Organic Food

Organic Food:

Food products that are produced using methods that do not involve modern synthetic inputs such as pesticides and chemical fertilizers, do not contain GMO, and are not processed using irradiation, industrial solvents or food additives.

Organic Food Benefits:

  • Higher levels of antioxidants, vitamins and micronutrients such as zinc and iron and lower levels of nitrate, significantly reduces the chances of cancer
  • Reduces pollution, soil erosion and increases soil fertility, soil health
  • Better food tasteand nutritional value
  • Preserve our earth and ecosystem
  • Promotes animal welfare and biodiversity
  • Preserves agriculture diversity and support farming
  • Reduce our body’s total toxic burden by eliminating the use of synthetic chemicals

Global Market

Global Organic food market is rising at 10-12% per year, with the current market valued USD 100 billion (2016-17). It is further expected to increase to USD 138 billion in 2020 and USD 232 billion in 2025-26.

USA is the leader having 50% of global market share and European countries share 30% holding the second position in global organic food demand. Germany, France, Italy, UK, Spain, Netherlands are the major market for organic food in Europe.

In the global markets demand of Organic Fruits & Vegetables account 25-40% of total demand, giving opportunity for Indian companies in Export of Organic Fruits & Vegetables.

Indian Market

Organic food consumption is a trend in the western countries and is now being adopted in the Asian markets especially in India and China. In India, metro cities like Delhi, Mumbai, Chennai, Bangalore, Hyderabad and Pune have the biggest demand for these products.

Organic food generally costs more than the conventional food products, by almost 80-100%. This fact is a major challenge in a country like India. However, increasing health consciousness and disposable income in the country, has led to a continued and perhaps even increased demand for organic food.

The Indian organic food market is anticipated to grow at CAGR of 25-30% during 2015-2025. Market demand has increased from Rs.2,400 Cr in 2014-15 to Rs.3,200 Cr in 2016-17. It has potential to touch Rs.9,000 Cr by 2020 and Rs.25,000 Cr by 2025-26.

Conventional Agriculture Marketing

In the conventional distribution channel, there are multiple middlemen involved at different levels of food processing: storage, processing, packaging, logistics, wholesale and retail. As a result of which, these middlemen take away most of the profitwhich the farmers could earn. At the end, the farmers are left with a merely 25-30% of the retail sale price, paid by the consumers.

GroOrganic Model

GroOrganic aims to significantly reduce the number ofmiddlemen and connect the farmers to retail and export markets through “Integrated and Market-linked Sustainable Agriculture (IMSA)” model. In the IMSA model, FPOs are formed to assist the farmers in organic farming and theythemselves will do the processing, packing and storage. GroOrganic will buy the processed/milled products from the farmers at a premium price which will help farmers to earn good profits.

IMSA Model will also create the employment for the young entrepreneurs who manages the FPOs.