Organic Farming goldmine and the backbone of our Indian economy is the country’s lush soil, land availability, and agricultural and farming population.
If you appear to have them crossed off your list of successful business opportunities, you’ve got one.
Possession of these elements is likely to open the door to the organic farming company, which is booming more than ever.
Whose market is estimated to be around 10,000 – 12000 crore by the end of 2020, increasing demand from both local and worldwide consumers.
The rationale for the expansion of this organic agricultural firm is
- includes health benefits,
- environmental benefits enhanced agricultural cycle,
- reduced pesticide and other foreign fertilizer imports,
- and greater job creation
As a result, the Indian government imposed a GST percentage of 18%, which was previously only taxed at 5-6 percent, to develop India’s larger sector and foster domestic production.
To ensure food quality and raise living standards, organic product is slightly more expensive than ordinary stuff.
Organic Farming Is A Profitable Business Is Organic Farming A Profitable Business?
- Organic farming is a unique method of cultivating plants and rearing livestock in an entirely natural manner, utilizing only natural ingredients and avoiding synthetic inputs.
- Organic farming produces healthier produce than mass production using artificial additives, and users claim that organic food tastes even better because it is made from bio-based materials.
- By abstaining from synthetic drugs, we may help sustain soil fertility and the delicate ecological balance of grassland ecosystems, while also reducing pollution.
- However, is organic farming a viable economic model in a country such as India? 5. According to research, organic farming is still in its infancy in India.
- There are a few niche firms that deal exclusively in organic produce, and there is a sizable market in India.
- According to data from the Union Ministry of Agriculture and Farmers’ Welfare, organic farming currently occupies only 2.78 million hectares or less than 2% of the total 140.1 million hectares of accessible farmland as of March 2020.
- With India’s population increasing in purchasing power and health awareness, the timing is ideal for entering the Indian market.
- Madhya Pradesh, Rajasthan, and Maharashtra are the top three states with the highest number of organic farming subscribers.
- Madhya Pradesh tops this list with 0.76 million hectares of cultivable farmland under organic cultivation, accounting for more than 80% of the total area under organic cultivation.
- However, it accounts for only 4.9, 2.0, and 1.6 percent of the net sown area, respectively.
- Sikkim is the only state that has gone organic. Meghalaya, Mizoram, Uttarakhand, Goa, and Sikkim all have at least 10% organic land.
- According to international research data collected by the Research Institute of Organic Agriculture (FIBL) and the International Federation of Organic Agriculture Movements (IFOAM) for Statistics 2020, India ranks ninth in certified agricultural land with 1.94 million hectares (2018-19).
Policies of the Government
The Government of India has launched several programs and policies to promote organic farming. Among them are the following:
- Encouraging crop residue recycling for incorporation into the soil and use as manure
- Contributing to the promotion of organic farming through welfare programs such as:
- Organic Value Chain Development for the North Eastern Region: Paramparagat Krishi Vikas Yojana (PKVY) Mission (MOVCDNER)
- Under the Soil Health Management Scheme, there is a Capital Investment Subsidy Scheme (CISS).
- NMOOP (NFSM)
- Loans are required to launch every new business. Securing a loan becomes challenging in many sectors.
- However, this is not the case in organic farming. Nationalized banks make loans to cover the initial costs of establishment – Farmers having a minimum of 5 acres of land or who have a certification in organic farming can easily obtain a loan from the State Bank of India.
- Typical characteristics of these loans include the following:
- A minimum of three years is required.
- A loan of one lakh rupees can be approved with a minimum of five acres of land. 40% of this is for organic inputs and the remainder is for training.
- The farmer may receive a maximum of 20% subsidy.
- The loan can be repaid in nine years with a maximum extension of three years.
The Indian Central Government gives subsidies to alleviate the burden of borrowing. This simplifies the process of financing organic farming.
how to start
- Before you may establish your farm, extensive research is required.
- This is to ensure that once your farm is established and operating, you can gather information regarding potential dangers and systemic difficulties.
- Additionally, you can gain an understanding of the resources required and their anticipated cost in your location.
- You can tour other organic farming operations and meet with entrepreneurs who have significant experience in this field.
- By learning from their mistakes, you can make more informed decisions about the importance of the investments you will make.
Choosing a Crop
- Understanding the weather in your area and the crops that flourish in those climate conditions is critical for selecting the appropriate product.
- Numerous external aspects must be examined before making this selection.
These include the following:
- The pH, alkalinity, water retention, nutritive, and porosity levels of the soil all influence the crop’s health and quality.
- Local market demand
- Availability and composition of water
- Required organic inputs, their cost, and availability
- Required equipment and its availability
Choose Your Farming Technique
Organic farming is practiced in a variety of ways in India. To maximize output, you must choose the appropriate procedure for your crop, environment, and location. Several well-known techniques include the following:
Agnihotra/”home” agriculture: This time-honored Vedic approach entails the chanting of ancient holy Sanskrit scriptures at auspicious times in front of the “home” – sacred fire. The ash from this fire is then sprayed on compost piles, farms, and crops to rejuvenate them and ensure maximum yield.
Crop diversification with polyculture: Multi-cropping, also known as concurrent cultivation, is the practice of planting many crops simultaneously to better manage the soil’s health and natural nitrogen fixation cycle. Monoculture is a bad practice that degrades the fertility of the soil. Crop rotation, on the other hand, is a practice that involves the growing of several types of crops in a periodic rhythm. For instance, legumes and cereals. Intercropping is another prevalent method. Crops are planted between rows of primary produce — depending on the available space between the rows. This maximizes the farm’s asset utilization factor, as no area of the land is left unused, and certain symbiotic interactions contribute to the enhancement of both varieties’ outputs.
Microbe culture: Aerobic and anaerobic naturally occurring microorganisms are employed on the farm to promote soil health, provide natural insect control, and prepare compost. They aid in the decomposition of organic manure and return nutrients to the soil, specifically to the plant roots. Photosynthetic and lactic acid bacteria, filamentous and ray fungus, and yeasts are all examples of these microbes.
Biodynamics: Unique solutions are sprayed over farm waste and manure dumps according to the astronomical calendar. It requires proper certification and training, but once completed, the device can be offered under the “Demeter” brand Name and commands a premium price in marketplaces. This is mostly done to increase the quality of products through the development of nutrient-rich composts, pest management, and enhanced soil health.
Vermicomposting: This is when earthworms eat, break down, and break down organic waste from farms and turn it into good quality manure. This compost is then sieved to create finer particles that may easily be mixed with the soil. Vermicomposting discourages pests, insects, and illnesses that wreak havoc on farm crops.
Finish Your Business Plan
- Securing funding for your firm, recruiting the right personnel, and determining if any technology requirements exist for future demands are all critical strategic issues that you must ask yourself.
- Getting the business plan just perfect the first time is an improbability; there will always be something that needs to be adjusted.
- Spend no time developing the strategy – begin acting on what you already know and believe.
- The change will be required along the way – you must ensure that your team is capable of handling it at that moment in time.
- Organic farming in India has a bright and hopeful future.
- Government subsidies, simple loans, and finance make this the ideal time to start your own agricultural business.
- Now that you’re familiar with the process, it’s time to take action and turn your idea into a reality.