Did you know?
In India, the total number of farmers who are involved in the organic farming business is 0.65 million and the total area of agricultural land being utilised for the same is more than 0.72 hectares.
Also Read: Overview Of Agricultural Income And Its Taxability
Business Plan for Organic Farming
This industry demands additional research as the sector is very niche. You will have to learn and master the ropes. You can start connecting with companies that are already involved in organic farming by visiting their premises and can make inquiries about all the initial processes with the Founder of the said company. Individual research will also help you understand the finer aspects of this business. There is a wealth of information online and you can access that with ease. Some of the key factors you have to take into consideration are:
Compatibility of the Products With Various Conditions
Understand the quality of the soil, the weather – if it is seasonal or extreme and demand for organic produce in the region. You can approach the local authorities to help you in the assessment of the pH levels of the soil (acidity/ alkyne levels) of the soil, water supply and retention, quality of soil (whether it has the right texture to enable quality produce), among others. Make a blueprint of a comprehensive business plan for organic farming. This is crucial to avail of a loan. Your business plan should outline:
- Your goals
- The vision of your business
- The variety of organic products you plan to grow
- The prevailing levels of competition in the sector
- The investments required
- Detailed business proposal
- Feasibility of organic farming in the region where you plan to start it
Licences
Given below are the various licences that you will require to set up an organic farming business in India:
- GST registration
- Micro, Small and Medium Enterprises Development (MSME) registration
- Food Safety and Standards Authority of India (FSSAI) registration – Central and State licence
- Organic farming certificate issued by the National Programme for Organic Production (NPOP)
Total Finances That Need to Be Invested
The initial finance needed to set up an organic farming business in India varies between ₹5 lakhs and ₹10 lakhs.
Aid from Government
The National Bank for Agriculture and Rural Development (NABARD) offers Capital investment subsidies for such farming
- 25% subsidy to purchase pesticide units and biological fertilisers
- 33% subsidy is offered for organic farming of vegetables and fruits
- You can also avail of credit-linked subsidies
Membership of Various Organic Farming Groups
The Central government initiated the National Project on Organic Farming scheme. Headquartered at Ghaziabad, this is supported by seven other centres across Bangalore, Nagpur, Panchkula, Patna, Bhubaneswar, Imphal and Jabalpur. You can decide on a centre close to your set-up and approach it to understand the various inputs required for biological methods to enhance this type of farming. You can seek the required support you need in terms of training yourself as well as the people you employ. This will help you understand the quality standards which will have to be maintained, the technology involved, sources of procuring the machinery. The training will give you an insight into the various fertiliser strains as well as the mother cultures which need to be tested before being used on your farms.
Brand Building and Target Audience
Targeting the right customers is of prime importance as it will help in the rapid development of your business. Some of the clientele you need to focus on will include:
Hotels and commercial eateries:
A large majority of these hospitality outlets are in constant need of organic products to cater to the needs of their clients who prefer to eat healthy food.
Farmers’ markets:
The consistent and increasing demand for livestock, vegetables, dairy products and other chemical-free produce makes it imperative that you target these markets.
Coffee cafes:
These outlets are in constant need of organic coffee seeds and herbal tea and their demands could help grow your business
Retail grocery outlets:
Consumers are always dependent on retail shops for their daily requirements of good organic products. You could supply the products on a long-term understanding of monetary returns.
Milk and milk-related product outlets:
Tea is the most popular beverage in India. The growing demand for organic milk, curd and other milk-related products can boost the supply of your products.
E-commerce:
You can build a loyal clientele online as digital marketing has become extremely convenient to many.
Premises
This depends on the scale of the business you wish to set up and the number of animals you wish to rear. This could vary between 5-10 acres of land.
Raw Materials
Some of the essential raw materials for organic farming are:
- Groundwater
- Extracts of neem seeds
- Neem oil
- Milk
- Honey
- Fish power
- Manure
- Cow urine
Equipment
Some of the equipment required for organic farming are:
- Tractors
- Cultivators, which include rotating knives
- Automated and combined cultivators
Staff
A minimum of 2 workers who have the requisite know-how and a maximum of 5 unskilled workers is needed. You will have to ensure that they are trained in the correct usage of the equipment and handling of the machines. They will also have to be trained in all the required precautions and safety measures involved in the operations of organic farming.
Also Read: Best Eco-Friendly Business Ideas in India
Different Practices of Organic Farming
There are various methods of organic farming, and you will have to select the one that you find most feasible in accordance with the various factors mentioned above. Some of these are poly-cropping for crop diversity, Agnihotra or Homa, Biodynamics, Microbe, and Vermicomposting. You can study these in detail and select the one according to the product you wish to cultivate as well as the climatic conditions of that place so that you enjoy the maximum volume of produce.
Conclusion
This article clearly indicates the growing demand for organic products and how organic farming has a bright future in India. The three prominent states which are known to boost organic farming in India are Maharashtra, Madhya Pradesh and Rajasthan. This means there are ample opportunities across India for entrepreneurs desirous of starting organic business farming in India. The profit margins are reasonably attractive and can vary between 22% to 35% of your turnover.
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