Higher disposable income, rising health consciousness have increased demand for organic produce
A woman shops for an organic product at a specialised store in Banjara Hills. (Photo: DC )
Hyderabad: The demand for organic food products has been rising steadily in the city, with a 48 per cent increase since 2011. In fact, the city is in strong competition with Bengaluru, which was once much ahead of Hyderabad.
Many residents of the twin cities are steadily making the shift to organic food. Today, there are 32 new mini stores selling organic produce in the city. Moreover, weekly and monthly organic bazaars are organised and there is also the option of home delivery of organic products.
As per records, 20 families in Hyderabad have taken up organic farming on land taken on lease in the city. Home gardening has also witnessed growth. In a city survey, around 90 per cent of the retailers cited health and environment consciousness as the main reasons for the brisk sale of organic products.
“Organic farming has been one of the fastest growing industries in the last year, thanks to the higher disposable inco-mes, rising health consciousness and increased demand for organic food. Parents are very concerned about the health of their children and willing to spend more to ensure that they get better and safer food,” said Santhosh Banpur, the co-owner of Hyderabad Goes Green store.
He added that though the organic products are 15-35 per cent more expensive than non-organic food items, consumers are not deterred.
Among the various types of products, vegetables are most sought-after, followed by fruits, pulses, food grains and milk. Items like fruit juices and tea are also popular.
Sejal Parikh, an organic food buyer, said, “With increased awareness, even the common grocery stores and supermarkets have a counter allotted to organic foods.
Organic products now cost 15 to 35 per cent more than other products as supply is not being distributed uniformly. Storage cost too is high and certification for growing these products, per acre costs Rs 50,000. Farmers are now demanding government support for a resource system.
According to experts, there are currently two major reasons why organic products are expensive. The distribution of production is not uniform. For instance, for 10 products, suppliers need to approach 10 different farmers and there is no wholesale supply chain. Every product needs to be bought from the farmer. Also, the products being seasonal, stores need to purchase stocks during a particular season and then store them for the entire year. These products cannot be stored in regular warehouses.
“Most of the premium markets earn on processed and beauty products and less on vegetables and grains. Any store, which sells main staple items, does not get decent revenues. That is why a few organic shops in the city increase the sale price by 30 per cent to get higher margins. The store establishments are another major reason for organic products being expensive,” experts added.
Meanwhile, the production and the supply chain of organic products are a cause for concern in the state. Most of the organic produce is grown in Warangal, Medak, Nalgonda and Khammam districts. The entire village of Enebavi in Warangal grows organic food, but the state has not set up an effective supply chain.
Also, there is no government body that keeps a check on the organic products being sold. While the Greater Hyderabad Municipal Corporation looks after the licence issues, Legal Metrology department checks the weights. A few certified agencies by the government look only into the process of production, and not the end product. There is no authority that checks the quality of the products.
Dr G.V. Ramanjaneyulu (agricultural scientist), and the executive director of the Centre for Sustainable Agriculture, said, “There are many villages in TS and AP that have shifted to organic farming. But they lack support. When farmers buy chemical fertilisers, they get a subsidy. There is no subsidy for organic farming. Similarly, most research work is done for chemical agriculture; none of the support systems are extended to organic farming. Right from infrastructure (warehouses) to investment, organic farmers need every help.”
“Organic products cannot be stored in regular warehouses. There are no mandis for organic produce. If the supply chain is bettered, only then the production can be increased. Even quality bio-mask is needed as most of the urban compost comprises of heavy metals. The government should come up with better compost process at village level,” the scientist adds.
Organic products are those which have been cultivated by natural methods without any chemical catalyst. The crop has to suit the local soil and production is done using local available resources.
( Source : dc correspondent )
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