50 Indian companies presented their products to the international audience at the BioFach exhibition in Nürnberg in February 2012, when the subcontinent showed the great potential and variety of its organic products and the considerable state support for organic agriculture. India offers around 90 different groups of organic products. The spectrum ranges from tea, coffee, herbs, spices, rice, pulses, fruit and vegetables to organic cotton and processed natural textiles. Following its appearance in Nürnberg in February, the Indian organic sector now invites the organic world to Bangalore again. German organic firms can again present their products to the professional Indian audience in the pavilion sponsored by the Federal Ministry for Food, Agriculture and Consumer Protection (BMELV). This year NürnbergMesse offers international buyers a tailor-made programme of visits that provides exclusive insights into India’s raw material market. The participants meet farmers, producers and organic experts during the tour and can extend their network and develop new procurement sources in the process. Those interested can register directly with the organizer via biofach-globally@nuernbergmesse.de .
2 million hectares of organic farming land in India
India’s organic agriculture continues to flourish and more and more farms are converting to organic. The organically farmed area is to reach 2 million hectares this year, which is 1.5 % of the total farming area. This expansion benefits tens of thousands of small farmers, who are taking the officially adopted path supported by the state and which will end with India becoming one of the world's top organic producers. With its natural variety of climatic zones and forms of vegetation and the marked farming tradition, India has excellent qualities. Apart from the health and financial advantages of the organic farming method for the individual producer and his family, the long-term preservation of biodiversity and climate protection benefits nature. Many politicians and companies have recognized this and are investing in the organic sector. Many federal states create incentives for converting to organic through financial funds and grants. For example, Karnataka, the host state of the Indian exhibition duo, is again providing generous state support for the event in 2012. Marketing is taken care of by the state export promotion organization APEDA, the International Competence Centre for Organic Agriculture (ICCOA) as co-organizer of BioFach India together with India Organic, and others. Indian organic market sales are expected to grow to the equivalent of 690 million US dollars this year. This is almost four times as much as the total market volume of 180 million US dollars in 2010.
Organic marketing structures in the domestic market
A number of Indian companies are aiming to create marketing structures in India itself by developing the retail trade, because demand is growing all the time. 30 % of consumers want to buy organic products and are even prepared to pay 10 % to 20 % more for them, according to the result of a survey of 1,000 consumers in ten cities. The survey was conducted by Morarka Organic Foods Pvt. Ltd, one of the leading companies in the organic sector, which in addition to its retail trade activities also operates as exporter, caterer and producer of organic food and textiles of organic cotton and silk. Morarka already operates its “Down to Earth” retail concept or supplies shops with products bearing the same label at about 20 locations. The company now intends to push the expansion of the concept to increase the availability of organic and natural products on the domestic market and satisfy the increasing demand. Morarka has taken the Indian franchise specialist Francorp on board for this purpose. Francorp has been developing a concept for reproducing the “Down to Earth” retail trade model since spring 2012. Gaurav Marya, Chief Executive Officer of Francorp, emphasizes the high speed of growth in the organic market and expects prospects to remain good. Whereas the conventional trade has to accept annual growth rates of 2 % to 3 %, the organic sector is growing by an average 20 % per year.
The company Sresta Natural Bioproducts Pvt. Ltd is also very active. Its 24 Letter Mantra brand is sold on the domestic market in the company’s own shops and via trading chains and is also exported. Sresta founder Raj Seelam thinks everything belongs together in the organic system. This is why he cooperates with more than 10,000 small farmers in eleven Indian federal states for production, has the raw materials processed and meanwhile offers a choice of more than 300 articles with the 24 Letter Mantra label. The company circulates concepts and specific actions for sustainability via the Organic Circle. For example, members of this customer network receive health tips by SMS, invitations to food advice sessions or health seminars and can book holidays on an organic farm or have their shopping delivered to their home. Customer retention and spreading the organic idea go hand in hand here. The growing educated middle class is increasingly aware of health and environmental aspects. If products are convincing and offered in a modern way, more and more consumers are willing to spend money on organic products and natural cosmetics. The professional audience can see for themselves what the Indian organic market has to offer at this year’s BioFach India together with India Organic in the Palace Grounds in Bangalore from 29 November to 1 December.
