Organic Produce Supply Chains in India: Organization and Governance

Abstract

This is perhaps the first detailed work on organic product marketing that covers several aspects of the origin of and rationale for organic farming and trade. There are very few studies on supply chain management of organic produce at the national and sub-national levels in India. This book provides a comprehensive analysis of trends in organic production and markets both in the Indian and global contexts. The author has made excellent efforts to examine the organic agriculture starting from the village or firm level to the state, national and global levels.

This research work explains the rationale for organic farming and its potential benefits in terms of increased diversity, long-term soil fertility, and sustainable agriculture production system. Environmental benefits include reduced pollution, less dependence on non-renewable resources and a resilient agro eco system. It also leads to improved socio-economic conditions via improved health, reduced rural-urban migration, increased employment, stronger local economy, low risk, and income security. The book also covers current policies and practices of organic farming in India.

In Chapter II, the author explains the global production, market and trade of organic produce; major markets for organic foods are Japan, Germany, China, France, UK, the Netherlands, Sweden and Denmark. The growth in the organic market will be driven by three major factors: 1) More and more conventional retail chains will enter the organic produce market, 2) The distribution density and the range of organic products in the outlets will increase, 3) The buying frequency of the existing and future consumers will increase. This reflects the availability and visibility of organic goods in more outlets, thereby raising the consumers' access to such products. Despite some common perceptions to the contrary in some retail chains, there may be supply deficit in organic goods in the medium term. The growth of organic farming in India and other Asian countries has been slow due to the emphasis given to food security rather than food safety, and poor marketing. Certification of organic produce is a must in order to access the formal and organised marketing. However, the author does not discuss the organic products produced in India using the traditional practices by poor farmers whose farms are not certified by any agency. Therefore. certification alone cannot be the sole criterion for organic agriculture.

Chapter III dwells on the Indian rationale for organic production and trade, the status of domestic organic sector, economics of organic production, nature of domestic market and the policy environment for organic sector. The recent trend shows that farm yard manure (FYM) and other organic sources of fertilisers/manures are becoming expensive due to decline in the livestock population. The author could have addressed the policy issues for promoting organic agriculture through increased availability of inputs.

Chapter IV covers the broad areas of governance issues in supply chains, relevance and practice of contract farming to manage these chains, issues in the functioning of the chains from primary producers' perspective and sustainable supply-chain management.

The book covers the trends and status of organic production and marketing of crops such as cotton and 'Basmati' rice in Chapters V and VI. Interestingly, it covers many case studies by explaining real practical approaches adopted by companies such as the Nucleus-Outgrower model and FabIndia Organics.

The book also discusses the challenges, opportunities and policy options for future organic agriculture. On the whole, it is a very valuable addition to the existing literature on the organic products supply chain management in the national as well as international contexts.