Market Potential of Organic food Product
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This document discusses the organic farming industry in India. It notes that while agriculture still contributes significantly to India's GDP, organic farming is growing. Demand for organic food is increasing, especially in major cities, due to greater health awareness. The M.P. Vindhya Jaivik Herbal Development Foundation was established to promote organic farming, reduce middlemen, develop export zones, and improve farmers' livelihoods and public health. There is significant market potential for organic foods in India given rising demand, government support, and opportunities for export and differentiation. However, challenges include a lack of farmer awareness, high costs, and competition.
Market Potential of Organic food Product
- 1. TOWARDS In partial fulfilment of the requirement of MASTER OF BUSINESS ADMINISTRATION In Rani Duragvati Vishwavidyalaya Jabalpur MBA IVth Sem. (Session 2011-13) Enr. No. BA/7459 Roll No.094954
- 2. The Indian economy is still quite relevant on agriculture and it contributes nearly 14% of the country’s gross domestic product and almost 60% of the population is dependent on agriculture. The trend of organic food that was initiated in the developed regions. Europe and North America are the largest consumers of organic food, however, the organic food market in Asia is likely to account for the highest growth rate over the coming years. Organic Floriculture Organic Wheat Crop
- 3. Organic foods are produced through systematic farming methods that do not involve any usage of pesticides and harmful chemicals for production. India has around 4.2 Million hectares of land which is certified for organic farming. Increasing awareness towards nutritious and healthy food and changing lifestyle are aurging the demand for organic food, particularly across the metro cities. Majority of the demand for organic food is being contributed by cities such as Mumbai, Chennai, Delhi, Gurgaon, Bengaluru and Pune. Community based Organic Farming
- 5. M.P. Vindhya Jaivik Herbal Development Foundation established as a Public Private Partnership (PPP) venture by MP Govt. in August 2005 with the following objectives : To Promote Organic Farming. To reduce the role of Middle man in agriculture. To Develop Organic Agri Export Zone . To Enhance India’s Agro Export. To Enhance the Living Standards of Farmers. Improve the Health of people by providing Good & Quality Product. To Develop a Chain of Technology-Production & Market.
- 7. Market Potential : The capacity of a location, such as a country, to become or to grow as a demander of goods and services that outside suppliers might provide. Various measures of market potential are provided especially for emerging economies, intended as guides to exports and foreign direct investment To make entry / exit decisions To make resource level decisions To make location and other resource allocation decisions, To set objectives and evaluate performance as an input to forecast.
- 8. Strengths Weaknesses Wide variety of fruits and vegetables and other commodities can be grown organically. Very less consumption of chemicals in India as compared to developed nations. These areas can be turned into organic. Organic pockets existing in different parts of the country Differentiation can be easily created Rising interest of farmers as well as Government interests in Organic farming Various niches in fruits & vegetables can be created Increasing investments by Indian corporate firms in agribusiness and specially in Organic farming Short shelf life varieties Lack of farmer awareness about agricultural practices, products and technologies for Organic farming Price competitiveness Lack of market information and intelligence Lack of Global market research Inadequate post harvest management and related specialized infrastructure to support Organic food production Lack of R& D in Organic food production Unavailability of inputs used in the system Certification and labeling Less access to international market Opportunities Threats Favorable Government vision WTO offering global opportunities Price –premiums in different markets Export opportunities in new product/market (section ) USA, Europe and Japan are rising markets Branding offers new opportunities for differentiation Rising demand for Organic products Big retail stores/chains coming up New developments in post harvest technologies. Private sector keen to join Organic value chain Competition from domestic industry. Threat from imported products. Non-tariff barriers may be imposed by developed nations
- 9. People are much more conscious to their health nowadays. Consumer do have demand for pure, natural and holistic food products. Producers also shown that they are willing to go through organic farming system. Govt., regulatory authorities, corporates, non-government Organizations etc. are also promoting and supporting such market. There are huge market possibilities in future for Organic Food Products as well as are Organic agro inputs for farming activities. Organic market is a future scope of entire food industry, have global demand, have local requirement and have a national opportunity. The demand for organic products is growing fast (@20 percent per annum in the major developed countries). The organic food market in India is expected to grow at the AGR of around 19% during 2012- 17. After the research, I found following points regarding market potential for organic food Products in Indian Market, –
- 10. Recent Primary data was not found, as very little awareness is in market regarding organic food products. Sample size of 500 consumers over internet blogs , social net- workings and personal interviews, do not frame 100% righteous picture on table. The findings has been framed out from the questionnaire hence it is dependent on the responses , hence in a limit. Major part of research is based on research reports, thesis presented and Statistics of Govt. sources, that may some time right or may be malfunctioned. Extensive Media Coverage and advertisement required for promotion & Expansion of Organic Products.