The organic food industry started to boom a decade ago and there has been no looking back ever since then. Rising consciousness amongst people about the side effects of artificial chemicals in food production has further boosted the growth of organic food in recent years. Given the kind of innovation coupled with this rising demand, organic food industry is yet to witness a full-fledged evolution. But one can safely assume that the organic food sector is here to stay.
1. Digital Literacy and E-commerce facilitation
Due to the surge of smart-phone usage India, coupled with low-cost internet, there has been an increase in access to information about organic food. Added with this, e-commerce platforms acted like a facilitator reaching out to potential customers across the country. This is the reason why the growth of organic food was initially harnessed by Tier I cities, but the industry eventually reached out to potential customers in Tier II and Tier III cities. E-commerce platforms also made the sector competitive with more and more players entering into the organic food industry. Experts are predicting an increased penetration of organic food into Tier II and III cities in the years to come, leading to demand for organic food at a continually increased rate.
(Also Read:4 Health Benefits Of Switching To Organic Food)
Availability of internet has resulted in better reach to these goods
2. Insignificant price difference
The price difference between organic and inorganic food is insignificant; when compared to the health benefits carried by organic food. While organic food might be priced higher by a few pennies, it prevents the body from the needless intake of pesticides and fertilizers. This further cuts down the risk of health hazards and unnecessary medical expenses in the longer run.
(Also Read: 5 Quick Tips for Shopping Organic)
Considering the benefits, the prices difference is totally worth it
3. Indian government supporting organic food industry
The Indian government is supporting and promoting organic farming by extending financial help to farmers adopting organic farming. Various government schemes like Mission for Sustainable Agriculture (NMSA), Mission for Integrated Development of Horticulture (MIDH), National Food Security Mission (NFSM) and Rashtriya Krishi Vikas Yojana (RKVY) have been implemented to promote the sector. GOI also implemented the National Programme for Organic Production (NPOP) which involves accreditation programme for certification bodies, standards for organic production, promotion of organic farming etc.
4. Increase in export
The demand for Indian organic food has not only witnessed a steady rise in India but it is receiving appreciation on a global platform. Due to India's favourable agro climatic conditions coupled with the inherited tradition of organic farming, the quality of organic food to export is very high. As per reports, the demand for Indian organic food is on the constant increase worldwide; India exported organic products worth $515 million in the financial year 2017-18. The export trend will increase in the next five years.
(Also Read: Organic Food Market Growing at 25-30%, Says Government)
The increase in awareness has resulted in increase in export
About Author: Mr. Divakar Bhalla, is the founder of Kesarwala. One of the first organic food restaurant in Delhi/ NCR.
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