This document discusses opportunities and challenges for organic food marketing in India. It notes that the global organic market is growing faster than conventional markets. India has the largest area under organic cultivation and number of organic producers globally. While India exports a large amount of organic products worth over $500 million annually, it also faces challenges such as seasonality of crops, lack of processing facilities, and inconsistent standards. The document outlines certification requirements and labels to ensure quality and traceability in the organic sector in India. It provides examples of sourcing models and discusses setting up an organic business.

1. Organic Food
Marketing
Opportunities and Challenges

2. Presentation
2
Product
• Agriculture’s contribution to GHG
emissions over 24%
• Extreme weather events affecting
farming
• Increased frequency of crop
failures and animal diseases
• Increased uncertainties of
livelihoods
Certification Marketing

3. 3
Current Status
• The global market for organic products is growing
faster (CAGR 16%) than the global markets for
conventional products (CAGR 10%)
• Indian Organic Market is growing faster (CAGR
25%) than global organic markets
• Ranks third in wild harvest area
• Highest number of organic producers globally with
about 20 lakhs organic farmers, 699 processors, 669
exporters
• Ranks ninth in terms of area under organic with
5.71 million ha.
• As per the Indian Organic Sector - Vision 2025
report, India's organic business has immense
potential to reach the INR 75,000 crore mark by
2025 from INR 2,700 crore in 2015.

4. • India exporting organic products worth $ 515
million in 2017-18
• India exports around 1.35 million MTs of certified
organic foods
• The exports are largely concentrated around the US,
Europe (EU), Canada, Japan and the West Asian
markets
• India is the largest exporter of organic cotton
worldwide.
• In the food market segment, oilseeds comprised
half of India’s overall organic food export, followed
by processed food products at 25%
4
Organic Export Market

5. What is an organic
product?
The categorization of a product as organic
implies two main things:
• First, it is free from toxic persistent chemical
pesticides, synthetic fertilizers, growth
hormones and antibiotics or genetically
modified organisms (GMOs)
• Second, stringent organic cultivation
standards are followed, with respect to
impact on soil, water and air
5
The production plots, collection centres, processing
and packing facilities and processing need to be
organic

6. 01
02
03
04
05
Food Business Operators
Production/Collection
GrowingOrganically/naturally
Bulk Sales
Wholesale,whitelabelling
Manufacturing
Making readyto cook, readyto eat
products
Packing labelling
A good businessplanstartswith an
executive.
International Market
Wheredo youoperate?
Aggregation
Collectionandstorage
Primary Processing
Cleaning,grading, processing,packing
Primary ProduceMarketing
Labellingandmarketing
Retail Marketing
Exclusive stores, Franchise, other stores

7. Agroecological
approach?
7
• Organic Farming
• Natural Farming
• Subash Palekar (Zero Budget) Natural
Farming
• Biodynamic Farming
• Permaculture
• ‘Bharatiya Prakritik Krishi Paddati (BPKP)
[Indian Natural Farming]

8. Quality Assurance
• Collection
• Grading
• Transportation
Images courtesy: Be’Nishan
Producer Company

9. Public policy support
• Paramparagath Krishi Vikas Yojana (PKVY)
• Mission for Integrated Development of
Horticulture (MIDH),
• National Mission for Sustainable Agriculture
(NMSA),
• Rashtriya Krishi Vikas Yojana (RKVY) etc
• 10 States have organic farming policies
• AP, Karnataka, HP and Gujarat have Natural
Farming Initiatives
• Mission on Organic Value Chain
Development for North East
• Sikkim, Nagaland became organic
9

10. 10
Ensuring Quality and Traceability
Certification

11. Why quality assurance ?
• Growth of the organic sector
• with more volumes in the market place and
• more distance between producers and
consumers,
a guarantee on the nature of products becomes
more and more important.
What distinguishes an organic product guiding consumers’
choices and market trends is the organic label.
Kinds of Certification currently approved in India
• NPOP: Third party certification
• PGS: Participatory guarantee system
• USDA, EU, Australia standards

12. • All Organic Food sold in India will be certified and labelled as per NPOP or PGS Standards
• Certification label to be printed on the packet (not stickered)
• Single ingredient product where all requirements been met as per the specified standards can be labelled as
‘Organic’.
• Multi ingredient product where min. 95% of ingredients are of certified origin, can be labelled as ‘Certified
Organic’.
• Multi-ingredient products with minimum 70% organic ingredients: Raw or processed agricultural products
containing between 70% and 95% certified organic ingredients (by raw material weight, excluding water and salt,
but including additives) may be labeled ‘made with organic ingredients’ or a description akin to it on the principal
organic agriculture and the law display, provided that the proportion of organic ingredients is clearly stated. Such
products cannot be simply labeled ‘organic’.
• Multi-ingredient products with below 70% organic ingredients: Raw and processed agricultural products
containing below 70% certified organic ingredients may only contain indications that an ingredient is organic on
the ingredient list, but cannot be labeled ‘organic’.
• Exemptions till 1st April, 2020
• Small original producer or producer organisation with annual turnover not exceeding Rs. 12 lakhs per annum
• aggregators or intermediaries that may have organic produce sales turnover not exceeding ₹50 lakh per annum
but cannot use Jaivik Bharat Logo
• The imports of Organic Food from countries, with which bilateral equivalence agreements are there, are not required to
be re-certified
FSSAI Rules, 2017
12

13. • If ‘A’ if a farmer producing paddy and ‘B’ is a Organic Brand which sells Organic Grains and ‘C’ is a bakery which makes
organic cookies
• ‘A’ as a farmer needs organic production certificate. ‘A’ can be member of a local PGS group or a Farmer Producer
Company and the certificate can be in the name of the Group or Company
• ‘B’ can buy paddy from ‘A’ and process from his/her own processing facility or get processed at another certified
processing facility ‘X’. Alternatively he/she can buy processed rice from farmer if farmer has both production/processing
certificate. Along with the produce, certificate gets transferred.
• ‘C’ may buy rice and make atta or may buy atta from ‘B’ and buy sugar/jaggery from someone else-all need to be
certified along with ‘C’.
• If ‘Y’ is a store which sells products from ‘A, B, or C’ it doesn’t need a certificate, it can just have separate racks
• If ‘Z’ is a Food Business Operator who don’t produce anything but sell organic food on their brand name, ‘Z’ should have
organic certificate and get all the products transferred to their name. ‘A, B or C’ can produce a white labelled product for
Z
Examples
13

14. Certification and Labels
• Organic Certification system is a tool that informs
on the organic integrity
• Consumer, wants “organic” a product produced
in an environmentally friendly manner
• Understanding of organic reference standards,
certification and/or accreditation systems is the
realm of this field’s practitioners
• Consumers seek is confidence in certification
labels (whether regulated by governments or
private) and
• building this trust is the challenge of any
guarantee system,
• especially for products coming from distant
origins.
• Other certifications like Fairtrade, carbon foot prints
etc
Ecological foot prints

15. NPOP Certification
15
• Accredited Certification Bodies under NPOP: There are
28 Accredited Certification Bodies under NPOP
• State certification agencies are less expensive
• What is certified?
• Farm Plots-annually and the products grown in the
plots
• Processing facilities-products made in the units
• Food Business Operators-Brands
• Individual or group can get a certificate
• Cost depends on no of locations where farmer groups
located
• Certificates are transferable along with products

16. Participatory Guarantee System
• PGS systems –the Shared Vision Shared Ideals
• PGS available for
• Crops and orchards
• Bee keeping
• Livestock
• Wild harvest
• Processing and handling
• Accredited by National Centre for Organic Farming
• PGS Regional Councils register, verify and issue
certificated to local groups
• Local groups are 5-15 producers
• PGS India is equivalent to Third party certification
and is transferable
• PGS Certification is traceable up to farmer level
ACTIVE REGIONALCOUNCILS (RC)
: 327
TOTAL GROUPS : 29473
FARMERS :Approved : 800682

17. Labelling
Primary Display Panel: The part of the
package most likely to be seen by buyers at
the time of purchase.
Information Panel: This includes that part
of the label of a packaged product that is
immediately adjacent to and to the right of
the primary display panel as observed by a
person facing the primary display panel,
unless any other section of the label is
designated as the information panel
because of package size or its attributes.
Ingredients Statement Panel: The list of
ingredients contained in a product shown in
their common and usual names in the
descending order of predominance.
Other Panel: Any panel other than the
primary display panel, information panel, or
ingredients statement panel.

18. 18
Requirements for
setting up business
enterprise
• Entity: sole proprietorship, partnership, one person
company, limited liability partnership, private limited
company and public limited company
• Contract of lease for space
• Licensing and Registration
• Trade license
• Shops and establishments license
• FSSAI license
• Central license for businesses over Rs. 20 Cr
• State license for businesses between Rs.12-20 cr
• Petty food manufacturers with less than Rs. 12.00
lakh turnover and have capacity to manufacture
less than 100 kg/day or are temporary vendors
• GST

19. Sourcing your produce
• Farmers
• FPOs
• Bulk vendors
19

20. Organic Mandi
http://www.organicmandi.co
Jaivik Kheti
https://www.jaivikkheti.in/

21. Key Challenges
21
• Every one wants to be across the supply chain
• Agriproduce is seasonal, so holding is very important.
• Raw produce handling is very tedious and expensive. Like rice from harvesting to full sale
may take 16-18 months minimum
• Perishability of Fruits and Vegetables without much storage value
• FPOs can do but do not have working capital
• Lack of processing facilities, storage facilities particularly with organic certification.
• Single set of standards for all. Can have graded standards like say-upvto 1 crore turnover
and single store can be exempted.
• Exemptions can be aggregated at FPO level and allowed to sell with same terms and
conditions like farmers

22. www.sahajaaharam.com
• Hyderabad
• Tarnaka
• Kharkana
• Kukatpally
• Home delivery
• Vishakapatnam
• MVP Colony
• Home delivery

23. 23

24. Farmers direct sales

25. • Enebavi Coop
• Adarsha Coop
• BROMACS
• Swayamkrishi PC
• Kisanmitra coop
• GreenDunia
• Harita Coop
• Brahmalingeswara
Coop
• Giri Coop
• Tungabhadra
Coop
• Kadiri Coop
• Palabavi Coop
•Rayachoti coop
•Baghyalaxmi coop
• Punnami Coop
• Gayatri Coop
• Mydukuru Coop
• Naisargic Sheti
Beej Producer
Company
Kallem
Hub
Boddham
Hub
Dorli
Hub
Naguladinn
e
Hub
Staples Supply Chain

26. Bhoddam Food Hub

27. 27
Processingandstorage

28. oodprocessing

29. Certificate no : Q9186414570
PGSI/W(TG)-1276
Eco footprints
Quality Management

30. 30
PGS Regional
Council
• Certification for farmer groups
• Each group from 10-20 in a vicinity
• Certification offered for
• Crop/orchard production
• Livestock
• Bee keeping
• Wild collections
• Processing and handling
• All states

31. Farmers and livelihoods
Market Access
Advisories
Farmers Consumers Policy makers
eKrishi an joint initiative by Centre for Sustainable Agriculture and Greendunia
Farmer Collectives
Financial Services
Weather
Input
Shop
Custom
hiring
Still in ideation stage

33. Thank you
33
http://www.csa-india.org http://www.sahajaaharam.com http://www.grameenacademy.in
Call on 8500 68 3300
8500 78 3300
8500 98 3300
csa@csa-india.org
pgs@csa-india.org
info@sahajaaharam.in
organicmandi@csa-india.org
grameen@csa-india.org