Scope Of Organic Farming Business In India & Its Leading Startups

Organic farming has witnessed a sudden rise in its production over the recent years, due to the high demand of its products in the market.

India is not only the land of agriculture but is also a global agricultural powerhouse, as it is among the largest agriculture production countries in the world and ranks at the second position as the largest producer of rice, wheat, sugarcane, fruits, cotton, and vegetables. 

This shift in agriculture not only reflects the consumer preferences but also delivers a broader aspect towards sustainable and conscious consumption and living. 

What is Organic Farming? 

Organic farming which can also be said as “Ecological Farming” or “ Biological Farming” makes use of external sources for its production of crops like organic fertilizers,  cow dung manure, etc. 

It prohibits the use of chemical based products and practices for its cultivation of crops. Organic farming resulted as the answer to the environmental destruction and causes due to the use of chemical based pesticides and also the use of synthetic fertilizers.

The botanist “Sir Albert Howard” is known as the father of organic farming, who developed the organic farming agriculture in the early 1990s.

In India, M.S. Swaminathan is known as the Father of Indian Agriculture, or can be termed as the father of Crops due to his critical role in bringing about the Green Revolution in India. 

Note: Also, visit our article Organic Farming vs Natural Farming, to know the detailed explanation about it. 

Scope of Organic Farming Business 

The farming method which is widely regarded as the most suitable and preferred method of farming in order to ensure the consumption of chemical free and sustainable products is one of the profitable ventures to start with!

Organic food is not only beneficial and a preferred choice for consumers but also for farmers and the economy,  since it is obtained by sustainable and eco-friendly farming practices which helps in reducing the carbon footprint of food production and promotes biodiversity.

It will incorporate several factors like its growth rate, market size, share of net area, and other factors. 

(A) Growth Rate of Indian Organic Food Market

The Indian organic food market size is expected to grow at a CAGR of 22%. While it stood at $1,238 million in 2022, and is expected to reach $4,082 million by 2028. 

While the expected CAGR rate for the year 2024-2032 is 21.19%. 

Apart from that the market size of organic food business in 2023 stood at $1,582. 2 million. Along with that the over 40% share in Indian organic food market is by organic beverages and drinks. 

(B) Share of Net Area of Organic Farming 

The table below mentions how much land was under organic farming in India over the years and how much it  has increased. 

India has witnessed a significant growth in its share of net area under organic farming over the years. In 2022, India recorded a share of net area of 3.92% of the total agricultural land.

All this reflects the increase in the demand of organic products in the market. These products are nutrition rich and free of synthetic chemicals, and are preferred by almost each of us in the present scenario. The share of organic farming is expected to grow more within the following years. 

(C) Share of Food in Indian Organic Food Market 

According to the report by IMARC group, different product share in the organic market in India is as follows: 

Most of the share in the Indian organic food market is by organic beverages which is 40% of the total, while other categories like organic fruits and vegetables, dairy, processed foods, etc. all stand at a 10% each. 

(D) Other Factors 

(D.1) High Demand 

One of the most prominent factors of scope of organic farming business in India is the high and increasing demand of organic products. This is due to the growing awareness and preferences among the consumers towards organic products as these products are sustainable and provide a conscious living.

(D.2) Health & Environmental Concerns 

This farming method has not only turned out to be beneficial for consumers only, but is greatly beneficial for farmers too. As this farming method lays more emphasis on the natural and organic practices to grow crops rather than implementing chemical based cultivation practices. 

(D.3) Economy Boost 

Organic farming is at its peak and is estimated as well as expected to grow more in the coming years. The CAGR rate for the coming years is expected to reach at 21.19%, all this contributes to the economic boost of the country.

As agriculture turnovers and value forms the major part of the whole economy. For this there have been many initiatives by the government to support and guide farmers on organic farming and the new innovative methods for it.

(D.4) Alternative Method 

Organic farming emerges as one of the best farming practices and a good alternative  to other methods of farming. It may not deliver the quality results of products and address sustainability concerns, but will also ensure a cost-reduction farming system. 

It can be achieved with increasing awareness about the safety and quality of food, long-term sustainability of the system, and accumulating evidence of being equally productive. 

(D.5) Government Support 

Government has implemented various schemes and programs that have showcased the importance and significance of doing organic farming. Like, Paramparagat Krishi Vikas Yojana (PKVY), National Project On Organic Farming (NPOF), National Food Security Mission (NFSM), etc.

These schemes not only offer a great knowledge to the farmers on organic farming but also support them financially, set up various workshops and centers which explains to them the whole process of organic farming. 

(D.6) More employment Opportunities  

One of the biggest scope of organic farming business, organic farming is well recognized all over the places and has created a huge demand for its products in the international markets.

With increasing demand for Indian organic products at the global level, it has opened many employment opportunities as it includes many export and work procedures. 

(D.7) Supports Small Farmers 

Organic farming is considered as the go to option for small farmers, as it involves procedures which are cost-effective and focuses on natural and organic cultivation practices.

Along with that it also helps in conserving biodiversity and natural resources, promises long term sustainability, creates food that is safe and has diversified range, and also results in increase in revenue numbers and market size. 

Leading Startups In Organic Farming 

There are many startups which are determined to provide high quality organic products in the market.

1. Living Green Organics Pvt. Ltd. 

The startup was founded in 2013, and is headquartered in Jaipur, Rajasthan. The company is termed as India’s first Urban Organic Farming Company.

It works on the simple idea of transforming and using un-used urban spaces like rooftops, empty plots, unused balconies, lands, etc. into organic food growing spaces. The latest revenue of the company reported to be $5.7 M.

For this they make use of portable farming systems (PFS) and vertical veg gardening systems which enable municipal corporations or anyone to turn their un-used urban spaces into organic growing space.

It produces organic rich foods and products which are made without any chemical based practices. 

2. Nimble Growth Organics 

The company was founded in 2016 by Rahul Saria and Nagendra Kalkuli and is headquartered in Bangalore. The company excels in producing organically grown rich foods. 

Being an agri-startup, the company grows organic fruits and vegetables using a patented package of practices (PoP), which ensures that only natural, healthy food reaches the consumers. The latest revenue (2022) of the company counted to be $1.4 M.

The main process includes growing and delivering organic fruits and vegetables, and along with that it provides consulting services in agriculture, such as marketing and agricultural product research. 

3. Organic Ubuntu 

Founded in 2016, headquartered in Delhi. This startup supports farmers in shifting to organic farming from seed to market stage. They achieve this through partnerships that are nonprofits.

Along with that they train farmers in adopting sustainable-organic practices to reduce their input costs, improve soil quality and to increase their incomes.

4. Zama Organics

Founded by Shriya Naheta and Pratik Choksi in 2017, and based in Mumbai. It is an online grocery store which has its focus on organic fruits and vegetables. For that they lay emphasis on environmentally friendly organic farming methods.

The primary products available in their store are fresh produce, exotic produce, fresh herbs and microgreens, leafy vegetables, salts, honey, fruits, ghee, coffee, spices, etc. The company recorded its latest revenue of $1.17 M (2022).

5. AgriVijay

AgriVijay, the organic farming startup was founded in 2020 by Mrs. Shobhna Chanchlani. AgriVijay is referred to as India’s first curated marketplace for renewable & green energy products for farmers & rural households communities. Latest revenue of the company was reportedly $87.1 K (2022).

They make available all products in solar, biogas, green energy – electric under one roof along with an energy advisory approach and understanding, where farmers’ energy needs are understood along with the waste management and availability at their end. This is done before products are listed, recommended, sold, financed , or delivered. 

Summing Up: Organic Farming Business In India 

Organic farming holds a great potential and is witnessing rise day by day. Organic farming is expected to grow at a CAGR rate of 21.19% for the coming years, and also in terms of revenue.

To make organic farming business grow and develop more, there are many names that are being determined to work towards the goal, which helps them in delivering sustainable and nutrient rich organic food to the consumers table.