Biofach India brought organic sector stakeholders together

More than 200 participants from various verticals such as food, beverages, grains, spices, pulses, dairy products, bio-agri inputs, natural care and wellness, millets etc., participated in BIOFACH INDIA 2023 organised by NuernbergMesse India recently. The expo was organised in collaboration with Agricultural and Processed Food Products Export Development Authority (APEDA), from  September6-8, 2023 at IEML, Greater Noida.

The exhibition emerged as a sourcing marketplace for FMCG, retailers, speciality chains and other resellers. In addition, it offered a meeting ground for government bodies, cooperatives, farmers, manufacturers, sellers, new entrants and aspirants to showcase their latest products and innovations, engage in business and forge stronger connections while shaping the trends for the future.

 

apeda meeting

The exhibition was supported by leading International and National stakeholders – IFOAM (International Federation of Organic Agriculture Movement), ICCOA (International Competence Centre of Organic Agriculture), OFAI (Organic Farmers Association of India), AIOI (Association of the Indian Organic Industries), Association of Herbal and Nutraceutical Manufacturers of India (AHNMI), and Indian Institute of Millets Research (IIMR). It showcased a diverse display of products and knowledge programmes, business collaborations and networking opportunities. The expo also witnessed several prominent states of India along with Government Boards like Spices Board, Tea Board, Coffee Board, Coconut Board displaying their organic/natural produce by way of organised pavilions.

Organic products and the domestic market

The increased realisation about the goodness of incorporating organic produce or secondary organic products has led to the rise in demand and opportunity to grow in the domestic and global market. A lot of deliberations are taking place on factors that would help in the growth of domestic markets for organic produce in the light of training, certification, and cost-effectiveness for the end consumers and challenges that retail and wholesale stores face. Gaurav Manchanda, Founder and Managing Director – The Organic World, explained, “The global market in 2023 for organic produce (vegetables and fruits) has grown up to US$ 200 bn and in the coming 10 years it will be US$ 0.5 trillion market. The growth rate of the global market in 2023 is 12-13% annually while the growth rate of the Indian domestic market is US$ 1.5 bn. In terms of the global scale and what we have, the Indian domestic market is poised to grow and in the next 5 years it may touch US$ 5 bn; it is growing at a faster pace than earlier.” He informed that while the global market is growing at 30%, the Indian market is growing at 23-24%. It is a significant pace of growth. India contributes 30% of the global organic produce. “This only proves that India has a lot of scope for growth. In order to focus on the domestic market from a retail perspective, we first need to understand that our retail format is based on pillars of three principles, which are, affordability, accessibility, and authenticity,” he added.

organic product stall

Manoj Kr Menon Executive Director and CEO – ICCOA and a pioneer in organic movement pointed out that to build skill in the domestic market we first need to build the knowledge base of this sector. According to him, in 2004 the total exports of the organic market were only INR 750 mn and the domestic market was not something that people were talking about but today the size of the domestic market is INR 30 bn and it has been growing quite well. Although the organic sector has been facing different challenges for the last couple of years, these can be resolved by strengthening the base of integrity and trust factors on which the domestic market is built. “To ensure integrity and trust in the market, companies need not invest money but resources, maybe, by having a manager. This would solve the teething challenges that a farmer faces as they are experts in production but not experts in certification, documentation, and marketing,” he said. The companies market the produce after procuring them from farmers. Therefore, he emphasised, in the quality part, the companies must work with the farmers to witness growth in the domestic market. “The growth of the domestic market is based on the trust of the consumers. Organic farming is a knowledge-intensive sector and it is the knowledge of the farmers, companies and consumers that will collectively help it flourish,” Menon added.

apeda

Rajshekar Reddy Seelam, Founder and Director of the Association of Indian Organic Industry (AIOI), and founder 24 Mantra, pointed out that there are top 300-400 cities in India where the penetration of organic products is about 0.3-0.4% and if you look at the US or western Europe, the penetration in the organic food category is 8%. “I don’t see any reason why we can’t achieve that kind of penetration, if not in the entire country, at least in the top 300-400 cities. The potential is huge but all stakeholders need to bring their acts together and need to do the right things,” Seelam articulated.

organic millets india

Millets, the showstopper

The Government of India has announced millets as the nutri-cereal or ‘ShreeAnna’. The highly nutritious millet has been the part of India’s food chain legacy for ages in raw or secondary processed usage forms. With the United Nation announcing 2023 as the International Year of Millets, Shree Anna has now become a mainstream food source grain. India has given special focus on millets in the Budget 2023-24 and has the most policy-friendly ecosystem for millet entrepreneurs, and also brought millets as a sustainable and healthy option in the recently concluded G20 Summit in New Delhi. India showcased millets as part of fusion cuisine to the by showcasing the global dignitaries during the summit.

With an annual production of 15.53 mn tonnes, India exported US$ 64.28 mn in 2022 which is projected to reach USD 2 bn by 2030. Millets India, held at the sidelines of Biofach India, gave millet-based manufacturers and brands the opportunity to meet the relevant stakeholders and buyers and cement themselves as reliable brands that are here to stay with healthy and quality packaged food solutions.

agricultural meeting

The Indian organic food market reached a value of US$ 1.278 Bn in 2022, according to IMARC’s (The International Market Analysis Research and Consulting) report and it is targeted to reach US$ 4.6 Bn by 2028, with a compound annual growth rate (CAGR) of 23.8% during 2023-2028. On average, India’s annual organic product exports are valued at US$ 0.827 bn.

Government initiatives like Paramparagat Krishi Vikas Yojana (PKVY) and Mission Organic Value Chain Development in the North East Region (MOVCDNER) are dedicated financial aid schemes for organic farmers. In addition, support is also being provided to FPOs in training, certification, processing, value addition and marketing of the produce.

Also read S Jaishankar on G20 Leaders’s Summit Declaration adoption

 

 

 

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