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Organic Produce in the Nilgiris – Promoting Local Markets
A MARKET STUDY REPORT
Keystone Foundation
Nilgiris
August 2006
Funded by AGRECOL, Germany Under the Project
- Local Markets Development in Organic Agriculture –
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TABLE OF CONTENTS
1. INTRODUCTION……………………………………………………………..…..…..5
1.1 Organic Farming in India…………………………………………………………………………………………....6 1.2 Rationale of Study…………………………………………………………………………………………. …...….8 1.3 Objectives…………………………………………………………………………………………………. . …...…8 2. LITERATURE REVIEW AND STUDY AREA……………………………….……9 2.1 Literature Review……………………………………………………………………….………………………………..……..9 2.1.1 Organic Agriculture Policy in India ………………………………………………………………………………………...9 2.1.2 Indian domestic market…………………………………………………………………………………………………......10 2.1.3 Export Market……………………………………………………………………………………………………………….11 2.2 Study Area …………………………………………………………………………………………………..….....12 2.2.1 Nilgiris…………………………………………………………………………………………………………………..…..12 2.2.2 The people……………………………………………………………………………………………………………..…….13 3. METHODOLOGY…………………………………………………………………..15 3.1 Phases of the Study………………………………………………………………………………………………..15 3.2 Sampling Frame…………………………………………………………………………………………...…… 15 3.3 Data Collection Technique………………………………………………………………………………….…….16 3.4 Methodology for Consumer Survey……………………………………………………………………………....17 3.5 Secondary Data…………………………………………………………………………………………….……..19 3.6 Analysis and Presentation ……………………………………………………………………………………......19 4. FINDINGS AND ANALYSIS OF CONSUMER SURVEY………………….....….20 4.1 Profile of Household Respondent…………………………………………………………………………………20 4.2. Awareness regarding organic and forest produce……………………………………………………………….……...... 21 4.2.1 Awareness or understanding of the term ‘Organic’………………………………………………………….……………... 22 4.2.2 Source of organic produce………………………………………………………………………………………………....... 23 4.3. Willingness to Buy, having bought and willingness to pay the premium……………………………………..... .24 4.3.1 Willingness to Buy………………………………………………………………………………...……………………….. .24 4.3.2 Having bought……………………………………………………………………………………...……………………. … 24 4.3.3 Willingness to pay the premium…………………………………………………………………...………………………... 25 4.4. Factors influencing buying action………………………………………………………………………...…………………....... 26 4.4.1 Place of purchase of foodgrains, spices and other food items except vegetables………...…………………………………. 26 4.4.2 Preferred place for availability of Organic products except Vegetables…………………………………………………..... 27 4.4.3 Place of purchase of vegetables………………………………………………………………...………………………...…. 27 4.5. Reasons for not willing to buy organic foods readily……………………………………...…………………...... 28 4.5.1 Concerns Raised………………………………………………………………………………...……………………...……. 29
4.6 Factors influencing buying action………………………………………................................................................. 29 4.6.1 Attributes in organic produce………………………………………………………………...……………………………... 29 4.6.2 Willingness to buy organic: Reasons……………………………………………………...………………………………… 30 4.7. Forest base Produce…………………………………………………………………...…………………………..………...... 30 4.7.1 Criteria for buying forest based produce……………………………………………………………………………………. 30 4.7.2 Having bought Forest based produce………………………………………………...……………………………………... 31 4.7.3 First item to be changed to organic in diet………………………………………………………………………………….. 32 4.8. The Perception of Environment Friendly Product……………………………………………………….……………….. 32
4.9. Attitudinal Profile…………………………………………...……………………………………………………………..…. 33 4.9.1 Significant Findings…………………………………………………………………………………………………………. 34
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5. FINDINGS AND ANALYSIS OF TOURIST SURVEY……..…………………….35 5.1 Tourist Profile…………………………………………………………………………….………………………....35 5.2 Awareness regarding organic and forest produce and reasons for buying…………………….…………………....36 5.2.1 Awareness of the source of Amla, Shikakai and other medicinal plants used in ‘herbal Products’…………..……………... .36 5.2.2. Reasons for buying organic ……………………………………………………………………………..………………….....37 5.2.3 Awareness on source of organic produce…………………………………………………………..………………………. …38
5.3 Willingness to pay the premium………………………………………………………………………………….... 38 5.4 Factors influencing buying action………………………………………………………………………………….. 39
5.4.1 Reading the literature written on organic and indigenous products…………………………………….…………………….. 39 5.4.2 Influence of Label and other information on buying action……………………………………………………………………39 5.4.3 Attribute of Organic Produce……………………………………………………………………………….……………… ..40 5.4.4 Criteria for buying forest based produce……………………………………………………………….………………………41 5.5 The perception of environment friendly products…………………………………………………………………...41 5.6 Fair Trade…………………………………………………………………………………...…………………….....42 5.7 Willingness to buy Indigenous produce………………………………………………………...……………...………….......43
6. FINDINGS AND ANALYSIS OF SCHOOL SURVEY……………………….…...44
6.1 Attitudinal Profile………………………………………………………………………………………………….....44 6.1.1 Significant Findings………………………………………………………………………………………………………….... 45 6.2 Possibility of using organic Foodgrains, fruits and vegetables………………………………………………………….. .46 6.3 Accepted level of price for organic food………………………………………………………………………………...…..... 46 6.4 Frequency of purchase……………………………………………………………………………………………………...….... 47 6.4.1 Foodgrains…………………………………………………………………………………………………………….……… 47 6.4.2 Vegetables and Fruits……………………………………………………………………………………………….…………. .47 6.4.3 Spices…………………………………………………………………………………………………………….………………48
7. FINDINGS AND ANALYSIS OF HATTI SURVEY…………...……………….. 48 7.1 Awareness regarding organic and forest produce………………………………………………..………………................. 48 7.2 Willingness to buy organic produce and willingness to pay the premium………………………….……………….…. 49 7.3 Willingness to grow organic…………………….………………………………………………….…………………….…… 49 7.3.1 Marketing problems………………………………………………………………………………………………………….. 50 7.4 Focus group discussion with women………..………………………………………………………………………...……... 51 7.5 The Earth Trust………………………………..………………………………………………………………………………… 51
8. FINDINGS AND ANALYSIS OF GREEN SHOP SURVEY………………...…. 53 8.1 Need for a survey……………………………………………………………………………………………………...……….. 53 8.2 Green shop customer survey……………………………………………………………………………………………...…... 53 8.3 Green shop Tourist survey………………………………………………………………………………….……………..….. 54 8.4 Hatti Survey……………………………………………………………………………………………………………..……… 54
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9. WAY FORWARD - FUTURE STRATEGIES AND RECOMMENDATIONS 55 9.1 Major Issues…………………………………………………………………………………………………...………………. 55 9.1.1 Need for greater awareness among producers and consumers…………………………………………………………...….55 9.1.1.1 Consumers……………………………………………………………………………………………………………….55 9.1.1.2 Producers………………………………………………………………………………………………………..……... 56 9.1.2 Government policy and program support for encouraging organic cultivation………………………………………..…. ..56 9.1.3 Marketing and Promotion……………………………………………………………………………………………..….… 56 9.1.4 Certification and Regulation………………………………………………………………………………………..……….56 9.1.5 Information exchange……………………………………………………………………………………………..…………56 9.2 Developing a strategy for marketing organic products ……………………………………………….………………….57 9.2.1 Marketing Strategy……………………………………………………………………………………………..…………….58 9.2.1.1 In Towns……………………………………………………………………………………………………..…………...58 9.2.1.2 In Hattis……………………………………………………………………………………………………………. …....58 9.3 Cultivating and organizing the supply base………………………………………………………………………..59 9.4 Future strategy for Green Shop……………………………………………………………………………………….………59 9.5 The organic Farm Shop………………………………………………………………………………..…………....................60 9.6 The organic Bazaar………………………………………………………………………………………………………. …... 60 9.7 Conclusion……………………………………………………………………………………………………………………60 REFERENCES……………………………………………………………………………..…………….62 ANNEXURES List of Hattis surveyed…………………………………………………………………………………… 63
Questionnnaires of survey…………………………………………………………………………… 64-77
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Keystone started work in the Nilgiris in 1995 with Adivasi communities on honey gathering and beekeeping. Initially work concentrated around these activities covering aspects of training, documenting practices, sustainable harvesting methods, hygienic methods of processing, use of bees wax and simple methods for domesticating bees. One of the biggest problems faced by the community was of marketing honey. The honey collected after hours of work in the forest with skill and years of ancient knowledge, sold for between Rs. 17-30/- ($0.35–0.65) (0ne US$=48 Indian rupees) in the local market. This situation led Keystone to take its first steps towards marketing this special product, by purchasing honey at twice the prevailing rate. This caused trouble with the existing traders in the market, but discussions with them helped resolve the issue. This helped in increasing the purchase price of honey, locally. Since then, Keystone’s work has expanded into several fields addressing issues of forest conservation, non timber forest produce, sustainable agriculture, revival of food crops, water resources, etc. Enterprise development is one of the major areas of work in Keystone, which links up to all other projects, providing support to market goods and services, in efforts towards viability. Value addition and production centres were initiated in the villages. Today, the programme markets several products from the community besides honey and bees wax under the Last Forest brand. These are coffee, pepper, silk cotton, lime, gooseberry and some other non timber forest produce (NTFPs) in minor quantities. Most of these are value added and packed in the villages, in resource/production centres. These products are marketed locally (50-60%) and the balance in some outlets in cities like Pondicherry, Auroville, Chennai and Coimbatore. Over the years, through networks and contacts, Keystone has continued to be in touch with several groups, NGOs and farmers who also need support in marketing. Some of these products are added to the marketing profile. Keystone has started 2 Green Shops in Kotagiri and Coonoor in the Nilgiris, which are exclusive outlets for these products (with another expected to begin operations by the end of the year).
CHAPTER ONE
INTRODUCTION Background and context Organic – A way of living that has completed a full circle and is now accepted as an ideal choice for healthy and sustainable living. In the natural cycles of production and consumption, human beings have experimented with various means to grow food. From natural farming to chemical applications, from green revolutions to integrated pest management, farming has witnessed several ups and downs. Yet, the underlying element that runs through most methods of farming is a need to preserve and conserve the soil. This element is manifested best through organic ways of farming and this is the prime reason of the return of this system of farming. An organic method of farming is the best means to ensure air, water and soil are, unpolluted leaving the environment safe for the present and future generations. The past forty years has seen man experiment with chemicals and now there are ample overt and subtle
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hints that chemical applications are unsafe with possible ramifications in the near future. Consumers, more now than ever before have woken up to this fact and are consciously demanding a better quality of life. This demand is being translated into a persistent demand for organic goods, with consumers in some cases, willing to pay a higher value for food that is safe and grown naturally. Consumers in the developed countries and a few developing countries have become more health conscious and they have started to spend more on green, healthy and natural food stuffs. The better selling products have been milk products and vegetables. One of the factors which promote growth in organic markets worldwide is consumer awareness of health, environment issues (Yossefi and Willer, 2002) and food scandals. One of the other key factors that influence further development of organic markets are increasing promotion and strategies, used by key players like retailers (Yossefi and Willer, 2002). Organic agriculture also offers trade opportunities for farmers in the developing and developed countries. The market of organic products is expected to grow globally in the coming years and high growth rates over the medium term (from 10-15 to 25-30%) are expected. This organic market expansion makes it possible for farmers to reap the benefits of a trade with relatively high premiums (Yussefi and Willer, 2002). However, this market is not well known to most farmers, especially those living in the developing countries. Absence of sufficient technical and market information and financial support also means that few farmers will risk changing their method of production.
Asian governments have recently become interested in organic farming with the expansion of the market for organic products and their potential for promoting sustainable agriculture. Accordingly, almost all have put priority on organic certification and accreditation, even though the major constraints in organic farming in Asia are still at the level of farm production. The proliferation of public organic standards and inspection systems, however, seems to have caused confusion among Asian traders of organic products. What is crucial is to build simple and transparent systems of guaranteeing the credibility of organic produce for the local and regional markets. This will also help build the farmers’ confidence for more complex international trade, if required.
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1.1 Organic Farming in India India is a country with a huge number of small farmers practicing rain fed agriculture and having production systems that are compulsively organic (they can not afford chemical inputs and also in many cases new technology suitable for their condition does not exist). According to the Indian Competence Centre for Organic Agriculture (ICCOA), the global market for organically produced foods is $26 billion and is estimated to increase to $102 billion by 2020. As part of 10th Five Year Plan (2002-07), the government earmarked Rs 100 crore (Rs 1 billion) for the promotion of sustainable agriculture in the country, but the main components of this initiative are to benefit export oriented initiatives, from the establishing of national organic standards under NPOP (National Programme for Organic Production), putting in place a system of certification for products, and establishing APEDA (Agricultural and Processed Food Export Development Authority) as the nodal agency to promote exports opportunities. The Central Government’s strategy on organic foods has always slanted toward the global market, leaving the critical mass of domestic consumers out in the cold. Currently, about 70 per cent of organic agriculture items produced in India are being exported. In developing countries, it is essential for major key players (e.g. NGOs that promote organic farming) and other organizations support farmers in these aspects. An organic movement is now emerging in India at different levels - producer groups, trainers and advisors, certification bodies, processors and traders. On the consumer side, there is a growing awareness on the effects of consuming pesticide laden food and with an increasing number of health and environment conscious people; the demand for organic natural food is on the rise. The prime concern is with vegetables and fruits, which many believe contains high amount of pesticides which cannot be eliminated by washing and cleaning.
Farming in the Nilgiris
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So, in the current context of some eco-friendly farming activities prevailing in villages, and an increasing demand for organic food it would be highly appropriate to facilitate local markets for organic and eco-friendly products which link the producers and consumers, directly besides creating a network between organic growers so that sustainability and progress could be achieved: 1.2 Rationale of Study Keystone’s experience from the past years points out that the effort of marketing organic homestead produces and forest products, grown and collected by indigenous communities, needs to be expanded. This will help in covering a greater number of farmers and popularizing organic products. Till now, Keystone has focused on the producer community by developing products, but presently it is necessary to address consumer related issues. It is important for the expansion and sustainability of the marketing effort to develop local marketing concepts. A step in this direction is to study the demand side - the customer profile, their needs and requirements with reference to organic products, especially from the Nilgiris. This information will assist Keystone in product development, alternate marketing avenues, improving packaging and increasing the range of produce. The `local demand’ for organic produce and awareness generated will enable the application of organic marketing principles by reducing packaging material, transport costs and also facilitate sustained use of these products. It will crucially, bring the consumer and producer closer and help bring change in the Nilgiris, increasing the preference for organically grown products. 1.3 Objectives The Objectives of the Study are:
• To analyze the demand and product criteria of different organic produce by consumer and product segment.
• To develop a strategic plan for the future for Keystone to promote and market organic products in the Nilgiris. The strategy will include the type of shops/outlets; packaging; quality; price range etc.
• To conduct a consumer survey in the Nilgiris for the demand, acceptability and interest regarding organically grown and value added products.
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CHAPTER TWO
LITERATURE REVIEW AND STUDY AREA
2.1 Literature Review Focus on an organic lifestyle has been less forthcoming in Indian as compared to much of the developed world. There are by far, too few organizations with most of them too spread out to make a concerted effort in promoting an organic life. As part of our endeavour to document prominent issues and concerns arising from the use and abuse of natural systems particularly agriculture, we embarked on an extensive literature survey. Encompassing different strands of thought processes, government initiatives and community organizations, the review looks into all aspects as a composite whole. The review also includes an extensive survey of literature on the Nilgiris, Indian Agriculture, and Organic Farming in India. Literature was gathered from a wide range of sources including the internet, IIRD Aurangabad as well as data and previous studies available with Keystone. 2.1.1 Organic Agriculture Policy in India The Indian definition: “Organic agriculture is a system of farm design and management that creates an ecosystem which can achieve sustainable productivity without the use of artificial external inputs such as chemical fertilizers and pesticides.” Legislation: The Indian government’s strategy for organic agriculture is covered by the National Programmme for Organic Production (NPOP) which aims to promote sustainable production, environmental conservation, reduction in the use and import of agrochemicals, promotion of export and rural development. This strategy is promoted by the Ministries of Agriculture, of Environment and of Commerce. Specific legislation has been developed only for the export of organic products. Support to organic agriculture Economic: A programme of direct economic support is provided to farmers; however this is limited in scale. As an incentive to adopt organic farming Rs 10,000 (approximately US $230) per ha is provided, both during the conversion period (3 years) and after (as required). The total cost is expected to be Rs 3.5 million (US $80,000) per year, till 2006-07. This support aims to compensate for losses during the conversion period, promote organic agriculture, support infrastructure
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development, for conducting feasibility studies and preparation of guidelines for organic production. Some other specific incentives do exist such as tax reductions and preferential conditions to credit. Research: Although support to agriculture is not specific to organic agriculture, backing is given to, for example, the development of biofertilizers and biological control of pests and diseases. Inspection and certification: India has very few locally based certification bodies, primary among them being INDOCERT, based in Alwaye, Kerala. However, international certification organizations have branches in India, a couple of active agencies being IMO India (head office in Switzerland) and Skal India (head office in Netherlands). ECOCERT International, from Germany, is also active within India. These organizations market for export to the European Union under article 11 of EU Regulation 2092/91, but also certify to standards of non-European Union countries. A National Accreditation Policy has been approved in India (May 2001) for the accreditation of certification bodies. The certification bodies already working within India are now being accredited. For the present, the National Steering Committee for organic Farming has been set up under the Chairmanship of the Secretary Of Commerce to the Government of India in association with members from the Ministry Of Agriculture. 2.1.2 Indian Domestic Market Though the benefits of Green Revolution in the 1960s, reached major production areas of the country, there were still certain areas and communities, especially adivasi groups that did not adopt the use of agro-chemicals. However, over the last few years an increasing number of farmers have consciously abandoned agro-chemicals and now produce organically, as a viable option to the Green Revolution.
Estimating the area under organic agriculture in India is a difficult task, as there is no central agency that collects and compiles this information. Different agencies have estimated the area under organic agriculture, differently. For instance, a study undertaken by FIBL and ORG-MARG (Garibay S V and Jyoti K, 2003) estimated the area under organic agriculture to be 2,775 hectares (0.0015% of gross cultivated area in India). However, another estimation through a survey undertaken by SOEL, Germany shows that the land area under organic cropping is 41,000 hectares. The total numbers of organic farms in the country as per the SOEL Survey are 5,661 but FIBL and ORG-MARG survey puts it as 1,426. The APEDA website puts the figure of land under organic cultivation as 25,08,826 ha (this includes wild herbs collection from forest area of MP & UP of 24,32,500 ha).
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Some of the major organically produced agricultural crops in India include spices, pulses, fruits, vegetables and oil seeds etc (Table I).
Table I: Major products produced in India by organic farming
Major products produced in India by organic farming Type of Product
Products
Commodity Tea, Coffee, Rice, Wheat Spices Cardamom, Black pepper, white pepper, Ginger, Turmeric,
Vanilla, Tamarind, Clove, Cinnamon, Nutmeg, Mace, Chili Pulses Red gram, Black gram Fruits Mango, Banana, Pineapple, Passion fruit, Sugarcane, Orange,
Cashew nut, Walnut Vegetables Okra, Urinal, Garlic, Onion, Tomato, Potato Oil seeds Mustard, Sesame, Castor, Sunflower Others Cotton, Herbal extracts
Source: Garibay S V and Joyti K, 2003
India is perhaps best known as an exporter of organic tea. Besides, organic products for which India has a niche market are spices and fruits. The nation has great potential for other products as well. ORG-MARG’s survey also proves the fact, as around 30% of respondents (that includes producers, exporters and traders) stated that organic tea is produced in India. This is the highest response for any single crop and next in line were spices, fruits, vegetables, rice and coffee (Garibay S V and Jota K, 2003). There was a small response for cashew, oil seed, wheat and pulses. Among fruit crops, banana, mango and orange are the most preferred organic products.
2.1.3 Export Market Organic agricultural export market is one of the major drivers of greening of agriculture in India. The current production of organic crops is around 14,000 tons (Garibay S V and Jota K, 2003). Of this, tea and rice contributes around 24% each, fruits and vegetables combined contribute 17% of the total production. India exports about11,925 tons of organic products that make around 85% of total organic crop production. Major export market for Indian producers are Australia, Belgium, Canada, France, Germany, Italy, Japan, Netherlands, Sweden, Singapore, South Africa, Saudi Arabia, UAE, UK, and USA. Estimated quantity of various products that are exported from India in 2002 is shown in Table II.
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Table II: Major organic products exported from India
Product Sales (Tons)
Tea 3000 Coffee 550 Spices 700 Rice 2500 Wheat 1150 Pulses 300 Oil Seeds 100 Fruits & Vegetables
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Cashew Nut 375 Cotton 1200 Herbal Products 250 Total 11,925
Source: ORG-MARG, 2002
2.2 The Study Area 2.2.1 Nilgiris Situated within the Western Ghats, which are an important area of tropical rain forests, the Nilgiris are ecologically important reserves of a vast natural heritage. The people, forests and the land are unique in many ways. The District consists of one of the most ecologically fragile areas in India, primarily due to its diversity in flora and fauna. It is part of the Nilgiris Biosphere Reserve, as declared under the Man and Biosphere Programme of UNESCO. The hills have a steep gradient and varied natural vegetation ranging from the Shola and Grassland in the Upper areas to the dry scrub forests in lower elevations. Traditional forests have been depleted and are under further threat, because of the increase in large tea plantations and commercial tree plantations. Consequently, problems of soil erosion, mono cropping and heavy use of chemical fertilizers and pesticides are pervading the district. The remaining forests are crucial for conservation of the flora and fauna and the sustenance of water bodies, consisting of two major rivers Bhavani and Moyar and their numerous tributaries. They irrigate large areas in the plains and generate hydropower for a large command area in the State of Tamil Nadu.
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2.2.2 The People The adivasi population, which occupies small portions of the hills, amounted to around 25,000 (Census of India 1991) – there has been little change since then. The main hunting and gathering communities consist of the Alu Kurumbas (5,000); Irulas (6,000), Jenu Kurumbas (1,000), Betta Kurumbas (3,000) and Kasavas (4,000). They are predominantly forest dwellers - hunters and gatherers, but have been gradually involved in agriculture as small cultivators. They used shifting cultivation and slash-and-burn techniques, until they were settled by the Government, post independence. Primarily, it is a subsistence economy in which hunting, fishing and collecting are combined with subsistence agriculture and some daily wage labour on the plantations. A study done by Keystone Foundation in 1998, among the tribal hamlets revealed that 39% are landless; 14% have less than 1 acre; 35% between 1-2 acres and 12% between 2-3 acres. With the increase of tea plantations, communities lost their usufruct rights. For most of the tribal communities, living is constantly a battle on the edge. Most adivasis depend for survival on daily wages, earning for their work on the plantations. Interestingly, the number of women as regular workers is much higher than the number of men. The maximum earnings per week, including NTFP collection/harvest are Rs. 200-250 per week (US$ 4-5). However, the type of work depends on the remuneration available and season. The history of change from traditional cropping to the newer commercial cash crops of tea, coffee and vegetables is interesting. In 1818, when the British entered the District, they found a “primitive population” practicing slash-and-burn agriculture. In the 1820s, the British first introduced vegetables. The Badagas, in the plateau area of the Nilgiris took to the cultivation of beans, cauliflower, cabbage and carrots on a large scale. In 1897, 1600 ha of tea was planted. In 1949 the tea area increased to 8900 ha. Today, tea occupies 50% of Nilgiris’ total cropped area. It has changed the land-use significantly.
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Coffee was introduced on the slopes of the hills in 1838. This was the zone where the hunters/gatherers lived - Kurumbas, Irulas and Jenu Kurumbas were soon introduced to this crop, which spread within the forested lower zones. The main coffee plantations were in the Gudalur - Wynaad region but also on the slopes of Coonoor and Kotagiri Talukas. Coffee soon became an integral part of the homesteads of adivasis and a popular beverage amongst them. Nowadays, coffee is facing a threat from the more lucrative and hardy crop, tea. The farmers in the valley where supplying water to the fields is a less arduous task, carry on agriculture. However, the high doses of chemical fertilizers and pesticides, which have been used under the ‘conventional’ farming technology (along with ‘high yielding varieties of seeds’ and irrigation) are now causing severe environmental and health hazards, including the contamination of ground water. The fall in tea prices has helped in actively getting back people to agriculture. The fall in income is pushing them towards other viable land uses. Presently, there isn’t much hope of an immediate rise in tea prices and so more and more farmers, especially the small landowners are keen to get into vegetable/fruit based agriculture. Shifting from tea to vegetable farming is not an easy task, given the massive depletion of organic content and plant nutrients in the soil. Farmers are now compelled to use more and more chemical fertilizers and other inputs to achieve the same production level. The high input costs have discouraged many but has at the same time encouraged some to take up organic farming. A good number of the indigenous people are small farmers with very little assets who farm valleys and slopes using traditional methods in highly varied and hazardous environments. Given their circumstances they have no choice but to depend on locally available natural resources to maintain soil fertility and fight off pests and diseases. Whatever may be the reasons, the fact remains that the diverse farming systems managed by such small farmers should be considered as ‘organic’, as they do not rely on synthetic chemical pesticides or fertilizers but use indigenous knowledge and technologies that optimize nutrient flows and use local resources such as native seeds and traditional knowledge. In technical terms such farms are called ‘de-facto organic’ (as distinct from ‘certified organic’) farms, i.e., farms that rely exclusively on natural methods of building soil fertility and combating pests and diseases, but are not inspected and verified by any organic certification agency.
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CHAPTER THREE
METHODOLOGY
3.1 Phases of the Study The study was divided into three phases- literature review and discussions, field survey and data analysis & documentation of all these in the form of a report. Literature review on organic agriculture in India, studies on market demand and products available, Government policy, literature on history of agriculture in Nilgiris and in addition to all these, articles and studies carried out on organic agriculture were also looked into. 3.2 Sampling Frame The Study was conducted in the 4 townships in the Nilgiris – namely Ooty, Coonoor, Gudalur and Kotagiri and in select `hattis’ (settlements of the Badagas, an indigenous community) of the district. Towns as well as hattis were included to bring out consumer preferences, awareness and attitude towards organic and forest based produce in both urban as well as rural areas in Nilgiris. Within these townships, the respondents for the consumer and tourist survey were largely selected based on convenience and willingness to participate. Economic conditions and educational levels were also taken into consideration while selecting the samples for consumer survey. For the purpose of conducting the survey, potential consumers in Nilgiris have been segmented into the following categories: residents of the Nilgiris in Ooty, Coonoor, Kotagiri and Gudalur, visiting tourists to the Nilgiris, renowned residential schools and 10% of the total number of hattis in Nilgiris. The major reasons for selecting these segments were as follows: • Ooty – it is the district capital and a major hub for tourism activities. It is home
to several nationalized as well as private banks, besides being host to prominent personalities of the Nilgiris.
• Coonoor – The town is a taluk headquarter. It is also the commercial capital of the
Nilgiris district being the hub of most tea related business. There are a number of prominent tourist spots and eateries. Being en route to Ooty from the Tamil Nadu side, a large number of tourists have a habit of making Coonoor a stop. Finally, it is adjacent to one of the largest defence establishments at Wellington, which forms a major consumer base for food and non food products.
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• Kotagiri – It is a small town but with a prominent population of expatriates and Anglo Indians who form a highly conscious group with respect to eating safe and certified products. Kotagiri is also the base town of Keystone Foundation and hence an important sample to gauge effects of our trust based marketing and ten years of social campaigns to instill positive imagination in the minds of its populace.
• Gudalur – Being on the extreme north western edge of Tamil Nadu state with an equal mix of Malayalis from the neighbouring state of Kerala and Tamils from Tamil Nadu and the staging post for wildlife and adventure tourists who visit Mudumalai, Muthanga and Bandipur Sanctuaries - the town hosts a bewildering mix of population groups with differing tastes and differing outlook on lifestyle and customs.
• Residential schools: The Nilgiris being located at an average location of about
2000 metres above the sea boasts of a salubrious climate and is a natural attraction for tourists and institutions seeking a calm and peaceful climate. A large number of schools have been set up over the past century and they form a very knowledgeable and demanding clientele who seek to provide the best food products for their staff and students. They also form a probable target base for organic and forest produce.
• Hattis: The Badagas are the major ethnic group of the Nilgiris and main
producers of food products. Living an agricultural life, they are the most affected in case of any adverse changes to their life cycles and as such form an important response sector.
3.3 Data Collection Techniques Data was collected using following techniques: Field Survey: Primary stakeholders identified for the purpose of the study were residents both from urban as well as rural areas of Nilgiris
• A survey of residents in Ooty, Coonoor, Kotagiri and Gudalur was carried out. • Tourists visiting these parts were also surveyed. • Although the peak tourist season is from December to May, tourists coming in
the off-season from July to November have also been surveyed. Survey for peak season tourists has also been done.
Questionnaires: Questionnaires for Green Shop customers were designed. Regular customers as well as tourists were surveyed.
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3.4 Methodology for Consumer Survey Consumer survey and analysis is a fundamental prerequisite to the task of identifying a competitive advantage in each product/market. Consumer analysis thus furnishes us with market specifics from a consumer perspective. Approaches based on general information are less effective than a plan based on this type of specific analysis. It provides information needed to develop the elements of the marketing mix namely product, promotion, price and distribution. Survey through market segmentation - the process of breaking up a market into smaller parts or segments is usually referred as market segmentation. The needs of consumers in one segment are different from those in another segment and therefore different marketing strategies should be used to reach different segments. The results of the analysis gives an understanding of consumer’s needs segment by segment and some insight into the types of strategies needed to meet those. The consumer survey for marketing organic products was undertaken with the following objectives:
To understand the awareness level regarding organic produce among the general public including the villagers, school authorities and the tourists.
To identify the market segments which can be targeted. To estimate the willingness to pay for various segments. To study the general attitude and consciousness of the consumer and tourist
towards health, environment and society. Survey instrument: Detailed questionnaires were used to collect primary data from residents of Nilgiris. It was considered necessary to collect information about attitude (i.e. awareness, knowledge, liking, preference, etc) of various segments not only towards organic food grains, fruits and vegetables but also towards health and environment related issues in general. Hence the questionnaire also had a component using the ‘Likert Scale’. Several statements related to the aforementioned issues were considered and respondents were asked to state their level of agreement/disagreement with each statement The consumer survey questionnaire had been designed to test following issues:
What kind of an image of the environment-friendly product consumers have in their mind?
What attributes would consumers look into while buying something green/organic? Defining organic produce to understand the awareness levels, what degree of
interest the respondents had in different functions of green product ranging from
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minimal damage to environment, safety for the health of wildlife or other animals, or human beings; saving in energy, and environmental damage during manufacture.
For organic and forest produce, what was the readiness to buy, actual purchase behaviour and percentage premium they were willing to pay.
The factors which in the view of the respondent influenced the preference of people for environment-friendly/organic products.
Agreement or disagreement with statements signifying various kinds of attitudes towards environment-friendly products. For instance, whether a person refused a plastic bag while carrying a product or did she take cloth bag while buying grocery or vegetables. It was also asked whether people had looked around to find out about the possible sources of forest products and of organically grown food.
Also gender, income, age, occupation, education etc have been taken into account. Tourist Survey: The tourist season in Nilgiris is from December to May. Though in the last few years, there has been a high inflow of off-season tourists coming in the months of June to October. Therefore, the tourist survey was accordingly divided into three phases. The first phase of the survey was from August to October, the second phase from December to March and the third phase in May. School Survey: A questionnaire was used to collect the desired information. This questionnaire also had a component using the ‘Likert Scale’. Several statements related to the issues were considered and respondents were asked to state their level of agreement/disagreement with each statement Hatti Survey: Nilgiri district has close to 330 hattis which are divided into four groups. This classification has been done by the Badaga association based on the location of the Hatti. The first group has 125 hattis under it, the second some 97, the third 87 and the last, some 27 hattis. The main occupation of the people in the hattis is tea cultivation, though, for hattis in the valley with availability of water, agriculture is a major occupation. While for some hattis nearer to Coonoor and other towns there are a lot of people who are in the service sector. Most of these hattis have an average of 150-200 households and a population of 1000 with the largest hattis having close to 300 households. Focus group discussion were held in the randomly selected hattis to gauge the awareness levels on organic produce, ill effects of pesticides, interest in consumption as well as doing organic farming in their own fields, willingness to pay, buy and several other related issues were also covered in the discussions. The discussions were mostly held in mixed groups and in some cases focus group discussions were held exclusively with women. This was done to understand if they have a different outlook than men when it comes to using pesticides laden vegetables and food grains for household consumption as well as working in the fields using chemicals.
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Individual (personal and telephonic) interviews with the other stakeholders like organic tea traders, organic spice growers were conducted through detailed schedules prepared for each category of stakeholders 3.5 Secondary Data Websites of several national and international organizations were visited. Reports and publications of different organizations and individuals to obtain data on organic farming/trade in India, as well as details of various programmes initiated by governmental as well as non-governmental organizations on organic farming were collected. 3.6 Analysis and Presentation: The report presents the data analyzed for each of the segments-consumers, tourists, schools and hattis under various headings. The data has been used to determine consumer awareness, preferences, demand and attitude towards organic produce in the Nilgiris, which in turn would be utilized to formulate the strategy for locally marketing organic produce including the pricing, promotion, sales counters and the products to be marketed.
The chemical industry is pervading the lives of indigenous people
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CHAPTER FOUR
FINDINGS AND ANALYSIS OF CONSUMER SURVEY
Developing a market for organic produce requires more than farmers cultivating the supply. The organics industry requires a strong consumer base. Given the emerging demand for organic agricultural products abroad, development of domestic market is a must. Since there is often a premium for organic produce, educating consumers about its benefits is essential. However, in the absence of any systematic certification arrangement for organic products, the consumer perception and response will depend considerably on the credibility of the offering agency. There are several lessons which can be learnt from the response of potential consumers to organic, forest-based and environment-friendly products. Consumer survey analysis: Analyzed and presented below is the data gathered from the main towns in Nilgiris namely Ooty, Coonoor, Kotagiri and Gudalur 4.1 Profile of household respondents: A) Age Wise: Table III
Age group % age Upto 25 9% 25-35 17% 35-50 48% 50 yrs and above 26
B) Education: Table IV
Education %age Upto X 4% X to Graduation 41% Post-Graduation 33% Professional 22
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C) Occupation: Table V
Occupation %age Business 13% Service 47% Teaching 20% Professional 20%
D) Monthly Income: Table VI
Income range %age Upto 10000 31% 10000-20000 44% 20000-30000 19% More than 30000 6%
Findings from the survey in Ooty, Coonoor, Kotagiri and Gudalur 4.2. Awareness Regarding Organic & Forest Produce 4.2.1 Awareness or understanding of the term ‘Organic’ The survey conducted gave a good understanding of the awareness level among the people. The researchers were faced with a number of queries and doubts about organic produce from that segment of the survey base which is relatively ignorant about organic produce. It was an eye-opener in the sense that it brought out peoples’ general lack of awareness and misconceptions about organic and forest based produce and it in general their attitude towards environmental issues and concerns.
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62%
31%
7%
0%
20%
40%
60%
80%
100%
No 7%
Have heard about it 31%
Yes 62%
1
Figure I The survey brought out the above picture. 62% of the people surveyed said they were aware about organic food but in this category more than 25% had some misconception or believed it to be some kind of energy supplement. 31% of the people said they had heard or read something but were not exactly sure of what it was, while 7% mentioned that they had never even heard about it. Most of the people who professed to be aware also had vague ideas while other revealed their ignorance by stating it to be forest based vegetables, something related to organic chemistry and at some places, people even asked whether it had anything to do with computers. In fact, one of the respondents was so amused on explaining what organic produce was and she wanted to know if such kind of farming did exist. There seemed to be a complete lack of understanding on the organic production methods and its various social and environmental benefits. People are concerned about health effects and believe organic to be good for health, though hardly any of the respondents had exact knowledge on the type of diseases or health effects which could be caused by pesticides used on vegetable, fruits and food grains.
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4.2.2 People who look at the source of organic products
39%
50%
11%
0% 10% 20% 30% 40% 50%
A lways
occassionally
N ever
Figure II
People have expressed that they do look at the source of organic products. Infact they have expressed the above opinion for any kind of edible products they purchase. The figures below show the % of people who have said that they did try and find out the source of forest based product like shikakai, amla, and honey.
7 1 %
2 9 %
0 %
2 0 %
4 0 %
6 0 %
8 0 %
Y e s N o
Figure III
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4.3 Willingness to Buy, Having Bought & Willingness to Pay Premium 4.3.1 Willingness to Buy
Y e s4 6 %
M a y b e2 6 %
D e f in it e ly Y e s2 8 %
Figure IV
Among the respondents, the majority expressed willingness to buy organic food if available while none of the respondents answered in the negative. 26% were of the opinion that they may buy organic only if they were more convinced of its various benefits and had surety about the authenticity.
4.3.2 Having Bought About 19% of the respondents have bought organic products (vegetables, fruits, food grains, spices etc) and were still using some kind of organic produce. Their main concern was the lack of steady availability as well as the lack of availability of organic food gains. They were satisfied with the taste of the products and in this particular section, 40% of the sample was willing to pay on an average of 25% premium on the products. All of them admitted to buying the products more out of health concerns than environmental reasons.
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4.3.3 Willingness to Pay Premium sa m e a s n o n -
o r g a n ic2 2 %
5 - 1 0 % m o re4 9 %
1 0 - 2 0 % m o r e1 9 %
m o r e t h a n 2 5 %3 %2 0 - 2 5 %
7 %
Figure V
Although a lot of people expressed willingness to buy organic produce, if available but not many were willing to pay the premium. 22% of the respondents surveyed conveyed that they were willing to buy organic only if it was available for the same price as conventional produce. The majority of the people were willing to pay around 5-10% more than that for conventional products. According to them, food products are already highly priced and paying more than 10% would not be feasible economically. 29% of the remaining population willing to pay above 10% have a monthly income of Rs. 20,000 with some highly environment friendly people in the lower income group also willing to pay.
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4.4. Factors Influencing Buying Action 4.4.1. Place of Purchase of Food grains, Spices and other food items Except Vegetables
Faraway store11%
Nearest Store40%
Departm ental S tore43%
Others6%
Figure VI
Close to half the population surveyed are getting their food items, other than vegetables, from a departmental store while almost an equal number are getting it from the store nearest to their place of residence while some went to a store which was far-way but known for keeping good quality products. Here again, it is the people in the income range of above Rs.10,000 p.m., who were getting it from departmental store and also going to far-off stores. Table VII
Attitudinal Statement A B C D E The shops from where we get our food items stock good quality
9% 43%
28%
17%
5%
As can be seen from the above attitudinal statement only half the respondents believed that the shops from where they were getting the products stock good quality, while the remaining half either disagreed or answered that they were unsure of the quality of products especially food grains, spices and pulses.
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4.4.2 Preferred Place for Availability of Organic Products except Vegetables
A n y O th e r7 %
A t th e re g u la r
s tore 5 6 %
O rg a n ic O u tle t
3 7 %
Figure VII The majority of the people wanted the organic items to be available at the:
Regular store from where they currently purchase i.e. stores and departmental stores
Organic outlets – those who have purchased and are keen on purchasing but are concerned about authenticity and mixing etc., preferred an organic outlet. Once again this demand was from the respondents who are willing to pay above 10% premium and with a monthly income above Rs.10,000. A few of them (the other category) wanted the organization to set-up their own shop/outlet and market it.
4.4.3 Place of Purchase of Vegetables
7 6 %
1 6 % 8 %0 %
1 0 %
2 0 %3 0 %4 0 %
5 0 %6 0 %
7 0 %8 0 %
N e a r - b yV e g e ta b l e
M a r k e t
F a r - o ff V e g e ta b l eM a r k e t
D e p a r tm e n ta lS to r e
Figure VII
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76% of the people in the towns picked up their vegetables from the near-by vegetable market. Though only 8% were regularly getting it from the departmental store, a trend seems to be emerging. A few of them from the (near by vegetable mkt category) admitted to buying from departmental stores too.
76%
17% 7%
0%10%20%30%40%50%60%70%80%
Near-byVegetableMarket
WeeklyOrganicMarket
DepartmentalStore/Others
Figure IX
The majority, as can be seen from the above figures, want the organic vegetables to be available in the vegetable markets itself but in a separate stall, with some kind of proof of the produce being organic. They were willing to buy the products on trust basis provided a known non-governmental organization (NGO) like ours was also involved with the farmers /traders who would sell these organic produce. 4.5 Reasons for Not Willing to Buy Organic Foods Readily Lack of awareness is the main reason for non-consumption or lack of willingness to buy organic produce. Given the information on these produce the health, environmental and social benefits associated with it, almost all participants in the survey expressed willingness to consume organic foods mainly due to health reasons. 4.5.1 Concerns Raised People who had consumed as well as potential customers raised some serious concerns about organic products:
A prime concern was the continuous availability of these products followed by the range or variety available.
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As food grains are not grown in the hills there were questions on its availability and the price at which it could be made available.
It was followed by concerns on authenticity; though majority felt that trust based marketing by a known NGO like ours in the region was acceptable, some of them wanted some kind of distinguishing mark or certification which would help them identify organic produce.
4.6 Factors Influencing Buying Action 4.6.1. Attributes in Organic products
1 1 % 1 3 %
4 0 %3 6 %
0%5%
10%15%20%25%30%35%40%45%
O rga nic la be l Fa ir ly t ra de d E nv ironme ntfr ie nd ly
B e ne fit ingt r iba ls or
othe rma rgina lize d
se ct ions
Figure X
The above figures give a clear picture of the attributes people look at or they said they would look at while buying organic produce. In the local context, people said they wanted the produce to be environment friendly as well as fairly traded. They were not very concerned about an organic label as long as it is being marketed by a known organization in the Nilgiris.
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4.6.2 Willingness to Buy Organic - Reasons
B e ca us e of it s pe r ce iv e d
be t t e r qua lit y9%
I t ’s a s t a t us sy m bol
2%
For E nv ir onm e nt
R e a s ons6% For H e a lt h
R e a s ons83%
Figure XI
Clearly it is for health reasons. More and more people believe that the quantum of pesticides being used by the farmers is much more than the specified quantity. Also, the pesticides cause a number of health problems even among the young. They are concerned about the kids whom they feel have lost the resistance to diseases and there has been a growing incidence of chronic diseases among the middle aged. A few believed it to be of better quality in terms of taste and nutritional value.
4.7 Forest Based Produce 4.7.1 Criteria for Buying Forest Based Produce
1%6%
89%
4%
0%
20%
40%
60%
80%
100%
Series1 1% 6% 89% 4%
social consciousnes
-fairly traded -good, pure and a natural
-sustainably harvested
Figure XII
For nearly all the respondents, the prime criteria while buying any forest based organic produce like honey etc., is that the product has to be good, pure and natural
31
i.e. without any artificial contents. People said they were concerned about the products being fairly traded so that the adivasis who generally collect such item get a fair share but the prime concern was quality of the product. 4.7.2 Having Bought Forest Based Produce
77%
23%
0% 20% 40% 60% 80%
Ye s
N o
S e rie s1 77% 23%
Ye s N o
Figure XIII 77% of the sample size had consumed or used some kind of forest produce. Being in the Nilgiris, in close proximity to forests, even the town people have either consumed or used them, especially honey which if not bought from stores, is bought directly from the tribals. 4.7.3 If Organic Products Were to be Included in Your Diet Then the First Item to be Changed to Organic would be -
Fruits23%
Raw Vegetables52%
Processed Foods5%Foodgrains
20%
Figure XIV
The general feeling among the people is that vegetables contain the highest percentage of chemical fertilizers. Not only do farmers spray a number of times to
32
protect crops from diseases, post harvest it is again put in pesticides to prevent it from getting spoiled (vegetables being highly perishable), this is done to prevent loss. The same feeling is expressed for fruits but then, it’s third on the priority list as it is consumed much less than vegetables and food grains. People believe food grains to be less harmful but since it is consumed in the highest quantity, there is a demand for it. Since wheat, rice etc are not grown in the Nilgiris, there were concerns on the price for which this would be available. 4.8 The Perception of Environment Friendly Products
saving in energy or laest
enviornmental damage during manufacturing
21%
Minimal damage to the
environment31%
safety for health of
wildlife,animals and human
beings48% Figure XV
Nearly half the respondents considered environment friendly products to be those which were safe for human health and happiness as well as safety of wildlife. 31% felt that environment friendly products are those that are protective of nature or safe for nature i.e. causing minimal environmental damage. Only 21% felt that the extent of pollution caused while manufacturing was the factor which is the criteria for slotting a product as environment friendly. Thus, this criterion evoked the least weightage. Also it had the highest number of people, least interested. One implication is that any so called environment friendly product such as herbal cosmetics/ayurvedic drugs may be highly environment unfriendly as per the manufacturing process and yet the consumers do not seem to take note of that.
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4.9 Attitudinal Profile Table VIII
Attitudinal Statement A B C D E
1 Farmers use excessive amount of chemical fertilizers nowadays
60% 33% 1% 6%
2 Food products grown using chemical fertilizers and pesticides is not good for health
62% 32% 1% 1% 4%
3 The foodgrains and vegetables we use is not harmful to health
10% 18% 22% 36% 14%
4 The shops from where we get our food items stock good quality
9% 43% 28% 17% 5%
5 Health of my family is my topmost priority
87% 95 1% 2% 1%
6 I am very conscious about general hygiene and quality of food but ignorant about issues like residues of chemical fertilizers and pesticides.
22% 40% 12% 18% 8%
7 I make minimum usage of plastic bags; I even refuse it while carrying a product
30% 42% 12% 14% 2%
8 I carry a clothbag whenever I go out to get foodgrains and vegetables
33% 45% 8% 1% 3%
9 Environmental issues are not just the governments concern but also mine
61% 35% 2% 1% 1%
10 I would switch brands or would stop buying a regularly used product for environmental reasons
28% 50% 15% 7%
11 I am satisfied with the taste of the food items I use
15% 62% 11% 11% 1%
12 I would buy organic food even though it may taste different from the food items I use now
18% 60% 16% 6%
13 If I were to buy something organic it is also because it has implications as to the conditions of the growers
14% 61% 14% 11%
14 I prefer foodgrains, vegetables and fruits which are uniform in size, appearance, colour etc
17% 40% 18% 18% 7%
15 I can make out organic food by its appearance; it would definitely not look fresher, be mild in colour and without uniformity in size and appearance.
13% 15% 54% 15% 3%
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4.9.1 Significant Findings From the data collected through the Likert scale, the following information on consumer opinion is available:
• 93% of those surveyed believed that the farmers were using excessive
chemical fertilizers and pesticides and an equal number believed such produce to be harmful for health.
• 50% of the respondents believed that the food grains and vegetables they used were harmful, while the remaining had 22% were neutral and 28% did not feel they were harmful.
• The same 28% in the above statement believed that washing/cleaning of food grains, vegetables and fruits eliminated the harmful effects of the pesticides.
• 52% of the respondents believe that the shop from where they buy and the brands which they buy are of good quality.
• 96% of the respondents believe environmental issues to be not just governments concern but also there’s and 88% said that they would stop buying a regularly used brand for environmental reasons.
• 78% of the respondents are favourably disposed towards buying organic food even though it may taste different from the food items they use now.
• 57% of the respondents said that they would prefer foodgrains, vegetables and fruits which are uniform in size, appearance and colour.
• 54% of the respondents said that they had no idea whether they could make out organic produce by appearance, colour and other characteristics, while some (28%) who had used the products or were aware about it agreed with the statement the produce would not be uniform in size, colour etc.
So the need is to increase consumer awareness on health benefits of organic produce and tackle issues of consumer preferences for homogeneity in size and appearances.
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CHAPTER FIVE
FINDINGS AND ANALYSIS OF TOURIST SURVEY
TOURIST SURVEY Nilgiris is one of the most popular tourist destinations in India as well as for travellers from abroad. The last tourist year saw a high number close to 19,00,000 visiting the hills. They are important potential customers and in fact, they are the main customers for the `Green Shops’. More than 80% of the revenue in these shops is generated by their purchases. Hence, questionnaires for Green Shop tourists were designed separately. Nilgiris being an ecologically sensitive region, of late it has been witnessing great ecological stress due to the high influx of tourists. In such a scenario, it is important to gauge the attitude of these tourists towards the region and environment in general. Moreover, we have also tried to assess their attitude and interest in buying indigenous products in a way to judge whether tourism is generating any monetary benefits for the indigenous community. The tables below give the profile of the tourists surveyed in the three phases:
5.1 Tourist Profile A) Age Wise:
Table IX Age group % age
(Phase I) % age (Phase II)
% age (Phase III)
Upto 25 6% 12% 5% 25-35 54% 51% 36.00% 35-50 30% 25% 47.00% 50 yrs and above 10% 12% 12.00%
B) Education:
Table X Education % age
(Phase I) % age (Phase II)
% age (Phase III)
Upto X 2% 1% 2.00% X to Graduation 45% 28% 40.00% Post-Graduation 37% 44% 31.00% Professional 16% 27% 27.00%
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C) Occupation: Table XI
Occupation % age (Phase I)
%age (Phase II)
% age (Phase III)
Business 27% 13% 30.00% Service 38% 38% 33.00% Teaching 18% 7% 9% Professional 17% 42% 28.00%
D) Monthly:
Table XII Income range % age
(Phase I) % age (Phase II)
% age (Phase III)
Upto 10000 18% 18% 5.00% 10000-20000 34% 28% 33.00% 20000-30000 18% 21% 22.00% More than 30000
30% 33% 40.00%
5.2 Awareness Regarding Organic & Forest Produce and Reasons for Buying
5.2.1 Awareness of the Source of the Products like Shikakai & Amla or Medicinal Plants used in ‘Herbal Products’
Yes74%
No26%
No66%
Yes34%
Series 1 Series 2 Series 3
Figure XVI In the above question we have a large variation in the data generated from the survey. In the first phase we have 74% of the tourist saying that they are aware of the source of products like ‘shikakai’ and ‘amla’ or the medicinal plants used in herbal products. In the second phase, we had only 34% saying they know about the source of the asked products while a majority 66% said they did not know about the source of these things.
24%
76%
Yes
No
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The difference in the answers can perhaps be linked to the fact that the type of tourists who visit the district in the two seasons is very different. The earlier ones, are off-seasons tourists looking for discounts. The other class is educated, rich and the main purpose of coming is for merriment with a lot of disposable income. We find the results in the third phase similar to that of first phase though these are not off-season tourists but as the profile shows, highly educated and middle-aged. 5.2.2 Reasons for Buying Organic
7%
64%
12%
17%
0%
62%
22%
16%
0%
62.00%
26%
12%
It's a statussymbol
For healthreasons
Forenvironment
reasons
Because of itspercieved better
quality
Phase IIIPhase IIPhase I
Figure XVII In the tourist survey also, as in case of consumer survey, we see that the major reason for buying organic produce is for health benefits. The tourists were also concerned with growing residues of pesticides and the adulteration in products. From the survey in the first phase, we see that there are atleast 7% who believe consuming organic produce to be some kind of a status symbol (all the respondents were from metros) due to the price premium associated with it. In the last phase of the survey, we also see a significant rise in the percentage of respondents who say that they would buy organic because they think organic to be environment friendly.
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5.2.3. Awareness on source the organic product
49%
41%
10%
67%
26%
7%
53%
45%
2%
0%
10%
20%
30%
40%
50%
60%
70%
1 2 3
AlwaysOccassionallyNever
Figure XVII
In the first phase of the survey, only half the respondents said that they looked at the source of the organic produce, while 10% said that they had infact never thought about doing so. According to the respondents this was true for any of the products bought by them. 5.3. Willingness to Pay the Premium
79%
20%
1%
72%
28%
83%
17%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
1 2 3
Willing to pay premium
Not willing to paypremium
willing to pay less thanfor conventional produce
Figure XIX 79% ,72% & 83% of the tourists surveyed in the three phases said that they were willing to pay a premium price for organic produce. 20%,28% & 17%, respectively, were not willing to pay a premium and in the first phase there were atleast 1% of the respondents who said they would pay for organic produce even less than for conventional ones. The primary reason according to them was less expenses incurred by the farmer in carrying on organic farming as the money spent on fertilizers and pesticides was saved!
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5.4 Factors Influencing Buying Action 5.4.1 Reading the Literature Written on Organic & Indigenous Products
42% 31%57%
37% 59%36%
21%7%10%
0%
50%
100%
150%
No
Sometimes
Yes
No 21% 10% 7%
Sometimes 37% 59% 36%
Yes 42% 31% 57%
1 2 3
Figure XX
The above question was to determine, whether the literature which we write on the packed products are being read. 42%, 31% & 57% respectively have said that they read them, while 37%, 59% & 36% have said that they read the literature etc depending on the product and price they were buying the goods at. And we have 21%, 10% & 7% saying they don’t read the written material. In the third phase there is a large variation in response. 57% of the respondents said that they read the literature written on the products while only a low 7% said they do not read the literature. 5.4.2 Influence of Labels & Other Information on Buying Action?
40%
45%
15%
52%
32%
16%
72%
25%
3%
0%
10%
20%30%
40%50%
60%70%
80%90%
100%
1 2 3
NoSometimesYes
Figure XXI
40
While we have generated data on what actually are the attributes which people look at while buying organic and forest based products, it was also essential to know whether such labels and information were being read and had any influence on the buyers. 40 and 52% of the respondents in phase 1 and 2 respectively have said that such information influences their behaviour almost always and an equal number say that (45% and 32%) it does influence sometimes. Only 15% and 16% said that such information has no impact on buying action. It is interesting to note that this section of the respondents mostly constitutes those who had earlier said that they do not read the literature. In the final phase we again see a lot of variation in the response. A majority of the respondents 72% believe that labels and other information do influence their buying action and only 3% believed that such things have no influence on their buying action.
5.4.3 Attributes in Organic Products
8%
10%3.50%
10%
9%3.50%
79%
80%
93%
3% 1%
0%
20%
40%
60%
80%
100%
socialconsciousness(tribal rights,livelihoods)
-fairly traded -good, pureand a natural
product
-sustainablyharvested
Phase I
Phase II
Phase III
. Figure XXII
As can be seen from the above graph, the stress by the tourist is on an organic label and on the product being environment friendly. While at the same time, we see that an ‘organic label’ is the least concern for consumers in Nilgiris. Another interesting factor is that those stressing on an organic label mostly come from the very high income group of having a monthly income above Rs. 30,000/-.
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5.4.4 Criteria for Buying Forest Based Produce
24% 39% 25%
13%16% 5%
50% 32% 55%
13%
13%15%
0% 20% 40% 60% 80% 100%120%140%
Organic label
Fairly Traded
Environment Friendly
Benefitting Tribals and other Marginalisedsections
Phase IPhase IIPhase III
Figure XXIII
79, 80 & 83% of the tourists have said that although all the attributes did matter but their prime concern while buying any forest based product was for it being good, pure and natural. This information was gathered to help us put down the literature on the products in a way to influence the buying action. This result also shows that its quality and value for money which matters most for buyers. 5.5 The Perception of Environment Friendly Product
26% 61% 13%
37% 51% 12%
29% 53% 18%
0% 20% 40% 60% 80% 100%
1
2
3
Minimal damage tothe environment
safety for health ofwildlife,animals andhuman beings
saving in energy orleast enviornmentaldamage duringmanufacturing
Figure XXIV
Here, we see that most of the respondents have a perception of environment friendly products as that of something which is safe for the ‘health’ of wildlife, animals and
42
human beings. The irony is that most of the ‘safe’ and ‘herbal’ products actually cause a lot of environmental damage during their manufacturing process. So to understand this, the level of environmental awareness and perceptions needs to be changed. 5.6. Fair Trade
56%
24%
70%
32%
13%
19%
6%
50%
7%6%
13%4%
0%
10%
20%
30%
40%
50%
60%
70%
Definitelyyes
sometimes No Neverthoughtabout it
Phase IPhase IIPhase III
Figure XXV
Questions on fair trade have generated a lot of difference in the opinions of the tourists. Tourists in the off-season, 56% of them said that fair trade definitely matters and (32% say sometimes) while buying any forest based /organic produce. In the main tourist season we had 50% of tourists who said that fair trade does not matter to them, and another 13% who say they never thought of such a thing. Infact many of the tourists misunderstood the term and thought it conveyed that the product was sold at a ‘fair price’ to them.
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5.7 Willingness to buy Indigenous Nilgiris Produce
43%
48%
57%
30%
27%
24%
22%
23%
19%
4%2%
0%
20%
40%
60%
80%
100%
120%
140%
160%
DefinitelyYes
Yes Maybe No
Phase IIIPhase IIPhase I
Figure XXVI
In all the three phases, we had almost half the respondents interested in ‘definitely’ buying an indigenous produce and one-fourth not being very sure. In the last phase, we had none of the respondents replying in the negative and in the earlier phase too, it was a low 2 and 4%.
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CHAPTER SIX
FINDINGS AND ANALYSIS OF SCHOOL SURVEYS
SCHOOL SURVEY The following schools in Nilgiris willingly participated in the survey and gave their opinion: We targeted only the residential schools in the region
Hebron School,Ooty, CSI,Memorial Ooty, St.Joseph’s Girls High School,Coonoor, St.Joseph’s Boys High School,Coonoor, St.Anthony’s Boys High School,Coonoor, Stanes Memorial School,Coonoor, St.Jude’s Public School,Kotagiri Fatima Girls High School,Gudalur
6.1 Attitudinal Profile The principal as well as the finance and canteen/food managers in the schools participated in the survey. Table XIII
No
Attitudinal Statement A B C D E
1. Farmers use excessive amount of chemical fertilizers nowadays
83% 17% 0% 0% 0%
2. Food products grown using chemical fertilizers and pesticides is not good for health
83% 17% 0% 0% 0%
3. The foodgrains and vegetables we use is not harmful to health
0% 33% 50% 17% 0%
4. The shops from where we get our food items stock good quality
17% 17% 33% 33% 0%
5. Environment is a serious concern with us and part of our curriculum
67% 33% 0% 0% 0%
6. We try and promote eco-friendly habits among students and set examples
33% 50% 17% 0% 0%
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7. Health of our students is the topmost priority after education
83% 17% 0% 0% 0%
8. Taste of food is not very important
0% 17% 0% 66% 17%
9. The Management is very conscious about general hygiene and quality of food but ignorant about issues like residues of chemical fertilizers and pesticides.
0% 17% 17% 66% 0%
10. It is not feasible for the school to make use of organic foodgrains, spices, vegetables and fruits
0% 17% 49% 17% 17%
11. Having set up a school in the Nilgiris we are bound to contribute in some way to the indigenous people as well as conserve the ecosystem
17% 66% 17% 0% 0%
6.1.1 Significant Findings
• 83% of the school authorities believe that the farmers use excessive amount of chemical fertilizers and pesticides nowadays and an equal number also believe that such produce is very harmful for health.
• 50% said that they had no idea whether the food products they were using is harmful to health.
• Only 33% believed that the shops from where they were getting the produce stocked good quality.
• 49% of them felt that given the high costs they had no idea if using organic produce was feasible for the school.
• 83% of them agreed that since they had set-up a school in the Nilgiris, they were bound to contribute in some way to the indigenous people as well as conserve the ecosystem.
Almost all the schools included in the survey said that since they run on a tight budget incurring higher costs on food items was generally not feasible. But considering the benefits of consuming organic produce, they could perhaps consider it. But then again there were other considerations like:
o Regular supply o Variety in vegetables and fruits o Delivery to schools as per their convenience and in the quantity demanded.
Given the schools had to take no other extra trouble they said there could be a possibility of using organic.
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6.2 Possibility of Using Organic Foodgrains, Fruits and Vegetables The above considerations being met, 50% of the schools could see a probability of getting organic products. But there were still 33% who could not commit.
17%
50%
33%
0%5%
10%15%20%25%30%35%40%45%50%
Certainly yes Probably yes Can’t say
Figure XXVII
6.3 Accepted Level of Price for Organic Food
33%
17%
17%
25%
0%
0 % 5 % 1 0 % 1 5 % 2 0 % 2 5 % 3 0 % 3 5 %
S am e as non- organ ic
5 -10% m ore
10-20% m ore
20-25% m ore
m ore than 25%
Figure XXVIII
The above chart shows the willingness of school authorities to pay more for getting organic produce. Although the majority wanted it at the same price as non-organic items, 25% of them were willing to pay upto 25% premium. The charts below give the details of purchase of various food items by the school authorities; this information has been collected so as to help formulate a strategy if this particular segment is targeted.
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6.4 Frequency of Purchase 6.4.1 Food Grains
33%
50%
17%
Weekly
M onthly
Q uarter ly
B i-annua l
Figure XXIX
“Majority of the schools make a monthly purchase of foodgrains” 6.4.2 Spices
Q u a r t e r l y6 0 %
M o n t h l y4 0 %
Figure XXX
“Spices are mostly bought on a quarterly basis while some get it monthly” 6.4.3 Vegetables and Fruits
W e e k l y5 0 %
D a i l y5 0 %
Figure XXXI
“Fruits and vegetables are bought either on a weekly or daily basis”
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CHAPTER SEVEN
FINDINGS AND ANALYSIS OF HATTI SURVEY
HATTI SURVEY The Nilgiris district has close to 300-330 hattis. The hattis are divided into four groups (socially and politically), the first group has 125 hattis under it, the second some 97, third 87 and the last some 27 hattis. The classification has been done by the Badaga association based on the location of the Hattis. The main occupation of the people in the hattis is tea cultivation, though in hattis in the valley with availability of water, agriculture is a major occupation. While for some hattis near to Coonoor and other towns there are a lot of people in the service class. 7.1 Awareness Regarding Organic & Forest Produce A high level of awareness was found in the hattis surveyed regarding organic produce. People were aware of the ill effects of consuming pesticide laden produce. The people in the age group above 50 attributed the growing number of diseases among them to the consumption of food which was produced by the indiscriminate use of pesticides. Those above 65 years of age believed that the reason for their sound health as well as fit body and mind was due to the organic produce they have had in their youth when agriculture was done without the use of chemical sprays. In many places, people linked the high incidence of diabetics and blood pressure to pesticides, while in some cases they linked it to blood cancer and kidney failure. Infact some of the older women in the hattis linked it to infertility and loss of strength among the younger women.
Case I Lingayya is a seventy one year old man, though he looks ten years younger. He links his good health to the purely organic produce he has had in his childhood and youth. “But now I can see my health failing, there is no more organic produce grown in our villages. People want more output; even the kitchen gardens are full of pesticides”. His grandchild is often ill. He says that he doesn’t recall falling ill as a child and feels that children of this generation have no resistance. According to him, the food they consume cannot provide them good health infact, many a times that’s the cause of their illness. He says he knows that washing the potatoes is no good as the poison sprayed on it would not be washed away as it would have penetrated deep into the body of the potato and sadly enough there is no option but to consume it. His son has diabetics, the daughter blood pressure and recently a young man in the Hatti died of cancer - all this is, according to him, because of the poison we eat in the name of food.
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7.2 Willingness to Buy Organic Produce & Willingness to Pay the Premium Although there was close to 100% willingness to buy but when it came to paying a premium price, the willingness could be seen in only 20 - 30 % of the group. A fall in tea prices in the last couple of years has set off a pall of gloom in the hattis and the purchasing capacity of the people has gone down considerably. The green leaf prices have gone down from around Rs. 18/kg to Rs. 3-4/kg. So, accordingly there have been not many takers for a premium price though some 10-20% were willing to pay 10-20% more than that of conventionally grown produce. 7.3 Willingness to Grow Organic Some of the people engaged in kitchen gardening were of the opinion that although they were also using pesticides for the vegetables, they would avoid chemical use for green, leafy vegetables and the taste was much better, though the crops were slightly more prone to insect attacks.
Although, 100% of the participants in the focus group discussions held, were very keen to consume organic produce, hardly 10% were keen on converting to organic on their farms. This is because they say that the land has lost its fertility and the pests could only be controlled through spraying chemical
pesticides. Close to half the participants in the discussion were willing to convert to organic way of farming given a buy back guarantee or even if an organic outlet was set-up in the nearest town. Most of the willing consumers wanted the vegetables to be delivered to the hattis on a weekly basis or even an organic outlet in the nearest town was also preferable.
Intensive chemical based agriculture practiced in the hattis
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7.3.1 Marketing Problems Most of the farmers carrying on agriculture were happy with the returns but some did feel bad about the amount of pesticides they had to use. “We are forced to as there is no alternative, the soil has gone bad, the pests are immune, the expenditure is mounting and our health is at risk, but we have no choice; if training for organic farming is available then we would willingly shift.” Moreover, a great hindrance in the marketing of these produce is the consumer preferences. According to the farmers, the wholesalers refuse organic produce due to the small size and variability in the appearance. This lack of uniformity deters their sale as urban consumers are not aware of the reasons and they look for large sized, uniform vegetables with clear appearances. Dots and marks which are characteristic of organic produce is infact its greatest hindrance in marketing. The initial years of organic farming i.e. during the conversion period, the output is comparatively low, so the farmer needs some kind of support for sustenance. If the government would bring about a policy ensuring financial support to the farmers willing to convert, we might see a lot of organic produce; something which is becoming extinct or only for the privileged. All those working with pesticides in tea as well as vegetable growers did not report any kind of direct harm, say skin problems, but some did report occasional, irritating cough.
Case II Nanjan is a 74 year old man from Nedungula, a hatti some 15kms away from Kotagiri. It’s the place with highest vegetable cultivation in Kotagiri. Pesticide smell reeks in the water and air. “We have always grown vegetables and beans but now I no longer eat it; thats the only difference. Cabbage used to be a favourite of mine, but now I would not consume it even if anyone pays me to eat it. I am the grower but I know the amount of pesticides I use to produce them. It lacks taste and all it contains is chemicals”. His wife nods in agreement and adds that in her youth, they had large potatoes and it was all cultivated without using pesticides; she still believes organic farming gives good yield. She says that women of her age had, on an average ten children and worked the whole day in fields and at home. But the daughters and the daughter-in-laws of the village have only two kids and yet are unable to do half the amount of work they did. His 50 year old son brings in some beans seeds which he has stored for sowing. The Badagas are famous for their beans curry, they grow lot of varieties and it is a favourite. He says that they no longer grow nor have the varieties they used to and the beans give a feeling of being soaked in chemicals. The aroma of the seeds which was enough to pull them from the fields for lunch is gone and so is the taste.
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7.4 Focus Group Discussion for Women Women linked the high incidence of infertility, lack of strength and frequent stomach upsets and vomiting to the consumption of pesticide laden produce. A majority of them though wanting to consume organic were not willing to pay the premium, lack of tea prices being the reason. They also reported high number of illness among the infants which they attributed to chemicals.
7.5 The Earth Trust While carrying out the survey in the hattis, the name of ‘Earth Trust’ was mentioned by the villagers in and around Ooty as that of an organization supporting farmers in organic farming. A visit to the office and meetings with the team provided the following information. It was initially started as a savings group for women in Mynala, 8kms from Ooty. The women were working in the forest department nurseries. The health needs were also taken care of. Working with the farmers in the near-by valley, the group decided to work with the farmers as well. The NGO which was earlier known as HOPE, formed another organization called Earth Trust to work solely with the farmers. The founder of the organization is a British lady, Vanya Orr, who is the daughter of a former British forester and industrialist. The organization has bought two acres of land near Mynala and has had it certified organic through INDOCERT. The idea was to train the local farmers interested in organic farming to convert to organic.
Case III Madhi is the lone women organic farmer in Adikalhatti, 25kms from Ooty. She grows capsicum, carrots, beet root and other green leafy vegetables. She converted to organic farming some 4 years back and is proud and happy about it. She was helped by ‘Earth Trust’ in the conversion. They guaranteed buy back with a premium which helped her tide over the initial losses. But there is a hitch here too. She has to take the products all by herself to the organic shop in Ooty. It’s tiring as it has to be done on a regular basis due to the perishability of the items. She wishes to hire someone to take the products on the bus or maybe on a motored cart, but cannot afford the costs. Had some more farmers joined into the organic farming they would have collectively managed to hire a vehicle saving energy and minimizing costs. But inspite of her success there are hardly any takers in the village.
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Initially, the produce was sold to close friends of Vanya Orr in Ooty. There was quick appreciation from the users and word soon spread by word of mouth, increasing the demand for organic fruits and vegetables. By now, Earth Trust has managed to generate trust among the local farmers who now willingly came forward to join them. There was no certification involved and the marketing is done on trust basis. Initially all the produce was bought by the farmers to the NGO office in Mynala. The workers also managed to establish contact with interested customers in Bangalore, Coimbatore, Mysore and Chennai. The produce is being sent to the various places through the buses and other transport which ply on a regular basis. All this increased the demand manifold. This resulted in the formation of a farmers’ association to address pressing needs. It was then decide to keep a fixed price for the organic produce .The prices were fixed on a six monthly basis in consultation with the farmers so as to prevent the prices from fluctuating according to market vagaries and also to ensure sustained returns to the farmers. Seeing the growing demand it was also felt necessary to shift the base from the office in Mynala to Ooty. As a result, a shop has been set up in Ooty. The farmers have to send their supply to the shop from where it is not only sold to local consumers but also sent to other cities. According to them, the number of farmers wanting to join the association and convert to organic is growing. Not only is the assured market attracting them there is a growing need being felt by the farmers themselves to stop using chemical pesticides. Although there is no certification given to the products, the marketing is on a trust basis, the farmers are being given training on organic methods of production. Since it takes atleast three years for the land to be fully organic, the farmers are supported during the conversion period by being paid a price higher than the conventionally grown ones and lesser than purely organic ones. The consumers are also informed about the categories of the products. So as to be able to provide a smooth supply to the customers the demand for various fruits and vegetables is estimated in advance and farmers are growing the crops based on demand. All this is done by the association in consultation with the NGO workers.
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CHAPTER EIGHT
FINDINGS AND DISCUSSIONS OF GREEN SHOP SURVEY
GREEN SHOP SURVEY 8.1 Need for Survey The growing tourist number in the recent years coupled with the regular customers has led to a high demand and appreciation for Last Forest products. The need was felt to understand the reasons for the popularity and also for a constructive feedback from customers, which would help in improving the quality, packaging, service as well as identify the customer needs in terms of range, price, packaging etc. Since the shop already stocks forest based products and organic spices, the intention was also to determine if the regular customers would be interested in organic food grains, fruits and vegetables as well. 8.2 Green Shop Customer Survey
The Green Shop in Coonoor has some regular customers, mostly based in Coonoor and also some from Ooty. The customers vouch for the quality of products and appreciate the efforts - the environmental and social cause the products signify and promote. Not many people asked questions about reliability of the organic origin of the products. Apparently they trusted our credentials. But some people were very price conscious and a few were highly variety conscious. Most of the regular customers demand honey. Another popular product is a special gift pack consisting of spices and balms. Interactions with customers revealed that they found the products to be of better taste and the price
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reasonable and justified as the products were pure, environment friendly and also benefited the adivasis in the regions. This criterion was a major reason to enable developing a loyal clientele over the years. Earnest requests were made by many customers for stocking organic fruits and vegetables also. They were willing to buy such produce on trust basis without any certification. Besides, while discussing currently available products, customers wished that the shop stored more varieties of oil and some organic juices. Majority found the current shop timings of 10.00 to 7.00 pm convenient, although some did feel that keeping the shop open upto 8.00 pm would be convenient as on working days customers come to the shop after their office working hours on their way home. Residents of Ooty who know about Keystone and Green shop wanted a similar outlet to be set-up in Ooty. 8.3 Tourist Survey ‘In awe’ is what the tourists felt while visiting the Green Shop. They purchase on the higher limit??, infact a large part of the revenue generated by sales is from them. Besides Keystone products, the Green Shop also stocks products made by other indigenous groups as well as from NGOs’ across the country. These products are in high demand throughout the year. We have been unable to get any constructive points though a common complaint was that we do not advertise. Most of the tourist came to know of the place while walking in the area. 8.4 Hattis Residents close?? to the hattis in Coonoor and Kotagiri knew about the existence of Green Shop. But they had little idea about the products and reasons for the set-up. In numerous group discussions held with them, they showed keen interest in buying the products preferring bulk quantities of honey and spices. They are indifferent towards packaged goods and would rather buy bulk as this reduces cost and increases quantity without compromising on quality. They prefer means to get product delivery at the hatti itself.
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CHAPTER NINE
THE WAY FORWARD- FUTURE STRATEGIES AND RECOMMENDATIONS
With an estimated 3 million potential consumers of organic agricultural products in India, the gap lies in organized marketing. The domestic market for organic produce shows stark examples of inadequate retail presence, poor certification, an incomplete range, uncompetitive price points and government policies that are skewed towards exports. Yet, marginal growth has slowly become evident with the increase in organised producers, retailers and product offerings in the market. Yet faultlines exist, on the one hand certification has provided Indian organic products with inroads into foreign markets, on the other hand, domestic bound produce is largely uncertified or guaranteed, owing to the fact that most producers are either small or marginal farmers and poorly managed cooperatives. Besides, important marketing tools such as trade fairs and fair price markets are few and far between and usually too localised to have a large impact. Small farmers still have no significant retail platforms unless picked up by cooperatives or NGOs. What we must learn is that it is awareness and education in many countries that has brought about an unprecedented demand for organic foods. India must follow suit as public information and education grows and genuine demand for organic produce grows. 9.1 Major Issues Major issues confronting the production and marketing of organic products in the region and possible action points:
9.1.1 Need for Greater Awareness among Producers & Consumers
Awareness of organic farming/products could be enhanced through appropriate research and extension programs, as well as, educational/training and promotional activities.
9.1.1.1 Consumers: Although there is growing awareness regarding the ill-effects of pesticides, there is in all, a general lack of awareness among the urban dwellers on organic produce and the benefits of consuming them. Moreover, they completely fail to see the environmental and social benefits arising out of organic farming. As we can see, even for purely forest based products the concerns are on the quality and use and rarely on the source, harvesting methods or social benefits. So the onus is actually on the producer. The need is to shift this practice. The consumer awareness in this regard needs to be raised. Only then can a demand for such practices arise which would in the long run promote local markets for organic produce.
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9.1.1.2 Producers: The survey has shown that the major concern among the growers is lack of marketing support .Wholesalers refuse organic produce on the grounds that they are not bought by the urban consumers complaining of lack of uniformity in size, shape and colour. Besides, they fail to see environmental benefits arising out of organic farming. Even farmers who realize it, fail to convert to organic because for years, they have become accustomed to conventional chemical based farming. It’s the mindset which needs to be changed with increased awareness and practical demonstration of the benefits.
9.1.2 Government Policy & Program Support for Encouraging Organic Cultivation
To spur growth of the organic industry, especially, in the developing countries, there is a need for governments to place a higher priority on organic farming. To achieve this, relevant data on the impact of organic farming on environment and people's welfare, as well as, its role in sustainable agriculture should be generated and disseminated for better appreciation by the larger public.
Due to possible decline in yield during the conversion period, there is a need to provide some form of support or incentive to affected farmers. Advocacy and lobbying with the government to provide the organic farmers with infrastructure support including post harvest facilities for organic farming is an area to be worked on. There is a need to intensify research and development (R&D), undertake training of extension workers/farmers to enhance their technical know-how, and improve farmers' access to the required inputs.
9.1.3 Marketing & Promotion
There is a need to develop appropriate marketing channels for organic produce, including the establishment of direct links between producers and consumers. In this regard, innovative forms of marketing should be explored such as on-farm marketing and agro-tourism. As part of the marketing promotion effort, consumer education should also be undertaken.
9.1.4 Certification and Regulation
The fourth, is the need to improve access to the certification system considering that currently it can be very costly, especially, for small farmers/producers. A better alternative is to work on and develop alternative systems of certification like the Participatory Guarantee System.
9.1.5 Information Exchange
In order to stimulate further, the growth of an organic food industry in the region there is a need to establish/strengthen linkages/networking with stakeholders and other NGOs in the region. In this regard, it is suggested that sharing of experiences
57
and best practices on organic farming should be fast tracked through relevant networks and media.
9.2 Developing a Strategy for Marketing Organic Products Developing a market for organic produce requires more than farmers cultivating the supply. The organic industry requires a strong consumer base. Since there is often a premium for organic produce, educating consumers about its benefits is essential. We can project organic agriculture as a facet of a larger strategy to re-value rural life, and the traditions and culture that makes Nilgiris unique. It is imperative to build local markets and support and Keystone can initiate this by organizing public meetings, gatherings of consumers and farmers, and publish articles in the national press towards promoting an organic movement. Starting a bi-monthly/quarterly magazine that provides information on healthy and more environmentally sustainable products and promotes the cultural values of organic agriculture can prove to be rewarding. Involvement of an NGO like Keystone that has some credibility in society will certainly provide a push to marketing organic products. The survey proves that lack of formal certification may not come in the way if assurance/guarantee is available through some such intermediaries. Having already established a name and repute in the region with the ‘Last Forest ‘ products, it should not be difficult to start trust based marketing of organic vegetables and fruits grown in the region. If pricing and location (both could be based on the survey results) is convenient, a large number of people would consume the produce. People willing to pay more premiums may not necessarily be environment friendly. They are however, much more pragmatic and do not wish to adversely affect their lives just by purchasing pesticide laden food. Such people may not respond to highly emotive appeal related to being environment friendly or socially beneficial. Instead they may pay more attention to price, quality and other features related to value realization. Young, highly educated people who are not only willingly to pay premium but also motivated by environmental concerns could be reached through some existing environment fora. These young people may provide bulk of the demand. Within the Nilgiris, they may prove to be judicious consumers who seek to protect the ecology of the Nilgiris and conversely push organizations like Keystone towards enhancing quality. To reach out to those who are willingly to buy but would place convenience above other criteria i.e. wouldn’t go out of their way to come to organic outlets would have to be reached through a well formulated home-delivery strategy.
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Following the survey conclusions, we expect that we know better about consumer behaviour, their demand for various products and their willingness to pay, it is essential to organize the cultivators. Currently some cultivation of millets and spices has started with adivasis in the region. Badagas who are the main growers of vegetable and fruits in the region occupying much of the land need to be educated on benefits arising out of organic farming. In the modern day scenario, it is assured returns from the produce which would go a long way to attract the Badagas towards this environmentally sustainable form of agriculture. 9.2.1 Marketing 9.2.1.1 for Towns Having understood the demand and the willingness to pay for organic food, the following strategies are being suggested for local marketing the organic produce. As observed, majority of urban consumers want food items including spices to be sold at a regular store and a good number purchase these very items from departmental stores. Therefore, to begin with, a section of some well frequented departmental should be dedicated towards organic goods. If this strategy succeeds, Keystone and other concerned organizations could initiate the process for holding regular organic bazaars to attract more customers. Similarly, organic vegetables and fruits should be sold through the weekly market. The stall could be put up and managed by the farmers themselves albeit with initial support from Keystone. Presence of a known organization such as Keystone could go a long way in generating trust among customers, especially those who are particular about certification and authenticity of the product. In addition to these measures, there is a need to pursue more studies with more elaborate design and also be accompanied by participative observation. 9.2.1.2 for Hattis Hatti people with occupations such as tea cultivation and government employees who continue to live in the hattis access household grocery from markets in the town region. Hattis away from towns get green grocery delivered to them by traders who come in vans on a weekly basis. Therefore, the feasibility of hiring a rented vehicle has to be worked out as although there is high willingness to buy on the part of the hatti dwellers, willingness to pay a premium exists only in 20% of the population.
Finally, to increase sales and reach out to more consumers, they should be encouraged to -
Enjoy seasonal and local produce Be more aware of the concept of organic farming and benefits of buying local
Nilgiri produce.
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Be aware of availability of such produce in the local geographical regions. Engage in activities that reconnect them with indigenous farming
9.3. Cultivating & Organizing the Supply Base
An exercise to identify existing farmers interested in converting to organic should be carried out. Producers throughout the Nilgiris should form an association or organic supply network which should be encouraged to develop local, direct sales supply networks. Attempts should be made to tie these with networks focusing on consumers needs under the overall aim of improving access to fresh and affordable organic produce for those on low incomes. This would create sustainable and compact supply networks, increase the consumption of locally produced organic food, increase market penetration levels and keep profits local.
9.4. Future Strategy for Green Shop Most regular customers want the shop in Coonoor to stock organic vegetables and fruits. Besides, they expect that the organic supply should be regular and not erratic. A number of them are currently procuring green grocery from the Earth Trust’s shop in Ooty or alternatively get it transported from Ooty to Coonoor. To avoid this inconvenience, consumers want organic products to be stocked regularly. Therefore, this could be a major step forward in developing local markets for organic produce. Besides, Ooty being a major tourist destination with a populace that has high awareness levels of organic produce is well suited to be the site of a new Green Shop. Possible Action Points for Green Shop Based on our survey, some of these products must be introduced in the shop for better outreach and sales
⋅ Organic pulses ⋅ Organic fruits and vegetables ⋅ Organic food grains ⋅ A greater variety of handicrafts ⋅ Wider range of organic clothes ⋅ Organic Fruit juice ⋅ Ayurvedic medicinal products for common ailments, ⋅ Packaging of products should be more eco-friendly. ⋅ Shop could be kept open on Sundays and upto 8.00 pm on all working days. ⋅ A board in Tamil similar to the one already in English outside the shop should
be kept stating the products and stocks available. ⋅ Posters inside Green shop in Tamil and English explaining the philosophy of
enterprise development and organic produce development.
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⋅ Complaints if any especially related to the quality of products to be taken very seriously. Period.
9.5 Organic Farm Shop This could be one place where information on organic farming would be available i.e. support farmers wishing to convert to organic with the necessary know-how and market information. The shop which shall also be a resource centre stocking organic manure produced by the farmers. Saplings, seeds could also be sold as well 9.6 Organic Bazaar The survey has helped understand the keen preference amongst people in towns and Hattis towards organic fruits and vegetables in their diet. Having gauged the demand, we felt that it was time to move forward. Since our present range of organic products caters to a small percentage of the daily intake of food, it is necessary to increase the range. Introducing an organic outlet/market would enable us to do the same as vegetables and fruits form a large percentage of daily consumption. It would further enable us to better understand consumer preferences and willingness to pay by observations and direct feedback. The bazaar would also serve as a platform to bring together organic farmers in the Nilgiris and enable them to sell their produce directly to the consumers. Such an activity would serve as a confidence building exercise and promote trust based marketing. 9.7 Conclusion The overall approach can be a combination of education and marketing, combining sound business and farming principles, with the promotion of positive cultural, environmental and health values. This approach should help us demonstrate the viability of a strong locally supported market for organically grown food. This would further enable us to take a deeper look at issues like Fair Trade and Socially Responsible Trading which benefits marginalized sections of the society and adivasis. Generation of a reliable market for organic agriculture will simultaneously generate higher incomes for these marginal farmers and in the process engender incentives for conservation of biodiversity, land races, and also soil and water through privately financed watershed development. The true challenge before Marketers of organic food is to raise the consumer awareness levels to make acceptable organic produce which is not uniform in shape, size and taste. Bringing about acceptance and acknowledgement of this diversity is definitely going to be the most arduous task.
It must be stressed that any future activities and/or projects aimed at increasing levels of market penetration need to be holistic from their inception. They should
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encompass the entire supply network so that supply, processing and demand can be developed simultaneously, thus ensuring social, economic and environmental sustainability.
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REFERENCES:
i. Choice of grain, Keystone Foundation publication, 2005: Kotagiri, The Nilgiris, India
ii. Mette Wier and Laura Mørch Andersen, Consumer demand for organic foods -
attitudes, values and purchasing behaviour, 2003, AKF – Institute of Local Government studies, Denmark
iii. Organic Agriculture, Environment and Food Security, 2002: Environment and
Natural Resource Series No.4, FAO
iv. Salvador V. Garibay & Katke Jyoti 2003, Market Opportunities and Challenges for Indian Organic Products, Research Institute of Organic Agriculture and AC Nielson ORG-MARG
v. Strengthening & Expanding the Coverage of Organic Bazaars in Aurangabad and
Marathwada region - A Feasibility Study, 2003, Institute for Integrated Rural Development (IIRD)
vi. The Swine Center
vii. Thematic Evaluation-Organic Agriculture and Poverty Reduction in Asia - China
and India Focus, 2005, IFAD
viii. W. Parker Wheatley, Consumer Preferences, Premiums, and the Market for Natural and Organic Pork: Locating a Niche for Small-scale Producers, 2001, University of Minnesota
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Annexure:
List of villages/Hattis visited for survey and FGD
Hatti(village) Name Hubbathalai Jagathala Edapalli Kattabettu Irrumbukal Horasholai Byangie Dimbatti Kannerimukku KerosHatti Nedungula Bamudi Onnati Jackennarai Thiryur Betlada Konvakorai Annakorai Pedhala Nanjanad Sholur UllaHatti Annikorai Ebbanad Kundasappe TumanHatti Mynala Italhar AdigamHatti Ketti Achanakal
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Consumer Survey Questionnaire 1. Name: 2. Age group: Less than 25 25-35 35-50 greater than 50 3. Education: Upto X X to Graduation Post-graduation Professional 4. Occupation: Business Service: Teaching: Professional: 5. Monthly Income: Upto 10000 10000-20000 20000-30000 more than 30000 6. Family size: Upto 3: 3-5: greater than 5 7. Community: 8. Are you aware of organic food? Yes have heard about it never heard about it 9. Your definition of organic food: 10. Is organic food available in the market? Yes No No idea 11. Have you ever bought organic food? Yes No 12. If yes did you like it? Yes No 14. Would you like to buy organic food? Definitely yes Yes maybe No definitely no 15. What would be your accepted level of price for organic food? Same as non-organic 5-10%more 10-20% 20- 25% more than 25%
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16. Place of purchase of foodgrains, spices and other food items except vegetables: Nearest store faraway store departmental store other 17. Where would you like availability of organic foodgrains? At the regular store you purchase: organic outlets any other 18. Place of purchase of vegetables: Visiting hawker nearby vegetable market far-off vegetable market Any other 19. Where would you like availability of organic vegetables? With the hawker nearby veg mkt far-off veg mkt a weekly organic mkt 20. Why would you buy something organic? It’s a status symbol For health reasons For environment reasons Because of its perceived better quality 21. What attributes would you look at while buying something organic? Organic label Fairly traded Environment friendly Benefiting tribals or other marginalized sections 22. Do you try and look at the source the organic product is from? Always occasionally Never 23. Do principles of fair trade matter to you while buying organic products Definitely Yes sometimes No never thought of it 24. Are you aware of the source of the products like Shikakai and Amla or the medicinal plants used in ‘herbal products’? Yes No 25. Have you ever bought products which are forest based (organic) though not cultivated Yes No
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26. What aspect would you look at while buying forest products like wild honey, Nellikai (amla) -social consciousness (tribal rights, livelihoods) -fairly traded -good, pure and a natural product -sustainably harvested 27. If you were to include organic products in your diet then the first item to be changed to organic would be -raw vegetables -fruits -foodgrains -processed food 28. Environment friendly products mean to me something -which causes minimal damage to the environment -safety for health of wildlife, animals and human beings -saving in energy or least environmental damage during manufacturing Likert Scale A-Strongly Agree B-Agree C-Nor Agree nor Disagree (undecided/no opinion) D-Disagree E-strongly disagree Farmers use excessive amount of chemical fertilizers nowadays Food products grown using chemical fertilizers and pesticides is not good for health The foodgrains and vegetables we use is not harmful to health The shops from where we get our food items stock good quality Health of my family is my topmost priority I am very conscious about general hygiene and quality of food but ignorant about issues like residues of chemical fertilizers and pesticides. I make minimum usage of plastic bags; I even refuse it while carrying a product
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I carry a clothbag whenever I go out to get foodgrains and vegetables Environmental issues are not just the governments concern but also mine I would switch brands or would stop buying a regularly used product for environmental reasons I am satisfied with the taste of the food items I use I would buy organic food even though it may taste different from the food items I use now If I were to buy something organic it is also because it has implications as to the conditions of the growers. I prefer foodgrains, vegetables and fruits which are uniform in size, appearance, colour etc I can make out organic food by its appearance; it would definitely look fresher, mild in colour and without uniformity in size and appearance.
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Questionnaire for School Authorities Attitudinal measurement Likert Scale A-Strongly Agree B-Agree C-Nor Agree nor Disagree (undecided/no opinion) D-Disagree E-strongly disagree Farmers use excessive amount of chemical fertilizers nowadays Food products grown using chemical fertilizers and pesticides is not good for health The foodgrains and vegetables we use is not harmful to health The shops from where we get our food items stock good quality Environment is a serious concern with us and part of our curriculum? We try and promote eco-friendly habits among students and set examples. Health of our students is the topmost priority after education. Taste of food is not very important? The management is conscious about general hygiene and quality of food but ignorant about issues like residues of chemical fertilizers and pesticides. It is not feasible for the school to make use of organic foodgrains, spices, vegetables and fruits. Having set up a school in the Nilgiris we are bound to contribute in some way to the indigenous people as well as help conserve the ecosystem Has your school mess made use of organic foodgrains? Yes No Organic fruits and vegetables? Yes No
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Any other organic item Eg. Honey Possibility of using organic foodgrains Certainly yes Probably yes Can’t say Probably no Certainly no Possibility of using organic fruits and vegetables Certainly yes Probably yes Can’t say Probably no Certainly no What would be your accepted level of price for organic food? Same as non-organic 5-10%more 10-20% 20- 25% more than 25% Frequency of purchase of -foodgrains (quantity?) Weekly Monthly Quarterly Bi-annual -spices (quantity?) Monthly Quarterly Bi-annual Yearly -vegetables (quantity?) Daily Alternate days Weekly -fruits (quantity?) Daily Alternate days Weekly
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Traders’ Questionnaire/Checklist 1. Name 2. How long have you been in the trade? 3. Trading in? 4. Raw material, procurement price? 5. Organic certification?....related details 6. Profit? 7. Markets……….domestic-(local in nilgiris, TN, other Indian states)whr they are
sending out the product to/ 8. …………………international (exports) 9. -Profit in both markets 10. -Annual turnover 11. -Demand in both markets 12. Reasons for having taken up the trade - export - enhanced income
- environmental reasons - a means to earn more money from niche mkt
13. Is the health of farm workers a concern? 14. Other perceived benefits say soil improvement etc 15. Other issues, if any
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General Tourist Questionnaire 1. Name: 2. Age group: 25<……….. 25-35 35-50 50> 3. Education: Upto X X to Graduation Post-graduation professional 4. Occupation: Business Service: Teaching: professional: 5. Family size: Upto 3: 3-5: 5> 5. Monthly Income: Upto 10000 10000-20000 20000-30000 more than 30000 6. Community: 7. Why would you buy something organic? It’s a status symbol For health reasons For environment reasons Because of its perceived better quality 8. Are you willing to pay premium price for organic products? Yes No 9. What attributes would you look at while buying something organic? Organic label Fairly traded Environment friendly Benefiting tribals or other marginalized sections 10. Do you try and look at the source the organic product is from? Always occasionally Never 11. Do principles of fair trade matter to you while buying organic products Definitely Yes sometimes No never thought of it
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12. Are you aware of the source of the products like Shikakai and Amla or the medicinal plants used in ‘herbal products’? Yes No 13. Have you ever bought products which are forest based (organic) though not cultivated Yes No 14. What aspect would you look at while buying such forest products like wild honey, nellikai -social consciousness (tribal rights, livelihoods) -fairly traded -good, pure and a natural product -sustainably harvested 15. Do you read the ‘literature’ written on the organic or indigenous products? Yes sometimes No 16. Do the labels and other information on the products influence your buying action? Yes sometimes No 17. Environment friendly products mean to me something -which causes minimal damage to the environment -safety for health of wildlife, animals and human beings -saving in energy or least environmental damage during manufacturing 18. After visiting a place like the Nilgiris I would like to take back something indigenous. Definitely Yes Yes Maybe No
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Consumer Questionnaire for Green Shop (Regular Customer) 1. Name: 2. Age group: 25<……….. 25-35 35-50 50> 3. Education: Upto X X to Graduation Post-graduation professional 4. Occupation: Business Service: Teaching: professional: 5. Family size: Upto 3: 3-5: 5> 5. Monthly Income: Upto 10000 10000-20000 20000-30000 more than 30000 6. Community: 7. Since when have you been coming to the Green shop? First time last six months one yr ……. Since set up..yrs back 8. How did you come to know of Greenshop? On the way through friends …… any other 9. Please list the items you have purchased from here 10. What other items besides the present do you wish the shop to stock? 11. How different are the products from conventional products? -last longer (shelf life) -better taste -packaging 12. Are you willing to pay premium price for organic products? Definitely yes Yes maybe No definitely No
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13. Is the premium price for the organic products in the shop justified? Justified High priced Reasonably priced Could be priced higher 14. Do you tell your friends and relatives about the shop and bring visitors here? Yes No 15. Do you find the location convenient? Yes No 16. Do you find the timings convenient? Yes No 17. What aspect would you look at while buying forest products like wild honey, Nellikai (amla) -social consciousness (tribal rights, livelihoods) -fairly traded -good, pure and a natural product -sustainably harvested 18. If you were to include organic products in your diet then the first item to be changed to organic would be -raw vegetables -fruits -foodgrains -processed food 19. Do you read the ‘literature’ written on the products? Yes sometimes No 20. Do the labels and other information on the products influence your buying action? Yes sometimes No
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Questionnaire for Tourists 1. Name: 2. Age group: 25<……….. 25-35 35-50 50> 3. Education: Upto X X to Graduation Post-graduation professional 4. Occupation: Business Service: Teaching: professional: 5. Family size: Upto 3: 3-5: 5> 5. Monthly Income: Upto 10000 10000-20000 20000-30000 more than 30000 6. Community: 7. How did you come to know of Greenshop? On the way through friends …… any other 8. Please list the items you have purchased from here 9. What other items besides the present do you wish the shop to stock? 10. How different are the products from conventional products? -last longer (shelf life) -better taste -packaging 11. Are you willing to pay premium price for organic products? 12. Is the premium price for the organic products in the shop justified? Justified High priced Reasonably priced Could be priced higher
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13. Do you find the location convenient? Yes No 14. Do you find the timings convenient? Yes No 15. Why would you buy something organic? It’s a status symbol For health reasons For environment reasons Because of its perceived better quality 16. What attributes would you look at while buying something organic? Organic label Fairly traded Environment friendly Benefiting tribals or other marginalized sections 17. Do you try and look at the source the organic product is from? Always occasionally Never 18. Do principles of fair trade matter to you while buying organic products Definitely Yes sometimes No never thought of it 19. Are you aware of the source of the products like Shikakai and Amla or the medicinal plants used in ‘herbal products’? Yes No 20. Have you ever bought products which are forest based (organic) though not cultivated Yes No 21. What aspect would you look at while buying such forest products like wild honey, Nellikai (amla) -social consciousness (tribal rights, livelihoods) -fairly traded -good, pure and a natural product -sustainably harvested
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22. Do you read the ‘literature’ written on the products? Yes sometimes No 23. Do the labels and other information on the products influence your buying action? Yes sometimes No 24. If I were to buy something organic it is also because it has implications as to the conditions of the growers. Yes No 25. After visiting a place like the Nilgiris I would definitely like take back something indigenous. Definitely Yes Yes Maybe No Suggestions if any:
