NAFED has started retailing organic products under the brand name ‘Organic Soul’ on a pan India basis
At a time when consumers have plenty to choose from the available food products in the market, organic products have gained an advantageous position in the Indian market. As consumers show growing concern about their health, organic food is now becoming a viable alternative. In the organic food and beverages segment alone, India has witnessed a market growth of Rs. 40,000 million in 2016-17 from Rs. 675 crore in 2009-10, with an annual growth rate of 25 per cent.
Keeping a track of these figures, the National Agricultural Cooperative Marketing Federation of India Ltd (NAFED) is committed to promote organic farming by providing the requisite market linkages for ensuring a better price recovery to organic cultivators.
The Organic Soul
NAFED have launched 90 new organic products in the brand name of “Organic Soul” starting from seeds like flax seeds, chia seeds, tea, flour, pulses and so on with the to popularise these products in the physical markets in the states by making use of the distribution channels. The products are competitively priced and are available in various outlets of NAFED and its franchisee shops. Through Organic Soul, NAFED strives to bring the highest quality of certified organic and natural produce to its consumers. . NAFED have also partnered with e-commerce platforms like Grofers and Amazon.
Organic Farming in India
Organic farming is one of the key thrust areas of the Government of India and in order to promote organic farming, the Government has launched Paramparagat Krishi Vikas Yojana (PKVY) & Mission Organic Value Chain Development for North Eastern Region (MOVCDNER) schemes aimed at supporting the production and marketing of organic produce in the country to reduce their costs and prices.
In addition to this, the government is implementing a cluster-based programme to encourage farmers for promoting organic farming called PKVY:
- Groups of farmers would be motivated to take up organic farming under PKVY. Fifty or more farmers will form a cluster having 50 acre land to take up the organic farming under the scheme.
- In this way during three years 10,000 clusters will be formed covering 5.0 lakh acre areas under organic farming. There will be no liability on the farmers for expenditure on certification.
- Every farmer will be provided Rs.20,000/- per acre in three years for seed to harvest of crops and their transport to the market.
- Organic farming will be promoted by using traditional resources and the organic products will be linked with the market.
- It will increase domestic production and certification of organic produce by involving farmers.
As the domestic organic food market of India is registering a compound annual growth rate of over 25 per cent during last 6-7 years, small farmers are showing an increasing trend of going organic under the PKVY scheme. With its entry into the organic food marketing sector, NAFED will provide a major boost for more and more small farmers to go for organic farming. Although Sikkim is India’s first fully organic state, Uttarakhand, Himachal Pradesh, Maharashtra and Madhya Pradesh are also emerging players.
NAFED at BIOFACH 2019
NAFED participated in the world’s leading trade fair for organic food – BIOFACH 2019 – held in Nuremberg, Germany during 13th to 16thFeb. 2019. The event provides a platform to meet industry experts and other aggregators from all over the world and also to explore new markets. NAFED showcased a vast variety of organic food items.
Interview of MD, NAFED published in The Pioneer Newspaper on 28.03.2019
“Our products will be cheaper because we will remove the middlemen and directly source from growers. This would immensely help in better price realisation for small and marginal farmers.”
NAFED have launched 90 new organic products in the brand Name of “Organic Soul” starting from seeds like flax seeds, chia seeds, tea, flour, pulses and so on. NAFED have also partnered with e-commerce platforms like Grofers and Amazon. Our focus is to popularise these products in the physical markets in the states by making use of the distribution channels.
The challenge in the organic farming is that the farmers who grow these products do not get the premium as paid by the consumers. To bridge the gap between the growers and market, we have identified farmer co-operatives and farmer producer organizations who get the products certified and we are now sourcing the products directly from them. This way we are ensuring that the farmers are paid at least 20 percent more for their products. Also, since we are able to make these products more competitive, we will be able to pass on the benefit to the end consumers as well.
Recently we participated in Bio-Fach 2019 in Germany, the largest event in the world for organic food, to study and understand the international market in this segment. Since all our organic products are APEDA certified, we can also export these to meet the demand from the international market like the Middle East.