India: a new star in the organic firmament

A picture in vibrant colours: firms’ stands decorated with flowers, brightly coloured vegetables and spices, and a variety of costumes from all over India. Awaiting visitors on the Pusa campus of the Indian Agricultural Research Institute in New Delhi were companies, service providers, non-governmental organizations and the pavilions of various federal states. In three large marquees and in the open air, the many people thronging to the event had plenty of opportunity to gather information on all facets of the organic market – everything from cropping and certification, new products and marketing channels to further training facilities and support programmes offered by particular federal states. India Organic provided an overview of the myriad of initiatives and activities aimed at developing the domestic market. A lot of firms presented a wide range of products ready for the market.
 

All stages from the farm to the consumer – that’s the spectrum that India Organic wants to portray while taking account of the specific needs of all participants. Manoj Menon (picture), managing director of ICCOA, the main organizer of the organic fair, said: ”ICCOA wants to use the platform of India Organic to develop the Indian organic market sustainably. This calls for a solid base of reliable, well educated producers. This in turn leads to the creation of a strong domestic market and then export markets can be opened up too.” Just how important it is to generate stable domestic sales was emphasized by the ICCOA President Mukesh Gupta during the opening ceremony of India Organic: “It is possible for the export market to grow only if we develop the domestic market.” He considers 1,000 organic shops in the near future  a realistic target to create the basis for supplying consumers in India, and in one to two years the influential Morarka Foundation, of which Gupta is the managing director, also intends to invest in developing the organic retail trade.
 

On the other hand, politicians like the Minister of Agriculture for Assam – that like a number of other federal states calls itself an “organic state” – emphasise two advantages of organic agriculture: the way it benefits the environment in combating the pollution of the air, water and soil, and the higher returns organic products generate for small farmers. The message about a type of agriculture that is not harmful either to the environment or to people, and which also promises higher incomes, is welcomed by many farmers. Manoj Menon explained that five years ago, when the International Competence Centre for Organic Agriculture (ICCOA) was founded, marketing was very underdeveloped: “Many groups of small farmers operated organically and had saleable products, but only a few of them were able to market what they  produced, and the rest sold nothing at all. Since that time ICCOA, in collaboration with other organizations, has done much to improve the situation. So there was a lot going on besides the annual event India Organic, which provides a focal point for all the players.
 

The efforts made by a wide and complex network to drive forward organic agriculture and marketing are bearing fruit. This network consists of state bodies (various ministries, the Agriculture and Processed Food Products Export Development Authority, APEDA), non-governmental organizations (Hivos, Morarka, etc) and committed companies (Sresta, Hello Organic, Phalada, Armstrong, Heavenly Farms, Nourish organics, Verdicare). As a result, the 73 000 ha cultivated organically in 2003 have been expanded dramatically. Certified organic land now amounts to 310,000 ha, and the area of land in conversion is 230,000 ha. The volume of exports rose at the same time from about 15.5 million US dollars to approximately 60 million US dollars. The forecast of the National Centre for Organic Farming (NCOF) and the International Competence Centre for Organic Agriculture (ICCOA) is that by 2012 certified organic land will expand to more than 2 million ha and turnover will grow to 1 billion US dollars.  Exports will contribute two-thirds of turnover; the domestic market will account for the other third. (Picture: Hello Organic’s award-winning stand at the fair)
 

The market in India has developed rather late and also rather slowly in comparison with other Asian countries, and the reasons are to be found in the structure of Indian agriculture, that is characterized for the most part by small farmers with under two hectares of land. A further reason is the totally lacking, or poor, market infrastructure and absence of marketing opportunities. Menon, who worked with others on the study “Markets for Organic Foods in India”, now expects the organic market in India to gain momentum quickly. The principal players are all agreed on the targets, namely supporting the base while at the same time building up both the domestic and export markets. (Picture: The founder of Heavenly Farms, Harpal Singh Grewal)

The state is acting in concert with the organic players. The Indian Minister for food processing, Subodh Kant Sahay, announced that 100 million euros are being invested in organic agriculture in 23 federal states. And the state label India Organic is to be promoted more vigorously. The development of organic guidelines in India was initiated by the government as early as 2001. In the National Program for Organic Production (NPOP), rules have been devised for certification, exports and national standards, and these are recognised by the EU, the USA, Japan and Switzerland. At the moment, the majority of products carry the American USDA logo. The countries that have been India’s most important customers for organic goods are the USA, Japan, Germany, the Netherlands, Great Britain, France, Italy and Switzerland.

“Global Organic Agribusiness: India Arrives.” This was the slogan of the parallel congress in New Delhi to India Organic. The audience learned about the expertise and experiences of speakers from all over the world. (Picture from left: Peter Lendi, importer, Switzerland, Chairman; Steffen Cambon/Global Organic, USA, Louise Luttikholt, IFOAM)
 

With BioFach India (29.4 – 1.5. 2009 in Bombay), the country will be getting its second trade fair for all things organic. Insiders are sure there is potential and room for two specialist fairs. In the words of Manoj Menon: “From the point of view of ICCOA, as the organizer of India Organic and as the partner of BioFach India, it is a challenge to make both events a success. From the point of view of the Indian organic market, I see the decision of BioFach to come to India as a stroke of luck, because the fact that a fair with the prestigious ‘trade fair brand’ BioFach is being held in India will attract a great deal of attention and people will become aware of the enormous organic potential of India. This can only be advantageous to trade and therefore encourage the growth of organic agriculture, with all the benefits for sustainable development.” (picture: opening ceremony)
 

Picture on left: Kamal M. Morarka (centre), creator of the Morarka Foundation
Picture in centre: An employee presents products at Sresta’s stand (24 lettered mantra)
Picture on right: A group of women from the Himalayas