Marketing behavior of organic inputs in India: Some experiences

The implementation of National Program on Organic Production on 1st October, 2004 has helped to pave the way for organic markets to take off in India. The marketing and trade of organic agriculture in India and globally is considered in the context of organically certifi ed traded organic agricultural products and organic inputs to produce them. It is considered that organic farming has a place where there is a market to accept the produce at a higher price as the growing interest in organic farming is due to an expectation of high premium for organically produced farm commodities. Since being implemented by the NPOF, the certification process has helped to pave the way for organic markets to take off. The first step creating to an effective marketing plan is to perform some market research in order to understand the market, the competition and marketing trends. A farmer must then decide on a marketing strategy. Most organic output produced in India are sold through natural food stores, conventional food stores, direct sales to consumers while most of the organic inputs are sold either as direct sale to organic producer or through dealers or distributors or Government institutions. A small portion is exported to foreign markets. The three main marketing channels are through direct marketing, through dealers and distributors in the same district or neighboring districts and through marketing corporations. The demand for vermin-compost was low in villages. Promoters were trying hard to market their product. Most of the sales were on credit basis. Sellers were not able to get the returns on time. Due to low demand of vermin-compost the prices were being affected adversely. Farmers need more awareness and training for usage of bio-fertilizers. Strict supervision and monitoring are needed for implementation of production standards and efficacy of bio-fertilizers. This paper discusses the rationale for organic farming and trade in both international and domestic organic markets and documents the Indian experience in organic input production and trade.