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    Environmental Management

    Term Paper Presentation

    Group -

    Organic Agriculture in India

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

    Anupam

    193 Deep 199 Daisy 197

    Mahesh

    221 Neeti 225

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    Pre Green Revolution Era

    - Ramayana

    - Mention of several manures like oilcake, excreta of animals inArthashastra

    - Mention of organic manure in RigVeda, Green Manure in Atharva Veda,etc

    - Mention of Kamdhenu, thecelestial cow & its importance in soilfertility

    - At least one third of what you takeout from soils must be returned to itimplying recycling or post-harvest

    residue Holy Quran

    Green Revolution Era

    - Use of plant protection

    chemicals including all pesticides like

    fungicides, insecticides, weedicides were

    used extensively to protect plant frompest

    and diseases

    - the pesticide residue persistence in

    agricultural produce, food commodities,

    animal, feed, fodder, animal

    products, irrigation water are

    matter of serious concern as their

    presenceis more than maximum residue limit

    Present Day Scenario

    (Organic Farming)

    - contains more

    vitamins, minerals, enzymes,trace

    elements and even cancerfighting antioxidants

    - Higher yields

    - improves the soil quality

    - high demand

    Agriculture in India

    3/18/2010 2

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    Criteria India Bangladesh Kenya

    Agricultural

    Overview

    18.6% of the GDP

    and involves 60% of

    the total labour

    force

    largest overseas

    exporter of cashewsand spices

    1315% of

    Bangladesh's annual

    export earnings &

    20% of the

    country's GDP,

    employing 60% ofthe total labour

    force

    Land is fertile, but

    yields are usually

    low due to a lack of

    capital for input

    > 50 % of export

    earnings & 24 % of

    GDP

    sector includes

    large-scale

    commercial farms,plantations &

    specialist

    horticultural units

    Area under Organic

    Farming (Million Ha)

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

    3/18/2010 3

    Agriculture in IndiaTrends in developing economies .

    l

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    Criteria India Bangladesh Kenya

    No. of Organic Farms 332 100 300000

    Major Organic Crops Tea, rice, bananas, cotton,

    wheat, spices (mainly

    pepper and ginger), coffee,

    nuts, pulses, and herbal

    products

    Tea, Shrimps, Cotton, Rice Vegetables, fruits, coffee,

    beans, nuts, essential oils,

    dried herbs, cosmetics and

    pharmaceutical products

    Initiatives NPOP, INDOCERT, ICCOA,

    etc.

    NayaKrishi Aandolan KOFA, KOPA

    Farming Methods Use of organic manure

    Aerobic & anaerobic

    composting

    Green manuringPests managed through

    neem

    Mixed cropping & crop

    rotation - highly effective

    method for pest

    management & nutritionalhealth of the soil

    Compost made of water

    hyacinth

    Trees are excellent for fuel

    wood and charcoal

    3/18/2010 4

    Agriculture in India.. trends in developing economies

    l

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    Agriculture in India

    Average growth of Agriculture and allied sector during the tenth five year plan was meager2.4 %

    India Agriculture production hub ??

    Agriculture & allied sectorcontributes nearly 22 per cent of

    GDP

    60 % of the area sown is

    dependent on rainfall

    India is the largest producer inthe world of milk, cashew nuts,

    coconuts, tea, ginger, turmeric and

    black pepper

    second largest producer of wheat,

    rice, sugar, groundnut and inland

    fish

    World's largest cattle population

    (281 million)

    l

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    3/18/2010 6

    Agriculture in India

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

    Economical or environmental sustainability ?

    Agriculture subsidies - helping or hampering ?

    Small land holdings fragmentation

    Growing Concerns

    Inadequate irrigation facilities

    Slow progress in implementing land reforms

    Modern agriculture practices - awareness, cost, land size ?

    Socio-economic backwardness

    l d

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    3/18/2010 7

    Agriculture in India

    Around 55% of the farms in India are organic by default as majority of the farmers cannotafford to buy chemical fertilizers

    Recent Policies & Initiatives

    Farmers

    Food

    security

    Farming

    Practices

    Improved

    Quality

    Seeds

    Awareness

    Focus on organic, bio-dynamic farming

    Agriculture credit, Kisan Credit,

    Special rehabilitation package for distressed farmers

    Agriculture debt waiver and debt relief scheme 2008

    Rashtriya Krishi Vikas Yojana

    Agri - marketing

    Kisan call centers

    Technology Mission on oil seeds (TMOP), pulses and

    maize

    National food security mission (NFSM)

    National horticulture mission

    l d

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    3/18/2010 8

    Agriculture in India

    Around 55% of the farms in India are organic by default as majority of the farmers cannotafford to buy chemical fertilizers

    Policy initiatives under consideration

    Cooperatives

    Amendment of Seeds Act, 1966

    The pesticides Management Bill, 2008

    f

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    3/18/2010 9

    Concept of Organic Farming

    Around 55% of the farms in India are organic by default as majority of the farmers cannotafford to buy chemical fertilizers

    Basic know how .

    Avoid

    usage of

    chemical

    inputs

    Environm

    ent &

    Local

    farming

    system

    Naturaland farm

    resources

    Biological

    diversity and

    heterogeneity

    Nutrients rich

    yield

    Organic Farming

    inputspest control

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    India 2008-2009 Vision India 2012Exports $ 87 mn $ 1 bn

    Market

    Share

    0.2 % 2.5%

    Area 8.65 lakh ha 20 lakh ha

    India Global footprints Organic farming exports

    State Exports (Metric ton)

    Kerala 1232

    West Bengal 937

    Karnataka 476

    Tamil Nadu 471

    Punjab 541

    Himachal Pradesh 521

    Maharasthra 375

    India (Total) 6472

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    Government

    Stake holders in Organic AgricultureRegulations Policies Research Extension

    Farmers Processors Traders

    Consumers

    Producer Organizations

    Cooperatives

    Producer groupsCompanies, projects

    eg. PDS, Ecofarms, Agrocell, Maikaal

    Certification Bodies

    Inspection

    Certification

    Standard development

    e.g. IMO, SKAL, Ecocert, APOF

    NGOs supporting Org. Agriculture

    Representing farmers interests

    Information extension

    Market development promotion

    eg. OFAI, BAAI, SOA

    Organic Competence Centre

    Collect info and knowledge

    Documentation & dissemination

    Training & extension services

    Policy initiatives, networking (ICCOA)

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    SupplyChain and

    QualityMeasures

    Farmer Selection

    Site Externality

    Trust Transaction Cost

    Quality Inputs SeedCertification Agency

    Technology Checkse.g., Basmati Rice

    Harvesting/Threshing/Storage

    Clean Equipment

    Neutral 3rd partycertification

    Cost ?

    Maintaining quality through supply chainSCM model in organic agriculture ..

    l l

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    After the first year of conversion,

    yields climbed steadily and tend

    to approach the baseline yields of

    the previous system

    Costs tend to initially be slightly

    higher as farmers invest (mostly

    labor) to adjust their fields to

    organic standards

    By the third and fourth years,

    when certification occurs

    farmers have received an

    average 20%-30% higher prices

    Initially, the selling price tends not

    the change since organically

    managed crops can always be sold

    as conventional.

    Yields have tended to suffer by

    about one-third immediately

    after conversion as both farmer

    and soils adapt

    YEAR 1 YEAR 2 YEAR 3 & 4

    Implications Conventional to organic Conversion transition from conventional to organic farming

    C l / O

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

    Stabilized Yield Reduced Risk Production,biological, Financial,

    Price fluctuation etc

    Reduce Input Cost

    Conversion Benefits

    Conventional V/s Organic Farming

    Improved the net-farm incomes

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

    Improved food safety and reduced vulnerability, and improved the access to networks

    supporting knowledge exchange and political participation.

    Risks

    Risk and uncertainty related to the conversion period, such as temporarily declining yields

    and the lack of experiences and information

    Benefits and risks associated

    L l Ch ll

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    Limitations, Potential & Challenges

    Market Information

    Training Storage Facility

    Consumer awareness

    Government Support

    Certification cost

    Limitation

    Geographical

    Climatic

    Ill Soil

    Decreased Yield

    Growing demand

    Potential

    Policy Initiatives

    Integrated Universities

    Infrastructure and Funds forscientific studies

    Challenges

    weighing the potential of Organic Agriculture

    O i f i i D l d f I di

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    Organic farming in Dry lands of India

    LandDegradation

    FoodSecurity

    EmploymentWind

    Erosion

    Soil andClimate

    Condition

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

    Initially promote non-certifiedorganic farming

    Integrate efforts of supporting

    agencies

    Encourage decentralized inputsupply

    Develop organic farming cluster of

    villages

    Promotional

    Strategies

    Issues

    Issues and promotional strategies

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    Orex Health Foods

    Established: September, 2009

    Founder : Chaitanya Varma, IIMK, Batch of 2008

    Owns three organic ready-to-eat food outlets Serves IT Business Parks in Hyderabad

    Handling Certification Cost

    NGO Vested Interests

    Unavailability of whole range of organic food

    Deadlock in Demand and Supply

    an example of alumni of IIM Kozhikode

    Agripreneurs: Business Opportunity ?

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

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

    Jhum cultivation: Traditional method

    Around 70.77% cropped area under shifting

    cultivation

    Large areas covered with forest

    Threat to

    forest

    resources??

    Rapid

    population

    growth: food

    insufficiency?

    ?

    North East India: Organic FarmingCase Study

    N h E I di S li f

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    Socio-Cultural integrated with the socioeconomic fabric of rural society

    Community based practice-equity Almost completely lacking in feudal fetters

    plays a central role in uniting villages and clans, and integrating the people

    egalitarian mode of production, with women playing an importanteconomic role

    Economy Food sufficiency rather than income generation

    No market structure; only 2% of boundaries shared with mainland India

    Prevents them from being subject to the whims of the larger capitalmarket

    local modes of commerce

    Ecological

    Sustainable

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

    maintenance and enhancing of the soil fertility status

    North East India: Salient features

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    NAGALANDPre-capitalist livelihood

    generation activity forfoodsustenancegross state domestic product is$1.4 billion in current prices90% population dependent onagricultureDriven by sustainability

    Local market

    MOKOKCHUNGUsurpation of forest resources

    Indian Governments new Look

    East policy with respect to tradeand commerce-negative impact

    on jhum

    Military insurgency, land for

    jhum occupied, by the armed

    Indian state

    North East India: Case study

    N h E I di C d

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

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

    North East India: Case study conflict over Jhum cultivation

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    Alder based Jhum

    cultivation in Nagaland

    Aji

    Fixedcapital (Rs)

    Annualinvestment

    (Rs)

    Annualturnover

    (Rs)

    Annualprofit

    (Rs)

    Return tofixed

    capital

    (%)

    Return toinvestment

    (%)

    Profit toturn over

    (%)

    62000 25277 74000 48723 78.58 192.75 65.84

    North East India: Case study - Solution

    Ngui Assoni: Rice Fish Cultivation in

    Arunachal Pradesh

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    Potential to be largest organic foodproducer and major export center forglobal organic market

    The synergy between comparativeadvantage and price-competitiveness

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

    North East India: FutureHarnessing the potential .

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

    ElementOrganicStore

    Only organicstore in city,

    established6 months

    ago

    Awarenessamong

    public very

    low

    Farmers inWaynad

    supply spices

    under freetrade

    agreementKerala

    Major factor price andnot healthy

    living

    Cerealssupplied

    from

    Kolhapur

    Exports are increasing very fast and

    demand increase will need atleastdoubling of production in coming years

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

    very bad

    Internal bickering between Financeminister, an organic farmer andAgricultural minister harming the state

    Strong integrated policy initiatives needed

    Consumer Analysis - Kozhikode

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

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    GB Pant Agricultural University in Uttarakhand does

    extensive research in this area .

    It has enrolled about 52,000

    farmers and earmarked 71,000hectares across the state to use

    only organic material for growing

    crops, vegetables and fruits ....

    Karnataka government has set up anorganic farming mission with budgetary

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

    Kerala declared someareas in Wayanad andIdukki hill districts as fully

    organic ... ...

    This is the beginning in the governmentsefforts at declaring some panchayats as

    fully organic by next year, leading to

    conversion of the whole State as organic in

    the long run .....

    When government banned riceexports, the farmers who had

    cultivated organic rice incurring

    more expenses faced huge

    losses .

    Recent developments

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    Kerala has an accredited organic certifying agency

    catering to the needs of the farmers.

    launched two brands, namely Kerala Organic andKerala Naturals to market organic farm produces

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

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

    Policy / Initiatives in Kerala

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

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    GM free villages

    Availability of Affordable and locally suitable seeds

    Ensure seed sovereignty of the farmers

    Organic farmers groups, clubs, SHGs and cooperatives

    Compact Area Group approach in organic farming

    protect traditional water , rain water conservation

    testing facilities for soil, water, micronutrients and microorganisms

    Improve soil quality and ensure water conservation measures

    Kaipad, Pokkali and Kole as agricultural heritage of Kerala

    Conserve and improve agro-biodiversity

    Organic Policy in India & Recommendations

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    encourage the use of organic farm produce in food industry

    Jaiva Keralam developed as a brand

    Develop a simple certification process

    interest-free loans toespecially small and marginal farmers

    assistance during conversion period

    Provide financial incentives for promoting organic farming

    Introduce organic farming in educational institutions through academic inputs

    Introduce organic farming in education institutions

    Integrate of various departments, local self-governments andorganizations

    Organic Policy in India & Recommendations

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

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

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

    Food and Agriculture Organization says

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

    An example of Cuba

    Dispelling myth of un-sustainabilityExample of Cuba .

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    Questions ??