STATUS OF ORGANIC EXPORT & MARKETING Presentation by Dr. PVSM Gouri Advisor APEDA JANUARY 4, 2006 PUNE

PRESENT GLOBAL MARKET CURRENT MARKET : 31 BN US$ MAJOR MARKETS -- U.S.A : 12 BN US$ -- JAPAN : 3 BN US$ -- EUROPE : 10 - 11 BN US$ -- OTHER COUNTRIES : 7 BN US $ ANNUAL GROWTH : 20 - 30% MARKET SHARE : 1% OF TOTAL FOOD SALES INDIA’S SHARE : 0.001% ONLY

ESTIMATED GLOBAL MARKET BY 2010 EU - 46 BILLION US$ US - 45 ,, JAPAN - 10 ,, APPROX. 100 BILLION USDA (ITC STUDY)

OVERVIEW OF INDIA’S PRODUCTION & TRADE ( 2004 – 05 ) AREA UNDER CERTIFICATION : 2.5 million Ha (INCLUDING HARVEST FROM FOREST AREA) TOTAL CERTIFIED PRODUCTION : 377859 MT ACCREDITED I & C AGENCIES : 11 TOTAL QUANTITY EXPORTED : 8045 MT TOTAL VALUE OF EXPORT : 95 CR. NUMBER OF PRODUCTS EXPORTED : 35 % OF EXPORT : 3 * PERCENTAGE OF CERTIFIED AREA IS 0.03%

PRESENT STATUS FOREST AREA : 2.4 MILLION HA CULTIVATED AREA : 0.114 HA % OF ORGANIC CULTIVATION : 8 VS. CONVENTIONAL CULTIVATION % OF EXPORT QUANTITY : 2.12 INCREASE IN EXPORT OVER : 16 LAST YEAR (2003-04)

MAJOR PRODUCTS EXPORTED FROM INDIA RICE PULSES (SOYABEAN, LENTILS) OILSEEDS (SESAME, GROUNDNUTS) SUGARCANE PRODUCTS (JAGGERY & SUGAR) FRUITS (PASSION FRUIT/MANGOES/PINEAPPLE/LICHI) COTTON SPICES COFFEE & TEA DRY FRUITS HONEY COCONUT PRODUCTS

ADVANTAGE INDIA RECOGNITION OF INDIAN STANDARDS BY THE EUROPEAN COMMISSION POTENTIAL TO PRODUCE AND SUPPLY VARIED PRODUCT CATEGORIES VAST FARM LANDS AVAILABLE FOR CONVERSION PROGRESSIVE FARMERS RICH KNOWLEDGE BASE GOVERNMENT INITIATIVES IN PROMOTION OF ORGANIC PRODUCTS

COMPARATIVE ADVANTAGE INDIA 21 AGRO ECOLOGICAL ZONES PRODUCTION OF IMPORTANT PRODUCTS (TEA, SPICES, RICE VARIETIES & MEDICINAL PLANTS MANPOWER PROGRESSIVE FARMERS GOOD NGO NETWORK

PIVOTAL ROLE OF APEDA UNDER NPOP EVALUATION OF INSPECTION & CERTIFICATION AGENCIES RECOMMENDATIONS TO NATIONAL STEERING COMMITTEE ACCREDITATION SURVEILLANCE AND MONITORING REVIEW OF NATIONAL STANDARDS PROPOSED AMENDMENTS TO TECHNICAL COMMITTEE AND NATIONAL STEERING COMMITTEE INITIATIVES TO ESTABLISH EQUIVALENCY WITH THE IMPORTING COUNTRIES (EU, US & JAPAN) Contd…

PIVOTAL ROLE OF APEDA UNDER NPOP CONDUCT TRAINING PROGRAMMES FOR THE DOMESTIC AGENCIES INTERESTED IN SETTING UP CERTIFICATION PROGRAMMES. ENCOURAGE SCIENTISTS IN DEVELOPING PACKAGE OF PRACTICES FOR VARIOUS PRODUCTS IN ORGANIC FARMING ORGANIZE AWARENESS PROGRAMMES IN DIFFERENT STATES. PROMOTION OF INDIA ORGANIC LOGO IN THE GLOBAL MARKET PROVIDE FINANCIAL SUPPORT TO THE EXPORTERS.

OPERATIONAL STRUCTURE OF NPOP GOVERNMENT OF INDIA MoA MoC NPOP NSC TECHNICAL COMMITTEE NAB SECRETARIAT (APEDA) E C I & C Agencies PRODUCER PROCESSOR TRADERS / EXPORTERS

CATEGORIES FOR CERTIFICATION AGRICULTURE PRODUCTION PROCESSING OF PRODUCTS WILD PRODUCTS FORESTRY ANIMAL PRODUCTION AND PROCESSING * NOT USING SYNTHETIC INPUTS IN AGRICULTURE CULTIVATION IS NOT SUFFICIENT TO CLASSIFY PRODUCTS AS ORGANIC HOWEVER, SUCH FARMS ARE CONDUCIVE TO ORGANIC CULTIVATION.

MAJOR CONSTRAINTS PRICE EXPECTATION TOO HIGH IN RELATION TO QUALITY LOW CONSISTENCY OF QUALITY AND CONTAMINATION RELIABILITY OF EXPORTERS LACK OF INFORMATION ON AVAILABILITY AND CERTIFICATION (MARKETING)

MAJOR DOMESTIC MARKETS BANGALORE CHENNAI DELHI HYDERABAD MUMBAI UPPER CLASS URBAN MIDDLE CLASS

QUALITY & SAFETY GMP IS IMPORTANT PRESENT FOOD SAFETY REGULATIONS APPLIED TO ORGANIC FOOD PRODUCTS ALSO MICROBIAL SAFETY

CRITERIA TO SELL ORGANIC FOOD QUALITY (CERTIFIED ORGANIC) QUALITY (MICROBIOLOGICALLY CLEAN) QUALITY (ABSOLUTELY RESIDUE FREE)

MARKETING CHALLENGE FOR INDIAN ORGANIC PRODUCTS FOLLOW AND IMPLEMENT NPOP STANDARDS (EXPORT & DOMESTIC CREATE AWARENESS BY TRANSLATING KNOWLEDGE ON STANDARDS, CERTIFICATION & MARKETING TECHNIQUES BUYER-SELLER MEETS MARKETING COMMUNICATION MATERIAL IN LOCAL LANGUAGES PRODUCTS SPECIFIC PACKAGE OF PRACTICES ON-LINE MARKETING PR CAMPAIGN

ALTERNATIVE MARKETING APPROACH BOX SCHEMES HOME DELIVERIES COMMUNITY SUPPORTED AGRICULTURAL GROUPS FARMERS’ MARKET POPULAR FAIRS AND OTHER DIRECT OR INDIRECT SALES EDUCATE THE CONSUMERS ABOUT PRODUCTS GROWN OR PROCESSED PRODUCTS BUILDING TRUST AND CONFIDENCE IN ORGANIC AGRICULTURE

POTENTIAL TARGETS FIVE STAR HOTELS SUPER MARKETS MOTHER DAIRY HEALTH FOOD STORES EMBASSIES HOSPITALS AYURVEDIC CLINICS

PROPOSED INITIATIVES ALL INITIATIVES NEED TO BE UNDERTAKEN AND TACKLED IN A FOCUSED MANNER - IDENTIFY FOCUS REGION - IDENTIFY POTENTIAL PRODUCTS - TARGET AUDIENCE STRENGTHEN PUBLIC ASSISTANCE - PUBLIC ASSISTANCE - JOINT ACTION WITH THE TRADE INDUSTRIAL TRANSFORMATION INVESTMENT BY INDUSTRY - FOOD GROUP PROCESSORS/PACKERS

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