India’s organic food export defies global slowdown

Deepak Kumar | The Dollar Business

Defying the global slowdown in the commodity market, India’s organic food exports have been witnessing continuous growth for the past few years, thanks to increasing number of health conscious consumers across the world. In the financial year 2013-14, the country exported 135 such products weighing 1.94 lakh tonnes. The total annual export worth around $403 million was 7.73% up compared to the previous year’s shipment, according to the government data. India exports organic products mainly to the US, European Union, Australia, Middle East, Canada, and South Africa. “The US continues to be an ideal market for the organic food exports. Europe has restrictions on the organic food products from India. Other countries such as Canada and UAE are also potential markets for us,” said Preetam Singh Lingwal, Founder of the Gayatri Organic. He said that the domestic market has also witnessed an increase in the demand of organic food products as people have become more health conscious. “Last five years have been bright for the sector, and the future is even brighter. As awareness increases among people, the organic food business is going to achieve a rapid growth,” Lingwal told The Dollar Business. Organic foods are prepared using natural resources and such products have huge demand among health conscious consumers visiting in restaurants, hotels, and food chains across major Indian cities. As a result, the organic food market has witnessed a transformational growth in recent years. Experts believe that a country like India where 60% of the population relies on agriculture, organic food production can bring a paradigm shift to the growth momentum of the entire farming sector. With the average annual production capacity of 1.24 million tonnes, India is one of the largest producers of organic products with cultivable area of 4.72 million hectare. The market for organic food in India is expected to grow at 25% in the next five years, according to a recent report published in India Organic Food Market Forecast & Opportunities, 2020. With the growing awareness among people about the hazardous substances, including chemical fertilizers and pesticides in the conventional food, the industry is expected to achieve an exponential growth in the years to come. At present, the global organic trade stands at $75 billion which is expected to touch $100 billion by the end of this year.  

August 25, 2015 | 3:19pm IST.