Hyderabad: 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.
