Modern agriculture practices - awareness, cost, land size ?  Socio-economic backwardness " 1,500 farmers committed mass suicide in India after having been driven into debt by crop 3/18/2010 6 failure "
  • 7. Agriculture in India Recent Policies & Initiatives Farming Practices Focus on organic, bio-dynamic farming Agriculture credit, Kisan Credit, Farmers Special rehabilitation package for distressed farmers  Agriculture debt waiver and debt relief scheme 2008 Rashtriya Krishi Vikas Yojana Awareness  Agri - marketing Kisan call centers Improved Technology Mission on oil seeds (TMOP), pulses and Quality maize Seeds Food  National food security mission (NFSM) security  National horticulture mission “ Around 55% of the farms in India are organic by default as majority of the farmers cannot 3/18/2010 7 afford to buy chemical fertilizers”
  • 8. Agriculture in India Policy initiatives under consideration  Cooperatives  Amendment of Seeds Act, 1966  The pesticides Management Bill, 2008 “ Around 55% of the farms in India are organic by default as majority of the farmers cannot 3/18/2010 8 afford to buy chemical fertilizers”
  • 9. Concept of Organic Farming Basic know how …. inputs pest control Natural Avoid and farm Environm usage of resources ent & chemical Local inputs farming system Organic Farming Biological diversity and Nutrients rich heterogeneity yield “ Around 55% of the farms in India are organic by default as majority of the farmers cannot 3/18/2010 9 afford to buy chemical fertilizers”
  • 10. India – Global footprints … Organic farming exports India 2008-2009 Vision India 2012 Exports $ 87 mn $ 1 bn Market 0.2 % 2.5% Share Area 8.65 lakh ha 20 lakh ha State Exports (Metric ton) Kerala 1232 West Bengal 937 Karnataka 476 Tamil Nadu 471 Punjab 541 Himachal Pradesh 521 Maharasthra 375 India (Total) 6472
  • 11. Stake holders in Organic Agriculture Government Regulations Policies Research Extension NGOs supporting Org. Agriculture Organic Competence Centre •Representing farmer’s interests • Collect info and knowledge • Information extension • Documentation & dissemination • Market development promotion • Training & extension services eg. OFAI, BAAI, SOA • Policy initiatives, networking (ICCOA) Producer Organizations Certification Bodies • Cooperatives • Inspection •Producer groups • Certification • Companies, projects • Standard development eg. PDS, Ecofarms, Agrocell, Maikaal e.g. IMO, SKAL, Ecocert, APOF Farmers Processors Traders Consumers
  • 12. Maintaining quality through supply chain SCM model in organic agriculture ….. Farmer Selection Site – Externality Trust – Transaction Cost Neutral 3rd party certification Supply Quality Inputs – Seed Certification Agency Cost ? Chain and Quality Measures Harvesting/Threshing/Stor age Technology Checks e.g., Basmati Rice Clean Equipment
  • 13. Implications – Conventional to organic Conversion ……… transition from conventional to organic farming YEAR 1 YEAR 2 YEAR 3 & 4 After the first year of conversion, By the third and fourth years, Costs tend to initially be slightly yields climbed steadily and tend when certification occurs higher as farmers invest (mostly to approach the baseline yields of farmers have received an labor) to adjust their fields to the previous system average 20%-30% higher prices organic standards Yields have tended to suffer by Initially, the selling price tends not about one-third immediately the change since organically after conversion as both farmer managed crops can always be sold and soils adapt as conventional.
  • 14. Conventional V/s Organic Farming Benefits and risks associated … Income = (Yield x Price) x Risk Factor – Production Costs Stabilized Yield Reduced Risk – Production, Reduce Input Cost biological, Financial, Price fluctuation etc Conversion Benefits  Improved the net-farm incomes  Reduced the risk of pesticide poisonings, lead to more self-sufficiency  Improved food safety and reduced vulnerability, and improved the access to networks  supporting knowledge exchange and political participation. Risks  Risk and uncertainty related to the conversion period, such as temporarily declining yields and the lack of experiences and information
  • 15. Limitations, Potential & Challenges … weighing the potential of Organic Agriculture • Market Information • Training Limitation • Storage Facility • Consumer awareness • Government Support • Certification cost • Geographical • Climatic Potential • Ill Soil • Decreased Yield • Growing demand • Policy Initiatives • Integrated Universities Challenges • Infrastructure and Funds for scientific studies
  • 16. Organic farming in Dry lands of India Issues and promotional strategies … Issues Soil and Land Food Wind Employment Climate Degradation Security Erosion Condition India's National Project on Organic Farming (NPOF 2005) has given top priority to the dry lands Initially promote non-certified organic farming Promotional Integrate efforts of supporting Strategies agencies Encourage decentralized input supply Develop organic farming cluster of villages
  • 17. Agripreneurs: Business Opportunity ? … an example of alumni of IIM Kozhikode  Orex Health Foods  Established: September, 2009  Founder : Chaitanya Varma, IIMK, Batch of 2008  Owns three organic ready-to-eat food outlets  Serves IT Business Parks in Hyderabad  Handling Certification Cost  NGO Vested Interests  Unavailability of whole range of organic food  Deadlock in Demand and Supply “ India was exporting organic products to the value of only Rs 730 million in 2003 and in 2007 this figure touched Rs 3000 million constituting almost 0.2 percent of the organic world market ”
  • 18. North East India: Organic Farming Case Study … • The seven sisters :-land surface of 262230 km2-80% dependence on organic farming • Jhum cultivation: Traditional method • Around 70.77% cropped area under shifting cultivation • Large areas covered with forest Rapid population Threat to growth: food forest insufficiency? resources?? ?
  • 19. North East India: Salient features Socio-Cultural • integrated with the socioeconomic fabric of rural society • Community based practice-equity • Almost completely lacking in feudal fetters • plays a central role in uniting villages and clans, and integrating the people • egalitarian mode of production, with women playing an important economic role Economy • Food sufficiency rather than income generation • No market structure; only 2% of boundaries shared with mainland India • Prevents them from being subject to the whims of the larger capital market • local modes of commerce Ecological • Sustainable • Appropriate crop-mix or short-duration crops (particularly leguminous) for maintenance and enhancing of the soil fertility status
  • 20. North East India: Case study NAGALAND •Pre-capitalist livelihood generation activity for food sustenance •gross state domestic product is $1.4 billion in current prices •90% population dependent on agriculture •Driven by sustainability • Local market MOKOKCHUNG •Usurpation of forest resources •Indian Government’s new “Look East” policy with respect to trade and commerce-negative impact on jhum •Military insurgency, land for jhum occupied, by the armed Indian state
  • 21. North East India: Case study … conflict over Jhum cultivation Society of scientists: Sustainability of jhum cultivation, Food insecurity of the local population due to the wrenching away of their primary mode of sustenance Trade promoting entities, private entities: wishing to utilize the land for specific profit-making ventures???
  • 22. North East India: Case study - Solution Alder based Jhum cultivation in Nagaland Aji Ngui Assoni: Rice Fish Cultivation in Arunachal Pradesh Fixed Annual Annual Annual Return to Return to Profit to capital (Rs) investment turnover profit fixed investment turn over (Rs) (Rs) (Rs) capital (%) (%) (%) 62000 25277 74000 48723 78.58 192.75 65.84
  • 23. North East India: Future Harnessing the potential …. Potential to be largest organic food producer and major export center for global organic market The synergy between comparative advantage and price-competitiveness Public-private partnership should be encouraged and state government must come forward to create investment friendly environment
  • 24. Consumer Analysis - Kozhikode Only organic Exports are increasing very fast and store in city, established demand increase will need atleast 6 months doubling of production in coming years ago Cereals Awareness Very less effort from government side. supplied among Villages and farmers have to take initiative from public very to shift to organic farming. First few years Kolhapur Element low very bad Organic Store Internal bickering between Finance minister, an organic farmer and Farmers in Agricultural minister harming the state Waynad Major factor supply spices – price and under free not healthy trade living agreement Kerala Strong integrated policy initiatives needed Reference: Mr. Sudarsanan Nair, Element Organic Store, Kozhikode “ India should target to reach at least Rs 40 billion by 2012 (domestic market and exports), thereby capturing approximately 2.5 percent of the current global market for organic products”
  • 25. Recent developments …… “GB Pant Agricultural University in Uttarakhand does “ Kerala declared some extensive research in this area ….” areas in Wayanad and Idukki hill districts as fully organic ... ... ” “It has enrolled about 52,000 farmers and earmarked 71,000 hectares across the state to use “ Karnataka government has set up an only organic material for growing organic farming mission with budgetary crops, vegetables and fruits .... ” support of Rs.100 crore this fiscal ..... ” “When government banned rice “ This is the beginning in the government’s exports, the farmers who had efforts at declaring some panchayats as cultivated organic rice incurring fully organic by next year, leading to more expenses faced huge conversion of the whole State as organic in losses …. ” the long run ..... ”
  • 26. Policy / Initiatives in Kerala Kerala has an accredited organic certifying agency catering to the needs of the farmers. launched two brands, namely ‘Kerala Organic’ and ‘Kerala Naturals’ to market organic farm produces Marketing of organic produce is also being experimented in many places like Organic Bazaar in Thiruvananthapuram, Eco-shops in Thrissur and Kozhikode and, Jaiva Krishi Sevana Kendram in Kannur Self help groups of women are encouraged to undertake organic farming of vegetables in some panchayats. ”520 small and medium farmers in Marappanmoola village of wayanad district, owning on an average less than 2 hectares of land have organized themselves & now cultivate a mixed variety
  • 27. Organic Policy in India & Recommendations Ensure seed sovereignty of the farmers • GM free villages • Availability of Affordable and locally suitable seeds Compact Area Group approach in organic farming • Organic farmers groups, clubs, SHG’s and cooperatives Improve soil quality and ensure water conservation measures • protect traditional water , rain water conservation • testing facilities for soil, water, micronutrients and microorganisms Conserve and improve agro-biodiversity • Kaipad, Pokkali and Kole as “agricultural heritage of Kerala”
  • 28. Organic Policy in India & Recommendations Intensive campaign • Organic Mela’s • state–wide awareness programmes on the advantages of organic produce • workshops, seminars for consumers, teachers, traders, farmers, government officials Channels for marketing of organic produce • direct marketing / linkages by farmers groups with end user institutions • existing vegetable, fruits and grocery vendors • organic farm produce outlets • Tourism industry source organic produce Availability of quality organic manure to the farmers • crop rotation, tree crops, cover crops, leguminous crops, green manure • Link organic municipal solid waste to farms –> organic matter recycling Ensure farm inputs for organic farming • ensure markets for good quality input materials at reasonable price • training for local resource persons
  • 29. Organic Policy in India & Recommendations encourage the use of organic farm produce in food industry Develop a simple certification process • “Jaiva Keralam” developed as a brand Provide financial incentives for promoting organic farming • interest-free loans toespecially small and marginal farmers • assistance during conversion period Introduce organic farming in education institutions • Introduce organic farming in educational institutions through academic inputs Integrate of various departments, local self-governments and organizations “ 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 ”
  • 30. Dispelling myth of un-sustainability Example of Cuba …. Food and Agriculture Organization says • Conversion of global agriculture to organic management would result in a global agricultural supply of 2640 to 4380 kcal/person/day, increase production by 56 per cent • Organic farms use 33 to 56 per cent less energy per ha than conventional farms An example of Cuba • A country with 42,402 sq. miles of land and with 11.3 million people, is completely organic