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Case Study Of Organic Farming In India

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Following were the findings that was presented by the E&Y to Mr. Shailendra in the following areas
1. Organic Farming ---- scope, challenges and opportunities
2. Indian Retail Industry
3. Rise of online veggie sales

1. Industry Background
Organic Farming has been prevalent since the time agriculture has been in existence. However due to commercialisation, the natural method of growing crops became unpopular as it was not economical. To earn more profits, farmers resorted to better and more utilization of land. Where only one crop was grown in a year, farmers started growing two or more crops a year. This required adding fertilisers to the soil. Organic food farming got restricted to small family kitchen gardens. To counter this widespread …show more content…
There is no application of practices like genetic engineering or irradiation which are harmful for the produce. The products adhere to National Organic Program Standards and Organic Food Production Act. They regulate a balance between farming methods and environment.
The World organic food market is estimated to exceed $88,000 million by end of year 2015. Fruits and vegetables contribute 30% of this market. America has nearly 55% of worldwide share of organic market.

Organic Food Market- India
The market for organic food in India is growing at 25-30% but awareness among people is still low. Government of India has released a study which projects that domestic organic food market will reach $1.36 billion by 2020. Government is spending huge amount of money on this sector. Organic farming protects land and water resources apart from improving income of farmers. India has the capability of growing different types of organic food. Even after huge potential, there is unawareness about organic food in India both at farmer’s end as well as consumers end.
Organic farming is currently practiced in 12 states of India. The area cultivated is 4.72 million hectars. In the year 2013-14 the organic food output was 1.24 million tonnes. …show more content…
The Indian Retail Industry
India is the 5th largest retail market in the world. The country ranks fourth among the surveyed 30 countries in terms of global retail development. The current market size of Indian retail industry is about US$ 500 bn (Source: IBEF) and is expected to grow at the rate of 15-20% p.a. The retail industry is expected to increase to US$ 750-850 bn by 2015 (according to a report by Deloitte).
* Of the total retail trade only 8-10% is the share of organised retail trade in India, highlighting the scope this industry has for further penetration. By the year 2020 contribution of the organized retail segment (India) will account for 20% revenue of the total retail market in India by the year 2020. Net retail sales in India are also quite significant among emerging and developed nations. Changing expectations of the consumer, a rising middle class, rising disposable incomes, want for luxury products and shift in demographic profile has lead to rise of organized retail as compared to traditional retail. Next generation consumers look for shopping convenience where they seek for multiple products all under one roof thereby increasing the mall culture.
(* Indian Retail Sector Report May

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