The Indian organic market is booming. Are organic farmers getting a piece of the pie?
◊ By Rutaksha Rawat
Note: To access contact details of all organic brands, organic shops and organic product suppliers in India, buy the Organic Directory
Near the Hanuman Temple in Rahatgarh town of Sagar district, Madhya Pradesh (MP), lies the 4-acre organic farm of Ashish Patel, a third generation farmer.
Patel has fondly named it ‘Rasayan-Mukt Kheti Farms’, ie, Chemical Free Farms.
On this chemical-free patch of land, the 30-year old grows organic chickpeas, masoor dal, onions, tomatoes, brinjal, bottle gourd, pumpkin, aloe vera and black gram.
He also cultivates black wheat or kaala gehu, which is touted to be 60% more iron-rich than regular wheat. His organic produce fetches him Rs 600,000 (USD 7,894/Euro 7,020) per year in revenue.
Patel has opted for the farmer-friendly PGS (Participatory Guarantee Systems) certification, which is meant for smaller farmers catering for shorter supply chains.
His farm has already acquired the C1 status, which is granted after successful completion of year 1 of PGS application. His farm has been approved for the C2 level, which was deferred due to coronavirus-related issues.
“Everyone tells me, Ashish, get into value addition. Value addition is key. But how do I do it? I do not possess the machines, the expertise, the marketing machinery, or the monies for high-end packaging.”
With his grandfather and father as conventional farmers, Patel, a BSc Agriculture graduate, decided to go organic. After graduation he did continue the practice of conventional farming for 2 years but soon realised the world was moving towards organic farming. So, he converted, and has been an organic farmer for 6 years now, as of June 2020.
From the rural interiors of Sagar, Patel sells to consumers within MP through social media.
He shares with Pure & Eco India the many challenges he faces as a small organic farmer in India.
NEIGHBOURING FARMS ARE NOT ORGANIC.
While Patel’s 4 acres are strictly organic, the neighbouring farms on all sides are not. They still shower their crops with pesticides and regularly toss chemical fertilisers into their soil.
Patel constantly worries the wind will deliver pesticide residue on to his crops. He also worries that the flowing irrigation water from these farms will soak his soil in chemicals.
“Farmers do not have the funds and wherewithal to engage a marketing team and splurge on snazzy packaging. I can either farm or market.”
There is no practical solution to this conundrum other than that all farms convert to organic—an event that, according to Patel and his peers, will certainly occur within the next 10 years.
A conventional farmer typically uses 100 kg of chemical fertilisers in a year, which is not sustainable—both environmentally, as well as, economically. The nutrient quality in organic fertilisers is far greater and they’re gentle on the soil.
“It’s no secret conventional farming is no longer sustainable. Excessive use of chemical fertilisers and pesticides has killed off soil fertility and has created huge costs for farmers. Soil is becoming hard and stone-like with each passing year. It demands huge inputs but yields the same amount of produce each year. Organic farming is the only solution, or else we will be left with rock for soil within a decade. All conventional farmers will eventually need to go organic. There will be no other option left,” says Patel.
NO DEDICATED INSURANCE POLICY FOR ORGANIC AGRICULTURE.
Even if his land escapes the evil clutches of chemicals from neighbouring farms, pest attacks and plagues could, at any given time, annihilate Rasayan-Mukt Kheti Farms.
Although there is a National Agricultural Insurance Scheme (NAIS) in place for agriculture, there is no dedicated insurance policy for organic agriculture, even though India has the maximum number organic producers in the world (1,149,371).
In many other countries, there are separate insurance policies for organic agriculture.
“They buy produce from farmers like me but we often don’t receive a premium. We don’t get to see the glorious profits we hear or read about in the news.”
Threats like locust attacks and other setbacks met by organic farmers are not included in the agricultural policy when, in fact, this is crucial as organic farmers cannot use chemical pesticides and, therefore, need greater protection.
This is a huge deterrent for conversion to organic farming. “There is an urgent need for the government to come up with an organic farmer-friendly insurance scheme to encourage conversion to organic,” says Patel.
ORGANIC CERTIFICATION IS LONG-DRAWN. PGS NOT TRUSTED BY BUYERS.
Patel has waited patiently for two years since he applied for the PGS organic certification and he has been permitted to sell his produce.
But buyers are wary.
The organic certification (NPOP or National Programme for Organic Production) is long-drawn and tedious for small farmers with limited income, as it demands a waiting period of 3 years before farmers can begin selling their produce—a luxury they can ill afford.
PGS, which allows farmers to sell produce after the first year itself offers respite but comes with its own set of challenges, chief among them that buyers don’t trust it as much as the NPOP certification, owing to the fact that PGS-certified products cannot be exported and that PGS allows self-auditing by the farmers themselves.
Therefore, Patel finds himself stranded on a no man’s land, wherein he is neither a conventional farmer, nor is his produce fully accepted as organic.
According to Patel, PGS-certified products are more warmly accepted in local markets with smaller supply chains but are unwelcome in larger markets, as well as, in the export market. This restricts the farmers’ ambit.
Patel has resolved to take refuge in numbers. He has aggregated a community of 100 organic farmers and intends to form an FPO (Farmer Producer Organisation) once the group reaches a 200-member mark. He believes this will help escalate volumes and make market linkages a reality.
NO PLATFORM TO SELL DIRECTLY TO URBAN MARKETS.
Patel farms and lives in Sagar, which is removed from urban markets. From the hinterland, he has no option but to hawk his produce on Facebook.
While metropolitan cities like Delhi and Mumbai have dozens of farmers’ markets, these are not accessible by farmers living in the rural interiors. The logistics of weekend trips to these urban markets do not put forth a viable proposition.
There is a weekly bazaar at the tehsil level but it is limited to conventional produce. Rural consumers are still closed to the benefits of organic foods and much prefer the cheaper option of conventional foods, nutritional content notwithstanding.
Patel tried selling at the weekly bazaar but found himself an unwelcome outlier there. “People here haggle over the price of arhar dal, which we sell at only Rs 20 more than conventional arhar. But the same people will dine out on greasy, unhealthy restaurant food at steep prices,” he says.
CANNOT AFFORD MARKETING & BRANDING, WHICH CONSUMERS PREFER.
With his produce ready for sale under the ‘organic’ label, Patel finds himself face to face with another harsh reality: he cannot do marketing nor has the deep pockets to engage a team.
Despite their empathy for farmers, consumers tend to trust the most visible brands and those with attractive packaging and branding.
“Farmers do not have the funds and wherewithal to engage a marketing team and splurge on snazzy packaging. We can either farm or market,” says Patel.
Farmers could, of course, forget all about marketing and simply hand over their produce to companies, but they receive poor returns and the companies pocket a majority of the profits that Patel believes belong to farmers.
He shares, a few firms are predatory and do not honour contracts. They commission cultivation of crops and then don’t buy back the produce. This can be devastating for organic farmers.
If the government could offer succour in terms of grading, packaging, processing and marketing, it would motivate more farmers to convert into organic as profits would be more sustainable.
“Everyone tells me, Ashish, get into value addition. Value addition is key. But how do I do it? I do not possess the machines, the expertise, the marketing machinery, nor the monies for high-end packaging,” sighs Patel.
A light at the end of the tunnel is visible, however: “Thankfully, handcrafted food products are gaining favour in local markets. This trend may augur better sales for us without having to bother with expensive branding and packaging,” says Patel.
The coronavirus pandemic has brought with it greater awareness of the benefits of organic foods. In India, organic food sales have risen from 25-100%. It is expected this demand will hold past the pandemic as well.
With the growth of the organic industry, large corporates and MNCs are jumping on to the organic bandwagon.
Too many, for Patel’s liking,
“They will buy produce from farmers like me but we will never receive the premium. We are merely a means to an end and never really get to see the glorious profits we hear or read about in the news,” says Patel.
On the positive side, there is plenty of the pie to go around. “Literally 20 organic stores are opening shop every day in India. Corona has bolstered the organic movement. Consumers are more aware of immunity now and are more willing to spend. There is good enough demand,” he reconciles.
MYTH ABOUT ORGANIC FARMING – As per Organic Farmer, Ashish Patel
“There is a myth among conventional farmers that organic cultivation yields lesser produce than conventional. I’d like to tell fellow farmers that this is not true,” says Patel. He explains:
– In year 1 of organic farming, the farmer will get 50% lesser yield than what he was getting in conventional farming.
– In year 2, he will get 30% lesser yield than what he was getting in conventional farming.
– In year 3, he will get 10% lesser yield than what he was getting in conventional farming.
After 3 years, he will get the same outputs as he was getting with conventional farming, without any investment on chemical pesticides and fertilisers.
His soil would be now rendered rich and fertile, ready to yield pure chemical-free produce for generations to come.
Farmer Producer Cos. of marginal, small, Medium farmers that permits informal aggregation is the answer and SFAC is promoting this. PGS is transit to NOPP and welcome. NOPP demands 25 M buffer zone all around segregating farms using chemicals and FPOs obviate this need. FPOs will also facilitate modern storage, process & pack the produce after value addition. FPOs greatest advantage is sharing of assets among the, less ground water exploitation, rain-water harvest etc leading to water use efficiency. The progressive farmers like Patel should lead some others to the nearest Israeli Govt’s Model Farm and learn the technique of high value organic Production and value addition with optimum water use efficiency as Israeli’s desert land is the richest of Farmers.
Ashish: 25 M buffer zone all around your 4 acre can be designed as Poly Houses emulating Kerala Agri. Univ model, elevation from ground 10′ lower end 15 feet upper crest allowing max sun shine in to Poly house. Provide a Gate House that will also serve as storage and primary processing zone.
Kerala’s Ottapalam Unnikrishnan has invented a vertical 3-4 layer farming employing 3″ HDPE pipes with perforations at desired distances that allow placing Grow Bags for raising crops, connect the nutrient-fortified irrigation pipes to grow bags using cotton or jute threads! Here is combination of vertical farm with efficient water
use; elsewhere in Kerala, a Terrace Farming guy is irrigating his 1500 sq ft terrace crops with 7.5 lit water employing wifi and remote control with his smartphone. In USA, 40′ high warehouses serve as Vertical Farms, 10-15′ highs re babies per this!
Ashish: 25 M buffer can be made better use of by emulating Kerala Agri Univ Poly House design – 10′ elevation at low and 15′ at high, allowing optimum sunshine fall into the Poly House. This allows 4 layers of vertical farming! Unnikrishnan in Ottapalam (Kerala) has invented fertigation system that connects 3″ fertigation pipes with perforations at desired distances and connect the grow bags above fertigation holes to pipes with cotton/jute threads. Your 4-acre holding grows! There is another terrace farming enthusiast also in Palakkad, Kerala who, sitting in his living hall, irrigates 1500 sq ft terrace garden with just 7.5 litre bucketful water using his remote smart Phone and wifi. As an Agri Graduate you can improve on these techniques. Let me know by email your success story that I can spread far!!
I am interested in investing for a Emarket place to buy and sell organic farm produce. If any one interested and has a plan, share with me.
My invention, ‘Product Protection Cover’ on Ashish Patel’s produce will create brand value for him. his promise of quality food will be reach in non-corrupt way upto the consumer and help grow trust in between them.
Greatest issue is to secure support from Govt. in the form of subsidy for agro processing activity. Right scheme has to be identified to suit the processing activity undertaken.
As an empanelled agro processing consultant, I offer free advice.
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Nice article.. we want to extend support to get a better price for organic Produce. May I request the author of this article to share contact details of Ashish Patel?
Sent contact details of concerned farmer over email.
thankyou for the wonderful information about the challenges faced by organic farmers.
Every city has a market for organic products, I agree that the mindset of tier 2-3 City dwellers is very price sensitive but the amount spent in logistics, supply chain losses etc to take these produce to big cities can be easily passed on to the consumer if the farmers aggregate and do a community level marketing. One such initiative has been started by a group of farmers in Bhopal which can be checked at http://www.SnehOrganic.com and is gaining traction. If farmer’s sell directly to consumer a lot of margins are created, part of which can goto marketing, packaging and small scale value addition which can be started by a small group and slowly more farmers will join. We believe that if community level growers near the city and community level markets in that city are created with direct access for farmers to these markets is created, the whole problem of higher realisation and affordability for the consumer can be achieved
Thank you. Brilliant strategy.
I have been searching a lot for a simpler explanation of all the challenges faced in Organic Farming which develop curiosity and alertness in mind. Thanks to the examples given by Ashish Patel we can finally understand and check the severity of these challenges.
Me a traditional farmer from पूर्वांचल, inspired by आशीष & the likes, is at the threshold of going organic. How to take the produce to end-user is the foremost concern, as wellfor me, as for other farmers. All are welcome to offer solutions for mutual benefit.
Can support Mr.Patel
We have mailed you his contact details.
Even I am also past 22 years never used chemical fertilizers and pesticides in my land. But how can get Organic Certificate.
You need to contact an accredited certification agency.