Production and Trade Performance of organic farming in India
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Date
2020
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Punjab Agricultural University, Ludhiana
Abstract
The present study entitled “Production and Trade Performance of Organic Farming in India” was
envisaged to examine the status of India in global organic production and to have an overview of the
regional spread of India’s organic production and export thereof. The formulations of the present study
have been based on the secondary data starting from 2012-13 to the latest available ie 2018-19. The
information on variables pertinent for the accomplishment of the stipulated objectives of the study has
been extracted from various issues of the assessment reports of the programs/organizations entrusted
with the task of overseeing the activities related to organic farming at the global and country level. In
order to study the state-wise organic production performance, the seven top-ranking states in terms of
organic production in TE2018-19 (Madhya Pradesh, Maharashtra, Karnataka, Uttar Pradesh, Rajasthan,
Odisha, and Gujarat) along with Sikkim (well-acclaimed organic state/having the remarkable
distinction of being fully organic state) and Punjab (agriculturally the most advanced state) were
selected. The selected states together accounted for 82 percent of India’s organic area and 90.05
percent production. India’s organic area increased nearly four-fold from 0.5 million ha in 2012 to 1.96
million ha by 2018. As of now, it accounts for 30 percent of the organic area in Asia and nearly three
percent of the global organic area. Asia accounts for close to half (47%) of the world’s organic
producers with 87 percent of Asian organic producers being Indian. The organic producers in India
have increased from 0.6 million in 2012 to 1.1 million by 2018 with each cultivating 1.7 ha up from 0.8
ha recorded during 2012. India’s organic production has doubled (2.6 million MT) by 2018-19 from
1.3 million MT in 2012-13. Nearly 90 percent of organic production comes from seven major organic
states of the country. Punjab accounts for only 0.3 percent of organic production from half a percent of
India’s organic area. Sikkim, winning accolades for being a fully organic state accounts for 3.3 percent
of India’s organic area and contributes only 0.02 % to the country’s total organic output. As high as
99.7 percent of India’s organic produce is certified organic. The organic exports to the tune of 6.14 lakh
MT from India translated into a realization of Rs 5151 crore in the recent fiscal ending 2019 up from
Rs 1156 crore in 2012-13. India’s major export products are oil and oilseed products, cereals and
millets, and sugar crops. Key markets for Indian organic exports include developed countries such as
the United States of America, the European Union, and Canada, which together account for 96 percent
of the country’s organic exports. The foregoing analysis points towards the ample scope for
propagating organic agriculture, given the large land base in the country. It has been estimated that if
the top four states viz. Rajasthan, Maharashtra, Uttar Pradesh, and Madhya Pradesh, together
accounting for 48 percent of the country’s cultivated area allocate additional one percent to the existing
organic area, the absolute addition would be to the tune of 0.67 million ha, which is equivalent to 8.6
times that in Sikkim alone. The competitive strength of the states in producing a particular organic crop
highlighted by the study can well be exploited to make the most of the opportunities thrown open by
the ever increasing organic trade.
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Citation
Shafiqullah (2020). Production and Trade Performance of organic farming in India (Unpublished M.Sc. thesis). Punjab Agricultural University, Ludhiana, Punjab, India.