Organic produce in India is gaining more devout followers with health consciousness on the rise. The online and retail presence of stores that carry chemical-free produce has been slowly but surely been increasing. The increasing demand is not only from the local markets but also from international markets.
Tracing the rise of the organic movement
TechSci Research conducted a study called “India Organic Food Market Forecast and Opportunities, 2017”, according to which the Indian organic food market is expected to grow at a CAGR of nearly 19% between 2012 and 2017.
Growing food without chemicals
The term organic immediately rings up rupee signs in the mind. The association with cost is attributed to the extensive, meticulous and labor intensive process of agriculture without the use of chemicals at any stage. The land used for such farming should be certified and the certification process is long and tedious. With 4.2 million hectares of farm land certified for organic use, India is well on its way to becoming a giant in the global organic market.
The price of good health
Supporters of organic produce claim that the benefits of eating chemical free food will foster good health. The relative high cost is definitely a consideration that cannot be overlooked. The cost and health considerations are definitely contributors to the growth of the market in metropolitan cities like Bangalore, Pune, Chennai, Delhi, Gurgaon and Mumbai.
India set to outsource farming land?
International contracts for organic farming maybe the next step given the ready availability of land in India. The European, Japanese and US markets are on the lookout for cheaper organic produce as the farming and labor is expensive and fertile land is not easily available locally.
Karan Chechi, research director at TechSci Research, a global management consulting firm, was quoted as saying, “The availability of different types of organic products, less dependency on chemical fertilizers, increasing government initiatives for promoting organic farming and increasing investments by corporate giants are likely to push the market for organic foods in India.”
The study conducted by TechSci investigates the future potential of the organic market in India through statistics, industry behavior trends and information on market structure. The study also includes demand forecasting and organic food market projections. The study is a good starting point for investors and business owners as it aids the decision making process.