Lok Sabha Question No. 831 (UNSTARRED), answered on 2023-02-07
Subject: Demand and Consumption of Organic Farming Products
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Ramdas Chandrabhanji Tadas

## GOVERNMENT OF INDIA MINISTRY OF AGRICULTURE AND FARMERS WELFARE DEPARTMENT OF AGRICULTURE AND FARMERS WELFARE

## LOK SABHA UNSTARRED QUESTION NO. 831

TO BE ANSWERED ON THE 7 Th  FEBRUARY, 2023

## DEMAND AND CONSUMPTION OF ORGANIC FARMING PRODUCTS

831. SHRI RAMDAS C. TADAS:

Will the Minister of AGRICULTURE AND FARMERS WELFARE कृ ष एवं कसान कयाण मंी be pleased to state:

- (a) whether  there  is  a  demand  for  the  products  of  organic  farming  in  the  domestic  and international markets during the last three years;
- (b) if  so, the figures of consumption in the domestic market and export in the international market; and
- (c) whether any system is in place for grading and quality control of organic products and if so, the details thereof?

## ANSWER

MINISTER OF AGRICULTURE AND FARMERS WELFARE कृ ष एवं कसान कयाण मंी (SHRI NARENDRA SINGH TOMAR)

- (a) & (b): As per latest report published by International Federation of Organic Agriculture Movement (IFOAM) Germany and FiBL Switzerland in 2022, the Global Organic Market has been growing at a Compounded Annual Growth Rate (CAGR) of 8.7 % during last six years (2015-2020). In value terms, the market size has grown from US $ 84 billion in 2015 to US $ 129 billion in 2020 suggesting that the demand for chemical free organic produces has increased in the international market.

The data on domestic consumption of organic product is not available.  But it is fact that demand  of organic products in the domestic market is increasing with rising health consciousness and more inclination towards organic farming. According to IMARC report Indian India organic food market is expected to exhibit a CAGR of 25.25% during 2022-2027. Export of organic products for last three years is given below:

## Export of organic products in term of value for last three years

|   S. No. | Year    |   Exported Qty (In MT) |   Value (In Crore) |   Value (In USD Million) |
|----------|---------|------------------------|--------------------|--------------------------|
|        1 | 2019-20 |                 638998 |            4686    |                   689.1  |
|        2 | 2020-21 |                 888179 |            7078.5  |                  1040.96 |
|        3 | 2021-22 |                 460320 |            5249.32 |                   771.96 |

(Source: APEDA)

(c): Two types of organic certifications systems have been developed for quality assurance of organic products in country.

- I. Third Party Certification by Accredited Certification Agency under National Programme for Organic Production (NPOP) under Ministry of Commerce  and  Industry for development of export market .
- II. Participatory  Guarantee System (PGS-India) under Ministry of Agriculture and farmers Welfare for meeting the demand of domestic market.

NPOP  was  launched  during  2001  by  the  Government  of  India  under  Ministry  of Commerce  and  Industry.  The  NPOP  not  only  provides  the  institutional framework  for accreditation of certification agencies and operationalization of certification programme through its accredited Certification Bodies (CBs) but also ensures that the system effectively works and is monitored on regular basis. NPOP is third party certification programme where the production and  handling  of  activities  at  all  stages  such  as  production,  processing,  trading  and  export requirements for organic products is covered.  Also, the system for grading and quality control of organic products is equivalent to conventional products.

Under  PGS-India  programme,  Government  is  implementing  Participatory  Guarantee System of India (PGS-India) as a quality assurance initiative for certification of organic produce that  is  locally  relevant,  emphasizing  the  participation  of  stakeholders,  including  producers  / farmers  and  consumers  and  operate  outside  the  frame  of  third-party  certification.  In  the operation  of  PGS-India,  stakeholders  (including  farmers/  producers)  are  involved  in  decision making  and  essential  decisions  about  the  operation  of  the  PGS-India  certification  itself  by assessing,  inspecting  and  verifying  the  production  practices  of  each  other  and  collectively declare produce as organic.

Food Safety Regulation has made it mandatory for organic products to be certified under NPOP or PGS for being sold in the domestic market under Jaivik Bharat logo. To ensure endto-end  traceability  (as  per  the  requirements  of  regulatory  framework  under  Food  Safety Standard  (FSS)  [Organic  Foods]  Regulation  2017,  PGS-India  programme  also  provides uninterrupted chain of custody, starting from producer groups till the products are processed and finally packed into retail packs.

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