The Propitious Organic Industry In India
Scrutinizing all the growth drivers and dynamics, a number of private players are also geared up to invest and reap the benefits of the evolving organic farming industry.
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It is rightly quoted that Healthy citizens are the greatest assets any nation can have. For any country to prosper, it’s a prerequisite to have healthier citizens, who can contribute immensely to its development. In India, numerous efforts are being made to promote sound health and enhance quality of life among the citizens of the country. Due to the collaborative efforts of the Indian government and various institutions, the number of people striving for a healthier lifestyle has grown by leaps and bounds. Consequently, all the other dependent industries have also witnessed a sudden surge. Organic industry is one such promising industry that holds colossal potential within it, especially for the people driven to invest in this market.
According to the latest report by ASSOCHAM India & EY India, the current Indian organic market is estimated at Rs 40,000 million and is likely to increase to Rs 100,000–120,000 million by 2020 with a similar incremental trend in exports. Currently, India is emerging as a key player in the global arena, exporting over 300 products in 20 different categories to over 20 countries. The country has already exported 1.35 million MT of certified organic food products worth INR1,937 Crore in 2015-16. On the global front, as per Ecovia Intelligence and FiBL survey, the data on the organic retail sale of food and beverages showed a CAGR 10.4% from 2000 to 2016 with the global sale has increased to US$90 billion in 2016 from US$17.9 billion in 2000. It is further projected to record a growth of over CAGR 16% during 2017-2020. The encouraging numbers boast of vast untapped avenues in the industry that can open doors for a wide range of opportunities.
There are various factors that can lead to further expansion of the organic industry in India. First is the presence of favourable agro-climatic conditions and existence of various agro-economic zones in the country. Besides, organic farming improves the quality of the soil where intensive agriculture and excessive use of chemical fertilizer has been persistent, hence further encouraging the farmers to opt for organic farming. Other factors like the rise in per capita purchasing power and increase in awareness regarding the social, environmental and health benefits of organic products, has also led to an ever increasing demand for these products. The support from the government in terms of sanctioning several schemes to incentivize organic farming in the country is a major step that has created unrivalled prospects in the sector.
Scrutinizing all the growth drivers and dynamics, a number of private players are also geared up to invest and reap the benefits of the evolving organic farming industry. Some players have already started to invest in areas like technology for organic agriculture, to be able to drive the maximum output from the industry. While others are highly optimistic to invest in this industry which has grown miraculously over the years and has still a lot to offer for many more years to come.
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