India's organic farming industry is on track for significant growth, with increasing government support and consumer demand driving the sector towards a projected market value of INR 625.69 billion by 2028
The organic farming industry in India has experienced a significant upswing in recent years, signalling a shift in consumer preferences towards healthier and environmentally sustainable agricultural practices. Government support, coupled with increasing consumer awareness and technological advancements, plays a pivotal role in unlocking the full potential of organic farming as a sustainable and economically viable practice in India.
Market Insights
The organic food industry in India, valued at approximately INR 131.41 billion in 2023, is poised to reach around INR 625.69 billion by 2028. This reflects an impressive compound annual growth rate (CAGR) of about 37.01 percent during the forecast period from 2024 to 2028.
The surge in popularity of organic farming is driven by global awareness of the environmental impact of conventional agriculture. This, combined with a growing health-conscious consumer base, positions organic farming as a leading practice in the Indian agricultural landscape. The demand for chemical-free produce, sustainable farming practices, and a preference for healthier lifestyles contribute to the sector's growth.
Despite the promising trajectory, challenges persist in adopting organic farming practices. Limited awareness among farmers, the prolonged transition period from conventional to organic methods, and the absence of standardised certification processes hinder industry growth. Addressing these challenges requires collaborative efforts from the government, non-governmental organisations, and industry stakeholders to create a supportive ecosystem for organic farmers.
Fundamental Dynamics and Growth Opportunities
Several factors contribute to the buoyancy of the organic farming industry in India. Government initiatives, including the Paramparagat Krishi Vikas Yojana (PKVY) and the National Programme for Organic Production (NPOP), incentivise farmers to transition to organic practices by providing financial support and certification assistance. Consequently, the sector observes a steady rise in the number of certified organic farms across diverse agricultural regions in the country.
The increasing demand for organic products, both domestically and globally, along with the premium prices commanded by organic produce, presents a lucrative market for farmers and agribusinesses. Integration of technology, such as precision farming and blockchain for traceability, enhances the credibility of organic products and fosters consumer trust.
Strategic collaborations between farmers, retailers, and e-commerce platforms contribute to expanding the market reach of organic produce, creating a robust supply chain for the industry. Additionally, the growing interest of multinational corporations in sourcing organic raw materials from India underscores the global potential of the organic farming sector.