The term 'organic revolution' denotes the shift towards sustainable and environmentally friendly agricultural practices, avoiding synthetic pesticides and fertilisers. This movement gained momentum as consumers became more conscious of their health, the environment, and the quality of the food they consume.

 

The roots of the organic movement can be traced back to the early 20th century. However, it wasn’t until the 1960s and 1970s that the movement gained significant traction. Pioneers such as Rachel Carson, author of 'Silent Spring,' brought attention to the environmental impacts of pesticides, sparking a renewed interest in organic farming.

 

Global trends

According to the latest data from the International Federation of Organic Agriculture Movements (IFOAM), the global organic agricultural area has expanded by 50 per cent in the past decade. More than 76.4 million hectares were organically managed at the end of 2021. This represents a growth of 1.7 per cent compared to 2020. With 35.7 million hectares, Australia had the largest area under organic agriculture, followed by Argentina and France.

 

Over the years, organic farmland area has increased in Africa, Asia, Europe and Oceania highlighting the growing status of the organic food sector as a lucrative market. Slightly less than half of the global organic agricultural land was in Oceania with 35.9 million hectares followed by Europe and Latin America.

 

Consumer awareness, demand

The surge in consumer demand for organic products is a driving force behind the organic revolution. 3.7 million organic producers were reported in 2021, an increase of 4.9 per cent from 2020. At 1.6 million, India remained the country with the most organic producers.

 

Organic farming practices prioritise soil health, biodiversity, and sustainable land management. Organic agriculture has the potential to contribute significantly to mitigating climate change, preserving water resources, and maintaining soil fertility.

 

In 2021, global organic food sales amounted to about $132.74 billion, whereas it was just $18 billion in 2000. In 2021, In India alone there were nearly 1.6 million organic food producers, more than any other country.

 

North America holds a substantial share, representing nearly half of global organic food retail sales. This region stands as the second-largest market for organic food globally, following Europe. The United States predominantly contributes to this share. Since 2008, organic food has consistently claimed an increasing proportion of total food sales in the United States. Notably, in 2020, organic food accounted for approximately six per cent of the overall food sales in the United States.

 

Way forward

While the organic revolution has gained substantial ground, it faces its share of challenges. The cost of organic certification and the scalability of organic farming operations are persistent concerns.

 

Governmental support and regulations

Governments worldwide are recognising the importance of supporting organic agriculture. In the European Union, the Common Agricultural Policy allocates funds to promote organic farming practices. In the United States, the National Organic Program (NOP) sets the standards for organic certification, ensuring that products labeled as 'organic' meet specific criteria.

 

Indian organic market

India’s organic food market has experienced remarkable growth post-pandemic. According to a survey conducted in 2022 across 187 countries practicing organic agriculture, as reported by the Research Institute of Organic Agriculture (FiBL) and International Federation of Organic Agriculture Movements (IFOAM), India boasts the cultivation of organic food across 2.6 million hectares, ranking it as the fifth-largest globally. The data further indicates that the proportion of land dedicated to organic farming in the overall agricultural landscape is 1.5 per cent. Over the past decade, India has witnessed a substantial increase of 145.1 per cent in the land allocated to organic agriculture.

 

In alignment with this growth, the Economic Survey for the fiscal year 2022-2023 highlighted that India is home to 4.43 million organic farmers, establishing the country as a global leader in terms of organic farming practitioners.

 

As per APEDA (Agricultural and Processed Food Products Export Development Authority), Ministry of Commerce and Industries, India produced around 2.9 million tonnes (2022-23) of certified organic products, including oilseeds, fibre, sugarcane, cereals and millets, cotton, pulses, aromatic and medicinal plants, tea, coffee, fruits, spices, dry fruits, vegetables, and processed foods. This sector’s production extends beyond edible goods to include organic cotton fibre and functional food products.

 

Madhya Pradesh has emerged as the leading state in organic production, with significant contributions from Maharashtra, Rajasthan, Karnataka, and Odisha. When considering specific commodities, fibre crops stand out as the largest category, succeeded by oilseeds, sugar crops, cereals and millets, medicinal/herbal and aromatic plants, spices and condiments, fresh fruits and vegetables, pulses, and tea and coffee. This broad spectrum highlights the diverse and expansive nature of organic agriculture in these regions.

 

Opportunities

Emerging economies present significant opportunities for the organic market. According to a market research report by Grand View Research, the Asia-Pacific region is expected to witness the fastest growth in the organic food market over the next five years. While the organic market growth appeared to slow down in 2022, the momentum for the organic sector has continued to build around the world. Numerous nations have sustained or introduced supportive measures for organic agriculture, unveiling new strategies or policies to stimulate its development. This is reflected in the rise in globally implemented national regulatory frameworks for organics, now totalling 74.

 

As we look ahead, the future of the organic revolution appears promising. Advancements in technology, such as precision agriculture and agro-ecology, are expected to enhance the efficiency and productivity of organic farming. In addition to this, ongoing research into organic farming methods aims to address scalability challenges, making organic agriculture a viable option for meeting global food demands sustainably.

The Centre, state governments and industry representatives will meet on January 16 to discuss ways to boost the country's exports, an official said.

 

Issues which are expected to figure in the meeting include rupee payment challenges, need of global shipping, and challenges being faced by traders on account of the Red Sea crisis, and uncertain global economic situation due to the Russia-Ukraine war and Israel-Hamas conflict.

 

The meeting will be chaired by Commerce and Industry Minister Piyush Goyal. They all are members of the Board of Trade (BoT).

 

'There are over 135 members of BoT. It is meeting on January 16 at Bharat Mandapam,' the official said.

 

Headed by the minister, the board includes participants from various states, Union Territories, and senior officials from the public and private sectors.

 

In the meeting, representatives of export promotion councils present their views on the export sector.

 

The board provides an opportunity to have regular discussions and consultations with trade and industry and advise the government on policy measures on foreign trade.

 

It also provides a platform for state governments and Union Territories to articulate their perspective on trade policy and also for the central government to apprise them about international developments affecting India's trade potential and opportunities.

 

Cumulatively, the country's merchandise exports in April-November 2023-24 contracted by 6.51% to $278.8 billion.

 

Imports were also down by 8.67% to $445.15 billion in the eight-month period due to a fall in oil imports.

The country's masur (lentil) production is estimated to touch an all-time high of 1.6 million tonnes in the 2023-24 rabi season on higher acreage, according to Consumer Affairs Secretary Rohit Kumar Singh. Masur production stood at 1.55 million tonnes in the 2022-23 rabi season, as per the official data.

 

Despite being the world's largest producer and consumer of pulses, India imports certain pulses, including masur and tur, to meet domestic shortages.

 

'This year, masur production is going to be at an all-time high. Our masur production will be the highest in the world. The acreage has increased. The dynamic is changing,' Singh said at an event organised by the Global Pulse Confederation (GPC) on Friday.

 

In the ongoing rabi season, more area has been brought under the masur crop. The total masur acreage has increased to 1.94 million hectare as of January 12 in the ongoing rabi season, when compared to 1.83 million hectare in the year-ago period, according to the agriculture ministry data.

 

On the sidelines of the event, the Secretary said masur production is estimated at 1.6 million tonnes for the current rabi season.

 

He also mentioned that the country produces on an average 26-27 million tonnes of pulses annually. In chana and moong, the country is self-sufficient but in other pulses like tur and masur, it still imports to meet the shortages.

 

'While we pitch for self-reliance in pulses, we cannot ignore that for some time to come, we probably need to keep (pulses) imports running,' he said.

 

While the government is incentivising farmers to grow more pulses, one needs to keep in mind the limited area under cultivation, he added.

 

Sharing how difficult it is to balance the farmers' and consumers' interests, the Secretary said, 'I think we are doing ok in the last couple of years. Despite weather disturbances, we have managed to keep the prices of pulses reasonably under control'.

As many as eight MoUs were signed in the agro and food processing sector, in the presence of Gujarat's Agriculture Minister Raghavji Patel, on the second day of the ongoing Vibrant Gujarat Global Summit.

Among these MoUs, Asandas and Sons Pvt. Ltd. at Mehsana are planning to invest Rs 1,100 crores, Bhitar Enterprises Pvt. Ltd. is planning a Rs 500 crore investment, Tidy Agroceutical Pvt.

Ltd. intends to invest Rs 400 crores, Grainspan Nutrients Pvt. Ltd. at Ahmedabad plans a Rs 375 crore investment, and Sanstar Ltd at Ahmedabad is set to invest Rs 300 crores in the state.

Additionally, J.M. Coconut Products Pvt Ltd is planning a Rs. 300 crore investment, Mac Patel Foods Pvt. Ltd. in Mehsana is planning to invest Rs. 150 crore, and RPA Agriculture Infrastructure and Solutions Pvt. Ltd. is set to invest Rs. 140 crores in Gujarat.

The summit has also seen several key announcements in the area of semi-conductor manufacturing. On Wednesday Tata Sons chairman N Chandrasekharan announced a semiconductor fabrication plant in Dholera where negotiations will conclude this year.

CEO of Micron Technology Sanjay Mehrotra said that the first phase of the semiconductor assembly and testing facility coming up in Sanand would be operational by early 2025.

Korean tech giant Simmtech also announced plans to establish a cutting-edge semiconductor plant in Sanand, Ahmedabad with an initial investment set at Rs 1,250 crores.

"PM Modi is introducing and leading many industries in India as per the nation's need. The semiconductor industry, one of them, is a foundational industry. This means making semiconductors will lead the way for other creations. The progress and ecosystem of the first plant of semiconductor in Gujarat was discussed and MoUs were signed," says Union Minister AshwVaishaw.

On Wednesday, Prime Minister Narendra Modi inaugurated the 10th edition of Vibrant Gujarat Global Summit 2024 at Mahatma Mandir, Gandhinagar.

The theme of this year's summit is 'Gateway to the Future' and includes the participation of 34 partner countries and 16 partner organizations.

The Summit is also being used as a platform by the Ministry of Development of North-Eastern Region to showcase investment opportunities in the North-Eastern regions.

On the first day, some of the high-value investment proposals included were from Indian companies such as Adani Group, Reliance Industries, Tata Group, and global corporate DP World, among other business conglomerates.

Nepal and India have expressed a commitment to implementing bilateral initiatives aimed at further strengthening the seamless cross-border connectivity, as the officials from the two sides met to discuss ways to fortify the economic and commercial linkages. The India-Nepal Inter-Governmental Sub-Committee (IGSC) on Trade, Transit, and Cooperation to Combat Unauthorised Trade convened its latest session in Kathmandu on January 12-13.

 

Both sides also discussed mutual market access for pharmaceuticals and Ayurvedic products. The Indian side highlighted the need for an IPR regime by the provisions of the Paris Convention for encouraging Foreign direct investment (FDI).

 

Vipul Bansal, Joint Secretary, Ministry of Commerce, Government of India, led the Indian delegation, which included senior officials from various ministries and the Embassy of India in Kathmandu.

 

The Nepali side was headed by Ram Chandra Tiwari, Joint Secretary, Ministry of Industry, Commerce and Supplies, Government of Nepal, accompanied by key representatives from different Nepali Ministries and Departments.

 

One of the highlights of this meeting was the focus on bilateral initiatives aimed at further strengthening the seamless cross-border connectivity between India and Nepal including through the construction of new Integrated Check Posts and railway links.

 

Both sides expressed a commitment to implementing these initiatives, reflecting the shared vision of prosperous bilateral trade.

 

The agenda also covered discussions on the review of the Treaty of Transit and the Treaty of Trade, proposed amendments to existing agreements, strategies for enhancing investment, the harmonisation of standards and the synchronised development of trade infrastructure.

 

India continues to be the principal trade and investment partner for Nepal, significantly contributing to Nepali imports and exports.

 

The discussions in this meeting are expected to further fortify the economic and commercial linkages between the two countries.

 

The IGSC is a bilateral mechanism aimed at bolstering trade and investment ties.

India does not plan to import wheat and its farmers are likely to harvest a bumper crop that will boost stockpiles in the world's second-biggest producer of the staple, the trade minister said on Saturday.

 

'Ground reports indicate that the crop is quite good and this year's production is expected at a record 114 million metric tons,' Piyush Goyal told reporters.

 

India banned wheat exports in 2022 after output was curtailed due to a heat wave, but more recently overseas sales picked up as Russia's invasion of Ukraine sent global prices to multi-year highs.

 

The government has sold around 6 million metric tons of wheat to local bulk buyers since June. 1, when the state-run Food Corporation of India started selling the grain from its warehouses.

 

Despite selling wheat from its granaries, inventories at state warehouses are likely to remain above the target of 7.46 million metric tons fixed for April 1, when a new marketing year starts, a top government official said earlier this month.

 

The country's wheat stocks at state warehouses stood at 16.47 million metric tons as of Jan. 1, the lowest since 2017.

 

Goyal said India would for now continue with its export curbs on wheat, rice and sugar.

 

'We are committed to protecting both consumers' and farmers' interests,' he said.

 

India, also the world's second-biggest rice producer, last year banned overseas shipments of non-basmati white rice. And New Delhi has also stopped mills from exporting sugar this year.

 

Goyal also said his government has no immediate plans to allow duty-free imports of corn - also known as maize in India - turning down the poultry industry's demands.

 

'Farmers will plant more maize this year,' he said.

Various buyers and importers of food products convened at the International Conclave Cum Buyer Seller Meet for Organic Products, organised by the Agricultural and Processed Food Products Export Development Authority (APEDA) in Dehradun on Friday. Stakeholders from seven countries including Russia, Hong Kong, UAE, Uganda, Lebanon, Belarus, and Spain participated in the event, underscoring the growing global interest in Uttarakhand's organic produce.

APEDA chairman, Abhishek Dev, emphasised the need to promote organic products in response to their increasing global demand.

He said, 'There is a massive opportunity presented by the $147 billion global organic food market.' 

 

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Faced with 66 per cent decline in organic exports from Uttarakhand in 2022-23, Agricultural and Processed Food Products Export Development Authority (APEDA) and the state government have chalked out plans to promote products to boost shipments. The state is all set to set up mandis for organic produce so that once 50 per cent area target under organic is achieved by 2025, farmers will not face any hurdles in marketing their products.

 

Organic exports from Uttarakhand slid to 97 tonnes worth Rs.4.2 crore ($0.5 million) in 2022-23 from 285 tonnes worth Rs.11.6 crore ($1.7 million) in 2021-22.

 

Releasing a report prepared by Yes Bank on strategies to boost organic exports from Uttarakhand, APEDA Chairman Abhishek Dev said that a similar report for Sikkim will be unveiled next month. The state government has agreed in principle to implement the suggestions of the report after a buyer-seller meet organised by APEDA in Dehradun on January 12.

 

Dev said though medicinal plant products, pulses and cereals were the largest contributors, together capturing about 90 per cent of the export volumes, there are several other products like jaggery, vegetables and essential oils which have great potential in the export market.

 

In the buyer-seller meet last week, two consignments of one tonne, each of fresh vegetables were flagged off to the United Kingdom and Bahrain. Even some deals with buyers from Lebanon were completed during the meeting itself, said Vinita Sudhanshu, DGM, APEDA.

According to the report, the decline in organic export from the state was due to an overall economic downturn in the global economy, majorly in the developed import markets. Besides, delisting of four to five certification bodies by the European Union for categories ‘D’ and ‘A’ following detection of Ethylene Oxide (ETO) in consignments of organic products has also affected.

 

Due to detection of ETO and residues above maximum permissible limit (MRL), EU has placed certain products under high risk category and has also added mandatory testing requirements, adversely affecting the trade.

 

Further, there is no progress made after withdrawal of conformity assessment recognition by USDA’s national organic program (NOP) in January 2021. The moratorium of 18 months also ended in June 2022. Earlier the US was recognising APEDA’s National Programme for Organic Production (NPOP) under which approved certification agencies were issuing organic certification.

 

Dev said discussion with the US has been continuing and in the interim it has recognised 10 agencies including an Indian company OneCert International to carry out certification, on basis of which Indian consignments are accepted in the US. He also said that once the Uttarakhand State Organic Certification Agency (USOCA), the oldest government organic certification body in India, receives approval from USDA NOP, it will help boost shipments from Uttarakhand.

Yes Bank study has also identified some supply side issues including increase in certification costs, logistics issues and pest damage to crops like amaranth and rajma that affected exports adversely last year.

 

Uddham Singh Nagar and Haridwar districts (both in plain region) together alone account for over 90 per cent of the total fertilizer consumption in the state. Similarly, the state accounts for only 0.2 per cent of total chemical pesticides used in the country.

 

In 2022-23, Uttarakhand’s organic area (under NPOP) increased to 1.05 lakh hectares, of which six per cent was under wild cultivation as against 41,000 hectares in 2018-19. In 2022-23, the organic production was 43,900 tonnes and additional 106 tonnes of organic produce were collected from wild areas, taking the total to over 44,000 tonnes.

A lot of issues are on the table as India and US go to talks at the 14th Trade Policy Forum (TPF) meet in New Delhi starting January 12. US Trade Representative Katherine Tai is on a three-day visit to India for this meeting.

 

Tai and Commerce and Industry Minister Piyush Goyal will co-chair the meeting.

 

On India's agenda are a number of key issues that include a social security pact, US audit of Indian pharma players, etc.

 

Other issues to be raised by India are: a) delay in visa; b) increasing exports of table grapes, pharma goods, and marine products such as wild caught fish and shrimp; c) reinstating the Generalized System of Preferences (GSP) status to India; d) export control regulations for high-tech products and technologies; more access for Indian mangoes to the American market, etc.

 

The two prime issues that will dominate the discussions this time are the social security pact and USFDA drug inspections in India, news agency PTI reported.

 

Social security pact

The Social security pact is also called a totalisation agreement. It is one of India's long-pending demands. When in place, it will give social security to Indian professionals working in the US. Under the provisions of the pact, dual social security deduction -- both in the home country and in the nation where an individual works -- will be done away with.

 

Essentially,'an expatriate in either country need not contribute to the social security scheme of the host country,' PTI reported citing the proposed agreement.

 

It will significantly benefit a large number of Indians, especially techies working in America. These individuals pay social security there, but are not able to get any benefit out of it.

 

India has already provided the other side with all the required info on this, PTI said quoting an official. This include data from different social security schemes like Employees' Provident Fund (EPF), New Pension Scheme (NPS), and Employees' State Insurance Corporation.

 

USFDA inspections of Indian pharma

Also on the table is a proposal to fast-track USFDA's inspections of Indian pharmaceutical companies.

 

The nod from USFDA is a must for any company to sell medicines in the US. Under a standard procedure, American inspectors check drug manufacturing units' facilities to ensure quality.

 

As per the official quoted by PTI, India wants a fast-tracking of these audits through digital or physical means as as to take them to pre-Covid levels.

 

America is India's largest pharma export market. According to latest available data (which is for April-February 2023), India's pharma exports to the US stood at $6.79 billion -- almost 30% of India's pharma sales globally.

 

Covid had wrecked this inspection process, leading to a huge backlog. That has badly hit approvals and renewals of medicines and factories.

 

TPF and the state of India-US trade

The TPF platform is used by the two sides to find solutions to issues arising in bilateral trade and investment matters. The TPF has five focus groups -- agriculture, investment, innovation, and creativity (intellectual property rights), services, and tariff and non-tariff barriers.

 

America is India's biggest trade partner, accounting for nearly 20% of India's total exports in goods. Besides, it is a major market for Indian services sectors, including IT.

 

The total size of India-US total bilateral trade rose to $129.4 billion as of 2022-23, from $120 billion a year earlier. Also, FDI to India from the US reached $6 billion in 2022-23.

The India-UAE Business Summit was held on 10th January 2024 to strengthen bilateral ties between India and the United Arab Emirates (UAE) as part of the Vibrant Gujarat Global Summit 2024.

 

UAE’s President His Highness (H.H.) Sheikh Mohamed bin Zayed Al Nahyan is the chief guest at the Vibrant Gujarat Global Summit 2024, further emphasising the growing cooperation and strengthening relations between the two nations. The Prime Minister of India, Shri Narendra Modi, extended a warm welcome to H.H. Sheikh Mohamed bin Zayed Al Nahyan and remarked that India cherishes his thoughts and efforts to boost India-UAE ties.

 

The Inaugural Session of the India-UAE Business Summit included keynote addresses from Shri Piyush Goyal, Union Minister of Commerce and Industry, Consumer Affairs, Food and Public Distribution and Textiles (India) and His Excellency (H.E.) Dr. Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade, Ministry of Economy (UAE) along with special remarks from Shri Bhupendra Rajnikant Patel, Chief Minister of Gujarat.

 

Shri Piyush Goyal, H.E. Dr. Thani bin Ahmed Al Zeyoudi, and Shri Bhupendra Rajnikant Patel ceremonially launched the UAE – India CEPA Council (UICC) website as part of the inaugural session. The session also highlighted India’s booming startup landscape and included remarks from Shri Kunal Bahl, Chairman - Confederation of Indian Industry (CII) National Startup Council and Co-founder - Snapdeal and Titan Capital.

 

A report on the CII India-UAE Start-Up Initiative titled “Unlocking Opportunities: India- UAE Start-Up Ecosystem Convergence” was also launched during the summit. The inaugural session was chaired by Shri R Dinesh, President, CII and Chairman, TVS Supply Chain Solutions Limited and included addresses from H.E. Sultan Ahmed bin Sulayem, Chief Executive Officer - DP World, and M.A. Yusuff Ali, Chairman Lulu Group International, who mentioned their interest in increasing investment in the food processing industry in India.

 

The India-UAE Business Summit also facilitated a focused discussion session for further cooperation in areas such as trade finance, investment facilitation, and sectoral collaboration. The Indian and the UAE delegations comprised of representatives from both the Government and the industry. The session included a presentation on the Bharat Mart which is a proposed warehousing facility by India in the UAE to support Indian exporters.

 

India-UAE trade rose to USD 85 billion in 2022, making the UAE India’s third-largest trading partner for the year 2022-23 and India's second-largest export destination. In February 2022, India became the first country with which the UAE signed a Comprehensive Economic Partnership Agreement (CEPA). Bilateral trade has increased by approximately 15% since the entry into force of the CEPA on 1 May 2022.

 

The CEPA was a landmark agreement designed to spark a new era of cooperation between two nations and strengthening the long-standing cultural, political and economic ties. It has helped reduce tariffs on more than 80% of product lines, eliminate barriers to trade and create new pathways for investment and joint ventures. In the first 12 months of the CEPA, bilateral non-oil trade reached US$50.5 billion, representing a growth of 5.8% compared to the corresponding period a year earlier. The two countries are fast moving towards the target of US$100 billion non-oil trade by 2030.

 

 A Memorandum of Understanding for the establishment of a framework to promote the use of local currencies (INR-AED) for cross-border transactions was signed by Governors of the respective Central Banks of India and the UAE in July 2023. Developing the Local Currency Settlement System between the two countries to settle bilateral trade reflects mutual confidence and underlines the robustness of the economies in both countries.

 

The UAE-India Business Summit is another step towards accelerating India-UAE bilateral economic relations for mutual growth and prosperity.