Organic farming is gaining a lot of popularity in recent times. However, you may be surprised to learn that organic farming has been practised in India since ancient times. Its roots have been found in the Neolithic age, which is 10,000 years ago.

People in India have now become very health-conscious. They have realised the chemical-laden products are going to affect their health. Hence, the organic farming in India is gaining momentum. This business has good opportunities for sustainable income.

But not many know how to get into the organic farming business. This article will provide you with complete information on how to establish an organic farming startup.

Why Organic Farming?

Organic farming is a natural way of cultivating crops and raising livestock without using any chemicals or pesticides. This method focuses on natural processes, biodiversity, and the maintenance of soil health to produce food.

The question may arise why one should get into the organic farming business. Let’s break down this with the following pointers:

• Safe Food: Organic farming is a natural way of growing crops. Hence, it results in safe food consumption. This also reduces environmental damage.
• Reduced Production Cost: Organic farming is done by enhancing soil health and using natural fertilisers. This reduces the overall production cost.

• Huge Market Potential: There is an increase in demand for organic food in India as a result of increased health awareness and environmental concerns. Hence, there is a huge market potential for the organic farming business. There is a good scope of business in both domestic and export markets.

• Environmental Benefits: Organic farming encourages soil health, reduces pollution, and conserves water. This is very beneficial for the overall environment.

Crops suited for Organic Farming

Organic farming in India has a huge demand. If you are planning to get into the organic produce business, then here are some crops that are suitable for organic farming:

• Ginger: Ginger, too, has good potential for profit under organic farming. It requires loamy, organic-rich soils and is in high demand due to its medicinal value. It can be grown in Kerala, Meghalaya, and Sikkim.
• Turmeric: Turmeric has a high market demand domestically as well as internationally. It can be grown in states like Andhra Pradesh, Maharashtra, and Tamil Nadu. Because of its robust root structure, turmeric also helps in soil regeneration.
• Millets: Millets are traditional and climate-resistant crops that grow well in arid and rain-fed areas. It’s a low-maintenance crop.
• Black Rice: Black rice is popular as a high-value organic crop in regions like Assam and Manipur. It gives a premium price due to health benefits.
• Cotton: India is a global leader in organic cotton, which is primarily grown in Telangana, Madhya Pradesh, and Maharashtra.
• Aloe Vera: One of the most reliable medicinal plants for organic farming is Aloe vera. It is easy to grow in the states of Tamil Nadu, Gujarat, and Rajasthan.
• Amaranth: It is a nutritious, naturally pest-resistant, and quick-growing plant. Its demand is rising as it’s gluten-free.

Other than these pulses (lentils, chickpea), cereals (rice, wheat), oilseeds (mustard, soyabean), spices (black pepper, cardamom), and fruits (grapes, mango, banana) are also very suitable for organic farming in India.

Investment & Certification

You can easily start an organic farming business in India with a small capital ranging from ₹5 lakhs to ₹10 lakhs. These funds can be used for land preparation, organic inputs, infrastructure setup, and labour. The investment can also vary on the basis of crop and land size.

To start an organic farming business, you will need a certificate. You can get organic farming certification from the Agricultural and Processed Food Products Export Development Authority (APEDA).

Govt Schemes & Subsidies

The Government of India encourages organic agriculture in India through various schemes and subsidies. One of the major schemes is Paramparagat Krishi Vikas Yojana (PKVY), which provides organic farming subsidy to farmers who adopt cluster-based farming.

Another major initiative is Mission Organic Value Chain Development for the North Eastern Region (MOVCDNER). This scheme promotes certified organic farming of niche crops in the northeast region. There are many states that have their own subsidies. Kerala’s Haritha Keralam program provides ₹20,000 per acre. Then Maharashtra provides ₹20,000 per hectare on an annual basis for three years.

Marketing strategies

If you are planning to form an organic farming startup, then effective marketing is necessary for long-term success. You will need to create a strong brand that showcases purity and authenticity. At the initial stage, you can start by branding your farm and products. You can show your commitment and share your journey.

You can make use of direct marketing channels like farmers’ markets and organic stores to sell directly to consumers. Through leveraging social media, you can educate customers about organic cultural practices. One can also collaborate with restaurants and supermarkets.

Risks

Here are some risks associated with the organic farming business:

• Organic farming has lower yields than conventional agriculture. As the soil adapts to chemical-free practices, the yield declines temporarily.
• You need to get a certificate and meet certain conditions in different states. This makes the process complicated and time-consuming.
• As synthetic pesticides are not used, the farms can be affected by pests and plant diseases.

Key Takeaway

• Organic farming is a natural way of growing crops without using pesticides and fertilisers. It makes use of natural processes and soil health.
• Organic farming has a huge scope in India. People are now becoming health-conscious. They understand the advantages of organic food.
• Organic farming is beneficial for the environment, reduces pollution, and improves soil health.
• Farmers have to face lower yields at the initial stage.
• You need certification to start an organic farming business, which makes the process very complex.
• You don’t need huge capital to start an organic farming business. You can start with a small capital of ₹5 lakhs to ₹10 lakhs.
• The Indian Government is also encouraging organic farming. There are various schemes and subsidies by the government to help farmers and entrepreneurs who want to start an organic farming startup.
• If you get into the organic produce business, then you will need effective marketing to promote products. You can use social media as well as direct channels to market the products.

Frequently Asked Questions (FAQs)

1. Is organic farming a profitable business?

Yes, organic farming is a highly profitable business. With proper planning and financial support, you can make a successful organic farm. The high demand for organic products in the domestic as well as international markets makes it a very lucrative business opportunity.

2. How is organic farming different from conventional farming?

Organic farming doesn’t make use of synthetic chemicals and GMOs. It focuses on natural inputs, biodiversity, and sustainable ecosystem management.

3. Do I need certification to sell organic produce?          

Certification is necessary to market products as ‘organic’. NPOP and Indian Organic are common certification bodies.

4. Why is organic farming gaining so popularity in India?

There is a lot of health awareness among people in India. They have become health-conscious and prefer organic food. Moreover, the Government is also providing subsidies for organic farming. Hence, organic farming is becoming very popular in India.

5. Which crops can give maximum profit in organic farming?

Turmeric, ginger, pulses, basmati rice, fruits (mango and banana), etc, are some of the most profitable crops for organic farming.

6. Why should one think about starting organic farming in India?

Organic farming has good profit margins. Moreover, due to increased health consciousness, there is a huge demand for organic food. Even the government is encouraging organic farming through various schemes and subsidies. Hence, one can definitely think of starting organic farming in India.

7. What are the challenges in operating organic farming?

It’s difficult to manage pests and weeds without using chemicals. Even finding organic inputs is a tough task. In addition to these, preserving soil fertility and steady crop yields is also quite challenging.

8. What are some successful organic farming startup ideas?

Some of the organic farming startup ideas include organic vegetable farming, herb cultivation, organic poultry, organic dairy, compost production and organic food processing.

9. How can I get training for Organic farming in India?

There are several online courses and certificate programs offered by institutions like the National Certificate for Organic and Natural Farming. One can also join training programs offered by ICAR, Krishi Vigyan Kendra (KVKs), and organisations like Manavata, NABARD-supported institutions, etc.

10. Does an organic farming business require advanced technology?

Small farms can be maintained with basic equipment. With the use of modern tools and farm management software, you can increase the commercial operations.

Disclaimer: The business ideas shared in this blog are based on research and trends. DMI Finance does not recommend or guarantee it. Starting a business involves risk; please use your own judgment and discretion. DMI Finance is not liable for any loss or outcome resulting from actions taken based on this content.