Yearly Archive September 22, 2013

Local seeds best bet against climate change

http://www.thehindu.com/news/cities/Madurai/local-seeds-best-bet-against-climate-change/article5149009.ece
S. POORVAJA

SHARE  ·   COMMENT   ·   PRINT   ·   T+
A paddy field at Pannaikudi in Madurai district. Photo: S. James
The HinduA paddy field at Pannaikudi in Madurai district. Photo: S. James
They need less water, no fertilizer and hardly any care or attention
 has spawned debate as well as initiatives such as planting saplings, cultivating kitchen gardens, household energy conservation and so on.
At the grassroots level, a few farmers are doing their bit to preserve traditional and local varieties of seeds.
“These farmers are commonly called ‘Custodian farmers’. They preserve traditional seeds and make sure that they don’t disappear amongst the variety of hybrid seeds available in the market which farmers prefer because of the promise of high yield,” says M. Palanisamy, Programme Director, Rainfed Farming Development Programme at the Dhan Foundation in Madurai.
The need to preserve traditional and local varieties of seeds that are gradually disappearing is all the more because they do not need much water or chemical fertilizers and pesticides to grow. They can withstand the rigors of climate change and its harsh side effects.
True to the term ‘custodian farmer,’ R. Jeyaraman from Adhirangam in Tiruvarur has preserved 63 types of traditional paddy. “These traditional paddy varieties, unlike the ones used at present, do not need much water,” he explains.
Mr. Jeyaraman has distributed the paddy varieties to farmers from Kerala, Karnataka, Orissa and West Bengal. Among the paddy varieties he has preserved are seeds that need only 60 to 180 days to grow.
“Another factor that most farmers today struggle with is that their crops need constant care and attention, especially before harvest. What they don’t realize is that many of these  need only a short span of time to grow and can be harvested easily,” Mr. Jeyaraman says.
While hybrid varieties enjoy brisk demand, the promise of high yield often diverts attention from the side effects.
“When rainfall is extremely scanty, it is impossible to plant most new varieties of seeds,” A.P. Alagarsamy from Pallapatti in Dindigul district points out.
With climate change affecting the conditions under which these farmers are forced to work, the need for such traditional varieties which can withstand harsh climatic conditions is growing.
“Traditional varieties of paddy that can withstand floods for as long as a month and torrential rain are the kind of seeds we need to preserve,” said Syed Ghani Khan, a farmer from Mandya in Karnataka.
“With traditional paddy types from Thailand, Burma and Indonesia, I hope to preserve many more traditional seeds through cross pollination,” he adds.
Hybrid seeds and the other varieties that are distributed also have a shorter lifespan that results in the quantity of yield gradually decreasing as years go by.
“Seeds from the hybrid crops cannot be sown directly. The farmer is forced to go back to the centres after his crop is harvested to buy the seeds again and has no control over the price,” says Mr. Palanisamy.
Jegannath Raja from Rajapalayam district has preserved and aggressively marketed two varieties of mango — ‘Mohandas’ and ‘Potllama.’
“The two traditional varieties are fast disappearing and I managed to preserve them and spread awareness of how these varieties can be used to generate income in rain-starved areas since they do not need much water to grow,” says Mr. Jegannath.
He has preserved over 2,000 traditional varieties of fruit, though not all are income-generating.
“While I have preserved a number of seeds to safeguard them, I encourage farmers to buy only a few varieties that are traditional and promise high yield,” he says.
With the importance of preservation and conservation of these traditional and indigenous seeds, there is a need for live genetic resources or nurseries to facilitate studies and spread awareness among farmers.
“Farmers should set apart a portion of their land for cultivation of traditional seeds. With live genetic resources, or maintaining nurseries rather than seeds, it will be easier for farmers to choose varieties and see the benefits for themselves,” said R. Adinarayanan, a faculty member at the Tata Dhan Academy.
The farmers were recently honoured at the Madurai Symposium 2013, organized by the Dhan Academy, and given the ‘Custodian Farmer’ awards for their contribution to biodiversity conservation.
“God has given us the resources we are using now and it is our duty to conserve them and pass them on to posterity,” says Mr. Syed Ghani.

Payments for environmental services and market-based instruments: next of kin or false friends?

http://www.iddri.org/Publications/Collections/Idees-pour-le-debat/WP1413_RL%20RP_PES%20and%20MBIs-next%20of%20kin%20or%20false%20friends.pdf
The emergence of market-based instruments (MBIs) in the field of ecosystem services has been spectacular but still lacks a clear conceptualization. Terms are overused and abused in discourses, and contrasted policy instruments are referred to as market-oriented albeit with few characteristics in common. Realities on the ground differ substantially from attractive yet misleading propositions supported by public and private discourses. Both advocates and opponents to these approaches thus propose arguments poorly relying on facts and fueling confusion. Payments for environmental services (PES) have flourished and constitute the emblematic and perfect example of a policy instrument that proves more complex and polymorphous than usually acknowledged. Born from the promises of spontaneous agreements between beneficiaries and providers of services for their mutual interest, it has been viewed by most analysts as a popular MBI. We challenge this view by confronting 73 peer-reviewed articles to a typology of MBIs.

Residential Proximity to Methyl Bromide Use and Birth Outcomes in an Agricultural Population in California

Background: Methyl bromide, a fungicide often used in strawberry cultivation, is of concern for residents who live near agricultural applications because of its toxicity and potential for drift. Little is known about the effects of methyl bromide exposure during pregnancy.
Objective: We investigated the relationship between residential proximity to methyl bromide use and birth outcomes.
Methods: Participants were from the CHAMACOS (Center for the Health Assessment of Mothers and Children of Salinas) study (n = 442), a longitudinal cohort study examining the health effects of environmental exposures on pregnant women and their children in an agricultural community in northern California. Using data from the California Pesticide Use Reporting system, we employed a geographic information system to estimate the amount of methyl bromide applied within 5 km of a woman’s residence during pregnancy. Multiple linear regression models were used to estimate associations between trimester-specific proximity to use and birth weight, length, head circumference, and gestational age.
Results: High methyl bromide use (vs. no use) within 5 km of the home during the second trimester was negatively associated with birth weight (β = –113.1 g; CI: –218.1, –8.1), birth length (β = –0.85 cm; CI: –1.44, –0.27), and head circumference (β = –0.33 cm; CI: –0.67, 0.01). These outcomes were also associated with moderate methyl bromide use during the second trimester. Negative associations with fetal growth parameters were stronger when larger (5 km and 8 km) versus smaller (1 km and 3 km) buffer zones were used to estimate exposure.
Conclusions: Residential proximity to methyl bromide use during the second trimester was associated with markers of restricted fetal growth in our study.
Key words: birth outcomes, birth weight, fumigants, methyl bromide, pesticides, residential proximity

Wake up before it is too late: Make agriculture truly sustainable now for food security in a changing climate


http://unctad.org/en/PublicationsLibrary/ditcted2012d3_en.pdf
Developing and developed countries alike need a paradigm shift in agricultural development: from a “green revolution” to a “truly ecological intensification” approach. This implies a rapid and significant shift from conventional, monoculture-based and high external-input-dependent industrial production towards mosaics of sustainable, regenerative production systems that also considerably improve the productivity of small-scale farmers. We need to see a move from a linear to a holistic approach in agricultural management, which recognizes that a farmer is not only a producer of agricultural goods, but also a manager of an agro-ecological system that provides quite a number of public goods and services (e.g. water, soil, landscape, energy, biodiversity, and recreation) UNCTAD’s Trade and Environment Review 2013 (TER13) contends.
TER13 highlights that the required transformation is much more profound than simply tweaking the existing industrial agricultural system. Rather, what is called for is a better understanding of the multi-functionality of agriculture, its pivotal importance for pro-poor rural development and the significant role it can play in dealing with resource scarcities and in mitigating and adapting to climate change. However, the sheer scale at which modified production methods would have to be adopted, the significant governance issues, the power asymmetries’ problems in food input and output markets as well as the current trade rules for agriculture pose considerable challenges.
TER13, entitled Wake up Before it is Too Late: Make Agriculture Truly Sustainable Now for Food Security in a Changing Climate was released on 18 September 2013. More than 60 international experts have contributed their views to a comprehensive analysis of the challenges and the most suitable strategic approaches for dealing holistically with the inter-related problems of hunger and poverty, rural livelihoods, social and gender inequity, poor health and nutrition, and climate change and environmental sustainability – one of the most interesting and challenging subjects of present development discourse.
Agricultural development, the report underlines, is at a true crossroads. By way of illustration, food prices in the period 2011 to mid-2013 were almost 80% higher than for the period 2003-2008. Global fertilizer use increased by 8 times in the past 40 years, although global cereal production has scarcely doubled at the same time. The growth rates of agricultural productivity have recently declined from 2% to below 1% per annum. The two global environmental limits that have already been crossed (nitrogen contamination of soils and waters and biodiversity loss) were caused by agriculture. GHG emissions from agriculture are not only the single biggest source of global warming in the South, besides the transport sector, they are also the most dynamic. The scale of foreign land acquisitions (often also termed land grabbing) dwarfs the level of Official Development Assistance, the former being 5-10 times higher in value than the latter in recent years.
Most important of all, despite the fact that the world currently already produces sufficient calories per head to feed a global population of 12-14 billion, hunger has remained a key challenge. Almost one billion people chronically suffer from starvation and another billion are mal-nourished. Some 70% of these people are themselves small farmers or agricultural laborers. Therefore, hunger and mal-nutrition are not phenomena of insufficient physical supply, but results of prevailing poverty, and above all problems of access to food. Enabling these people to become food self-sufficient or earn an appropriate income through agriculture to buy food needs to take center stage in future agricultural transformation. Furthermore, the current demand trends for excessive biofuel and concentrate animal feed use of cereals and oil seeds, much too high meat-based diets and post-harvest food waste are regarded as given, rather than challenging their rational. Questionably, priority in international policy discussions remains heavily focused on increasing industrial agricultural production, mostly under the slogan “growing more food at less cost to the environment”.
The strategy recommended to developing countries of relying on international markets to meet staple food demand, while specializing in the production and export of ‘lucrative’ cash crops has not produced the intended results, because it relied on low staple food prices and no shortage of supply in international markets, conditions that have drastically changed since the turn of the century. Globalization has also encouraged excessive specialization, increasing scale of production of few crops and enormous cost pressure. All this has aggravated the environmental crisis of agriculture and reduced agricultural resilience. What is now required is a shift towards diverse production patterns that reflect the multi-functionality of agriculture and enhance close nutrient cycles. Moreover, as environmental externalities are mainly not internalized, carbon taxes are the rare exception rather than the rule and carbon-offset markets are largely dysfunctional – all factors that would prioritize regional/local food production through ‘logical’ market mechanisms – trade rules need to allow a higher regional focus of agriculture along the lines of “as much regionalized/localized food production as possible; as much traded food as necessary”.
Climate change will drastically impact agriculture, primarily in those developing countries with the highest future population growth, i.e. in sub-Saharan Africa and South Asia. Against this background, the fundamental transformation of agriculture may well turn out to be one of the biggest challenges, including for international security, of the 21st century. Much slower agricultural productivity growth in the future, a quickly rising population in the most resource-constrained and climate-change-exposed regions and a burgeoning environmental crises of agriculture are the seeds for mounting pressures on food security and the related access to land and water. This is bound to increase the frequency and severity of riots, caused by food-price hikes, with concomitant political instability, and international tension, linked to resource conflicts and migratory movements of starving populations.

Organic cultivation: learning from the Enabavi example

http://www.thehindu.com/sci-tech/agriculture/organic-cultivation-learning-from-the-enabavi-example/article5045359.ece
M. J. Prabu

Share  ·   Comment   ·   print   ·   T+
INSPIRATION: The small village attracts farmers and policy makers. Photo: Special Arrangement.
The Hindu INSPIRATION: The small village attracts farmers and policy makers. Photo: Special Arrangement.

Is it possible to get a good yield without using chemical fertilizers? Will a shift to organic affect our food security? Can we manage insect pests without using pesticides? Will organic cultivation still be profitable for farmers?
These are some of the often asked questions by farmers when problems of modern agriculture are being discussed.
Enabavi, a small village in Warangal district, Andhra Pradesh promises to answer all these.
Situated off the Hyderabad-Warangal highway near Jangaon town, Enabavi is today an inspiration for many other villages and farmers, thanks to the efforts of the local organization called CROPS (Centre for Rural Operations Programmes Society) supported by the Centre for Sustainable Agriculture (CSA).
Visitors
This small village attracts visitors ranging from farmers to policy makers who want to understand the concept of successful sustainable agriculture. In the last three years more than 10,000 people have visited this village.
“Commercial crops like cotton are the main crops grown in the district. From 1997 onwards, large numbers of farmers’ suicides have been reported from this district. In the middle of this distress, Enabavi showed the resolve of a strong community which decided to take control of its agriculture in its own hands. “With just 51 households belonging mostly to the backward castes, the village started shifting to non-chemical farming about a decade ago. In 2005-06, the entire 282 acres was converted to organic farming. There is strong social regulation within the community towards organic cultivation to ensure that there are no ‘erring farmers” says Dr. G. V. Ramanjaneyulu, Executive Director, Centre for Sustainable Agriculture, Secunderabad.
The elders in the village take the youth along with them. They have also started investing in teaching their school-going children the knowledge and skills of non-chemical farming.
Variety of crops
The farmers grow paddy, pulses, millets, cotton, chilli, tobacco and vegetables. They process their paddy and sell directly to consumers and also through a marketing channel called Sahaja Aharam in Hyderabad.
Their average spending on chemical fertilizers and pesticides used to be around Rs.3,500 per crop per acre while it was around Rs. 500 per acre for seeds. The traders would dictate the price for the produce in addition to charging interest for the inputs supplied. Now, all of this has changed. The farmers do not spend a single rupee anymore for buying all the inputs.
Past experience
“In the 1970s this village like many others across the country, also went through the same process of using more and more chemicals to increase the productivity. By 1995 problems started showing up. Investments kept increasing but the returns were not good.
“In late 90’s pests like red hairy caterpillar caused devastating effects in this region. The initiatives on managing the pest using non chemical approaches evolved into non pesticidal management which is now widely practised in Andhra Pradesh and other states.
The confidence in using non chemical approaches, helped farmers to move away from chemical fertilizers towards sustainable solutions,” says Dr. Ramanjaneyulu.
Some farmers started looking for options like using tank silt, poultry manure, vermi-compost and farm yard manure. They set up their own compost manufacturing units in their fields and started following various ecological practices.
They also started to depend on their own seed for many crops, except for cotton. Now farmers also produce seeds for others. They have set up self help groups for men and women separately and started thrift activities too.
As the farmers moved into more and more sustainable models of production they realized the importance of natural and common resources for sustaining their own livelihood.
Social rule
As a result the tank in the village was desilted and is presently being managed by the community. A cooperative called Enabavi Organic Farmers Cooperative was formed for supporting the several activities and to improve their collective bargaining power in the markets.
“Today, Enabavi has many valuable lessons to teach other farmers, not just on how to take up sustainable farming. They also have lessons to share on social regulation, learning from each other, the benefits of conviction born out of experience and most importantly, the way out of agricultural distress by taking control over one’s own farming,” adds Dr. Ramanjaneyulu.
To visit and learn more on Enabavi interested readers can contact Dr. G. V. Ramanjaneyulu, Executive Director, Centre for Sustainable Agriculture, 12-13-445, Street no-1, TarnakaSecunderabad-500 017, ph. 09000699702, email: ramoo.csa@gmail.com, facebook: ramoo.agripage, website: www.krishi.tv

Water in half of India’s rivers is undrinkable – report

Source: Mon, 19 Aug 2013 12:05 PM http://www.trust.org/item/20130819120503-eq3yw/?source=hptop

hum-wat hum-dis
A boy throws a banana after collecting it from the polluted waters of river Sabarmati, in the western Indian city of Ahmedabad, July 18, 2013. REUTERS/Amit Dave
NEW DELHI (Thomson Reuters Foundation) – More than half of India’s rivers are so polluted by human and industrial waste that the water has become unfit for human consumption, the Hindustan Times reported on Monday, quoting a study by the country’s pollution watchdog.
The Central Pollution Control Board, which tested samples from 445 rivers between 1995 and 2011, said the water was not only undrinkable but also unsuitable for bathing in.
“The quality of river water has fallen dramatically between 1995 and 2011,” said the newspaper report, adding this was largely due to the growing amount of untreated human waste that is being discharged directly into rivers from cities.
Homes and industry in India’s urban centres generated an estimated 38 billion litres of wastewater daily in 2011 — double the amount recorded in 1995, said the report. But less than one-third is treated before being discharged into rivers.
The report said the projected amount of wastewater from urban centres could surpass 100 billion litres daily by 2050, with rural India generating another 50 billion litres.
Contaminated water and poor sanitation are responsible for a large number of preventable deaths in the country, experts say.
Around 638 million Indians, more than half the population, do not have access to proper toilets and are forced to defecate in the open.
The United Nations Children’s Fund (UNICEF) says diseases related to poor sanitation and contaminated water are a common occurrence in India, especially among children. Diarrhoea and respiratory infections are the number one cause of child deaths.

New state of poverty

#Telangana #EcologicalPoverty
Author: Richard Mahapatra @Richard20711534 

Posted on: 14 Aug, 2013
 http://www.downtoearth.org.in/content/new-state-poverty

It’s time we acknowledged ecological impoverishment as one of the poverty indicators
imageSource: Prashant Ravi
On the face of it, the release of India’s latest poverty estimate and the decision to create the 29th state, Telengana, seem to be two unrelated developments. The media and public dialogues also, though hyper on both developments, did not see any link between the two. The discussion over poverty mostly revolved around what one can buy with Rs 28/day decided as poverty line figure for rural areas. As far as Telengana is concerned, the focus was on how prominent the demand for small states has become. And, of course, some talk about how small states aid development. Ecological poverty, however, failed to find any mention in these discussions. This is how the debate on governance issues in India consistently fails to acknowledge the centrality of ecology.
To join the dots, most of the demands for new states come from areas that are rich in natural resources but high on poverty index. Of the 20 areas demanding state-status from the Union Ministry of Home Affairs, 15 have distinct socio-economic profiles. These areas predominantly depend on natural resources for sustenance. Or, one can say, they are biomass-based economies. Unlike immediately after Independence, now the demands for a separate state are not entirely based on linguistic or ethnic identities. Invariably, poor regions inside a state tend to demand separate administrative units, which could either be a separate state or a new district. Such regions, for years, have been citing regional development disparity as the main reason for their demand for a separate identity. It is a way of redrawing India’s ecological map—resource-rich areas do not want their assets to be used as raw materials for development elsewhere. But does having a separate state guarantee better access to local resources for communities? This is an important question because in such areas most of the poor depend on resources like forests and farms for survival.
Now, let’s look at the three small states created in 2001, when India last created new states after sustained demands. All the three—Chhattisgarh, Jharkhand and Uttarakhand—are rich in forest, water and land resources. Chhattisgarh and Jharkhand are suitable for analysing of whether new identities helped in better access to natural resources. This is because in both the states local ecology has been the economy of the impoverished and the two states together account for a significant proportion of India’s poor population. How have they performed in poverty alleviation as separate states?
The latest poverty estimate shows that despite a sharp drop in poverty, both the states have nearly double the poverty level of national average. Segregated data shows that tribal, forested and other mineral-rich districts contribute up to 70 per cent of the two states’ total poor. Chhattisgarh emerges as the country’s poorest state with around 40 per cent people below the poverty line. This is the same level of poverty that was reported before 2001 when the new states were created. This despite the fact that the state’s economic growth has been more than the national average. However, this is a pan Indian trend—states are reporting high economic growth but not a proportionate decline in poverty levels.
This brings into debate the ecological nature of India’s poverty. Current debates focus on impoverishment entirely as income poverty. Poverty in Chhattisgarh and Jharkhand or, for that matter, rural poverty in general, is ecological since poor depend on the environment for survival. According to various income surveys, close to 70 per cent earning of a poor person comes from ecological sources. In forested areas, forest products contribute 80 per cent of the local people’s income.
With the creation of new states in 2001, India had its first brush with ecological states. Many hoped that control over natural and ecological resources would help redefine the state of poverty in these states. Everybody believed that the new states would, at least, frame policies that reflect the ecological reality. In an anti-climax, both the states first declared industry policy to exploit the vast mineral resources and sold land at cheap rates as a bonus. This reflects in the current state of affairs in Chhattisgarh and Jharkhand. Just like before their formation, there is a sharp division within the new states: two warring groups are fighting over resources. The same old model of development continues. Naturally, the residents of resource-rich areas feel further marginalised. No surprise they continue to be poor.
This is where those euphoric over Telengana need to pause and review the past experiences. The debate over poverty line must get real and accept ecological poverty as the real poverty indicator.

Banks may write off Rs 7200 crore debt to microfinance institutions

http://economictimes.indiatimes.com/news/news-by-industry/banking/finance/banking/banks-may-write-off-rs-7200-crore-debt-to-microfinance-institutions/articleshow/21872024.cms
MUMBAI: Banks that restructured Rs 7,200 crore of debt to microfinance institutions are staring at a possible write off as several of these institutions are finding it difficult to recover loans in Andhra Pradesh.
Lenders had bailed out microfinance institutions (MFIs) such as Spandana Sphoorty FinancialAsmitha MicrofinShare MicrofinTrident MicrofinFuture Financial Services and Basix in 2011 after the Andhra Pradesh government passed a law to regulate MFIs.
“MFIs have not been able to recover any loan. The restructuring has failed. They have not been able to recover any money from Andhra Pradesh,” said a senior banker close to the development.
MFIs had sought the Reserve Bank of India’s nod for a second round of restructuring, but the regulator rejected the request. “If banks were to restructure loans of troubled microfinance institutions for the second time, they will not get any benefit in terms of provisioning,” RBI Deputy Governor Anand Sinha had said at a recent banking conference. “We do not stop second restructuring. But what we say is that asset classification benefit will not be available to banks. The RBI does not stand in the way of second time debt restructuring.”
RBI prescribes that if a borrower, who is already into corporate debt restructuring, has to avail of loan recast again, then its banks will have to provide 15% of the recast loan amount as provision. This has increased the trouble for banks and MFIs.

Banks may write off Rs 7200 crore debt to microfinance institutions

“Banks are staring at a possible write off unless the state government changes its stance and conveys the message that it is the duty of every borrower to repay debt. There are about 92 lakh defaulters in Andhra Pradesh, which has affected their credit history,” said Vijay Mahajan, founder and chairman of Basix, a livelihood financial services group.
“The average ticket size of the loan is around Rs 7,000. We had also offered to waive off the interest charged on loan after October 2010. This would mean an interest loss of three years. Borrowers would have to repay only the principle. It is for the government to decide,” he said.
Mahajan said the legislation passed by Andhra Pradesh has several provisions that make it difficult for MFIs to recover their dues.
“It requires MFIs to take government permission for every fresh loan granted. This is cumbersome. We are also not permitted to visit the borrower’s house or work place for collection of loan. We have to meet the borrower at a public place or panchayat office,” Mahajan said, adding that there have been no recoveries in the past two years.
Andhra Pradesh-based MFIs have been facing repayment pressures after the state government in October 2010 passed the Microfinance Act to check alleged coercive recovery practices of these institutions. The Act, apart from other provisions, also mandates MFIs to collect loan payments on a monthly basis as against the earlier practice of weekly collections, which has further hit their collections.

The real cost of credit constraints: Evidence from micro-finance

In December 2010, the Indian state of Andhra Pradesh passed a law that severely restricted the operations of micro-finance institutions and brought the micro-finance industry to an abrupt halt. We measure the impact of micro-credit withdrawal in this unique natural experiment and find that average household expenditure dropped by 19 percent relative to a control group after the ban. The largest decrease was observed in expenditure on food. There is some evidence of higher volatility in consumption after the ban. All households were affected and not just the borrower households, which may suggest general equilibrium effects.
http://www.igidr.ac.in/pdf/publication/WP-2013-013.pdf

Taste for organic foods

http://www.hindustantimes.com/Entertainment/Food/Taste-for-organic-foods/Article1-1109620.aspx

Himani Chandna Gurtoo , Hindustan Times
Mumbai, August 19, 2013

The lifestyle of software engineer Karan Suri, 37, changed after he underwent a surgery to remove a cancerous cyst in his stomach. After the surgery, Suri decided to purchase only organic foods – rice, cereals, pulses and even pasta – for his family. “One needs to develop a taste for organic foods. But I feel safe that I am eating pesticide-free, natural food.”
Many other consumers have started buying organic foods that have not been farmed using synthetic pesticides and chemical fertilisers. Nearly 62% of high income households prefer organic products due to rising awareness, higher disposable incomes and easier availability in the market, according to an Associated Chambers of Commerce and Industry of India (ASSOCHAM) survey. “Organic farming was one of the fastest growing industries last year,” said DS Rawat, secretary general, ASSOCHAM.
A growing list of farm-fresh and organic foods is hitting retail shelves briskly. The demand for them has grown sharply in recent years; in earlier years, they were primarily exported to Europe and the US.
And then there is Tata Chemicals which offers farm-fresh, unpolished dal varieties and besan made from unpolished channa dal, under the Tata I-Shakti brand. The pulses, says the company, are directly procured from reputed Indian farms supported with Tata’s Good Agricultural Practices, or from NCDEX-associated farmers.
https://i2.wp.com/www.hindustantimes.com/Images/Popup/2013/8/19_08_biz6.jpg?w=720
Ashvini Hiran, COO consumer products business, Tata Chemicals, said, “Consumers, increasingly health conscious, choose food  products that not only taste great but are also fortified with health benefits. To reach out to them and let them know of I-Shakti dals’ delicious taste and quick cooking, we roped in Sanjeev Kapoor, one of India’s quintessential faces for high quality cooking, as our brand ambassador.”
From very few categories, natural and organic foods have extended to tea, coffee, biscuits, pasta and sauces, among others, indicating growing consumer interest. Most big retail chains stock these products, including Godrej Nature’s Basket, Food Bazaar, More, Nilgiris, Spencers and Tesco-Starbazar.
Sresta Natural Bioproducts started producing organic foods in 2004. For the first two years, it found no buyers. “Then retail chain Spencers agreed to sell our brand. Now we sell across 36 cities, growing at over 70% annually,” N Balasubramanian, Sresta’s CEO, said. Sresta works with 12,000 farmers across 14 states.
“Urban, more mature people, 30-55 years old, are the primary consumers who are shifting to organic foods,” said Mohit Khattar, MD, Godrej Nature’s Basket. “The number of categories will continue to grow as people develop a taste for organic foods. But they will not attract many youth customers in the near future.”
Besides modern retail networks, organic foods are also available through exclusive, producer-owned stores in the bigger cities. “Awareness and acceptance of organic products has increased manifold in urban India. Many organic food suppliers are now opening stores across the country,” pointed out Ankur Bisen, VP retail of leading management consultancy, Technopak.
For instance, Organic India, which does organic farming in Uttar Pradesh, is setting up its own chain of exclusive retail stores.
The high prices of organic foods – around 40-60% higher than regular foods – could be a deterrent in runaway growth. Dr. Divya Choudhary, former dietician at Fortis Hospital, said, “I prescribe organic food to most of my patients but they don’t follow the advice as the food is not yet pocket-friendly.”
The cost of production of organic foods over traditional foods is higher, as the yield per acre is lower because the crops do not use fertilisers or pesticides. “As more consumers gravitate towards organic foods, in time, costs will come down,” Balasubramanian predicted