The change to organic farming in India did not occur overnight. It has been years in the making, gradually at first, and then with true energy, and now it is one of the more interesting business stories being played out throughout the agricultural industry. Farmers who previously depended solely on chemical inputs are rethinking. Customers (both local and global) are posing more difficult questions regarding the origin of their food. And the distribution system, which serves organic farming, is in most parts of the world finding it hard to keep up with what the market actually wants. The bulk of the business opportunity is in that gap. Lets see how.
India has attempted to promote organic farming in the past. Policy projects, education campaigns, state initiatives - past attempts fell a bit short of scale. The only difference now that is really occurring is that the pressure has turned up in more than one direction at a time, and not only the top-down.
Arguably, the largest driver is export demand. Indian organic products - spices, tea, pulses, basmati rice have been fetching grave premiums in European, American and Japanese markets. Those exporters who have the capability of certifying their supply chains as organic are not only getting better prices, but they are also accessing a buyer group that will not buy uncertified products at any cost. Such commercial reality has driven farmers in Uttarakhand, Madhya Pradesh, Sikkim, and much of the Northeast to serious transition efforts.
The case study here is of course, Sikkim. In 2016, the state was the first fully organic state in the world, and the results were high prices to the farmers, considerable international focus, and a real tourism spillover effect of the organic state brand, have been closely followed by other state administrations. Some are now operating their own transition programmes, with more or less seriousness.
In the domestic market, the awareness of consumers in the cities has changed. Not in an epic sense, since the majority of Indian consumers continue to shop by price, period, but the metro market of certified organic produce, organic processed foods, and clean-label products has grown to the point where it can sustain a true retail and e-commerce ecosystem. The availability of organic products has increased with platforms such as BigBasket and Amazon, which allow middle-income consumers to purchase these goods, who would never enter a speciality health store.
Organic farming needs inputs. It is intuitively true, but worth considering in some detail - since the whole ecosystem of organic farming products suppliers is fundamentally based on replacing a synthetic input chain with something biological, naturally derived, or at least, far less harmful.
The whole system is based on organic fertiliser. Vermicompost, compost, neem cake, bone meal, fish emulsion, green manure are the inputs to soil building that organic farms operate on. Certified organic farmers have increased demand, but so too, to a large degree, have conventional farmers who are adding organic inputs to restore soil health to a degree, whether they are fully converting.
In India, manufacturers of organic fertilizers work on a vastly diverse scale, with some small composting units serving local farmers, others with mid-scale and large-scale manufacturing of thousands of tonnes of fertilizers each year, some also with export activities. Quality varies enormously. Such variation, in turn, is a business opportunity of manufacturers capable of providing consistency.
Another and technically different group that must be taken into consideration is biofertilizers. These are microbial preparations rhizobium, azotobacter, phosphate-solubilising bacteria, mycorrhizal fungi, and trichoderma, which act by stimulating natural soil biology as opposed to providing nutrients. They're more technical than compost. Not all farmers know them and improper use lessens effectiveness.
However, the trials are good, and uptake has been speeding up as the extension services and the agri-input dealers have improved when it comes to selling the products. There are bio fertilizer suppliers India, both in the public-sector (since long-standing production and sale of bio fertilizers at subsidised rates by agricultural universities and ICAR institutions) and an emerging private sector competing on quality and consistency as well as price.
Such inconsistency is an actual issue and it also implies that there is a definite gap that can be filled by organic pesticides suppliers that can prove their performance with transparent, third-party verified efficacy data.
| Input Type | Examples | Primary Function | Market Maturity in India |
|---|---|---|---|
| Organic Fertilizers | Vermicompost, compost, neem cake, bone meal, fish emulsion | Soil enrichment, slow-release nutrition | Well-established, fragmented supply |
| Bio Fertilizers | Rhizobium, Azotobacter, PSB, Mycorrhiza, Trichoderma | Enhance soil biology, fix nitrogen, solubilise phosphorus | Growing, quality inconsistency remains a challenge |
| Organic Pesticides | Neem oil, azadirachtin, pyrethrin, copper fungicides, botanical repellents | Pest and disease control without synthetic chemicals | Underserved, significant supply gap |
| Organic Micronutrients | Zinc solubilisers, sulphur-based inputs, seaweed extracts | Address specific deficiencies in organic systems | Early stage, rising awareness |
| Soil Conditioners | Humic acid, fulvic acid, biochar, bentonite | Improve soil structure, water retention, CEC | Niche but growing, especially in degraded soils |
This table is a fairly accurate reflection of the present state of each input category. The most developed supply is organic fertilizers, buyers are familiar with the products. Bio fertilizers are in the maturity stage in which quality differentiation is beginning to be important. The category of organic pesticides is literally under served, thus a burden of the farmers in their transition, and a clear vacuum with the manufacturers eager to invest in the category accordingly.
Specificity is important in this case. Since growing organic farming is not a business plan, but a statement.
A true near-term opportunity is in manufacturing bio-fertilisers. Capital requirements are within manageable limits as opposed to the traditional production of fertilisers. The Fertiliser Control Order regulatory pathway is set, albeit time-consuming to navigate. And the demand is steadily increasing year after year, while the supply is still fragmented domestically. The more difficult part is distribution and education of farmers to reach rural consumers with a product category they might not be all too familiar with; there must be long-term investment in demonstration and building relationships.
Commercial-scale vermiculomposting has been demonstrated in several states. The availability of organic waste, including food processing, sugarcane press mud, urban municipal, etc., is not a limiting factor. The more challenging problems are reliable offtake and uniform quality of products, yet both can be addressed with the appropriate operational arrangement.
The least developed aspect of the organic inputs market is likely to be aggregation and distribution. There are a large number of small organic fertiliser and bio fertiliser producers in India, with many creating high-quality products, but with limited commercial coverage outside of their local area. A type of distributor that has not been done well yet is a regional or national distributor, one that purchases multiple quality-verified producers, standardises quality checks and handles logistics. The break-up of supply is a matter and a chance, as it has been on one side or another.
Another aspect that should be considered is the export of certified organic inputs. In Southeast Asian and African markets, their own organic farming industries are being developed, and are seeking low-cost, quality inputs. Indian manufacturers with global certifications, OMRI listing in the US market, and ECOCERT in the European marketplace, are in a good position. This certification investment is actual but can easily be recovered in the high prices that the export markets can support.
Some things are really important, no matter which side of the market you are in. They are applicable when sourcing to your own farm, establishing a distribution business, or purchasing inputs to resell:
Confirm certifications, do not accumulate them. The corresponding standard on domestic organic inputs is NPOP. In case of export products, check OMRI (US market) or ECOCERT (European buyers). Certifications may be out of date or falsified - always verify with the certification authority itself before engaging a supplier relationship, particularly with bulk orders.
In the case of biofertilizers, it is just a matter of microbial viability. A low-cost product with killed or killed-out cultures is of no use to soil biology. Request recent third-party lab reports with CFU counts, shelf life and storage requirements. Do not just use the information that is presented by the manufacturer.
Get to know the regulatory status of the organic pesticides you are purchasing. The scenery is yet to develop more- some products are registered by the Insecticides Act, and others are not. Assuming that things will work in your target market is not a cheap area when it comes to compliance, which is non-negotiable if you are exporting.
Organic farming is emerging as a global powerhouse in India with millions of certified organic farmers and an increasing demand. But the required infrastructure and supply chains are yet to be established. The market is also growing due to the influence of the government to promote natural farming.
This presents a huge opportunity to businesses to develop a strong presence. ExportersIndia offers the possibility to meet suppliers in this increasing market, and businesses are guaranteed of long-term success.
Q1. What is organic fertilizers versus bio fertilizers?
Compost, vermicompost, neem cake are organic fertilizers based on the carbon and decomposing materials that provide nutrients to the soil. Bio fertilizers are living microbial formulations that enhance soil biology by correcting nitrogen, solubilising phosphorus or by increasing root uptake.
Q2. What is the time to convert a farm to certified organic?
A conversion period of two years is typical of a farm under the NPOP framework of India, prior to being able to sell crops as certified organic. The farmer does practices which are organic but is not yet certified during this period. Timeline might be tedious, but the high cost post-certification normally makes it worthwhile to farmers who prepare in time.
Q3. Are organic farming inputs costly than conventional farming inputs?
Generally, yes, upfront. Organic fertilizers and bio fertilizers are usually expensive per unit compared to the synthetic ones, and organic pesticides may be more expensive and need more frequent spraying. Nonetheless, in the long run, good soil decreases its need on inputs and certified organic produce has high prices that subsidize the increased input expenses of most crops.
Q4. How do I get suppliers of verified organic farming products in India?
B2B websites such as ExportersIndia provide a list of certified manufacturers and suppliers of organic inputs, such as vermicompost, bio fertilizers, neem-based pesticides, and others, including contact information, certifications, and product descriptions.
Q5. Can small and marginal farmers in India engage in organic farming?
It can and works better when small farmers act in a collectivist manner. Access to premium markets in terms of certification fees and minimum volumes required are challenging to handle individually by individual smallholders.
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