Lok Sabha Question No. 3368 (UNSTARRED), answered on 2018-08-07
Subject: Organic Farming
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: RAMESH CHANDER KAUSHIK, BHARATI DHIRUBHAI SHIYAL, Karan Singh Yadav, HEMAMALINI, R. GOPALAKRISHNAN

## GOVERNMENT OF INDIA MINISTRY OF AGRICULTURE AND FARMERS WELFARE

## DEPARTMENT OF AGRICULTURE, COOPERATION AND FARMERS WELFARE

## LOK  SABHA UNSTARRED QUESTION NO.3368

TO BE ANSWERED ON THE 7 TH   AUGUST, 2018

## ORGANIC FARMING

3368.    SHRI RAMESH CHANDER KAUSHIK: DR. BHARATIBEN D. SHYAL: DR. KARAN SINGH YADAV: SHRIMATI HEMA MALINI: SHRI R. GOPALAKRISHNAN:

Will the Minister of AGRICULTURE AND FARMERS WELFARE कृ षि एवं ककसान कल्याण मंत्री be pleased to state:

- (a) the current position of organic farming across the country, State/UT-wise;
- (b) whether 22 lakh hectares of  land  are under  organic farming  in the  country  at  present which is the largest in the world but the country is lagging behind in terms of value addition of organic produce and if so, the details thereof;
- (c) whether  there  is  a  need  to  link  organic  produce  to  e-Mandis  and  develop  a  separate supply chain and marketing for value addition of organic produce and if so, the policy measures taken/being taken by the Government in this regard;
- (d) whether the prices of organic produce in the country are higher in comparison to that of non-organic produce and if so, the details thereof and the reasons therefor; and
- (e) whether  the  Government  proposes  to  intervene  and  support  the  production  and marketing  of  organic  produce  in  the  country  to  reduce  their  costs  and  prices  and  if  so,  the details thereof and if not, the reasons therefor?

## ANSWER

MINISTER OF STATE IN THE MINISTRY OF AGRICULTURE AND FARMERS WELFARE

कृ षि एवं ककसान कल्याण मंत्रालय में राज्य मंत्री (SHRI  PARSHOTTAM  RUPALA)

(a) to (c): The current position of organic farming w.r.t. area covered across the country is 23.02 lakh hectares  under the schemes Paramparagat Krishi Vikas Yojana (PKVY), Mission Organic  Value  Chain  Development  for  North  Eastern  Region  (MOVCDNER)  and National Programme  of Organic Production (NPOP). The details are given at Annexure I.

Under  PKVY  and  MOVCDNER  schemes  enough  assistance  is  provided  to  Farmer Producer  Companies  (FPCs)/  entrepreneurs  for  development  of  value  chains/  marketing  of organic produce. The guidelines for providing assistance for various post harvest management/ value chain development activities including infrastructure development, branding, marketing are given at Annexure-II.

(d) & (e): Cost of organic agriculture largely depends on on-farm generation of inputs.  When on-farm organic inputs are used, cost of production per unit area is less by 13 % under organic agriculture than inorganic management. However, if organic inputs from outside the  farm  are  purchased  and  utilized,  the  cost  of  production  increases  by  about  15-20  % depending on the nature of inputs used.  Integrated Organic Farming System (IOFS)  models being developed under NPOF promises to meet 70-80 % of organic inputs within the farm thus reducing the market input cost considerably. During the conversion period of initial two to three years,  yield  levels  are  expected  to  be  low  till  soil  system  regains  to  respond  to  organic production system especially in the intensive agriculture areas.

Government  of  India  under  the  schemes-  PKVY  &  MOVCDNER  is  supporting  the production and marketing of organic produce in the country to reduce their costs and prices. Use  of  organic  inputs  like  PROM,  vermicompost,  organic/bio-fertilizers,  city  compost,  waste decomposer have been promoted under these schemes which will further reduce the costs of production in organic farming. The details of the schemes PKVY and MOVCDNER is given at Annexure-III & IV .

| State wise area covered under Organic Farming for the year till date (Area in Ha)   | State wise area covered under Organic Farming for the year till date (Area in Ha)   | State wise area covered under Organic Farming for the year till date (Area in Ha)   | State wise area covered under Organic Farming for the year till date (Area in Ha)   | State wise area covered under Organic Farming for the year till date (Area in Ha)   | State wise area covered under Organic Farming for the year till date (Area in Ha)   |
|-------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------|
| Under National Program of Organic Production(NPOP)*                                 | Under National Program of Organic Production(NPOP)*                                 | Under National Program of Organic Production(NPOP)*                                 | Under National Program of Organic Production(NPOP)*                                 | Paramparaga t Krishi Vikas Yojana (PKVY)                                            | Mission Organic Value Chain Development for North Eastern Region (MOVCDNER)         |
| Sl. No.                                                                             | State Name                                                                          | Organic area                                                                        | In Conversion                                                                       |                                                                                     |                                                                                     |
| 1                                                                                   | Andhra Pradesh                                                                      | 12037.551                                                                           | 11190.775                                                                           | 26000                                                                               | -                                                                                   |
| 2                                                                                   | Arunachal Pradesh                                                                   | 21.490                                                                              | 3789.769                                                                            | 380                                                                                 | 5000                                                                                |
| 3                                                                                   | Assam                                                                               | 1952.598                                                                            | 31446.173                                                                           | 4400                                                                                | 5000                                                                                |
| 4                                                                                   | Bihar                                                                               | 0.000                                                                               | 1.730                                                                               | 8540                                                                                | -                                                                                   |
| 5                                                                                   | Chhattisgarh                                                                        | 4555.575                                                                            | 16103.931                                                                           | 4000                                                                                | -                                                                                   |
| 6                                                                                   | Goa                                                                                 | 14133.973                                                                           | 1648.390                                                                            | 80                                                                                  | -                                                                                   |
| 7                                                                                   | Gujarat                                                                             | 45868.039                                                                           | 28513.854                                                                           | 2000                                                                                | -                                                                                   |
| 8                                                                                   | Haryana                                                                             | 7851.308                                                                            | 664.058                                                                             | 400                                                                                 | -                                                                                   |
| 9                                                                                   | Himachal Pradesh                                                                    | 8192.784                                                                            | 10921.265                                                                           | 4200                                                                                | -                                                                                   |
| 10                                                                                  | Jammu &Kashmir                                                                      | 12570.367                                                                           | 22010.607                                                                           | 560                                                                                 | -                                                                                   |
| 11                                                                                  | Jharkhand                                                                           | 159.660                                                                             | 46620.466                                                                           | 5000                                                                                | -                                                                                   |
| 12                                                                                  | Karnataka                                                                           | 26539.526                                                                           | 63490.668                                                                           | 10900                                                                               | -                                                                                   |
| 13                                                                                  | Kerala                                                                              | 13519.398                                                                           | 10972.633                                                                           | 12380                                                                               | -                                                                                   |
| 14                                                                                  | Lakshadweep                                                                         | 885.075                                                                             | 0.000                                                                               | -                                                                                   | -                                                                                   |
| 15                                                                                  | Madhya Pradesh                                                                      | 379017.532                                                                          | 405328.981                                                                          | 27600                                                                               | -                                                                                   |
| 16                                                                                  | Maharashtra                                                                         | 119443.434                                                                          | 160296.915                                                                          | 25160                                                                               | -                                                                                   |
| 17                                                                                  | Manipur                                                                             | 0.000                                                                               | 240.100                                                                             | 600                                                                                 | 5000                                                                                |
| 18                                                                                  | Meghalaya                                                                           | 1402.522                                                                            | 8611.646                                                                            | 900                                                                                 | 6430                                                                                |
| 19                                                                                  | Mizoram                                                                             | 0.000                                                                               | 50.000                                                                              | 680                                                                                 | 4053                                                                                |
| 20                                                                                  | Nagaland                                                                            | 1651.110                                                                            | 3074.964                                                                            | 480                                                                                 | 6000                                                                                |
| 21                                                                                  | Delhi                                                                               | 17.312                                                                              | 0.000                                                                               | 10000                                                                               | -                                                                                   |
| 22                                                                                  | Odisha                                                                              | 41198.176                                                                           | 57630.360                                                                           | 6400                                                                                | -                                                                                   |
| 23                                                                                  | Pondicherry                                                                         | 2.835                                                                               | 0.000                                                                               | 160                                                                                 | -                                                                                   |
| 24                                                                                  | Punjab                                                                              | 779.379                                                                             | 1046.700                                                                            | 5000                                                                                | -                                                                                   |
| 25                                                                                  | Rajasthan                                                                           | 68203.256                                                                           | 160729.926                                                                          | 23000                                                                               | -                                                                                   |
| 26                                                                                  | Sikkim                                                                              | 38969.089                                                                           | 4936.738                                                                            | 3000                                                                                | 12435                                                                               |
| 27                                                                                  | Tamil Nadu                                                                          | 2119.366                                                                            | 3181.771                                                                            | 2240                                                                                | -                                                                                   |
| 28                                                                                  | Telangana                                                                           | 4315.956                                                                            | 6226.090                                                                            | 13800                                                                               | -                                                                                   |
| 29                                                                                  | Tripura                                                                             | 203.560                                                                             | 0.000                                                                               | 1000                                                                                | 2000                                                                                |
| 30                                                                                  | Uttar Pradesh                                                                       | 70397.322                                                                           | 25961.493                                                                           | 12400                                                                               | -                                                                                   |
| 31                                                                                  | Uttarakhand                                                                         | 32061.548                                                                           | 21029.254                                                                           | 11700                                                                               | -                                                                                   |
| 32                                                                                  | West Bengal                                                                         | 3831.781                                                                            | 687.900                                                                             | 2400                                                                                | -                                                                                   |
| 33                                                                                  | Andaman                                                                             | -                                                                                   | -                                                                                   | 1360                                                                                | -                                                                                   |
| 34                                                                                  | Daman                                                                               | -                                                                                   | -                                                                                   | 1100                                                                                | -                                                                                   |
| 35                                                                                  | &Diu Dadar &Nagar Haveli                                                            | -                                                                                   | -                                                                                   | 10000                                                                               | -                                                                                   |
| Total                                                                               | Total                                                                               | 911901.522                                                                          | 1106407.157                                                                         | 237820                                                                              | 45918                                                                               |

Grand Total (area covered under NPOP, PKVY & MOVCDNER): 23.02 Lakh Ha

* Source Data provided by the accredited Certification Bodies under NPOP on Tracenet

## Annexure-II

Under  the  following  schemes  the  policy  measures  are  taken  by  the  Government  to develop/ boost marketing of certified organic produce easily available to households consumers to promote organic farming:

## Paramparagat Krishi Vikas Yojana (PKVY) :

1. Financial  assistance  is  given  for  direct  marketing  to  the  groups  and  clusters  including procuring  common  packing  material,  printing  of  packing  material,  brochures,  leaflets, preparation of labels, holograms, transportation expenses to local markets, hiring spaces on rent for specific organic markets and branding of organic products @ Rs. 15 lakhs/ cluster of 1000 ha. each.
2. Clusters  can  develop  their  own  post-harvest,  value  addition  and  processing  facilities, preferably under their institutions such as Farmer Producer Organisations (FPOs)/ Farmer Producer  Companies  (FPCs)  for  creation,  collection  and  aggregation  of  post  harvest process centre (one between every 5-10 groups) @ Rs. 20 lakhs/ cluster of 1000 ha. each.
3. Market linkage/ brand building with FPO/  Small Medium Enterprises (SME) including the cost of organic fare to be provided on submission of appropriate proposal to the Executive Committee (EC) on case to case basis @ Rs. 53 lakhs/ cluster of 1000 ha. each

## Mission Organic Value Chain Development for North Eastern Region (MOVCDNER):

Financial assistance is given for setting up of the following:

1.  Functional infrastructure for collection, aggregation, grading units and  North-Eastern (NE) organic bazaar @ Rs. 15 lakh (75% subsidy).
2.  Integrated  Processing  Units  with  Total  Financial  Outlay  (TFO)  of  Rs.  800  lakh  or  more limited to 75% to Farmer Producer Companies (FPCs) and 50% to private entrepreneurs as credit linked back ended subsidy.
3.  Integrated pack house with 75% subsidy to FPCs on TFO of 50 lakh or more and 50% to private  entrepreneurs  or  maximum  of  37.50  lakh  whichever  is  less  as  credit  linked  back ended subsidy.
4.  Transportation/ 4 wheeler up to TFO of 12 lakh (50%).
5.  Refrigerated transport vehicle/ Pre-cooling/ cold stores/ ripening chambers  upto TFO of 25 lakh (75% subsidy to FPC and 50% to private).

## Parampragat Krishi Vikas Yojana (PKVY)

It  is  the  first  comprehensive  scheme  launched  as  a  Centrally  Sponsored  Programme (CSP)  since  2015-16,  which  now  has  been  revised  for  next  3  years.  The  scheme  is implemented with a 90:10 (GoI: State Govt.) funding pattern in 8 NE states and 3 hilly states of J&K, Himachal Pradesh and Uttarakhand, 100% in Union Territory and 60:40 funding pattern in remaining states of the country. The new guidelines of the scheme has been uploaded in the website www.agricoop.nic.in/guidelines/integrated-nutrient-management

The scheme PKVY is implemented by the State Government on per hectare basis for 500-1000 hectare area in each cluster. A group of farmers having a total area of 20 hectare as far as possible in contagious patch within a village. The farmer within a group can avail benefit to a maximum of 2 ha., and the limit of assistance is Rs.50, 000 per ha., out of which 62% i.e., Rs. 31,000 is given as incentives to a farmer for organic conversion, organic inputs, on farm inputs,  production  infrastructure,  etc.,  shall  be  provided  directly  through  DBT  during  the conversion  period  of  3  years.  The  target  of  an  area  of  around  4  lacks  ha  is  proposed  to  be covered in the 3 years which is double the area covered in last three years.

## Status of the Scheme

Total amount allocated for the scheme 2015-2018 is Rs. 947 crore   and fund released Rs. 582.47 crore till date for total 11891 clusters. Under PKVY scheme 237820 hectares of land has been converted into organic farming land and 3,94,550 farmers have been benefited.

## Mission Organic Value Chain Development for North Eastern Region

Realizing  the  potential  of  organic  farming  in  the  North  Eastern  Region  of  the  country, Ministry of Agriculture and Farmers Welfare has launched a Central Sector Scheme entitled 'Mission Organic Value Chain Development for North Eastern Region' for implementation in the states of Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim and Tripura, during 2015-16 to 2017-18. The scheme aims at development of certified organic production  in  a  value  chain  mode  to  link  growers  with  consumers  and  to  support  the development  of  entire  value  chain  starting  from  inputs,  seeds,  certification  and  creation  of facilities  for  collection,  aggregation,  processing,  marketing  and  brand  building  initiative.  The scheme was approved with an outlay of Rs. 400 crore for three years.

The assistance is provided for cluster development, on/off farm input production, supply of seeds/ planting materials, setting up of functional infrastructure, establishment of integrated processing unit, refrigerated transportation, pre-cooling /cold stores chamber, branding labeling and  packaging,  hiring  of  space,  hand  holdings,  organic  certification  through  third  party, mobilization  of  farmers/processors  etc.  Under  this  scheme,  an  area  of  50,000  ha  have  been targeted to be covered under organic farming in North Eastern Region of the country during the period of three years i.e. from year 2015-16 to 2017-18.  The guidelines of the scheme has been uploaded in the website www.agricoop.nic.in/guidelines/integrated-nutrient-management

## Major components of MOVCDNER:

1.  Value Chain Production
2.  Value Chain Processing
3.  Value Chain Marketing
4.  Value Chain Support Agencies

## Physical and Financial Progress report of MOVCDNER scheme

## A) Fund Released:

- I. During the year 2015-16 an amount of Rs. 112.11 crore has been released.
- II. During the year 2016-17 an amount of Rs. 47.63 crore has been released.
- III. During the year 2017-18 an amount of Rs. 66.22 crore has been released.
- IV. In the current financial year 2018-19 an amount of Rs. 9908.20 crore has been released to seven states.

## B) Physical progress:

As  on  against  target  of  50000  ha  area,  45918  ha  area  brought  under  the  Organic Farming. Against the target of 100 FPCs, 97 FPCs  has been achieved, against the target of 2500 FIGs, 2469 FIGs has been formed, and 48948 farmers are mobilized.

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