Project report for Organic farming

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Introduction

Organic farming is rapidly growing in India and investors agree that challenges do exist in this sector but as soon as awareness and educational training about the benefits and the set-up of organic farming is spread to the farmers, a positive economic outcome will follow. Organic farming is an agricultural system that uses fertilizers of organic origin such as compost manure, green manure, and bone meal and places emphasis on techniques such as crop rotation and companion planting. Organic farming relies on ecologically balanced agricultural principles such as crop rotation, green manure, organic waste, biological pest control, organic fertilizers, and rock additives. A successful organic farming business always includes a good business plan.

It is the system of production that is capable of avoiding or majorly block the use of pesticide, synthetically compounded fertilizers, livestock feed additives, and growth regulators. The flexible organic farming system relies upon crop residues, green manure, weeds, crop rotations, legumes, aspects of biological pest control, animal manures, and etc. Methods of organic farming are used in developing countries, majorly because of economics and fewer resource of chemicals. Organic farming continues to be developed by various organizations today. Biological pest control, mixed cropping and the fostering of insect predators are encouraged. Organic standards are designed to allow the use of naturally-occurring substances while prohibiting or strictly limiting synthetic substances. For instance, naturally-occurring pesticides such as rotenone is permitted, while synthetic fertilizers and pesticides are generally prohibited. Synthetic substances that are allowed include, for example, copper sulfate and elemental sulfur.

Market potential & Strategy

The Indian Organic Food Market is projected to grow from INR 13,0320 Crores in Financial Year 2020 to INR 40,781.500 Crores in Financial Year 2026 advancing with a CAGR of 21.00% by Financial Year 2026, on account of favorable government policies supporting organic farming coupled with rising land area under organic cultivation. Online availability of organic food products and shifting consumer preference towards organic food are among the major factors expected to boost the demand for organic food products in India during the forecast period. Expanding marketing and distribution channels coupled with increasing number of health-conscious people are also anticipated to fuel organic food consumption in India until Financial Year 2026. Furthermore, increase in awareness regarding the food people eat has resulted in the uplift of the organic food market. Consumers in India have started paying attention to their health, the quality and nutrient content of the food they eat. Due to health concerns, consumers are shifting towards the organic food gradually, which is further giving boost to the organic food market in India. The organic food market in India is a niche market, with the market expected to see wider penetration in the coming years. Owing to the growing incidences of food adulteration, the demand for organic food is anticipated to rise in the coming years. The e-commerce industry growth also serves as an aid to enterprises as a way of appealing to potential consumers due to the lucrative offers and wider market penetration of the platforms. In the malls in major metropolitan towns, companies are also opening small kiosks, which is adding to the market growth.

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