1. POTENTIAL FOR ORGANIC AGRICULTURE IN INDIA 4 th National Conference on Organic Farming Creative Agri Solutions Pvt. Ltd 7 th October, New Delhi 1

2. BACKGROUND  There are very strong views on the organic agriculture sector in India  One extreme view is that organic agriculture we will not be able to feed the growing population, risking food security  Another extreme view is that conventional agriculture is highly unsustainable for the soil and environment – we are feeding poison to the masses and achieving food security at the cost of nutrition security  Towards the end of the findings – we hope a balanced view emerges 2

3. WHAT ARE THE OBJECTIVES OF THIS STUDY?  Benefits of organic farming to soil health, farmer health and consumer health are widely known  Objective: Holistic perspective of the organic agriculture within the context of agricultural situation in India: 1. Where is the situation of India in the global scenario for organic agriculture? 2. What is the truth behind the myths? 3. What are some of the lesser known benefits of organic farming? 4. What is the vision of the industry players? 5. What are some practical challenges along the organic VC? 6. What are elements of a Strategy for a strong organic VC? 3

4. What is the Situation of India in the Global Scenario for Organic Agriculture? 4

5. SITUATION OF INDIA IN THE GLOBAL SCENARIO  In 1970s, developed countries emphasized organic agriculture the down sides of agriculture development through heavy use of inorganic chemicals emerged  In India, the main driver for “formalizing” organic agriculture in early 2000s was to meet the increasing demand in the global market – capitalize on premium prices for organic produce  In GR areas implications of heavy use of chemical fertilizers was becoming evident.  MoA and MoC (APEDA) initiated system for formalizing organic agriculture – NCOF and NPOP  Standards, accreditation bodies, certification agencies etc. emerged setting the stage for initiating exports of “certified organic”  Promoting agencies (Govt., NGOs and private) emerged 5

6. SITUATION OF INDIA IN THE GLOBAL SCENARIO  India advantage: 70% of the cultivable land of 140 mn hectares in the rain-fed and hilly areas were left untouched by Green Revolution – ease of conversion to “certified organic”  Challenge: Third Party Certification was complex and expensive for the large number of small and marginal farmers who could not participate in the emerging value chains for organic agriculture  Solution: Promoting Companies implemented ICS and “group certification”, emerging state certification bodies to rationalize cost of certification. Recently PGS also initiated (controversial)  Outcome: exponential increase in area under organic farming from 48,000 ha in 2003-04 touching less than a million ha in the current year 6

7. SITUATION OF INDIA IN THE GLOBAL SCENARIO  About 37.2 million hectares are under organic agricultural management (end of 2011 for most data).  India stands 7 th in terms of area under organic agriculture  India leads in the number of organic producers registered for certification  Area under organic certification is highest in MP followed by HP and Rajasthan  The total area under organic certification is 4.72 million Hectare of which 15% cultivable area (15%) forest area is 85%  In 2012-13 India produced around 1.24 million MT of certified organic products  In 2012-13 India produced around 1.24 million MT of certified organic products, exported 194088 MT, export realization 403 Mn USD 7

8. What is the truth behind the controversies? 8

9. WHAT IS THE TRUTH BEHIND THE CONTROVERSIES?  Can we feed the increasing population with organic agriculture (NAAS)?  A negative balance of about 8 MT of NPK in 2020, with continued use of chemical fertilizers at the present growth rate.  With most optimistic estimates at present, only about 25-30 % nutrient needs for India can be met by utilizing various organic sources.  Proved beyond doubt that on long-term basis, conjoint application of inorganic fertilizers along with various organic sources is inevitable  Does organic agriculture have lower yields(UNFAO)?  In industrial countries, organic systems decrease yields; the range depends on the intensity of external input use before conversion;  In Green Revolution areas (irrigated lands), conversion to organic agriculture usually leads to almost identical yields;  In traditional rain-fed agriculture (with low-input external inputs), organic agriculture has the potential to increase yields. 9

10. WHAT IS THE TRUTH BEHIND THE CONTROVERSIES?  Will the PGS system help the small and marginal farmers?  PGS system has strong supporters as well as critics  Supporters believe it will be helpful to small and marginal farmers who are currently left out of the movement  It has worked in other countries  Opponents believe it will dilute the rigor and hence quality giving a bad name to the system  Balanced view, it is a good first step to involve farmers who can later on move to conversion  Is organically produced food better than usual food?  No such conclusive proof to justify the nutritional superiority of the organically produced food. Conventionally produced foods have danger of chemical residues, the organically produced foods also bear the risk of contamination with harmful bacteria and other organisms inimical to the health of the consumers 10

11. What are some other lesser known benefits of organic agriculture? 11

12. LESSER KNOWN BENEFITS OF ORGANIC AGRICULTURE  Potentially reduce farmer indebtedness by reducing cost of seeds and other inputs along with reducing the requirement for purchasing seeds every year.  Impact of climate change, which is a huge area of concern can be reduced by organic agriculture – potentially reduce carbon sequestration as well as reduce GHGs.  Efforts to support “climate smart” villages have been implemented by my international agencies – use of crop residue for mulching etc.  Impact on women empowerment 12

13. 13 What is the industry vision for organic agriculture?

14. INDUSTRY VISION FOR ORGANIC AGRICULTURE Lead industry players are also the drivers of the industry. Their vision is based on sound understanding of the system  Breaking the niche to main-stream the organic sector by targeting 5-10 % cultivable area under organic agriculture – emphasis on rain-fed and hilly regions where chemical fertilizers have not reached  India can become a global leader in the market for organic produce  Driven by our traditional heritage and traditional knowledge of organic farming, India can become a global leader in R&D for organic farming.  India can become the regional hub for certification of organic produce – standards recognized by EU, US 14

15. What are some key challenges along the organic value chain? 15

16. KEY CHALLENGES IN THE ORGANIC VALUE CHAIN Research and Development  Large-scale investments required in R&D to develop scientifically proven PoPs  Social science research on impact of converting to organic  Private sector can potentially collaborate with SAUs and ICAR units for developing quality inputs Input Level Capacity utilization and financial viability of input units as organic inputs are yet a niche market  Quality and regulations for inputs along with prices  Credit support for conversion, extension information Production level  low yield during conversion,  high labor requirement,  low prices during conversion 16

17. KEY CHALLENGES IN THE ORGANIC VALUE CHAIN Aggregation  Collecting small marketable surplus from a large number of farmers  Ensuring quality of produce Processing/Storage  Availability of processing and storage facilities for organic produce  Labeling requirements Marketing  No specific Price Discovery mechanism for organic produce  Low consumer awareness Certification  Cost of certification  Different regulations for different regions/countries 17

18. What are the elements of a strategy for Strong Organic Value Chain? 18

19. STRATEGY FOR A STRONG ORGANIC VALUE CHAIN  Developing a vision document for the sector  Main steam the organic sector, bring 5-10% of the cultivable area of the country under organic agriculture  On the lines of support given to the software industry, give fiscal incentives, tax holidays to encourage private sector investments  Develop a strong research and extension system to develop PoPs and outreach to give information about organic technologies and production practices  Support to the organic input industry (R&D, fiscal incentives)  Support at the farmer level – inputs, technologies, labor (link with NREGA like in the case of Maharashtra horticulture), price for organic produce  Support post harvest processing and marketing – specific facilities 19