EM Term Paper: Organic Farming in India


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This term paper highlights the importance and potential of Organic Farming in context of Indian agriculture. We recommend policies & initiatives in organic farming to successfully address the growing concerns in Indian agriculture sector.

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EM Term Paper: Organic Farming in India

  1. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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
  31. 31. Questions ??