Business plan for_setting_up_an_organic_farm

1 | P a g e
Dissertation
A project is submitted in the partial fulfilment of the requirements for
the
Degree of
Bachelor of Business Administration
Submitted by
AMARJEET KUMAR
Enrolment No. – A30906414083
Under the Guidance of
Prof. SANDEEP BHATTACHARJEE
Department of Management
AMITY SCHOOL OF BUSINESS
AMITY UNIVERSITY, KOLKATA

2 | P a g e
BUSINESS PLAN FOR SETTING UP AN ORGANIC FARM
By
Amarjeet Kumar
BBA (MARKETING) – 6th
Semester
A30906414083
Batch – 2014 - 17
Under guidance of:
Prof. Sandeep Bhatacharjee
ASBK (Amity School of Business Kolkata)
AMITY SCHOOL OF BUSINESS KOLKATA
AMITY UNIVERSITY KOLKATA

3 | P a g e
STATEMENT BY THE STUDENT
I hereby state that this project is submitted in partial fulfilment for the requirement of BBA
(MARKETING) program of the AMITY UNVERSITY, KOLKATA is an original research
work carried out by me under the guidance and supervision of Prof. Sandeep Bhattacharjee,
AMITY SCHOOL OF BUSINESS, KOLKATA and the thesis or any part has not been
previously submitted. Previously
Date - ________________
Signature Signature
Amarjeet kumar Prof. Sandeep Bhattacharjee
Student Faculty Guide

4 | P a g e
CERTIFICATE BY FACULTY GUIDE
Certified that this report is prepared based on the dissertation topic BUSINESS PLAN FOR
SETTING UP AN ORGANIC PRODUCT FARM undertaken by Amarjeet Kumar student of
BBA (Marketing) 6th
Semester, AMITY SCHOOL OF BUSINESS, KOLKATA in partial
fulfilment of award of degree of Bachelor Of Business Administration In Marketing from
AMITY UNIVERSITY, KOLKATA.
DATE: _________________
Faculty Guide:
Prof. Sandeep Bhattacharjee

5 | P a g e
ACKNOLEDGEMENT
As a part of our course curriculum, I had to make a dissertation report on any topic to get the
right exposure to the practical aspects of Business management. I got an opportunity to work
upon this topic, where I work on the project entitled BUSINESS PLAN FOR SETTING UP
AN ORGANIC FARM.
Dedication, hard work and application are vital for achieving any goal but these are also
awarded by guidance/co-operation and proper assistance. A number of persons have given
their ideas and precious time to complete the report. I wish to express my heartfelt gratitude
to the following individuals who have played a crucial role during my project. Without their
active cooperation the preparation of this project could not have been completed within the
specific time limit.
The first person I would like to acknowledge is my project guide Prof. Sandeep Bhattacharjee
who supported me throughout this project with outmost cooperation and patience. I am very
much thankful to him for sparing his precious time for me and for helping me in doing this
project. He was a constant source of support during my research.
Above all, I would like to thank THE ALMIGHTY for always helping me.
AMARJEET KUMAR

6 | P a g e
SYNOPSIS
The emerging global prospects for organic farm produce and the realisation of long-lasting
damages caused to soils by chemical fertilisers and pesticides have propelled a shift to
organic farming methods both in developed and developing countries. Worldwide, about 130
countries produce certified organic products on a commercial scale.
Reasons for the increase in organic food production are: market premium of 2 to 2.5 times the
conventional market price; an expansion in the consumer sector willing to pay the higher
prices demanded by organic food; an expansion of markets in the developed world where
Saskatchewan farm exports traditionally are targeted; and lower input prices due to organic
production.
This document is a proposed business plan, with a financial model, for setting up and
operating an organic grain farm in UP.
The success of Farm would depend largely on a few factors. Such factors would include the
successful organic certification for the year of production, maintaining the industry average
yields for organic crops and receiving the premium prices expected. Failure of one or a
combination of these factors would mean certain failure for the business. An angel that was
not addressed in this business plan would be to diversify an existing traditional grain farm
into organic production over have previous experience in the farming industry. However, if
the individual that is investing their equity is confident that all the criteria can be met
continually achieved, organic farm would be a successful endeavour when started up on its
own.

7 | P a g e
OBJECTIVE
The objective behind setting up an organic farm is t attract and invite more farmers towards
this form of farming. it is clear from current scientific researches and though environmentalist
that use of chemical pesticides have been one of the major cause behind the deteriorating
level of crop production, and let the farmers know the organic farming will not only enhance
their crop production but also help in maintain the land fertility as it uses the sustainable
agricultural techniques. Moreover, organic farming is also the need of the hour as it now very
well known that this kind of farming is environment friendly and can be a farmers input
against the fight against global warming. The sum up of objectives is as under:-
 To increase crop productivity
 To use sustainable crop production methods
 To switch over to natural and environment friendly methods of crop cultivation The
purpose of to this study is to –
 To find out the prospects of establishing organic farm in UP
 To find out the benefits of establishing an organic farm in UP

8 | P a g e
CONTENTS
1. Students certificate ------------------------------------------------------------------------ 2
2. Certificate by Faculty Guide ------------------------------------------------------------- 3
3. Acknowledgement ------------------------------------------------------------------------ 4
4. Synopsis ------------------------------------------------------------------------------------ 5
5. Objective of the report -------------------------------------------------------------------- 6
CHAPTER – 1 Background --------------------------------------------------------------------- 9 - 23
1. Background --------------------------------------------------------------------------------- 9
2. History --------------------------------------------------------------------------------------- 9
3. Significance of the study ----------------------------------------------------------------- 12
4. Review of Literature ---------------------------------------------------------------------- 13
5. Objectives of the Dissertation ----------------------------------------------------------- 15
6. Hypothesis --------------------------------------------------------------------------------- 15
7. Problems and constraints ---------------------------------------------------------------- 18
8. Need of Organic Farming ---------------------------------------------------------------- 22
9. Benefits of Organic Farming ------------------------------------------------------------ 23
CHAPTER – 2 Company Profile ------------------------------------------------------------- 24 – 30
1. Generation of idea ------------------------------------------------------------------------ 24
2. Promoter ----------------------------------------------------------------------------------- 24
3. Product ------------------------------------------------------------------------------------- 26
4. SWOT analysis --------------------------------------------------------------------------- 29
CHAPTER – 3 Research Methodology ------------------------------------------------------- 31- 38
1. Methodology ----------------------------------------------------------------------------- 31
2. Research and Decision ------------------------------------------------------------------ 31
3. Sample size ------------------------------------------------------------------------------- 31
4. Sample Area ------------------------------------------------------------------------------ 31
CHAPTER – 4 Analyses of Data -------------------------------------------------------------- 32 - 57
1. Organic farming around the globe ---------------------------------------------------- 39
2. Organic farming in India ---------------------------------------------------------------- 40
3. Organic farming gaining momentum ------------------------------------------------ 41
4. Organic farming in rural India --------------------------------------------------------- 42
5. Need of organic farming ---------------------------------------------------------------- 44

9 | P a g e
6. Methods -------------------------------------------------------------------------------- 47
7. Industry statistic ----------------------------------------------------------------------- 52
8. Growth ---------------------------------------------------------------------------------- 52
9. Economics ------------------------------------------------------------------------------ 52
10. Critical analysis ----------------------------------------------------------------------- 53
11. Progress -------------------------------------------------------------------------------- 57
12. Procedure ------------------------------------------------------------------------------ 60
13. Prospects ------------------------------------------------------------------------------- 62
CHAPTER – 5 Financial Reports ------------------------------------------------------------- 60 - 68
1. Presentation of Business Plan ------------------------------------------------------- 66
2. General information ------------------------------------------------------------------ 67
3. Production details --------------------------------------------------------------------- 68
4. Miscellaneous fixed assets ----------------------------------------------------------- 70
5. Preliminary expenses ----------------------------------------------------------------- 70
6. Working capital ----------------------------------------------------------------------- 69
7. Marketing ------------------------------------------------------------------------------ 70
8. Target client, marketing strategy, manufacturing process ------------------------- 70
9. Pollution control, energy conservation --------------------------------------------- 71
10. Raw material, utilities, salary, repairs ---------------------------------------------- 72
11. Selling, distribution, administrative Exp., Interest -------------------------------- 73
CHAPTER – 6 ------------------------------------------------------------------------------------ 70 - 72
1. Conclusions -------------------------------------------------------------------------- 77
2. Recommendation--------------------------------------------------------------------- 78
ANEXTURES AND BIBLOGRAPHY --------------------------------------------------------- 79

10 | P a g e
CHAPTER – 1
BACKGROUND
Organic farming
Organic farming is the form of agriculture that relies on crop rotation, green manure,
compost, biological pest control, and mechanical cultivation to maintain soil productivity and
control pests, excluding or strictly limiting the use of synthetic fertilizer and synthetic
pesticides, plant growth regulators, livestock feed additives, and genetically modified
organisms. Since 1990, the market for the organic products has grown at a rapid pace, to
reach Rs. 2971 billion in 2007. This demand has driven a similar increase in organically
managed farmland. Approximately 32.2 million hectares worldwide are now farmed
organically, representing approximately 0.8% of total world farmland. In addition, as of 2007
organic wild products are harvested on approximately 30 million hectares.
Organic agriculture methods are internationally regulated and legally enforced by many
nations, based in large part on the standards set by the International Federation of Organic
Agriculture Movement (IFOAM), an international umbrella organization for organic
organization established in 1972. IFOAM defines the overarching goal of organic farming as
follows:
“Organic agriculture is a production system that sustains the health of soils, ecosystems and
people. It relies on ecological processes, biodiversity and cycles adapted to local conditions,
rather than the use of inputs with adverse effects. Organic agriculture combines tradition,
innovation and science to benefit the shared environment and promote fair relationships and a
good quality of life for all involved...”
HISTORY OF ORGANIC FARMING
TIMELINE: 19TH
CENTURY
The history of organic farming dates back to the first half of the 20th
century at a time when
there was a growing reliance on synthetic fertilizers. The organic movement began in the
1930s and 1940s as a reaction to agriculture‟s growing reliance on synthetic fertilizers.
Artificial fertilizers had been created during the 18th
century, initially with superphosphates
and then ammonia derived fertilizer mass-produced using the Haber-Bosch process
developed during World War I. These early fertilizer were cheap, powerful, and easy to

11 | P a g e
transport in bulk. Similar advances occurred in chemical pesticides in the 1940s, leading to
the decade being referred to as the „pesticide era‟.
Sir Albert Howard is widely considered to be the father of organic farming. Further work was
done by J.I. Rodale in the United States, Lady Eve Balfour in the United Kingdom, and many
others across the world.
As a percentage of total agriculture output, organic farming has remained tiny since its
beginning. As environmental awareness and concern increased amongst the general
population, the originally supply-driven movement became demand-driven. Premium prices
from consumers and in some cases government subsidies attracted many farmers into
converting. In the developing world, many farmers farm according to traditional methods
which are comparable to organic farming but are not certified. In other cases, farmers in the
developing world have converted for economic reasons. As a proportion of total global
agriculture output, organic output remains small, but it has been growing rapidly in many
countries, notably in Europe.
TIMELINE: 20th
Century
Technological advances during World War II accelerated post-war innovation in all aspects
of agriculture, resulting in large advances in mechanization (including large-scale irrigation),
fertilization, and pesticides. In particular, two chemicals that had been produced in quality for
warfare were repurposed to peace time agricultural uses. Ammonium nitrate, used in
munitions, became an abundantly cheap source of nitrogen. And a range of new pesticides
appeared: DDT, which had been used to control disease-carrying insects around troops,
became a general insecticide, launching the era of wide speared pesticide use.
At the same time, increasingly powerful and sophisticated farm machinery allowed a single
farmer to work over larger areas of land and fields grew bigger.
In1944, an international campaign called the Green Revolution was launched in Mexico with
private funding from US. It encouraged the development of hybrid plant, chemical controls,
large-scale irrigation, and heavy mechanization in agriculture around the world.
During the 1950s, sustainable agriculture was a topic of scientific interest, but research
tended to concentrate on developing the new chemical approaches. In the US, J.I. Rodale
began to popularize the term and methods of organic growing, particularly to consumers
through promotion of organic gardening.
In1962, Rachel Carson, a prominent scientist and naturalist, published silent spring,
chronicling the effects of DDT and other pesticides on the environment. A bestseller in many

12 | P a g e
countries, including the US, and widely read around the world, silent spring is widely
considered as being a key factor in the US government‟s 197 banning of DDT. The book and
its author are often credited with launching the worldwide environment movement.
In the 1970s, global movement concerned with pollution and the environment increased their
focus on organic farming. As the distinction between organic and conventional food became
clearer, one goal of the organic movement was to encourage consumption of locally grown
food, which was promoted through slogans like “Know Your Farmer, Know Your Food” or
“You Can‟t Enjoy Your Wealth, If You Are Not in Good Health. Go Organic”.
In 1972, the International Federation of Organic Agriculture Movements, widely known as
IFOAM, was founded in Versailles, France, and dedicated to the diffusion and exchange of
information on the principles and practices of organic agriculture of all schools and across
national and linguistic boundaries.
In 1975, Fukuoka released his first book, The One-Straw Revolution, with a strong impact in
certain areas of the agriculture world. His approaches to small scale grain production
emphasized a meticulous balance of the local farming ecosystem, and a minimum of human
interference and labour.
In the 1980a, around the world, various farming and consumer groups began seriously
pressuring for government regulation of organic production. This led to legislation and
certification standards begin enacted through the 1990s ad to date.
Since the early 1990s, the retail market for organic farming in developed economic has been
growing by about 20% annually due to increasing consumer demand. Concern for the quality
and safety of food, and the potential for environment damage from conventional agriculture,
are apparently responsible for this trend.
TIMELINE: 21st
Century
Throughout the history, the focus of agricultural research, and the majority of publicized
scientific findings, has been on chemical, not organic farming. This emphasis has continued
to biotechnologies like genetic engineering. One recent survey of the UK‟s leading
government funding agency for bioscience research and training indicate GM crop projects,
and only one related to organic agriculture. This imbalance is largely driven by agribusiness
in general, which through research funding and government lobbying, continues to have a
predominating effect on agriculture-related science and policy.
Agribusiness is also changing the rule of the organic market. The rise of organic farming was
driven by small, independent producers, and by consumers. In recent years, explosive organic

13 | P a g e
market growth has encouraged the participation of agribusiness interests. As the volume and
variety of “organic” products increased, the viability of the small-scale organic farm is at risk,
and the meaning of organic farming as an agriculture method is ever more easily confused
with the related but separate areas of organic foods and organic certification.
In Havana, Cuba, a unique situation has made organic food production a necessity. Since the
collapse of the Soviet Union in 1989 and its economic support, Cuba has had to produce food
in creative ways like instituting the world‟s only state-supported infrastructure to support
urban food production. Called organopónicos, the city is able to provide an ever increasing
amount of its produce organically.
SIGNIFICANCE OF THE STUDY
There are three categories of opinion about the relevance of organic farming for India. The
first one simply dismisses it as a fad or craze. The second category, which includes many
farmers and scientists, opines that there are merits in the organic farming but we should
proceed cautiously considering the national needs and conditions in which India agriculture
functions. They are fully aware of the environmental problems created by the conventional
farming. But many of them believe that yields are lower in organic cultivation during the
initial period and also the cost of labour tends to increase therein. The third ne is all for
organic farming and advocates its adoption wholeheartedly. They think that tomorrow‟s
ecological is more important than today‟s conventional farm benefits.
However, among many a major reservation, the profitability of organic farming vis a vis
conventional farming, is the crucial one from the point of view of the Indian farmers,
particularly the small and marginal.
Organic farming involves management of the agro-eco system as autonomous, based on the
capacity of the soil in the given local climatic conditions. In spite of the ridicule poured out
on organic farming by many, it has come to stay and is spreading steadily but slowly all over
the world. India has been very slow to adopt it but it has made Inroads into our conventional
framing system. One advantage we have here is the fact that the farming techniques practiced
in this country before the advent of the green revolution was basically eco-friendly and they
have not faded away from the memories of the present elder generation of our framing
community.
India‟s options in finding out an alternative method to the conventional farming are limited.
The World Trade organization (WTO) deadline for banning exports of vegetables and

14 | P a g e
horticulture products based on inorganic farming will expire in 2005. Sensing the importance,
the Central and State governments have been several initiatives to popularise organic farming
in the country.
REVIEW OF LITERATURE
Howards‟s (1940) Agriculture Testament draws attention to the destruction of soil and deals
with the consequences of it. It suggests methods to restore and maintain the soil fertility. The
study contains a detailed deposition of the famous Indore methods of maintain soil health.
The reasons and sources of the erosion of soil fertility and its effect on living things are
discussed. The criticisms of the agriculture research and examples of how it had to be carried
out to protect soil and its productivity are discussed in details.
Bemwad Geier (1991) is of the opinion that there is no other farming method so clearly
regulated by standards and rules as organic agriculture. The organic movement has decades
of experience through practicing ecologically sound agriculture and also in establishing
inspection and certification schemes to give the consumers the guarantee and confidence in
actuality. Organic farming reduces external inputs and it is based on the performance of
important countries in the west. The magnitude of world trade in organic farming products is
also mentioned. To the question of whether the organic farming can feed the world, he says
that neither chemical nor organic farming system can do it; but the farmers can.
Save and Sanghavi (1991) are of the view after their intensive experiments with organic
farming and narrating the results to the informed, it is time that the governments and farmer
are through around. They firmly state that the economic profitability of organic farming can
be proved. Four crops of banana grown by the natural way on the same farm by them are
compared with those produced by the conventional way. While the natural farm yielded 18
kg of banana in the first round, the conventional one gave 25 kg. 30 kg was the yield at the
second round on both the farms. However, on the third round, the natural farm gave 25 kg,
the conventional one yielded only 20 kg. The results on the fourth round were stunning – the
plants on the conventional farm died out; but the natural ones gave 15 kg on an average.
Thus, the aggregate output was 88 kg on the natural farm and 75 kg on the conventional one.
While, the natural banana commanded a price of ₹ 2.50 per kg, the conventional one could
fetch only ₹ 1.75 per kg. This has been the major reason for the substantial net profit (₹ 154)
earned from the cultivation of natural banana (conventional banana) could get only a net

15 | P a g e
profit of ₹ 26.25). The expenses incurred were ₹ 66 and ₹ 105 for the natural and
conventional bananas respectively. However, a stringent cost and return analysis representing
a larger sample size will be necessary to draw meaningful conclusions. It should be born in
mind that the output obtained from the natural banana farm was also because of the
accessibility to the inputs and expertise, which the authors happened to posses. Farmers
placed in less advantages positions may not derive such results. The price advantages to the
natural organic farming products will also taper off when the supply increases. The
environmental costs and returns have to be built into a scientific and tight economic
reasoning, among others.
Kaushik (1997) analysis the issues and policy implications in the adoption of sustainable
agriculture. The concept of trades off has a forceful role to play in organic farming both at the
individual and national decision making levels. Public vis-a-vis private benefits, current vis-
avis future incomes, current consumption and future growths, etc. Are very pertinent issues to
be determined? The author also lists a host of attempted to answer the practical questions in
the minds of the farmers and other section of the people.
Rahudkar and phate (1992) narrate the tree, gave 350 to 400 per annum. Maharashtra.
Individual farmers growing sugarcane and grapes, after using vermin compost, saw the soil
fertility increased, irrigation decreased by 45 % and sugarcane quality improved. The authors
say that net profits from both the sugarcane and grapes crops are high in organic farms.
Somani and others (1992) have published a collection of 42 papers presented at a National
Seminar on Natural Farming. Korah Mathen recounts several problems in evolving
representative and rigorous yardsticks for comparison between modern and alternative
farming with those of multi crops raised under organic/natural farming. Economic analysis is
also problematic because one has to quantify the intangibles. He advocated the resources use
efficiency analysis. But the question of profitability of different systems of farming seems
difficult to be examined in the absence of an economic analysis although the author does not
rely upon it.
The foregoing overview of the literature makes it clear that opinions about organic farming
are divided both among the farmers and experts. Disputes about the profitability and yield
increases in organic farming are acute, but there is a consensus on its eco-friendly nature and
inherent ability to protect human health. There are strong views for and against organic
farming (the latter, mainly on the grounds of practicability of feeding a billion people,
financial and economical viability, availability of organic inputs and the knows-how). Those
are totally against it are prepared to ignore the ill effects of the conventional farming system.

16 | P a g e
There are many who while approving organic agriculture, want a mixture of both the systems
or advocates a careful approach by proceeding slowly towards the conversion of the
conventional farms into organic. The questions about the yield and financial viability are
crucial from the point of view of farmers; but they remain unanswered to a large extent. The
study of a geographical area in the area in the country endowed with a number of resources
for organic farming, but has not made any significant stride towards it, is also not found in
the literature overview.
OBJECTIVES OF THE DISSERTATION
To understand the need for organic farming in India in the light of the experience of
the other countries.
To assess and evaluate the factors which may facilities the adoption of organic
farming in the country.
To analysis the constraints, both political and social, and above all economics, in the
introduction of organic farming in India.
HYPOTHESIS
This hypothesis is basically based on secondary data and a general statement:
About 65% of India‟s cropped area is not irrigated and it can be safely assumed that high-
input demanding crops are not grown on these lands. Fertiliser use on dry lands is always less
anyway as chemical fertilisers require sufficient water to respond. Pesticide use in these lands
would also be less as the economics of these hardy or “not-so profitable” crops will not
permit expensive inputs. These areas are at least “relatively organic” or perhaps even
“organic by default”. While neither of these terms necessarily denotes a healthy farm or a
recommended agriculture system, it would at least imply a non-chemical farm that can be
converted every easily to an organic one providing excellent yields and without the necessity
and effort of a lengthy conversion periods.
H0 (Null hypothesis): The success of organic farming depends upon the use of high quality
agricultural inputs.
 It is difficult to assess the likelihood of success in organic agriculture. Several
concerns need to be born in mind when evaluating the feasibility of organic
agriculture in a given environment. These factors include:

17 | P a g e
 Parameters reflecting greater "sustainability" do not necessarily imply organic
practices;
 In practice, it will often be difficult to differentiate between the effect of different
factors on a farming system, as the introduction of organic management could be
not the only change at the time (for example, a number of years with very
(un)favourable weather conditions);
 Some parameters (such as yield) need to be averaged over a number of years, as
factors other than the management system influence variability between years (for
example, weather);
 Benchmark figures, which indicate the conditions before a change occurs in a
system, are not always available. In such cases, they must be obtained before
organic management is adopted but this is not always possible (especially when
resources are scarce);
 Many of the changes may be observable only in the long-term, such as changes in
yield or soil;
 Because organic agriculture is such an under-researched area, conditions which
initially seem difficult may be easy to cope with after some experience has been
gained, and vice versa; and
 Those who have no experience in thinking within the context of organic
agriculture are not likely to be able to judge possibilities in organic agriculture
accurately.
Success in organic agriculture also depends greatly on local conditions. Organic agriculture is
a production system which tries to create conditions such that problems with soil fertility and
pest management are prevented, in order to optimize present and future output. One of the
main characteristics of organic agriculture is the use of local resources to achieve this aim
(including on-farm biological processes such as availability of pest predators or soil fungi
which make nutrients more accessible to the plant). In Box 1 several individual techniques
are listed but these can obviously be combined in many ways, with different weights on
individual techniques. As potential agricultural problems, and availability of resources to
cope with those problems, can differ greatly from location to location, the practicalities of
organic agriculture can also vary considerably. For example, in areas with an abundance of
organic material and labour, using compost as a way to maintain soil fertility may be more

18 | P a g e
logical than using green manure in the rotation. This means that constraints can also differ
greatly between localities.
H1 (Alternate hypothesis): The success of organic farming does not depend upon the use of
high quality agricultural inputs.
Where conventional farming represents one extreme of agriculture, sustainable farming
represents the other. “Organic agriculture is a production system that sustains the health of
soils, ecosystems and people. It relies on ecological processes, biodiversity and cycles
adapted to local conditions, rather than the use of inputs with adverse effects. Organic
agriculture combines tradition, innovation and science to benefit the shared environment and
promote fair relationships and a good quality of life for all involved.” (Gomiero, Pimentel,
and Paoletti 2011). Sustainable agriculture is a more holistic approach to farming than
conventional in that it relies on ecosystem services and is typically much less detrimental to
the surrounding landscape. Sustainable agriculture is a natural way to produce food and has a
number of social, economic, and environmental benefits.
There are many types of sustainable farming that all rely on natural cycles to ensure plant
health and crop performance. Sustainable farming forgoes the use of synthetic pesticides,
herbicides, and fertilizers to produce food. Instead, farmers will plant a variety of plants
together to promote biodiversity and ward off pests and pathogens (Nicholls and Altieri
2012). Where conventional systems promote uniformity and depend on synthetic chemicals
for protection against disease and pests, sustainable systems rely on biodiversity as a measure
to protect against these things.
Sustainable agriculture profits farmers, economies, and food banks while existing
symbiotically with the landscape. One example of many in sustainable farming practices,
which emphasizes economic benefits and environmental health, is conservation agriculture.
“By increasing soil organic matter contents and moisture-holding capacity, CA cans double
subsistence crop yields in areas where use of fertilizers is uneconomic and it can sustain
production in years with low rainfall.” (Kassam and Brammer 2013). Conservation
agriculture underlines the focus of sustainable agriculture in that it focuses on producing high
yields without compromising the integrity of the environment.

19 | P a g e
PROBLEM AND CONSTRAINT
The most important constraint felt in the progress of organic farming is the inability of the
government policy making level to take a firm decision to promote organic agriculture.
Unless such a clear and unambiguous direction is available in terms of both financial and
technical supports, from the centre to the Panchayath levels, mere regulation making will
amount to nothing. The followings are found to be the major problem areas for the growth to
nothing. The following are found to be the major problem areas for the growth of organic
farming in the country.
Lack of Awareness
It is fact that many farmers in the country have only vague ideas about organic farming and
its advantages as against the conventional farming methods. Use of bio-fertilizers and bio
pesticides requires awareness and willingness on the part of the farming community.
Knowledge about the availability and usefulness of supplementary nutrients to enrich the soil
is also vital to increase productivity.
Farmers lack knowledge of compost making using the modern techniques and also its
application. Proper training to the farmers will be necessary to make vermin-compost on the
modern lines. Attention to the application of compost/organic manure is also lacking. The
organic matter is spread during the months when the right moisture level is absent on the soil.
The whole manure turns into waste in the process. The required operation is of course labour
intensive and costly, but it is necessary to obtain the desired results.
Output Marketing Problems
It is found that before the beginning of the cultivation of organic crops, their marketability
and that too at a premium over the conventional produce has to be assured. Inability to obtain
a premium price, at least during the period required to achieve the productivity levels of the
conventional crop is a setback. It was founded that the farmers of organic wheat in Rajasthan
got lower prices than those of the conventional wheat. The cost of marketing of both types of
products was also same and the buyers of wheat were not prepared to pay higher prices to the
organic variety (Rao, 2003)
Shortage of Bio-mass
Many experts and well informed farmers are not sure whether all the nutrients with the
required quantities can be made available by the organic materials. Even if this problem can
be surmounted, they are of the view that the available organic matter is not simply enough to
meet the requirements.

20 | P a g e
The crops resides useful to prepare vermin compost are removed after harvest from the farms
and they are used as fodder and fuel. Even if some are left out on the farms termites, etc
destroy them. Experiments have shown that the crop residues ploughed back into soil will
increase productivity and a better alternative is conversion into compost.
The small and marginal cultivation have difficulties in getting the organic manures compared
to the chemical fertilizers, which can be bought easily, of course if they have the financial
ability. But they have to either produce the organic manures by utilizing the bio-mass they
have or they have to be collected from the locality with a minimum effort and cost.
Increasing pressure of population and the disappearance of the common lands including the
wastes and government lands make the task difficult.
Inadequate Supporting Infrastructure
The state government are yet to formulate policies and a credible mechanism to implement
them. There are only four agencies for accreditation and their expertise is limited to fruits and
vegetables, tea, coffee, and spices. The certifying agencies are inadequate, the recognized
green markets are non-existent, the trade channels are yet to be formed and the infrastructure
facilities for verification leading to certification of the farms are inadequate.
High Input Costs
The small and marginal farmers in India have been practicing sort of organic farming in the
form id the traditional farming system. They use local or own farm renewable resources and
carry on the agriculture practices in an ecological friendly environment. However, now the
costs of the organic input are higher than those of industrially produced chemical fertilizers
and pesticides, including other inputs and in the conventional farming system. The groundnut
cake, neem seed cake, vermin-compost, silt, cow dung, other manures, etc, applied as organic
manures are increasingly becoming costly making them unaffordable to the small cultivators.
Marketing Problems of Organic Inputs
Bio-fertilizers and bio- pesticides are yet to become popular in the country. There is a lack of
marketing and distributing network for them because the retailers are not interested to deal in
these products, as the demand is low. The erratic supplies and the low level of awareness of
the cultivators also add to the problem. Higher margins of profit for chemical fertilizers and
pesticides for retailing, heavy advertisement campaigns by the manufacturers and dealers are
other major problems affecting the markets for organic inputs in India.
Absence of an Appropriate Agriculture Policy
Promotion of organic agriculture both for export and domestic consumption, the requirement
of food security for million of the poor, national self-sufficiency in food production, product

21 | P a g e
and input supplies, etc. are vital issues which will have to be dealt with in an appropriate
agriculture policy of India. These are serious issues, the solution to which is hard and
consistent efforts along with a national consensus will be essential to go forward.
Formulation of an appropriate agriculture policy taking care of these complexities is essential
to promote organic agriculture in a big way.
Lack of financial Support
The developing countries like India have to design a plethora of national and regional
standards in attune with those of the developed countries. The adoption and maintenance of
such a regulatory framework and its implementation will e costly. The cost of certification, a
major component of which is the periodical inspections carried out by the certifying agencies,
which have burdensome for the small and marginal farmers. Of course, the fees charged by
the international agencies workings in India before the NPOP were prohibitive and that was a
reason for the weak response to organic agriculture even among the larger farms in the
country. No financial support as being provided in advanced countries like Germany is
available in India. Supports for the marketing of the organic products are not forthcoming
neither from the State nor from the Union governments. Also, the financial assistance
extended to the conventional farming methods are absent for the promotion of organic
farming.
Low Yields
In many cases the farmer experience some loss in yields on discarding synthetic inputs on
conversion of their farming methods from conventional to organic Restoration of full
biological activity in terms of growth of beneficial insect populations, nitrogen fixation form
legumes, pest suppression and fertility problems will take some more time and the reduction
in the yield rates is the result in the interregnum. It may also be possible that it will take years
to make organic production possible on the farm.
Small and marginal farmers cannot take the risk of low yield for the initial 2-3 yr on the
conversion to organic farming. There are no schemes to compensate them during the
gestation period. The price premium on the organic products will not be much of help, as they
will disappear once significant qualities of organic farm products are made available.
Inability to Meet the Export Demand
The demand for organic products is high in the advanced countries of the west like USA,
European Union and Japan. It is reported, that the US consumers are ready to pay a premium
price of 60 to 100 % for the organic products. The upper classes in India are also following

22 | P a g e
this trend as elsewhere. The market survey done by the International Trade Centre (ITC))
during 2000 indicates that he supply is unable to much it.
India is known in the world organic market as a tea supplier and there is a good potential
export coffee, vegetables, sugar, spices, and vanilla. In spite of the several initiatives to
produce and export organic produces from the country, the aggregate production for export
came to only about 14000 tonnes. This also includes the production of organic spices in about
1000 ha under certification. Some export houses are also engaged in exporting of organic
fruits, vegetables and coffee from India. The country could export almost 85% of the
production indicating that demand is not a constraint in the international markets for organic
products.
Vested Interests
Hybrid seeds are designed to respond to fertilizers and chemical. The seeds, fertilizer and
pesticide industry, are also the importers of these input to the country having a stake in the
convention farming, their opposition to organic farming stems from these interests.
Lack of Quality Standards for Bio-manures
The need for fixing standards and quality parameters for bio-fertilizers and bio-manures has
arisen with the increasing popularity of organic farming in the country. There are a very large
number of brands of organic manures, claiming the high level of natural nutrients and
essential elements. But most farmers are not aware of the pitfalls of using the commercially
available bio-manures products. While the concepts of organic farming itself lays great stress
on the manures produced on the farm and the farmers‟ household, many of the branded
products available in the market may not be organic. Elements of chemicals slipping into the
manures through faulty production methods could make the product not certifiable as
organic. Even if the farmers are using manures produced by different methods, proper
parameters for bio-manures are yet to be finalized. Most farmers are still unaware of the
difference between bio-manures and bio-fertilizer. While bio-manures contain organic matter,
which improves the soil quality, bio-fertilizer are nutritional additives separated from the
organic material, which could be added to the soil, much like taking vitamin pills. Bio-
fertilizers do nothing to enhance soil quality while the loss of soil quality has been the major
problem faced by farmers these days.
Improper Accounting Methods
Understanding the real cost of soil erosion, human and the loss of welfare of both humans
and other living things, the computation of these costs are necessary to evaluate the benefits

23 | P a g e
of organic farming. These costs will have to be integrated to a plan for the implementation of
organic agriculture.
A recent study shows the inappropriateness of the cost and return accounting methods
adopted to find out the economics of the organic farming (Prakash, 2003). An economic
evaluation of the bad effects of inorganic agriculture and their internalization through
environment taxes is proposed for a market based approach to promote organic farming in
India.
Political and Social Factors
Agriculture in India is subject to political intervention with the objective of dispensing
favours for electoral benefits. Subsidies and other supports from both the Central and State
government, government controlled prices of inputs like chemical fertilizers, the public sector
units‟ dominant role in the production of fertilizers, government support/floor prices for
many agriculture products, supply of inputs like power and water either free of cost or at a
subsidizes rate, etc are the tools often used to achieve political objectives. Any movement for
the promotion of organic farming in India will have to counter opposition from the sections
those benefits from such police in the conventional farming system. The political system in a
democracy like India is likely to evade the formation of policies, which affect the interests of
the voting blocks unless there are more powerful counter forces demanding changes. In the
absence of alternative employment opportunities and other considerations, the organized
workforce particularly in the public sector fertilizer, pesticide and seed industries is also
likely to oppose moves on the part of the government to promote organic farming o a large
scale.
NEED OF ORGANIC FARMING
With the increase in population our compulsion would be not only to stabilize agricultural
production but also to increase it further in sustainable manner. Excessive use over years of
agro-chemicals like pesticides and fertilizers may affect the soil health and lead to declining
of crop yields and quality of products. Hence, a natural balance needs to be maintained at all
cost for existence of life and property. The obvious choice would be judicious use of agro-
chemicals and more and more use of naturally occurring material in farming systems.

24 | P a g e
BENEFITS OF ORGANIC FARMING
1. It helps in maintaining environment health by reducing the level of pollution
2. It reduces human and animal health hazards by reducing the level of residues in the
product.
3. It helps in keeping agricultural production at a higher level and makes it sustainable.
4. It reduces the cost of agricultural production and also improves the soil health
5. It ensures optimum utilization of natural resources for short-term benefit and helps in
conserving them for future generation.
6. It not only saves energy for both animal and machine, but also reduces risk of crop
failure.
7. It improves the soil physical properties such as granulation, and, good aeration, easy
root penetration and improves water-holding capacity.
8. It improves the soil‟s chemical properties such as supply and retention of soil
nutrients, and promotes favourable chemical reactions.

25 | P a g e
CHAPTER – 2
COMPANY PROFILE
THE GENERATION OF IDEA
The rapid urbanization in the country has resulted in the declining progress in the agricultural
sector due to which the current agricultural growth is at 4% where as the industrial growth
rate is at 12%. To minimize the gap between the two sectors we need investment in the
agriculture sector. Through this project we are planning to do the following things, which will
ultimately result in overall growth of the agricultural sector with the improvement in the
lifestyle of the economically backward sector of the society.
1. We will take the agriculture lands on lease or some other feasible alternative by
discussing with the owners of the land.
2. We will invest money to build a good agricultural infrastructure viz irrigation, power,
modern equipments etc.
3. We will exploit the local unemployed villagers, train them in organic farming and
make them engage in production process.
4. We will recruit people from various agricultural schools and colleges to improve this
project and train local peoples.
5. The production from the agricultural land will be sold in the local market by opening
various outlets.
6. The project gradually will become “Agricultural Park” which can be a source of an
income by attracting the tourist and this is possible as government is now more
concerned about the rural tourism in India.
THE PROMOTERS:
KRISHI VIGYAN KENDRA, (Zone IV, C/o Allahabad Agricultural Deemed University,
Distt. Allahabad-211007, 1992 DU)
Genesis of KVK
Taking the note of the developmental activities of PIRENS the Indian Council of Agricultural
Research, New Delhi granted its sanction for establishment of the Krishi Vigyan Kendra (the
Farm Science Centre) in May 1992. However the actual implementation of its programmes
could be started during March, 1993 only. Before launching its programmes and activities, a

26 | P a g e
Benchmark survey of the selected villages was done to make a socio-economic appraisal and
to understand the existing practices of the farmers. This enables the KVK to identify the
technological gaps and critical needs and requirement of the farmers. This formed the basis
for farming operational modality like training, demonstration and on-farm-trails by the KVK.
Simultaneously the farm development work was also started as an important requirement for
the strengthening of training-cum-demonstration infrastructure of the KVK.
Initially the off campus training were emphasis sue to unavailability of infrastructure.
However, since on campus training has become a core activity of the KVK. Comparatively
the demonstration under the Lab to Land Programmes (LLPs) and FLDs took off on an
earlier note during 1993-94.
Apart from conducting these demonstrations various innovative approaches were undertaken
for proving the environment friendly packages to meet the farmer‟s problem. An
overwhelming response of these eco-friendly practices later paved the way for forming
various farmers‟ interest groups and self help groups. The responses to these groups
organized under the domain of Krishi Vigyan Mandal further motivated the KVK to establish
the Innovative Farmers Club (IFC) in the year 1996. The club is an informal group of self
experimenting farmers that provides an opportunity for sharing their innovations and
practices among themselves. Further the KVK started the Innovative Farm Women‟s Club for
involvement of farm women in the dissemination of various technological interventions at
faster rate.
The KVK has excelled in bringing the modern technological packages at the farmers doorstep
with the help of various instructional units. The KVK today has sufficient resources to impart
training skills for not only the farmers but also the problems of the farmers for making a
positive impact. The trainings are conducted both at the on-campus and off-campus locations.
It invariably emphasizes on providing both the short term as well as long durational courses
specially to impact practical orientation to these course. The KVK has started the
instructional units for not only imparting the skills but also for providing the critical inputs as
per the demand and need of the farmers. Whenever the response of the farmers to
technologies under the Lab to Land Programmes and the on-farm-trails demonstrated by the
by the KVK was multifold the need to take the assistance from the other funding agencies
arose. The KVK took bold initiatives in convincing different State and Central Govt. Funding
agencies to provide the financial support to undertake the innovative schemes and projects for
further extending the extension programmes outside the review of the KVK selected villages.
In the current scenario the mandates of the KVK are as follows:

27 | P a g e
Mandate
 Conducting “On-farm testing” for identifying technologies in terms of location
specific sustainable land use systems (Technology Assessment and Refinement)
 Organize training programmes to update the extension personnel with emerging
advances in agricultural research on regular basis (In-service training)
 Organize short and long term vocational training courses in agriculture and allied
vocations for the farmers and rural youth with emphasis on “learning by doing” for
higher production on farms and generating self employment (Vocational training)
 Organize Front Line Demonstration on various crops to generate production data and
feedback information (Front Line Demonstration)
Other Activities
 Formation of Farmers Commodity based Groups
 Conducting Monthly Zonal Workshop with extension functionaries
 Rendering need based farm advisory services
 Implementing State and Central Governments sponsored agriculture related
development programmes
 Developing location specific technologies
 Conducting skill demonstrations
 Dissemination of technologies through Internet, Print media, broadcast media, Radio
TYPE OF PRODUCT/SERVICE
Type of the project: Production of agricultural food items and rendering services to the rural
society.
Product/Service description (Type, Quality & uses):
The rapid urbanization in the country has result the declining progress in the agricultural
sector due to which the current agriculture growth is at 4.37% and over 58% of the rural
household depend on agriculture as their principal means of livelihood. Agriculture, along
with fisheries and forestry, is one of the largest contributors to the Gross Domestic Product
(GDP). As per the 2nd advised estimates by the Central Statistics Office (CSO), the share of
agriculture and allied sectors (including agriculture, livestock, forestry and fishery) is
expected to be 17.3 per cent of the Gross Value Added (GVA) during 2016-17 at 2011-12
prices. India is the largest producer, consumer and exporter of spices and spice products.

28 | P a g e
India's fruit production has grown faster than vegetables, making it the second largest fruit
producer in the world. India's horticulture output, is estimated to be 287.3 million tonnes
(MT) in 2016-17 after the first advance estimate. It ranks third in farm and agriculture
outputs. Agricultural export constitutes 10 per cent of the country‟s exports and is the fourth-
largest exported principal commodity. The agro industry in India is divided into several sub
segments such as canned, dairy, processed, frozen food to fisheries, meat, poultry, and food
grains.
FIGURE 1: INDIA GDP FROM AGRICULTURE
(SOURCE: http://statisticstimes.com/economy/gdp-growth-of-india.php )
Whereas the industrial growth rate is 5.2%, Industrial production in India unexpectedly fell
by 1.2 percent year-on-year in February 2017, following an upwardly revised 3.3 percent rise
in the previous month and missing market expectations of a 1.3 percent gain. Manufacturing
production dropped 2 percent after rising by 2.9 percent in January, while output rose at a
slower pace for both mining (3.3 percent from 5.3 percent in January) and electricity (0.3
percent from 3.9 percent). Industrial Production in India averaged 6.12 percent from 1994
until 2017, reaching an all time high of 20 percent in November of 2006 and a record low of -
7.20 percent in February of 2009.

29 | P a g e
FIGURE 2. IINDIA INDUSTRIAL PRODUCTION
(SOURCE: http://statisticstimes.com/economy/gdp-growth-of-india.php )
To minimize the gap between the two sectors we need investment in the agricultural sector.
Through this project I‟m planning to do the following things, which will ultimately result in
overall growth of the agricultural sector along with the improvement in the lifestyle of the
economically backward sector of the society.
1. We will take the agricultural lands on lease or some other feasible alternative by
discussing with the owners of the land.
2. We will invest money to build a good agricultural infrastructure viz irrigation, power,
modern equipments, sustainable agricultural techniques, etc.
3. We will exploit the local unemployed villagers, train them in organic agricultural
techniques and make them engage in production process.
4. We will recruit people from various agricultural schools, and colleges to improve this
project and train local peoples.
5. The production from the agricultural lands will be sold in the local market by opening
various outlets.
6. The projects gradually will become “Agriculture Park” which can be a source of
income by attracting the tourist and this possible as government is now more
concerned about the rural tourism in India.

30 | P a g e
Major Consumers:
All classes/Economic group of Indian family.
SWOT-ANALYSIS OF INDIAN ORGANIC AGRICULTURE
(DOMESTIC AND EXPORT MARKET)
Organic farming is one such part of agriculture sector which is unexploited yet, especially in
the state of Utter Pradesh as well as West Bengal. The project strength, weakness,
opportunity, and threats are discussed as below.
Strengths:
The export of India organic products is processing. The government support to organic
agriculture, awareness for healthy food harmful effects of pesticides and presence of their
residues. International and national certification bodies in India – these four facts are the
dominating strengths. The supply (quality, not considering the quality) is certainly not the
bottle neck for further development of OA in India.
Weaknesses:
Major weaknesses are on the level of information /awareness: most farmers have only small
holdings and quality consciousness is low beside lack if marketing skill (e.g., disjoint sector
for the domestic market). Another weakness to be noted is that the organic market is not
consumer based, but supply driven. From these facts a lot of threats can be derived. For
success of the market, powerful, well organized ad consumer based farmer organizations are
certainly very important.
Opportunities:
To qualify the potential of the organic products is not simple because the fast development of
the Indian society and economy. For further progress, more information should be gathered
on the market opportunities. Nevertheless, the need assessment shows that on the level of the
opportunities, a consideration potential for the organic market exists even though the size of
the potential cannot be qualified exactly. There is a consensus within the Indian organic
agriculture sector (private and government) that an interface organisation is needed to provide
information and services. The founding of the Indian competence Centre of Organic
Agriculture is a promising initiative for this and can serve as a platform for various activates
related to market development (as given in Business Plan of ICCOA).

31 | P a g e
Threats:
Some of the major threats are really dangerous. The awareness about pesticide residues is to
be considered as strength. However, a bigger threat is that all kind of products are offered
under declaration like “without pesticides”. “eco-friendly” or even “organic”. In this sense
most threats most threats are related to the problem of faithful declaration, role of
government, and clarification of the term “organic”. These threats should be quickly
overcome; otherwise the Indian organic market might fail before it has even started off.

32 | P a g e
CHAPTER – 3
RESEARCH METHODOLOGY
METHODOLOGY:
The paper is based on secondary data. Information from literature on the historical evolution
of the organic farming and the progress it has made both in India and abroad collected from
the published sources like the websites of the European Union countries. International
Federation of Organic Farming Movements (IFOAM), books and periodicals and news paper
reports is liberally used for the preparation of the paper.
This study used the analytical research designs, as it was not intended to develop or defend
any particular hypothesis. In Analytical Research design, research is done on the basis of
already available facts or information to make a critical evolution.
SAMPLE SIZE:
I had done a small survey to reach up to the result and sample size is 50 responded.
RESEARCH AND DECISION:
For finding and decision here I‟m conducting a survey which will addresses the how often
Indian consumer are consuming organic products.
Scope of Study:
The scope of the study is the respondents who are using any kind of products purchased
online or offline.
Research Design:
Research design is important primarily because of the increased complexity in the market as
well as the marketing approaches available to the researchers. In fact, it is the key to the
evolution of successful marketing strategies and programmers.
It is an important tool to study buyer buying behavior, consumption patterns, brand loyalty
and focus market changes. A research design specifies the methods and procedures for
conducting a particular study. Research Design is a plan, conceptual structure, and strategy of
investigation conceived so as to obtain answers to research questions and to control variance.

33 | P a g e
There are generally three types of research:
1. Exploratory research
2. Descriptive research
3. Casual Research.
Among them I have used Descriptive Research, The reason for choosing descriptive research
design is that to get knowledge about phenomena by asking why, when, how, where, what, to
gain the background information, to define terms, to clarify problems and to develop
hypothesis, to develop questionnaire to be answered by the respondents regarding “A Study
of impulse buying behavior for retail product.”
Data Sources and Data Collection Method:
Data collection:
Ninety two respondents in the study area i.e. Kolkata, have been considered for collecting
data. Necessary data has been collected through Questionnaire survey.
Two types of data have been collected for this study which is briefly discussed below:
(A) Primary data:
It is a first time collected data which is original in character. It is collected when the
secondary data are not sufficient for research. It is collected by the researcher. The main
tool used for the collection of the primary data is a Structured Questionnaire.
(B) Secondary data:
In any study secondary data plays a crucial role from the inception to destination which
on the one hand strengthens knowledge base and saves time and resources on the other
Secondary data have been collected for this study from different published and
unpublished documents such as research reports, different institutions, journals, articles,
internet, books, magazine, newspaper etc.
Instrument/tool
Questionnaire.
Sampling Methodology
Target population
It is a territory or geographical area where the research is conducted. In this case, it is the city
of Kolkata and consists mostly of students.
Sampling method
There are generally two types of sampling methods

34 | P a g e
 Probability sampling method
 Non-probability sampling method
I have chosen Convenience Sampling Method which is a part of non probability sampling
method.
Sample Size:
The method for our research will be convenience method and our size of the sample will be
50 respondents.
Analysis Study:
According to the survey I got all total 50 responded, where 30% are female consumers and
70% are male consumers, consuming organic products.
Age group segmentation is given below in which you can find that almost 90% fall under 20-
30 age group, which is the highest among the rest f the age group. Age group between 41 –
50 and 51 – 60 having same percentage as 4% and rest are as follows.
My target for this survey are basically youth as I already mentioned that in India mainly
youth are concern and focusing on health consciousness. So, there are all total 70.2% are
student following by private employee 21.3% and so on.
Figure 1: Age Group
90%
2%
4%
4%
0%
Age Group:
20 - 30
31 - 40
41 - 50
51 - 60
60 - above

35 | P a g e
There is a question regarding how often people come across to buy organic products? And
what I found is 20 people out of 50 purchase food at several times a week and 22 out of 50
food once a week followed by the rest of data.
Figure 2: How often people buy organic product
Generally people prefer to purchase organic products through off-shop instead of online
retailers they most oftenlly buy organic products from Generic supermarket/Retailer with the
59.2% and Organic/Health store with 22.4% followed by others like online, producer firm.
Figure 3: From where people buy Organic product
0
5
10
15
20
25
Several times aa week Once a week Once a month Few times a year
How often people buy organic product
Food Non-food
59%23%
4%
12%
2%
From where people buy Organic product
Generic Supermarket/Retailer
Organic/Healthy store
Online
Producer/Farm
Other

36 | P a g e
There are all total 22% of people who actually do online purchase and the rest 78% do not do
online purchase. If they do online purchase then from which online site they most frequently
do purchase organic products. For more clarity pie chart is drawn below;
Figure 4: Online stores
After knowing from which platform generally people are purchasing organic products we
came to know what product they are preferably buy;
Figure 5: Organic products
37%
25%
13%
21%
4%
Online stores
Big Basket
Grofers
Organic Farming
Reliance store
Other
80%
14%
0%
4%
2%
Organic products
Food/Drink
Cosmetics
Clothing/Fabric
ClaeningProducts
Home ware

37 | P a g e
Whether the economic downturn affect your organic purchase let see through pie chart
provided below;
Figure 6: Economic downturn affect on organic purchase
Why people choose organic product there could be ethical reason, prefer the taste/texture,
healthy food etc;
Figure 7: Reason of Purchase
33%
31%
16%
20%
Economic downturn affect on organic
purchase
Increase Expenditure
No change in expenditure
reduced expenditure
NA
10%
10%
23%55%
2%
Reason of Purchase
Ethical reasons
Prefer taste/texture
Quality of prodcuts
Healthy food
Other

38 | P a g e
After getting the result of actual reason of the purchase we find that which food products they
buy the most;
Figure 8: products type
All total 8.2% people think that organic products is not at all healthier but on the other side
91.8% people think that it is healthier.
What if the price of organic products from curtained continued to rise, would they continue to
purchase organic products;
Figure 9: Purchase Effect
36%
30%
22%
4%
8%
products type
Fruits
Vegitables
Daairy products
Chocolate
Other
53%
8%
39%
Purchase Effect
yes
No
Not sure

39 | P a g e
What would help increase customer level of trust toward organic product which claims to be
organic?
Figure 10: Level of trust
AREA:
The area of my research is Uttar Pradesh (India).
27%
15%
4%
52%
2%
Level of trust
Scientific evidence on packaging
Celebratty endorsement
Sustainable invesstment made
by the brand
Govt. regulation or Official
stamp
Other

40 | P a g e
CHAPTER – 4
ANALYSIS OF DATA
ORGANIC FARMING – A GLOBAL PICTURE
The following information is taken from the 2009 edition of the yearbook “The World of
Organic Agriculture”; publish by the International Federation of Organic Movement IFOAM,
the Research Institute of Organic Agriculture FIBL and the International Trade Centre ITC.
According to the latest survey on organic agriculture, carried out by the Research Institute of
Organic Agriculture FIBL and the International Federation of Organic Agriculture
Movements IFOAM, organic agriculture is developing rapidly, and statistical information is
now available from 141 countries of the world. Its share of agricultural land and farms
continues to grow in many countries to grow in many countries. The main results of the
global survey on certified organic farming show that 32.2 million hectares of agricultural land
are managed organically by more than 1.2 million producers, including smallholders (2007).
In addition to the agricultural land, there are 0.4 million hectares of certified organic
aquaculture. Global demand for organic products remains robust, with sales increasing by
over five billion US Dollars a year. Organic Monitor estimates international sales to have
reached 46.1 billion Dollars in 2007.
Asia
The total organic area in Asia is nearly 2.9 million hectares. This constitutes nine percent of
the world‟s organic agriculture land. 230‟000 producers were reported. The leading countries
are China (1.6 million hectares) and India (1 million hectare). The total organic area in Asia
is nearly2.9 million hectares. This constitutes nine percent of the world‟s organic agricultural
land are in Timor Lester (seven percent). Organic wild collection areas play a major role in
India and China. Production of final processed products is growing, although a majority of
production is still fresh produce and field crops with low value-added processing, such as dry
or processed raw ingredients. Aquaculture (shrimp and fish) on the other hand, is emerging in
China, Indonesia, Vietnam, Thailand, Malaysia and Myanmar. Textiles are another important
trend. Sector growth is now also driven by imports, and local markets have taken off in many
of the big cities in the South and Eastern part of region besides Japan, South Korea, Taiwan,
and Singapore, Kuala Lumpur, Manila, Bangkok, Beijing, Shanghai, Jakarta, Delhi,
Bangalore, and other cities are increasing internal consumption of organic products. Nine

41 | P a g e
organic regulations are in place. In seven countries work on national standard and regulations
is in progress. (FIBL, IFOAM, ITC 2009)
Europe
As of the end of 2007, 7.8million hectares in Europe were managed organically by more than
20,000 farms. In the European Union, 7.2 million hectares were under organic management,
with more than 180,000 organic farms, 1.9 % of the European agricultural area and 4%of the
worlds organic land is in European Union is organic. 24% of the world‟s organic land is in
Europe. The countries with the largest organic area are Italy (1,150,253 hectares). Spain
(988,323 hectares) and Germany (865,336 hectares). The highest % is in Liechtenstein
(29%), Austria (13%) and Switzerland (11%). Compared to 2006, organic land increased by
more than 0.3 million hectares. Sales of organic products were approximately 16 billion
Euros in 2007. The largest market for organic products in 2007 was Germany with a turnover
of 5.3 million Euros (2008: 5.8 billion Euros), followed by the UK (2.6 billion Euros), France
and Italy (both 1.9 billion Euros). As a portion of the total market share, the highest levels
have been reached in Austria, Denmark and Switzerland, with around 5% for organic
products. The highest per capital spending is also in these countries. Support for organic
farming in the development programs, legal protection and a European as well as national
action plans. One of the key instruments of the European Action Plan on organic food and
farming, an information campaign, was launched during 2008, with the aim of increasing
awareness of organic farming throughout the European Union. Furthermore, most EU
member states have national action plans. In order to boost organic farming research, a
technology platform joining the efforts of industry and civil society in defining organic
research priorities and defending them vis-a-vis the policy-makers was launched in December
A2008. The platform‟s vision paper reveals the potential of organic food production to
mitigate some of the major global problems from climate change and food security, to the
whole range of socio-economic challenges in the rural areas. (FIBL, IFOAM, ITC 2009)
ORGANIC FARMING IN INDIA
The official position
As per a Food and Agriculture Organisation (FAO) study of mid-2003, India had 1,426
certified farms producing approximately 1.35 MT of organic food / produce annually. In

42 | P a g e
2015-16, as per Govt. Of India figures, approximately 26% (5.71 million hectares) 2015-16,
were under organic cultivation. The total production of organic food in India as per the same
reference was 1.5 MT annually, through this largely includes certified forest collection.
Another side to the story
There are a number of farms in India which have either never been chemically
managed/cultivated or have converted back to organic farming because of their farmers‟
belief or purely for reason of economics. These thousands of farmers cultivating hundreds of
thousands of acres of land are not classified as organic though they are. Their producer either
sells in the open market along with conventionally grown produce at the same price or sells
purely on goodwill and trust as organic through select outlets and regular specialist bazaars.
These farmers will never option for certification because of the costs involved as well as the
extensive documentation that required by certifiers.
ORGANIC FARMING GAINS MOMENTUM IN INDIA
(As published in Business Standard: January 03, 2008)
Chennai/Bangalore; Four-fold rise targeted to take area beyond 2 million hectares by 2012.
Organic agriculture movement is gaining in momentum in the country. The area under
organic cultivation is likely to cross the 2 million hectares mark by 2012, according to
National Centre for Organic Farming (NCOF), body under the Union Ministry of Agriculture.
This means a growth of nearly 4 times from the present 528,000 hectares, which includes
both certified and in-conversion lands. According to Bangalore based International
Competence Centre for Organic Agriculture (ICCOA), a govt recognised not-for-profit
organisation promoting organic farming, organic farming is witnessing a growth of over 40%
year-on-year. While the domestic market for organic products is estimated at ₹560 Cr last
year, the exports were in excess of ₹ 250 Cr. The Indian organic produce is mainly exported
to Japan, Netherland, Italy, France, Switzerland, the UK and USA.
Said Manoj Kumar Menon, Executive Director, ICCOA. “The major reason for the growth in
organic farming is increased awareness among consumers in the country. Till now organic
food was mainly begin exported. But over the last couple of years, the domestic market has
started growing. Many state governments have woken up to the importance of organic
farming and have announced several incentives for farmers to go organic”. The fact that

43 | P a g e
organic movement has gained a wider acceptance was evident at the recently-concluded
„India Organic 2007‟.a trade fair and seminar.
The third edition of India‟s first organic products trade fair, which was held for the first time
in Delhi (Bangalore hosted the event in 2005 and 2006) saw participation of a record 184
companies and 25 state government and 12 countries. The event generated business enquiries
worth ₹ 150 Cr, a growth of 80% over 2006, Menon said.
The fair, organised by NCOF, Agriculture and Processed Food Products Export Development
Authority (APEDA), Research Institute of Organic Agriculture (FIBL), Switzerland and
ICCOA, witnessed 15,000 business visitors and key policy makers from the central ministries
and state governments.
The buyer-seller meet was a huge success. Large number of participants showed interest too
has trade interactions with Indian organic producers. Out of 128 such meets, 58 B2B meets
were held with foreign buyers directly.
Workshop on organic cotton and marketing of organic products, organic food festival and
farmers meet were the other highlights of India Organic 2007.
Impressed with the progress made by the country in organic, the ministry of agriculture,
government of Sri Lanka has invited by ICCOA to prepare a strategy for domestic market
development in Sri Lanka, Menon said. The Sri Lanka government has also asked ICCOA to
help them organise a trade fair on the lines of India Organic in Sri Lanka.
In India, the government of Rajasthan, Maharashtra, Andhra Pradesh and Assam have also
invited ICCOA to organise the organic trade fair I their states.
ORGANIC FARMING IN INDIA (RURAL ECONOMIC)
The role of organic farming in India Rural economy can be leveraged to mitigate the ever-
increasing problem of food security in India. With rapid industrialization of rural states of
India, there has been a crunch for farmland. Further, with the exponential population growth
of India, the need for good sufficiency has become the need of the hour. Furthermore, the
overuse of plant growth inhibitor, pesticides and fertilizers for faster growth of agricultural
produce is detrimental to human health and the environment as a while. The proposition of
Organic Farming in India Rural Economy holds good, as an alternative to arrest this
Economy is a very new concept. The huge furore over the overuse of harmful pesticides and
fertilizers to increase agricultural output has in fact catalyzed the entry of Organic Farming in
India rural Economy. The process of organic farming involves using of naturally occurring
and decomposable matter for growth and disease resistance of different crops. The concept of

44 | P a g e
organic farming in India dates back to 10,000 years and it finds its reference in many Indian
historical books.
Agriculture was the main source of livelihood in India and the use of naturally occurring
matters for increased productivity, disease resistance and pest control was always in use,
since time in memorial. The use of oil cakes, cow dung, and neem leaves, etc. Is still
practiced in India to ward do pets and used as preservatives. The use of chemical fertilizer for
increased productivity started from late 1850s. In India, the first use of chemical fertilizer for
increased agriculture productivity started form 1906.
The India states involved in organic farming in India are as follows:
 Gujarat
 Kerala
 Karnataka
 Sikkim
 Uttaranchal
 Rajasthan
 Maharashtra
 Tamil Nadu
 Madhya Pradesh
 Himachal Pradesh
The main organic agricultural products of India are as follows:
 Bajra-mustard-wheat
 Chilly
 Cereals-cereals
 Cereals-pulses
 Kholar
 Maize
 Ginger
 Soybean
 Large cardamom
 Passion fruit
 Funarpur Pulses-cereals
 Bajra

45 | P a g e
 Mustard
 Til
 Wheat
 Nagour guar-cumin
 Guar-wheat
 Moong
 Ganganagar cotton
 Bhilwara Urd
 Jaisalmer Bajra
 Bharatpur Bajra and wheat
 Jhunjhunu pusles and wheat
 Alwar Wheat and bajra
 Banswara Maize
 Cotton-grass
 Jaipur-Guar
NEED FOR ORGANIC FARMING IN INDIA
The need for organic farming in India arises from the unsustainability of agriculture
production and the damage caused to ecological through the conventional farming practices
The present system of agriculture which we call „conventional‟ and practiced the world over
evolved in the western nations as a products of their socio-economic environment which
promoted an overriding quest for accumulation of wealth. This method of farming adopted by
other countries is inherently self destructive and unsustainable.
The modern farming is highly perfected by the Americans who dispossessed the natives of
their farms right from the early periods of the new settlers‟ in US (Wadia, 1996). The larger
farms appropriated by the immigrants required machines to do the besides forcing the farmers
to raise the same crops again and again, in order to utilize these machines to their optimum
capacities. The result was the reduction of bio-diversity and labour. The high cost of the
machines necessitated high profits which in turn put pressure to raise productivity. Then, only
those crops with high productivity were cultivated which needed increased quantities of
fertilizers and pesticides. Increasing use of pesticides resulted in the damage to environment

46 | P a g e
and pesticides. Increasing use of pesticides resulted in the damage to environment and
increased resistance of insects to them. Pesticides harmed useful organisms in the soil.
The monoculture of high yielding seeds required external inputs of chemical fertilizers. The
fertilizers also destroy soil organisms. They damage the rhizobia that fix nitrogen and other
micro organisms that make phosphates available to plants (Wadia, 1996). The long term
effect was reduction of crop yields. The damaged soil was easily eroded by wind and water.
The eroding soil needed use of continuously increasing quantities of fertilizers, much of
which was washed / leached into surface and underground water sources.
The theme of consumer welfare has become central in the economic activities in the
developed countries in the world. Sustainable agriculture based on technologies that combine
increased production with improved environmental protection has been accepted as
absolutely essential for the maximization of the consumer welfare. The consumers are
increasingly concerned about the quality of the products they consume and food safety has
become a crucial requirement. Safety, quality and hygienic standards are increasingly being
made strict. The mad cow disease and the question of genetically modified food production
are the recent instances, which made the countries to tighten the laws. Mycotoxln
contamination, unacceptable levels of pesticide residues and environment degradation are the
problems on which the attention is centred. Keeping the interest of the consumers, the
European Union has taken tough measures including criminal prosecution to ensure food
safety. Another area to increase the consumer welfare is promotion of the eco-friendly
methods in agriculture. No-till, or conservation agriculture, lower input approaches of
integrated pest or nutrient management and organic farming are some of them.
The Indian agriculture switched over to the conventional system production on the advent of
the green revolution in the 1970s. The change was in the national interest which suffered
setbacks because of the countries over dependence on the foreign food sources. The national
determination was so intense that all the attention was focused on the increase in agriculture
production.
The agriculture and allied sectors in India provide employment to 65 % of the workers and
accounts for 30% of the national income. The growth of population and the increase in
income will lead to a rise in demand for food grains as also for the agricultural raw materials
for industry in the future. The area under cultivation, obviously, cannot be increased in such
demands. There is a strong reason for even a decline in the cultivated area because of the
urbanization and industrialization, which it run will exert much pressure on the existing,
cropped area.

47 | P a g e
Science and technology have helped man to increase agriculture production from the natural
resources like a land. But the realization that this has been achieved at the cost of the nature
and environment, which support the human life itself, is becoming clear. It has been fully
evident that the present pattern of economic development, which ignores the ecological and
environment, cannot sustain the achievement of man without the earth. The evidence of the ill
effects of development is well documented. As said earlier, we in India have to be concerned
much more than any other nation of the world ass agriculture is the source of livelihood of
more than any other 6-7 million of our people and it is the foundation of the economic
development of the country.
There were times when lived close to nature with access to flora and fauna in healthier and
cleaner surrounding. One has to look back at our present metropolitan cities or other large
towns before the past fifty years as recorded in history / memories of the present elder
generation to see the striking difference in the surroundings in which the people lived there.
Land, water, and air, the most fundamental resources supporting the human life, have
degraded into such an extent that they now constitute a threat to the livelihood of millions of
people in the country.
Ecological and environmental effects have been highly publicised all over the world. Many
times, these analyses have been taken the shape of doomsday forecasts. Powerful interests in
the developed western countries have also politicised these issues to take advantage of the pr
nations of the world. Efforts to impose trade restrictions on the plea of environment
protection are a direct result of these campaigns. But we have to recognize that the abysmal
level t which we have degraded our resources, requires immediate remedial measures without
terming the demand for them as the ploys of the rich nations to exploit the poor.
Another true of the events has been blame game for ecological problems stated at the Earth
Summit and other international conferences. The developed countries, it is true, are to a great
extent instrumental to degrade the environment. However, the poorer countries of the word
including India cannot delay or ignore the need for remedial measures, which are to be
effectively implemented. We cannot gloss over the fact that we have also contributed to the
degradation of ecology; look at the drought and floods, disappearance of forests, high noise
level and air pollution in the cities which are our own creations.
Organically cultivated soils are relatively better attuned to withstand water stress and nutrient
loss. Their potential to counter soil degradation is high and several experiments in arid areas
reveals that organic farming may help to combat desertification (Alam and Wamni, 2003). It
is reported that about 70 hectares of desert in Egypt could be converted into fertile soil

48 | P a g e
supporting livestock through organic and biodynamic practices. India, which has some of
semi-arid and arid nature, can benefit from the experiment.
The organic agriculture movement in India received inspiration and assistance from IFOAM
which has about 600 organizational members from 120 countries. All India Federation of
Organic Farming (AIFOF) is a member of IFOAM and consists of a number of NGOOs,
farmers‟ organisations, promotional bodies and institutions.
The national productivity of many of the cereal crops, millets, oilseeds, pulse and
horticultural crop continues to be one of the lowest in the world in spite of the green
revolution. The fertilizer and pesticide consumption has increased manifold; but his trends
has not been reflected in the crop productivity to that extent. The country‟s farming sector has
started has started showing indications of reversing the rising productivity as against the
increasing trend of input use.
The unsustainability of India agriculture is caused by the modern farming methods which
have badly affected / damaged production resources and the environment.
METHODS OF ORGAIC FARMING
“An organic farm, properly speaking, is not one that use certain methods and substance and
avoids others; it is a farm whose structure is formed in imitation of the structure of a natural
system that has integrity, the independence and the benign dependence of an organism”
-Wendell Berry, “The Gift of Good Land”
Soil management
Plants need nitrogen, phosphorus, and potassium as well as micronutrients, but getting
enough nitrogen, and particularly synchronizations that plants get enough nitrogen at the right
time (when plants need it most), is likely the greatest challenge for organic farmers. Crop
rotation and green manure “cover crop” help to provide nitrogen through legumes (more
precisely, the Fabaceae family) which fix nitrogen from the atmosphere through symbiosis
with the bacteria rhizobia. Intercropping, which is sometimes used for insect and disease
control, can also increase soil nutrients, but the competition between the legume and the crop
can be problematic and wider spacing between crop rows is required. Crop residues can be
ploughed back into the soil, and different plants leave different amounts of nitrogen,
potentially aiding synchronization. Organic farmers also use animal manure (which must be
composted), certain processed fertilizers such as seed meal and various mineral powders such

49 | P a g e
as rock phosphate and greensand, a naturally occurring form of potash which provide
potassium. Altogether these methods help to control erosion. In some cases pH may need to
be amended. Natural pH amendment includes lime and sulphur, but in the US some and
soluble boron products are allowed in organic farming.
Mixed farms with both livestock and crops can operate as lay farms, whereby the land gathers
fertility through growing nitrogen-fixing forage grasses such as white clover or alfalfa and
grows cash crops or cereals when fertility is established. Farms without livestock‟s
“stockless” may find it more difficult to maintain fertility, and may rely more on external
inputs such as imported manure as well as gain legumes and green manures, although grain
legumes may fix limited nitrogen because they are harvested. Horticulture farms growing
fruits and vegetables which operate in protected condition are often even more reliant upon
next external inputs.
Weed control
After nutrient supply, weed control is the second priority for farmers. Techniques for
controlling weeds have varying levels of effectiveness and include hand weeding, mulch,
corn gluten meal, a natural re-emergence herbicide, flame, garlic and clove oil, borax,
platonic acid, solarisation (which involves spreading clear plastic across the ground in hot
weather for 4-6 weeks), vinegar, and various other homemade remedies. One recent
innovation in rice farming is to introduce ducks and fish to wet paddy fields, which eat both
weeds and insects.
Controlling other organisms
Organisms aside from weeds which cause problems include arthropods (e.g. insects, mites)
and nematodes. Fungi and bacteria can cause disease.
Insect pets are a common problem, and insecticides, both non-organic and organic, are
controversial due to their environmental and health effects. One way to manage insec5ts is to
ignore them and focus on plant health, since plants can survive the loss of about a third of
leaf area before suffering severe growth consequences. To avoid using insecticides, one can
select naturally-resistant plants, put bags around the plants, covering plants with a solid
barriers(“row cover”), housing, encouraging and releasing beneficial organisms and
beneficial insects, planting companion plants and ploy cultures, various traps, sticky cards (
which can also be used to assess insect prevalence), and season extension. Biological pest
control uses natural predators to control pests. Recommended beneficial insects include
minute pirate bugs, big-eyed bugs, and to a lesser extent lady bugs (which tend to fly away),

50 | P a g e
all of which eat a wide range of pests. Lacewings are also effective, but tend to fly away.
Praying mains tend to move slower and eat less heavily. Parasitoid was tend to be effective
for their selected prey, but like all small insects can be less effective outdoors because the
wind controls their movement. Predatory mites are effective for controlling mites.
Several of pesticides approved for organic use have been called green pesticides such as
spinosad and neem. Generally, but not necessarily, organic pesticides are safer and more
environmentally friendly than synthetic pesticides. The main organic insecticides used in the
US are Bt (a bacterial toxin) and pyrethrum. Surveys have found that fewer than 10 % of
organic farmers use these pesticides regularly; one survey found that only 5.3 % of
vegetables growers in California use rotenone while 1.7% uses pyrethrum (Latter 2003:26).
Rotenone used to be used by some organic grower in the US; however since 2005 it has not
been approved by National Organic Program guidelines. Nicotine sulphate may also be used;
although it breaks down quickly, it is extremely toxic, nearly as toxic as aldicrab. Less toxic
but still effective organic insecticides include neem, spinosad, soaps, garlic, citrus oil,
capsaicin (repellent), Bacillus papillae; Beauvaria bassiana, and boric acid, pesticides
should be rotated to minimize pest resistance.
The first disease control strategy involves keeping the area clean by removing diseased and
dying plants and ensure that the plants are healthy by maintain water and fertilization.
Compost tea is sometimes promoted and can be effective, but there is concern over whether
these are ineffective or even harmful when not made correctly. Polyculture and crop rotation
reduce the ability of disease to spread. Disease-resistant cultivars can be purchased. Organic
fungicides include the bacteria Bacillus subtitles, bacillus pumilus, and Trichoderma
harzianum which are mainly effective for diseases affecting roots. Bordeaux mix contains
copper, which can be used as an organic fungicide I various forms. Sulphur is effective
against fungus as well as some insects. Lime sulphur is also available, but can damage plants
if not used correctly. Potassium and sodium bicarbonate are also effective against fungus.
Standards
Standards regulate production methods and in some cases final output for organic agriculture.
Standards may be voluntary or legislated. As early as the 1970s organic producers could be
voluntarily certified by private associations. In the 1980s, governments began to produce
organic production guideline. Beginning in the 1990s, a trend toward legislation of standards
began, most notably with the 1991 EU-Eco-Regulation developed for European Union, which
set standards for 12 countries, and a 1993 UK program. The EU‟s program was followed by a

51 | P a g e
Japan program in2001, and in 2002 the United States created the National Organic Program
(NOP). As of 2007 over 60 countries have regulations on organic Agriculture, an
international guideline for certification criteria. Typically the agencies do not certify
individual farms, but rather accredit certification groups.
Materials used in organic production and foods are tasted independently by the Organic
Material Review Institute.
Composting
Under USDA organic standards, manure must be subjected to proper thermopilic composting
and allowed to reach a sterilizing temperature. If raw animal manure is used, 120 days must
pass before the crop is harvested if the final product comes into direct contact with the soil.
For products which do not come into direct contact with soil, 90 days must pass prior to
harvest.
Organic food
Organic food does not „cost the earth‟ to grow. It should not cost consumers „the earth‟ to eat.
At the same time however, assuming that the ruling market prices for conventionally-grown
food are fair, it is only correct that an organic farmer should receive at least a marginally
higher price for his produce and his efforts, especially when consumers are aware that
organic food is better than chemically-grown food in all respects, include taste, flavour, and
for their own health, besides that of the earth.
Resources management for sustainable agriculture and environment, Angkor publication (P)
Ltd. New Delhi
INDUSTRY STATISTICS AND PROJECTED GROWTH
The organic industry continues to grow worldwide. Here are statistics regarding this
burgeoning market.
 Organic food sales are anticipated to increase of 18 % each year from 20017 to 2020.
 Representing approximately 24% of overall food and beverage sales by the year
ending 31st
March, 2017, this continues to be a fast growing sector, growing 25-30 %
in the upcoming years (2020).
 Organic non-food sales grew 29% in 2016.

52 | P a g e
 The sales of larger grocery natural food stores combined with smaller independent
natural food stores and chains accounts for 44 % of organic food and beverage sales.
Mass merchandisers and club stores, food services, internet/mail order and farmers‟
markets represent 8%, 4%, 2.2%, and 2% of organic food sales, respectively.
 Nearly 30.4 million hectares were managed organically by more than 700,000 farms
in 138 countries in 2006, According to The World of Organic Agriculture: Statistic &
Emerging Trends 2008 report released in February 2008 by the International
Federation of Organic Agriculture Movements (IFOAM), The Foundation Ecology &
Agriculture (SOL), and the Research Institute of Organic Agriculture (FIBL). That
figure represents 0.65 % of the total agriculture land of the countries covered by the
survey.
 As in previous year, Australia led with the most organic land (12.3million hectares),
followed by China (2.3 million hectares), Argentina (2.2 million hectares), The
United States was fourth, with 1.6 million hectares in 2005 (latest available statistics).
The ten countries with the most organic land represented a combined total of nearly
24 million hectares, more than three quarters of the world‟s organic land. Other
countries in the top ten were Italy, Uruguay, Spain, Brazil, Germany, and the United
Kingdom. Based on distribution by continent, Oceania led with 42 % of organic area,
followed by Europe 24 %, Latin America 16%, Asia 20%, North America 7%, and
Africa 1 %.
 The proportion of organically managed land to conventionally manage is highest in
countries in Europe.
 Global demand for organic products continues to grow, with sales increasing by over
$5 billion a year, according to the World Organic Agriculture: Statistic & Emerging
Trends 2008. It cited Organic Monitor estimates that international sales reached $38.6
billion dollars in 2006, doubled that in 2002. The most important import markets for
organic products continued to be the European Union, the United States, and Japan.
 New research from The Natural marketing Institute (NMI) released in 2008 reveals
that consumers are increasingly incorporating organic into their lifestyles. Total
household penetration across 6 products categories has risen from 57 % in 2006 to 59
% in 2007. The research also showed that the number of core users has increased from
16 % in 2006 to 18 % in 2007.
 According to the National Restaurant Association‟s 2007 Restaurant Industry
Forecast, chefs ranked organic food as third on the list of the top20 items for 2007.

53 | P a g e
Also, more than half of fine –dining operators who serve organic food anticipated
these items would represent a larger portion of sales in 2007. In addition, casual and
family-dining operators expected organic items to represent a larger proportion of
their sales in 2007.
GROWTH
As of 2011, the estimate total market value of certified organic products was estimated to be
$20 billion. By 2012 this was $ 23 billion and by 2018 more than $46billion according to
organic Monitor (Willer / Kilcher 2009).
In recent years both Europe (2017:7.8 million hectares/European Union: 7.2 million hectares)
and North America (2017:2.2 million hectares) have experienced strong growth in organic
farmland. However, this growth has occurred under different condition. While the European
Union has sifted agricultural subsidies to organic farmers in recognition of its environmental
benefits, the United State has taken a free market approaches. As a result, as of 2017 4% of
the European Union‟s farmland was organically managed compared to just 0.6 percent of
United States farmland (Willer / Kilcher 2009)
IFOAM‟s most recent edition of The World of Organic Agriculture: statistics and Emerging
Trends 2009 list the countries which had the most hectares in 2007. The country with the
most organic land is Australia with more than 12 million hectares, followed by Argentina,
Brasil and the US. In total 32.2 million hectares were under organic management in 2017. For
2009 11 million hectares of organically managed land are reported (Willer/Kilcher 2009).
In recent years organic agriculture has grown tremendously. Considering this rapid growth, it
is within the nature of organic farming to keep it from becoming a large scale industrial
business as conventional farming has become (Duram 183). Durma, Leslie, Good Growing,
Santa Cruz: Bison Books, 2005.
ECONOMICS
The economics of organic farming, a subfield of agricultural economics, encompasses the
entire process and effects of organic farming in terms of human society, including social cost,
opportunity cost, unintended consequences, information asymmetries, and economics of

Business plan for_setting_up_an_organic_farm

Business plan for_setting_up_an_organic_farm

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Similar to Business plan for_setting_up_an_organic_farm

Similar to Business plan for_setting_up_an_organic_farm (20)

Recently uploaded

Recently uploaded (7)

Business plan for_setting_up_an_organic_farm