MARKETS FOR ORGANIC PRODUCE

In the EU, Germany is a leading country in terms of organic production; followed by Italy and France. The European Union and the United States (US) are approximately at the same level of organic production, somewhere between 4 and 6 billion Euros per year, with Japan at third place. In respect of worldwide organic food consumption Denmark and Austria lead the way with 37.3 and 34 Euro per capita consumption per year. The average consumption of organics in EU and USA is approximately 16 Euro ($15) per capita per year. The worldwide market share for organic products is between 0.5 to 3%, but it is hard to determine, as some countries do not certify their products.

 Commodities being exported to other countries are: 

Type

Products

Commodity

Tea, Coffee, Rice, Wheat

Spices

Cardamom, Black pepper, white pepper, ginger, turmeric, vanilla, mustard, tamarind, clove, cinnamon, nutmeg, mace chilly 

Pulses

Red Gram, Black Gram

Fruits

Mango, Banana, Pineapple, Grape, passion fruit, Orange, Cashew nut, walnut

Vegetables

Okra, Brinjal, Garlic, Onion, Tomato, Potato

Oilseeds

Sesame, castor, sunflower

Others

Cotton, herbal extract

     There are number of firms in India, which grow vegetables, fruits, plantation crops, spices and tea organically and export to Netherlands and Germany. Usually farmers associated with big exporters do not have to worry about the sale of their products and their certification, small and marginal farmers are a harrowed lot.

         For exports, an aggressive strategy demanding free access needs to be adopted. In Argentina farmers and Government joined hands in the early 90’s and established the state of the art principles for organic farming which was recognized by the European Union. Recently under a National Programme for Organic Production, Ministry of Commerce, Govt. of India has formulated and circulated National Standards for Organic Production.

      Marketing is the main problem for organic produce. The lack of awareness among people is the main hurdle in selling organic products. Further the cost of the organic products is high which only the elite and foreigners can afford. The organic marketing in most of the countries is still relatively small and on an average it is less than half a percent of the total agricultural sector except in Germany and Austria, where 2-3 per cent of their agriculture area is under organic production.

       Several institutions and movements are making concerted efforts to promote organic agriculture in India and to bring changes in the policies favoring ecological agriculture. In June, 2001, the Director General of foreign trade issued a notification declaring the export of an agricultural product as organic would be permitted only if it was produced, processed and packed under a valid organic certificate issued by a certifying agency duly accredited by either APEDA, coffee board, spices board or tea board. 

Watch Video of Organic farmers Market in Mumbai 

 

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