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written by | October 11, 2021

The Ultimate Business Plan to Start a Successful Organic Farming Business

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The growing concerns about chemically-treated agricultural products have impacted human life in various ways. People have become conscious about eating the right type of produce. This has paved the path for the consumption of organic products. The organic farming business in India has seen a manifold increase in the last decade. People have become more health-conscious and have started pursuing a strict health routine. The awareness of a healthy lifestyle has become the mantra for several individuals, which has increased the demand for organic produce. The business of organic farming has witnessed rapid growth, both in terms of domestic demand and exports. This is one business that assures healthy products, which in turn ensures a marked improvement in the lifestyles of people who adhere to it. This sector has been attracting many entrepreneurs who want to set foot in it as the incentives being provided by the government of India are very attractive, and the practices of this industry are free of unhealthy competition. The continuous and increasing levels of health awareness among most individuals affirm the fact that this industry has a very bright and lucrative future.

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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FAQs

Q: Is the organic farming business in India a profitable sector?

Ans:

The increasing awareness of healthy lifestyles has led to an increase in the demand for quality organic products. The returns are assured and the profits are attractive.

Q: How does vermicomposting help in the organic farming business?

Ans:

This involves the usage of earthworms to consume to disintegrate the wastage that occurs and convert the same into quality compost which serves as a wonderful pest controller and also protects the crops from getting diseased.

Q: Which type of organic farming is poly-cropping and crop diversity?

Ans:

Growing the same crop can impact the quality of the soil. Different crops are cultivated to maintain the health of the soil. This type of crop rotation enables to maintain the natural nutrients of the soil. For example, leaves that wither and fall from one plant become the manure for another variety of crops.

Q: What does Homa farming mean in organic farming?

Ans:

This involves chanting Vedic mantras. When prayers are offered, the ash resulting from the incense lit is sprinkled across the farm. This is done with the intention of energising the crops to yield good produce.

Disclaimer :
The information, product and services provided on this website are provided on an “as is” and “as available” basis without any warranty or representation, express or implied. Khatabook Blogs are meant purely for educational discussion of financial products and services. Khatabook does not make a guarantee that the service will meet your requirements, or that it will be uninterrupted, timely and secure, and that errors, if any, will be corrected. The material and information contained herein is for general information purposes only. Consult a professional before relying on the information to make any legal, financial or business decisions. Use this information strictly at your own risk. Khatabook will not be liable for any false, inaccurate or incomplete information present on the website. Although every effort is made to ensure that the information contained in this website is updated, relevant and accurate, Khatabook makes no guarantees about the completeness, reliability, accuracy, suitability or availability with respect to the website or the information, product, services or related graphics contained on the website for any purpose. Khatabook will not be liable for the website being temporarily unavailable, due to any technical issues or otherwise, beyond its control and for any loss or damage suffered as a result of the use of or access to, or inability to use or access to this website whatsoever.
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Disclaimer :
The information, product and services provided on this website are provided on an “as is” and “as available” basis without any warranty or representation, express or implied. Khatabook Blogs are meant purely for educational discussion of financial products and services. Khatabook does not make a guarantee that the service will meet your requirements, or that it will be uninterrupted, timely and secure, and that errors, if any, will be corrected. The material and information contained herein is for general information purposes only. Consult a professional before relying on the information to make any legal, financial or business decisions. Use this information strictly at your own risk. Khatabook will not be liable for any false, inaccurate or incomplete information present on the website. Although every effort is made to ensure that the information contained in this website is updated, relevant and accurate, Khatabook makes no guarantees about the completeness, reliability, accuracy, suitability or availability with respect to the website or the information, product, services or related graphics contained on the website for any purpose. Khatabook will not be liable for the website being temporarily unavailable, due to any technical issues or otherwise, beyond its control and for any loss or damage suffered as a result of the use of or access to, or inability to use or access to this website whatsoever.