Environmental Management Term Paper Presentation

Group -

Organic Agriculture in India

Submitted to: Prof. K. BalooniGroup 5, Section D

Anupam193 Deep 199 Daisy 197 Mahesh

221 Neeti 225

Pre Green Revolution Era- Ramayana- Mention of several manures like oil cake, excreta of animals in Arthashastra- Mention of organic manure in Rig Veda, Green Manure in Atharva Veda, etc- Mention of “Kamdhenu”, the celestial cow & its importance in soil fertility- At least one third of what you take out from soils must be returned to it implying recycling or post-harvest residue – Holy Quran

Green Revolution Era - Use of plant protectionchemicals including all pesticides likefungicides, insecticides, weedicides wereused extensively to protect plant from pestand diseases- the pesticide residue persistence inagricultural produce, food commodities, animal, feed, fodder, animalproducts, irrigation water arematter of serious concern as their presenceis more than maximum residue limit

Present Day Scenario (Organic Farming)

- contains more

vitamins, minerals, enzymes, traceelements and even cancer fighting antioxidants- Higher yields- improves the soil quality- high demand

Agriculture in India

3/18/2010 2

Criteria India Bangladesh Kenya

AgriculturalOverview

•18.6% of the GDP and involves 60% of the total labour force•largest overseas exporter of cashews and spices

•13–15% of Bangladesh's annual export earnings & 20% of the country's GDP, employing 60% of the total labour force•Land is fertile, but yields are usually low due to a lack of capital for input

• > 50 % of export earnings & 24 % of GDP •sector includes large-scale commercial farms, plantations & specialist horticultural units

Area under Organic Farming (Million Ha)

28,00,000 17,77,000 1,82,000

3/18/2010 3

Agriculture in IndiaTrends in developing economies ….

Criteria India Bangladesh Kenya

No. of Organic Farms 332 100 300000

Major Organic Crops Tea, rice, bananas, cotton, wheat, spices (mainly pepper and ginger), coffee, nuts, pulses, and herbal products

Tea, Shrimps, Cotton, Rice Vegetables, fruits, coffee, beans, nuts, essential oils, dried herbs, cosmetics and pharmaceutical products

Initiatives NPOP, INDOCERT, ICCOA, etc.

NayaKrishi Aandolan KOFA, KOPA

Farming Methods •Use of organic manure•Aerobic & anaerobiccomposting•Green manuring•Pests managed through neem

•Mixed cropping & crop rotation - highly effective method for pest management & nutritional health of the soil•Compost made of water hyacinth

•Trees are excellent for fuel wood and charcoal

3/18/2010 4

Agriculture in India….. trends in developing economies

Agriculture in India

“ Average growth of Agriculture and allied sector during the tenth five year plan was meager 2.4 % ”

India – Agriculture production hub ??

Agriculture & allied sector contributes nearly 22 per cent of GDP 60 % of the area sown is dependent on rainfall India is the largest producer in the world of milk, cashew nuts, coconuts, tea, ginger, turmeric and black peppersecond largest producer of wheat, rice, sugar, groundnut and inland fishWorld's largest cattle population (281 million)

3/18/2010 6

Agriculture in India

" 1,500 farmers committed mass suicide in India after having been driven into debt by crop failure "

Economical or environmental sustainability ?

Agriculture subsidies - helping or hampering ?

Small land holdings – fragmentation

Growing Concerns

Inadequate irrigation facilities

Slow progress in implementing land reforms

Modern agriculture practices - awareness, cost, land size ?

Socio-economic backwardness

3/18/2010 7

Agriculture in India

“ Around 55% of the farms in India are organic by default as majority of the farmers cannot afford to buy chemical fertilizers”

Recent Policies & Initiatives

Farmers

Food security

Farming Practices

Improved Quality Seeds

Awareness

Focus on organic, bio-dynamic farming

Agriculture credit, Kisan Credit, Special rehabilitation package for distressed farmers Agriculture debt waiver and debt relief scheme 2008Rashtriya Krishi Vikas Yojana Agri - marketing Kisan call centers

Technology Mission on oil seeds (TMOP), pulses and maize

National food security mission (NFSM) National horticulture mission

3/18/2010 8

Agriculture in India

“ Around 55% of the farms in India are organic by default as majority of the farmers cannot afford to buy chemical fertilizers”

Policy initiatives under consideration

Cooperatives

Amendment of Seeds Act, 1966

The pesticides Management Bill, 2008

3/18/2010 9

Concept of Organic Farming

“ Around 55% of the farms in India are organic by default as majority of the farmers cannot afford to buy chemical fertilizers”

Basic know how ….

Avoid usage of chemical

inputs

Environment & Local

farming system

Natural and farm resources

Biological diversity and

heterogeneity

Nutrients rich yield

Organic Farming

inputspest control

India 2008-2009 Vision India 2012

Exports $ 87 mn $ 1 bn

Market Share

0.2 % 2.5%

Area 8.65 lakh ha 20 lakh ha

India – Global footprints… Organic farming exports

State Exports (Metric ton)

Kerala 1232West Bengal 937

Karnataka 476Tamil Nadu 471

Punjab 541Himachal Pradesh 521

Maharasthra 375India (Total) 6472

Government

Stake holders in Organic Agriculture

Regulations Policies Research Extension

Farmers Processors Traders

Consumers

Producer Organizations• Cooperatives•Producer groups• Companies, projectseg. PDS, Ecofarms, Agrocell, Maikaal

Certification Bodies• Inspection• Certification• Standard developmente.g. IMO, SKAL, Ecocert, APOF

NGOs supporting Org. Agriculture

•Representing farmer’s interests• Information extension• Market development promotioneg. OFAI, BAAI, SOA

Organic Competence Centre

• Collect info and knowledge• Documentation & dissemination• Training & extension services• Policy initiatives, networking (ICCOA)

Supply Chain and

Quality Measures

Farmer Selection Site – Externality

Trust – Transaction Cost

Quality Inputs – Seed Certification Agency

Technology Checks e.g., Basmati Rice

Harvesting/Threshing/Storage

Clean Equipment

Neutral 3rd party certification

Cost ?

Maintaining quality through supply chain SCM model in organic agriculture …..

After the first year of conversion, yields climbed steadily and tend to approach the baseline yields of the previous system

Costs tend to initially be slightly higher as farmers invest (mostly labor) to adjust their fields to organic standards

By the third and fourth years, when certification occurs farmers have received an average 20%-30% higher prices

Initially, the selling price tends not the change since organically managed crops can always be sold as conventional.

Yields have tended to suffer by about one-third immediately after conversion as both farmer and soils adapt

YEAR 1 YEAR 2 YEAR 3 & 4

Implications – Conventional to organic Conversion……… transition from conventional to organic farming

Income = (Yield x Price) x Risk Factor – Production Costs

Stabilized Yield Reduced Risk – Production, biological, Financial, Price fluctuation etc

Reduce Input Cost

Conversion Benefits

Conventional V/s Organic Farming

Improved the net-farm incomes

Reduced the risk of pesticide poisonings, lead to more self-sufficiency

Improved food safety and reduced vulnerability, and improved the access to networks supporting knowledge exchange and political participation.

Risks

Risk and uncertainty related to the conversion period, such as temporarily declining yields and the lack of experiences and information

Benefits and risks associated …

Limitations, Potential & Challenges

• Market Information• Training• Storage Facility• Consumer awareness• Government Support• Certification cost

Limitation

• Geographical• Climatic• Ill Soil• Decreased Yield• Growing demand

Potential

• Policy Initiatives• Integrated Universities• Infrastructure and Funds for

scientific studies

Challenges

… weighing the potential of Organic Agriculture

Organic farming in Dry lands of India

Land Degradation

Food Security Employment Wind

Erosion

Soil and Climate

Condition

India's National Project on Organic Farming (NPOF 2005) has given top priority to the dry lands

Initially promote non-certified organic farming

Integrate efforts of supporting agencies

Encourage decentralized input supply

Develop organic farming cluster of villages

Promotional Strategies

Issues

Issues and promotional strategies …

Orex Health Foods Established: September, 2009 Founder : Chaitanya Varma, IIMK, Batch of 2008 Owns three organic ready-to-eat food outlets Serves IT Business Parks in Hyderabad Handling Certification Cost NGO Vested Interests Unavailability of whole range of organic food Deadlock in Demand and Supply

… an example of alumni of IIM Kozhikode

Agripreneurs: Business Opportunity ?

“ India was exporting organic products to the value of only Rs 730 million in 2003 and in 2007 this figure touched Rs 3000 million constituting almost 0.2 percent of the organic world market ”

• The seven sisters :-land surface of 262230km2-80% dependence on organic farming

• Jhum cultivation: Traditional method• Around 70.77% cropped area under shifting

cultivation• Large areas covered with forest

Threat to forest

resources??

Rapid population

growth: food insufficiency?

?

North East India: Organic Farming Case Study …

Socio-Cultural

• integrated with the socioeconomic fabric of rural society • Community based practice-equity• Almost completely lacking in feudal fetters • plays a central role in uniting villages and clans, and integrating the people• egalitarian mode of production, with women playing an important

economic role

Economy• Food sufficiency rather than income generation• No market structure; only 2% of boundaries shared with mainland India• Prevents them from being subject to the whims of the larger capital

market • local modes of commerce

Ecological

• Sustainable• Appropriate crop-mix or short-duration crops (particularly leguminous) for

maintenance and enhancing of the soil fertility status

North East India: Salient features

NAGALAND•Pre-capitalist livelihood generation activity for food sustenance•gross state domestic product is $1.4 billion in current prices•90% population dependent on agriculture•Driven by sustainability• Local market

MOKOKCHUNG•Usurpation of forest resources•Indian Government’s new “Look East” policy with respect to trade and commerce-negative impact on jhum •Military insurgency, land for jhum occupied, by the armed Indian state

North East India: Case study

Society of scientists:Sustainability of jhumcultivation, Food insecurityof the local population dueto the wrenching away oftheir primary mode ofsustenance

Trade promoting entities,private entities: wishingto utilize the land forspecific profit-makingventures???

North East India: Case study… conflict over Jhum cultivation

Alder based Jhumcultivation in Nagaland

Aji

Fixed capital (Rs)

Annualinvestment (Rs)

Annual turnover(Rs)

Annual profit(Rs)

Return to fixed capital(%)

Return to investment(%)

Profit to turn over(%)

62000 25277 74000 48723 78.58 192.75 65.84

North East India: Case study - Solution

Ngui Assoni: Rice Fish Cultivation inArunachal Pradesh

Potential to be largest organic food producer and major export center for global organic market

The synergy between comparative advantage and price-competitiveness

Public-private partnership should beencouraged and state governmentmust come forward to createinvestment friendly environment

North East India: FutureHarnessing the potential ….

Reference: Mr. Sudarsanan Nair, Element Organic Store, Kozhikode

Element Organic

Store

Only organic store in city, established 6 months

ago

Awareness among

public very low

Farmers in Waynad

supply spices under free

trade agreement

Kerala

Major factor – price and not healthy

living

Cereals supplied

from Kolhapur

Exports are increasing very fast and demand increase will need atleastdoubling of production in coming years

Very less effort from government side. Villages and farmers have to take initiative to shift to organic farming. First few years very bad

Internal bickering between Finance minister, an organic farmer and Agricultural minister harming the state

Strong integrated policy initiatives needed

Consumer Analysis - Kozhikode

“ India should target to reach at least Rs 40 billion by 2012 (domestic market and exports), thereby capturing approximately 2.5 percent of the current global market for organic products”

“GB Pant Agricultural University in Uttarakhand does

extensive research in this area ….”

“It has enrolled about 52,000 farmers and earmarked 71,000 hectares across the state to use only organic material for growing

crops, vegetables and fruits ....”

“ Karnataka government has set up an organic farming mission with budgetary

support of Rs.100 crore this fiscal .....”

“ Kerala declared some areas in Wayanad and Idukki hill districts as fully

organic ... ...”

“ This is the beginning in the government’s efforts at declaring some panchayats as fully organic by next year, leading to conversion of the whole State as organic in

the long run .....”

“When government banned rice exports, the farmers who had cultivated organic rice incurring more expenses faced huge

losses ….”

Recent developments ……

Kerala has an accredited organic certifying agency catering to the needs of the farmers.

launched two brands, namely ‘Kerala Organic’ and ‘Kerala Naturals’ to market organic farm produces

Marketing of organic produce is also being experimented in many places like Organic Bazaar in Thiruvananthapuram, Eco-shops in Thrissur and Kozhikode and, Jaiva Krishi Sevana Kendram in Kannur

Self help groups of women are encouraged to undertake organic farming of vegetables in some panchayats.

Policy / Initiatives in Kerala

”520 small and medium farmers in Marappanmoola village of wayanad district, owning on an average less than 2 hectares of land have organized themselves & now cultivate a mixed variety

• GM free villages• Availability of Affordable and locally suitable seeds

Ensure seed sovereignty of the farmers

• Organic farmers groups, clubs, SHG’s and cooperatives

Compact Area Group approach in organic farming

• protect traditional water , rain water conservation• testing facilities for soil, water, micronutrients and microorganisms

Improve soil quality and ensure water conservation measures

• Kaipad, Pokkali and Kole as “agricultural heritage of Kerala”

Conserve and improve agro-biodiversity

Organic Policy in India & Recommendations

• Organic Mela’s• state–wide awareness programmes on the advantages of organic produce• workshops, seminars for consumers, teachers, traders, farmers, government officials

Intensive campaign

• direct marketing / linkages by farmers groups with end user institutions• existing vegetable, fruits and grocery vendors• organic farm produce outlets• Tourism industry source organic produce

Channels for marketing of organic produce

• crop rotation, tree crops, cover crops, leguminous crops, green manure• Link organic municipal solid waste to farms –> organic matter recycling

Availability of quality organic manure to the farmers

• ensure markets for good quality input materials at reasonable price• training for local resource persons

Ensure farm inputs for organic farming

Organic Policy in India & Recommendations

encourage the use of organic farm produce in food industry

• “Jaiva Keralam” developed as a brand

Develop a simple certification process

• interest-free loans toespecially small and marginal farmers• assistance during conversion period

Provide financial incentives for promoting organic farming

• Introduce organic farming in educational institutions through academic inputs

Introduce organic farming in education institutions

Integrate of various departments, local self-governments and organizations

Organic Policy in India & Recommendations

“ The market for organic produce from and within India is expected to grow six to seven times in the next five years - INR 40 billion by 2012 ”

• Conversion of global agriculture to organic managementwould result in a global agricultural supply of 2640 to 4380kcal/person/day, increase production by 56 per cent

• Organic farms use 33 to 56 per cent less energy per hathan conventional farms

Food and Agriculture Organization says

• A country with 42,402 sq. miles of land and with 11.3million people, is completely organic

An example of Cuba

Dispelling myth of un-sustainabilityExample of Cuba ….

Questions ??