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Local brands flourish as demand for organic produce rises in India, abroad

The growing demand for organic products in domestic and international market,  has resulted in mushrooming of small FMCG companies.

Published: 11th December 2019 11:28 AM  |   Last Updated: 11th December 2019 11:28 AM   |  A+A-

India produced around 2.67 million metric tonne of certified organic products in 2018-19

India produced around 2.67 million metric tonne of certified organic products in 2018-19

By Express News Service

The growing demand for organic products in domestic and international market,  has resulted in mushrooming of small FMCG companies.

"People around the globe are getting more conscious of what they are eating. Urban middle class does not want chemicals in their food and are switching to organic products. From fruits and vegetables to cereals, spices to tea and coffee, people prefer organic products," Viney Singh, managing director, FabIndia said.

The company is one of the pioneers in popularising the organic way of living. Starting from Organic India Tulsi tea, the brand’s product portfolio today boasts of hundreds of organic products. The latest addition was Fabcafe, started in 2017, which offers organic food and a wellness centre to its customers.

According to Avalon Consulting, organic produce may prove to be the next big thing in the domestic market. Even by conservative measures, the Indian organic food market is expected to grow in the short-term at a compound annual growth rate of 20 per cent – taking it above the $2 billion mark by 2024.

Apart from Organic India, the market is flooded with several FMCG brands, like Farm2Kitchen, Organic Tattva, Organic Garden, Down to Earth, Just Organics, Conscious Food, Vision Fresh, just to name a few, all dedicated to selling organic products.

“In the last few years, customers are frequently asking for organic products like flaxseeds, sunflower and pumpkin seeds, organic tea, soybean and dried amla. These are no longer a niche segment but regular items,” a senior salesman from Anand Store, a provisions store at Khan Market said.Apart from domestic consumption, growing demand from international markets is a critical incentive for companies to increase their organic product range.

According to industry estimates, the Indian organic agricultural product market is estimated at about Rs 8,500 crore. "India produced around 2.67 million metric tonne (2018-19) of certified organic products, which include all varieties of food products, namely oil seeds, sugarcane, cereals and millets, cotton, pulses, medicinal plants, tea, fruits, spices, dry fruits, vegetables and coffee," Paban Kumar Borthakur, Chairman, Agricultural Processed Food Products Export Development Authority (APEDA), said.

According to APEDA, India exported organic products worth Rs 5,151 crore in 2018-19, up from Rs 3,453 crore in 2017-18 ($515 million), registering an increase of about 49 per cent.

In demand overseas

According to APEDA, India exported organic products worth Rs 5,151 crore in 2018-19, registering an increase of about 49 per cent. Countries like Canada, Israel, Vietnam, Mexico are taking lots of interest in Indian Organic produce.



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