How To Start An Organic Farm Business In India?

. 6 min read
How To Start An Organic Farm Business In India?

Is Organic Farming A Profitable Business?

  1. Organic farming is a unique technique of cultivating plants & rearing livestock in a completely natural fashion, - using natural ingredients free of any synthetic inputs in the process.
  1. Organic farming yields healthier produce compared to mass production using artificial additives & users claim that organic food even tastes better due to the use of bio-based materials.

3.  Avoiding synthetic substances help maintain soil fertility & preserve the delicate ecological balance of the grassland ecosystems, minimising pollution.

  1. But is organic farming a valuable business proposition in a country like India? 5. Research says that organic farming is still in its nascent stage in India.
  2. There are a few niche startups which deal in 100% organic produce & there is significant demand in the Indian market.
  3. As per data received from the Union Ministry of Agriculture and Farmers’ Welfare, only 2.78 million hectares are being used for organic farming which is only 2% of the total 140.1 million hectares of farmland available, as of March 2020.
  4. With the Indian population growing in purchasing power & health consciousness, the time is just right to enter the Indian market.
  5. The top 3 states where there are many subscribers to organic farming are Madhya Pradesh, Rajasthan and Maharashtra.
  6. Madhya Pradesh tops this list with 0.76 million hectares of cultivable farmland under organic cultivation & together they account for 80% of the area under organic cultivation.
  7. But still, it accounts for only 4.9, 2.0 & 1.6% of the net sown area.
  8. The only state to become completely organic is Sikkim. Meghalaya, Mizoram, Uttarakhand, Goa and Sikkim have 10% or more space under organic cultivation.
  9. India stands at 9th position in certified agricultural land with 1.94-million-hectare (2018-19) based on international research data collected by Research Institute of Organic Agriculture (FIBL) & International Federation of Organic Agriculture Movements (IFOAM) Statistics 2020.

Government Policies

There are multiple schemes and policies launched by the Government of India to incentivise organic farming. Some of them are:

  • Encouraging recycling of crop residues for incorporation into soil & use as manure
  • Providing assistance for promoting organic farming with welfare schemes like:
  • Paramparagat Krishi Vikas Yojana (PKVY)
  • Mission Organic Value Chain Development for North Eastern Region (MOVCDNER)
  • Capital Investment Subsidy Scheme (CISS) under Soil Health Management Scheme
  • National Mission on Oilseeds and Oil Palm (NMOOP)
  • National Food Security Mission (NFSM)

Financial Infrastructure

  1. For starting any new business, you need loans. In many industries securing a loan becomes a difficulty.
  2. But not in organic farming. Nationalised Banks provide loans to cover the initial setup costs – State Bank of India provides loans to farmers with a minimum of 5 acres of land or have a certification in organic farming can easily avail the loan.
  3. Some typical features of these loans are:
  • Minimum 3-year term.
  • 1 Lakh loan can be sanctioned with a minimum of 5 acres of land. Out of this, 40% is for organic inputs & rest for training.
  • Maximum 20% subsidy can be availed by the farmer.
  • The loan can be repaid in 9 years with a maximum 3-year extension period.

The Central Government of India provides subsidies that reduce the burden of loans. This makes financing organic farming an attractive and hassle-free proposition.

How To Start?

  1. Extensive is needed before you can start your own farm.
  2. This is to ensure that once your farm is up & running, you can gather knowledge about potential pitfalls & systemic problems.
  3. You can also understand the resources needed & their expected cost in your area.
  4. You can visit other organic farming facilities, speak with entrepreneurs who have valuable experience in this area.
  5. By learning from their experiences, you can make better decisions as to the priority of the investments you will be making.

Deciding Your Crop

  1. Knowing about the weather in your area & which crops can thrive in those climatic conditions are essential to selecting the right product.
  2. There are multiple extrinsic factors which need to be considered before making this decision.
  3. These are:
  • Soil - pH, alkalinity, water retention, nutritional & porosity levels decide the health & quality of the crop
  • Demand in the local market
  • Water Availability & composition
  • Organic inputs needed & their cost & availability
  • Equipment needed & their availability

Also Read: Best Honey Brands in India

Decide Your Farming Method

In India, there are a diverse set of practices that are used in organic farming. You need to select the right process based on your crop, climate & location for the optimum output. Some of the well-known methods are:

  • Agnihotra/ “homa” farming: A tried & tested method from the Vedic era, this method encompasses chanting of ancient holy Sanskrit scriptures at auspicious moments in front of the “homa” – sacred fire. The ash from this fire is then sprinkled on composts, farm, and crops to revitalise them for maximum output.
  • Poly-cropping for crop diversity: Multi-cropping or concurrent cultivation is the process of planting a number of crops to better manage the soil’s health & natural nutrient fixation cycle. Monoculture is a lousy practice & deteriorates the health of the fertile grounds. Hence, crop rotation is practised, which involves the cultivation of different types of crop in a periodic pattern. E.g., legumes & cereal. Another widespread practice is intercropping. It involves planting crops between the rows of primary produce – depending upon the space available between the rows. This optimises the farm’s asset utilisation factor as no part of the land is left unused & specific symbiotic relationships help in boosting outputs of both the variants.
  • Microbe culture: Aerobic & anaerobic naturally occurring microbes are used for soil health improvement, natural pest control & compost preparation at the farm. They help decompose organic manure & return the nutrients back into the soil, into the plant roots. These microbes are photosynthetic & lactic acid bacteria, filamentous & ray fungi & yeasts.
  • Biodynamics: Based on the astronomical calendar, unique solutions are sprinkled on the farm waste & manure dumps. It needs proper certification & training, but once done, the product can be marketed using the “Demeter” sign – & fetches higher value in the markets. This is done mainly to enhance the quality of produce by developing nutrient-rich composts, pest control & improved soil health.
  • Vermicomposting: This involves using earthworms to ingest, decompose & disintegrate organic farm wastes & change them into good quality manure. This compost is then sieved to convert them into finer bits which can readily mix with the soil. Vermicomposting deters pests, insects and diseases which affect the farm produce.

Finalise Your Business Plan

  1. Securing loans for your startup, getting the right people on board, checking if there is any technology requirement for future needs, all these are fundamental strategic questions that you need to ask yourselves.
  2. Getting the business plan right in the first go is an improbability, there will always be something which you will need to adapt accordingly.
  3. Do not waste time in perfecting the strategy – start acting on what you know & believe.
  4. The change will be needed along the way – you must ensure that at that point in time, your team is capable enough to handle it.
  5. The future of Organic Farms in India is bright and full of hope.
  6. With government subsidies, easy loans & financing, it is the right opportunity to start your very own farm business.
  7. Now that you know the process it's time to jump into action & make your dream a reality.
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