How To Start Organic Farming Business in India?
Organic products are in high demand and this brings a great business opportunity- Organic Farming. In organic farming, a farmer cultivates a crop without using any synthetic chemicals, insecticides etc. the farming uses manure that comes naturally from animals like animal husbandry, goat farming etc which makes the soil more fertilizing.
The process leaves no harmful impact on the environment or human health. Organic systems run on crop rotations, use of crop residues, animal wastes, bio fertilizers, leaguems, green manure and mechanical cultivation. It also takes help of biological control to maintain soil productivity and to control insects and weeds and other kinds of pests.
Along with consumers, people such as farmers, administrators, researchers, policy makers are showing great enthusiasm in promoting organic farming in the country. Organic food products are safer and healthier than that of conventional farming. Also, organic farming brings back the natural health of soil, protects the environment and improves diversity while sustaining crop productivity bringing more income to the farmer.Hence, it is one the most Profitable agriculture business ideas at present.
So, let’s learn How to Start Organic Farming Business in India. But, before we go further, let’s know if it is really a profitable business.
Is Organic Farming Profitable?
- Organic farming is a unique way to cultivate plants and raise animals because it uses only natural ingredients and no synthetic ones.
- Users claim that because bio-based materials are used in organic food production, it actually tastes better. Organic farming produces healthier produce than mass production that uses artificial additives.
- By avoiding synthetic substances, pollution is reduced; soil fertility and the delicate ecological balance of grassland ecosystems are preserved.
- However, in a nation like India, is organic farming a worthwhile business proposition? According to research, organic farming is still in its infancy in India.
- There are a few specialised start-ups that sell only organic produce, and the Indian market has a sizable demand for them.
- According to information obtained from the Union Ministry of Agriculture and Farmers’ Welfare, only 2.78 million hectares, or 2% of the total 140.1 million hectares of farmland available as of March 2020, are being used for organic farming.
- Now is the perfect time to enter the Indian market because of the growing purchasing power and health consciousness of the Indian people.
- Madhya Pradesh, Rajasthan, and Maharashtra are the top 3 states with the highest percentage of organic farming adherents.
- Madhya Pradesh comes in first on this list with 0.76 million hectares of arable land under organic cultivation, making up 80% of the total area.
- Nevertheless, it only makes up 4.9, 2.0, and 1.6% of the net sown area.
- Sikkim is the only state to have achieved total organic status. 10% or more of the land in Meghalaya, Mizoram, Uttarakhand, Goa, and Sikkim is used for organic farming.
- According to international research data gathered by Research Institute of Organic Agriculture (FIBL) & International Federation of Organic Agriculture Movements (IFOAM) Statistics 2020, India ranks ninth in the world in terms of certified agricultural land with 1.94 million hectares (2018-19).
Like most other businesses, Organic Farming requires certain licences.
Required licence:
The licensees necessary to operate a business in organic farming are
- GST registration
- MSME registration
- NPOP certification for organic farming
- FSSAI registration, state or central licence
Organic farming techniques:
Organic farming involves multiple farming techniques such as-
- Homa farming
- Poly cropping and crop diversity
- Biodynamics
- Management of weeds and pests
- Vermicomposting
- microbe cultivation
- soil preservation and water harvesting
Government Regulations:
The Indian government has introduced numerous programmes and policies to promote organic farming. Here are some of them: encouraging the re-use and recycling of crop waste for manure and soil augmentation assisting in the promotion of organic farming with welfare programmes like:
- Paramparagat Krishi Vikas Yojana (PKVY)
- Mission Organic Value Chain Development under for the North Eastern Region (MOVCDNER)
- Capital Investment Subsidy Scheme (CISS) under Soil Health Management Scheme
- National Mission on Oilseeds and Oil Palm (NMOOP)
- National Food Security Mission (NFSM)
How to Start an Organic Farming Business in India.
- Create a business plan for organic farming.
Your business plan will include key information about your organic farming operation. These include your goals and missions, your target market, your rivals, and your USP, as well as your management and financial plans. Your organic farm and greenhouse business may not always succeed, but having a business plan will greatly increase your chances of success. Your business plan will act as a step-by-step manual for starting and operating your company successfully. It will also assist you in determining whether there is actually a market for organic food items in your area.
There are many helpful resources available online that demonstrate how to write a business plan. You can look for free, easily editable business plan templates as well.
- Acquire an Organic Certification:
One of the key steps in beginning your organic farming is getting the certification. We are going to assume that you have the land you need to start an organic farm. If you don’t already own a piece of land, you can always rent it out or, if your finances allow it, buy it. The following can be the goals for obtaining organic certification:
- to satisfy domestic demand for organic food
- to send the goods to other businesses for export
- Site Selection for Organic Farming:
Any venture’s success is critically influenced by its location. The success of your organic farming endeavour in India depends on the region. Since clean water is the most essential resource for crop growth and health, the organic farming location should be close to a source of it.
It is much more difficult to manage the irrigation measures in organic farming if your water source is far away. This may seem like a boring thought to have as an introduction, but it is necessary for productive work on your farm. The ability to manage the farm is further enhanced by the proximity of the organic farming region to the commercial district. The proximity of the organic farm to the market allows for simple selling communication. Additionally, it saves money on shipping supplies to the farm.
- Application Of Fertiliser, Pest and Disease Management
Chemical pesticides and fertilisers are a viable option for conventional farming, as we previously discussed. While it undoubtedly produces results, it also has negative effects on both the environment and the human body.
Therefore, it is recommended that you have knowledge of how to make organic fertilizer and pesticide in your farm’s vicinity before beginning organic farming. Utilizing organic inputs ensures that the product has no residues and is therefore safe for consumption by humans.
Pesticides: Neem tree branches or leaf powder and datura plant powder can be combined and boiled to create highly toxic and concentrated organic pesticides. Once made, it can be diluted and sprayed on the soil.
DAP can be replaced by a mixture of cow dung, cow urine, jaggery, gram flour, and fertile soil from nearby trees or rivers, which acts as an organic fertiliser (DAP). The mixture can improve soil texture and contains both nitrogen and phosphorus.
A good micronutrient solution for plants that can treat all deficiencies is a mixture of neem kernel powder, jaggery, and waste decomposer liquid (ready to buy on the market).
- Select The Appropriate Crops to Grow
There’s a good chance you don’t have enough land to grow a variety of crops. Even if you do, you must still describe the kinds of crops you intend to grow on your farm. These might include herbs, vegetables, food crops, flowers, or other kinds of plants. Don’t just select any crop or produce because you like it. Learn what produce is favoured in your area by conducting market research.
Determine which farm products are most successful at selling. You don’t want to spend your time, energy, or labour growing food that no one in your community wants to purchase. Learn what other local farmers are raising on their farms. You’ll get a better idea of what local shoppers are buying from this. You can better prepare your land for it by deciding which specific farm products you will grow.
- Start Your Market Search:
If you grow organic food on your farm and don’t know where to sell it once it’s been harvested, you’re going to have a lot of problems. Not every wholesaler needs food that was grown organically. Additionally, if they are prepared to make a purchase from you, they won’t give you the price of the actual worth of produce.
Therefore, you must have a firm understanding of your target market before you consider engaging in organic farming. Which market will you sell your product in? It will be very simple for you to sell the product after harvesting if you have some idea in this regard.
- Look Over Your Organic Farm and Resources.
It’s likely that you already have land available for use in your organic farming enterprise. But keep in mind that you need good water and soil, mainly because plants require these as a minimum to thrive. Check the soil type on your farm to see if it is suitable for growing the produce you have chosen. Additionally, see how much water is available. You must make sure the water you are using is safe and does not contain any harmful chemicals. Check for sunlight penetration on your farm as well. Your land must receive enough sunlight on every square inch of it because healthy plant growth depends on it.
- Take Good Care of Your Crop:
As opposed to conventional farming, organic farming requires more time and attention. Depending on the plants and farm conditions, specific methods need to be taken into consideration. Additionally, not every plant on the farm could necessarily benefit from the organic farming technique.
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