India is eyeing an even firmer Organic product export base with a projected target of Rs 20,000 crore in the next three years. Commerce and Industry Minister Piyush Goyal made this challenging objective clear when he introduced the eighth edition of the NPOP. The move forms part of a raft of measures to increase the export of the nation’s agricultural produce and fit in the international markets.
Current Status and Potential
Presently, India exports organic goods valued at between Rs 5-6 thousand crore. The target to achieve four times this amount to Rs 20,000 crore is quite a leap mainly driven by the increasing international market for organic food. Mr Goyal also stressed that the international market of organic product is at around one lakh crore, which may rise up to ten lakh crore in few years. In a sense, this offers India, which has one of the biggest populations of organic farmers worldwide, a special chance.
Key Features of the NPOP<
The eighth edition of the NPOP contains new provisions that are intended to improve the precision of the organic standards of products. These changes are aimed at only synchronizing the India’s certification procedures with the international standards in a bid to enhance its India’s organic products market shares. Improved openness, simplified certification procedures, farmer-friendly rules, and a redesigned traceability system are among of the updated NPOP's characteristics.
TraceNet-2.0 and Digital Initiatives
An important innovation in the eighth edition of the NPOP is the development of the new, improved TraceNet-2.0 system. This platform is supposed to provide for stable functioning and develop new forms for the regulation of relations. Further, to streamline the flow of operations for the organic sector stakeholders, a NPOP specific web page has been developed. These digital initiates are hoped to contribute to achieving challenging export goals where it is most important to make sure that ecological products correspond to high requirements and are transparent.
The role of Start-ups and Innovation
Minister Goyal was of the view that innovation is the need of the hour for the country and is already evident among the startups inorganic segment. He urged start-up players in the industry to fashion out approaches that can propel the efficiency of organic farming and the overall chain. The expansion of the organic industry is also expected to be significantly aided by the cooperative, agricultural, and commerce sectors.
Challenges and Opportunities
The target of Rs 20,000 crore in the exports of organic products does lie in contours of substantial advantages and more significantly; does not lack challenges. Issues that hinder the growth of organic farming sector in India are major which includes infrastructure, quality inputs, and markets. However, the potential benefits that can be derived for achieving the goals are enormous. India faces an immense opportunity to increase agricultural exports through the provision of organic produce growths need this market as it also creates an opportunity to practice environmentally sustainable farming that is economically beneficial.
Government Support and Policy Measures
The Indian government is promoting the growth of the OF sector through policies and programs. This commitment can well be seen in the efforts already made in the shape of the revised NPOP that aims at boosting credibility as well as marketability of Indian organic products. To give options to the farmers and for increasing the exports, the government is also focusing on finding market prospects in the specific product segments and target markets. This includes calls to enter the global trade front and compete for more market shares in global markets.
National Programme for Organic Production
NPOP is a government of India initiative. It is operated under the APEDA, which is part of the Ministry of C&I. Initiated in 2001, the NPOP for standardization of organic farming and accredited organic products in improving its competitiveness in international export market.
Objectives and Scope
The NPOP has laid down the following key objectives which include formulation of a code of organic production for the certification of organic products, development of organic farming, and export promotion of organic products. This programme applies to a spectrum of organic products, from crops, livestock inputs and processed foods. It regulates the standard for organic production and processing and it relates to labelling of products to ensure that they are produced environmentally and socially.
Certification and Standards
A major step of the NPOP which constitutes part of this new strategic framework is the accreditation of certification bodies. These bodies are authorised to certify that the organic products produced meet with the necessary standards. The NPOP standards for organic farming have been certified by European Union and Switzerland and therefore Indian organics have export policy to these countries.
Promotion and Marketing
The NPOP also works on the development of organic farming practices and marketing of organic products. This involves orientations, farmer training and capacity enhancement activities, market connection and sensitization of Loan farmer on the need to embrace Organic farming. It also fosters farmer producer organizations (FPOs) and cooperatives to build up the organic value chain in the country.
Recent Developments
The eighth version of the NPOP, that came out recently, has included several new regulations that seek to make it more transparent and easier to do business. Principal features of this release are the roll out of TraceNet-2.0 which is an improved traceability system, a specific web-based portal for the organic supply chain segment.
Impact and Benefits
NPOP has worked wonders for the growth of organic farming in India, in more ways than one. According to the data, as of March 2023 Organic certification area is around 10.17 million hectares and Madhya Pradesh is leading in certification area in India. The programme has also helped boost exportation of organic products as India produced an estimate of 2.9 million metric tons of certified organic products in 2022-2023.
What Are Organic Products?
Organic products are products that are grown through farming methods that are environmental friendly, sustainable, and that do not harm the soil, water or people. These products are cultivated with no synthetic pesticides, chemicals fertilizers, GMO, antibiotics or growth hormones and they have no preservatives. Instead, organic farming is based on biological methods of maintaining soil fertility and plant health, including crop rotation and green manure; composting; and biological pest control.
Organic product may encompass any product from fresh fruits, vegetables, grains, dairy products, meat and processed foods. Also, organic agriculture also covers the use of organic products such as textiles, cosmetics, and other consumer products. It focuses on achieving and maintaining sustainable positions for its products and continuously endeavouring to reduce the environmental impacts concerning final products that are favoured all over the world and are not produced using any unhealthy chemicals and additives.
Why Still There Is Less Production of Organic Products in India?
Still, India continues to be confronted with several threats that impinge its efforts to boost production of organic products despite increasing demand. key reasons:
- Higher Production Costs: Organic farming is generally characterized by higher cost of production than that of inorganic farming. Organic fertilizers and pest control practices can be considerably costly and time-consuming. Some of these increased costs may help discourage farmers from changing to organic farming.
- Lack of Awareness and Training: A majority of the farmers in India have little or no knowledge about soil and other practices used in organic farming. Due to this, there is need to establish and implement functional training courses to inform farmers about benefits of organic farming processes.
- Certification Challenges: Procuring organic certification is often quite a lengthy and expensive procedure. They also have to follow some standards and want to be checked often if they want to remain certified. The requirements for certification, followed by the various process allures make it difficult and costly for the small and marginal farmers to practice organic farming.
- Market Access and Demand: Although there is an increase in the demand of organic products, it has not compared with the demand of conventional products. Farmers may experience difficulties in linking themselves with markets and especially getting buyers who are willing to pay a higher price for organically produced foods. This is due to the weak and undefined logistic networks for the production of the organic substances and products.
- Limited Government Support: The Indian government has encouraged organic farming through the implementation of programs such as the National Programme for Organic Production (NPOP) and the Paramparagat Krishi Vikas Yojana (PKVY); however, these should be backed up with better support and incentive programs. Some of the implement’s measures are in form of policies giving farmers monetary incentives, fee waivers and certification support, among others.
- Consumer Awareness: Whereas the consumers in the urban areas are becoming more conscious of the importance of the organic products, the rural consumer’s maybe still ignorant of this importance. The awareness of the closets benefits of the organic products touching on health and the environment may equally lead to increased demand of the organic farming.
The ways in which India is able to improve up on organic production:
Organic farming means a great opportunity to change the overall agricultural system in India by moving towards ecological agriculture and better quality food products. But to unlock this capacity, few key strategic interventions must be implemented for enhancing organic farming in the country.
Improving training and awareness
Organic farming is not generally adopted due to inadequate knowledge on the practices to be followed among the farmers. Major awareness creation through training as well as awareness creation programs are crucial in presenting the gains that come with organic farming besides coaching the farmers on the various procedures involved. By employing participation from government agencies, agricultural universities and non-governmental organizations (NGOs), the practical training in matters regarding organic farming, may be provided and information distributed in the field.
Financial incentives
As was previously mentioned, the shift to organic farming is often expensive for farmers on the onset for the certification process. In its capacity the government can contribute by offering grants, subsidies and cheaper credits to farmers needed when changing over from traditional to more environmentally friendly farming techniques. Also, there is an urgent need to step up efforts to promote the various on-going schemes such as the Paramparagat Krishi Vikas Yojana (PKVY).
Improved Certification Procedure
The necessary procedure for obtaining the certification of organic products often expensive and long, many farmers do not apply to receive the certificate. Minimizing the complexities of this certification process will extend to helping farmers embrace the organic farming procedures. Another approach to making certification less expensive is also the introduction of a tiered certification system that can be pegged on the size and productivity of the producing farms.
Strengthening Market Linkages
Market access is an important determinant of organic farming because of the need to develop strong market structures. Farmers require markets where they can sell the organic products at higher price. Forming exclusive organic markets, organic farmers’ co-sellers, and FPOs can also get together and sell the produces and bargain for higher prices. Also, extension of e-Commerce for organic products shall also be encouraged as a way of allowing farmer’s get a wider market for their produce.
Research and Development
Therefore, more funding on research should be provided in order to meet the above problems affecting the organic farmers. The research institutions should direct their efforts towards coming up with high yielding organic crops, utility insecticides, and agro-techniques. Through co-operations between research organizations, universities and farmers this new knowledge can be spread out effectively in organic farming.
Consumer Awareness Campaigns
The overall consumer preference for certified organic foods is the major factor that has the potential to catalyse the expansion of organic farming. Research has suggested that many consumers may remain loyal to inorganic products because they have not been informed well enough of the health and environmental impacts of organic products. Efficiency of the information given to the consumers, and clear labelling of the products as organic can also increase the demand for such products.
Infrastructure Development
Infrastructure to support organic farming has to be developed for it to take off. These involve establishing the input production outlets like composting station and bio-fertilizer station, storage, and transportation channels to ensure that quality input from the organic produce is well maintained. Providing access to these facilities may in fact help make possible or at least more practicable the continued practice of using organic farming techniques.
Policy Support and Regulation
To enhance organic farming, the government should develop as well as ensure execution of policies which are pro-organic farming. This entails giving incentives on organic inputs, adopting liberal market policies, consumer certifications and quality standards in the sourcing of organic products. There is need to enhance legal measures that may reduce instances of some fake organic products penetrating the market to ensure consumers’ confidence is upheld as well.