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ASSOCHAM’s study on organic farming in MP shows Rs 23,000 cr potential
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Friday, 20 January, 2012, 08 : 00 AM [IST]
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Our Bureau, New Delhi
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ASSOCHAM (Associated Chambers of Commerce and Industry of India) has offered co-operation to promote organic farming in Madhya Pradesh, which according to a study undertaken by the body, can lead to wealth accumulation of Rs 23,000 crore, generate exports worth Rs 600 crore and create nearly 60 lakh employment opportunities across the state during the course of next five years.
The study titled—Madhya Pradesh: Inching towards Organic Farming—was released by D S Rawat, national secretary-general, ASSOCHAM, along with other senior officials in Bhopal on Wednesday.
About 20 lakh additional jobs can also be generated if on-farm storing, processing, value addition, packaging and marketing facilities are included, considering organic farms provide more than 30 per cent more jobs per hectare as against non-organic farms.
“Adoption of organic farming will bring down the expenditure on input costs and will fetch premium pricing up to 50 per cent higher than normal price and about 100 per cent in retail market,” stated the study.
“Thus, it can increase net per capita income of a farmer in the state by a whopping 250 per cent i.e. from current level of about Rs 4,200 to over Rs 10,600 per month in next five years, thereby, arresting the migration of people from Madhya Pradesh to other states in search of jobs.”
At least 45 per cent of cultivable land can be converted into organic farms, in next five years, thereby converting seven per cent cultivable land annually into organic farming.
“The state government must emphasise on organic farming in their agriculture policy to overcome constraints like unproductive plantation, low crop productivity, poor crop management, high degree of pests and diseases,” said Rawat. “It is imperative to adopt modern practices, technologies and scientific management in agri sector.”
Considering rising health-consciousness and growing awareness among people, the demand for organic food products is likely to increase rapidly, thus ASSOCHAM calls for setting up organic farming clusters across the state.
With about 45 per cent of total area under certified organic farming in India, MP has the potential to take India’s global share in organic exports from less than one per cent to about 2.5 per cent by 2015.
Growing at a robust annual growth rate of over $five billion, the global organic market currently stands at about $65 billion. The organic agriculture is practiced in over 150 countries with a total area of 35 million hectares in about 14 million organic farms and accounts for less than one per cent of world's total agricultural land.
Besides, demand for organic food is steadily increasing globally at an annual average growth rate of about 25 per cent.
Growing at a steady annual rate of about 40 per cent, the total turnover of organic farming (including exports) in India is likely to be worth Rs 10,000 crore by 2015 from current levels of about Rs 2,500 crore. Nearly 4.5 million hectares area is currently under certified organic farms, points out the ASSOCHAM study. Besides, tie-ups with modern retail chains and IT firms will also give a boost to the sector.
Demand for organic food alone in India is about Rs 600 crore. Currently, India exports about 86 products worth over $100 million to the world-certified organic market registering a growth of over 30 per cent.
Certified organic products including all varieties of food products namely basmati rice, pulses, honey, tea, spices, coffee, oil seeds, fruits, processed food, cereals, herbal medicines and their value-added products are produced in India. Apart from edible sector, organic cotton fibre, garments, cosmetics, functional food products and body care products are also produced.
Banana, pomegranates, pineapple, grapes, amaranth, ginger, large cardamom, sweet fennel, peanut, onion, and sugar/jaggery are other commodities which will emerge as significant organic commodities produced in India in the next two to three years.
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