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Govt Plans to Market Organic Farm Products Under One Roof Through Cooperatives

Individual marketing of agricultural products by growers is in general inefficient, and the government believes cooperatives can play a critical role in assisting farmers in obtaining remunerative prices, according to Gyanesh Kumar, secretary to the ministry of cooperation.

Shivam Dwivedi
Organic product demand is increasing all over the world.
Organic product demand is increasing all over the world.

On January 11, the Union Cabinet, chaired by Prime Minister Narendra Modi, approved the setting up of a national-level cooperative society for organic products under the Multi State Cooperative Societies (MSCS) Act, 2002, with support from relevant ministries following the principle of 'Whole of the Government Approach'. To capitalize on their comparative advantage, the government believes cooperatives must think globally and act locally.


"We have market, we have demand from consumers in terms of its health benefits. Cooperatives are critical if you want benefits to reach farmers directly," he said on Monday at a meeting with various stakeholders. He went on to say that the difference in prices between organic and regular wheat is about Rs 20-25, and that this is where cooperatives come in to help farmers get more value for their produce.

The cooperative society will manage various activities related to the organic farming sector, such as providing certified and authentic organic products, unlocking the demand and consumption potential of such products in India and abroad, branding and marketing through facilitation, testing, and certification at a low cost, and other related aspects.


The cooperative is named National Cooperative Organics Limited and has five promoters — Gujarat Cooperative Milk Marketing Federation (which sells its products under brand Amul), National Agricultural Cooperative Marketing Federation of India (NAFED), National Consumers Federation of India (NCCF), National Dairy Development Board (NDDB), and National Cooperative Development Corporation (NCDC), the secretary said. The primary promoter is NDDB.

The cooperative society will have an authorised capital of Rs 500 crore, but it will begin with Rs 100 crore (Rs 20 crore by each promoter). Its registered office will initially be at NDDB's head office in Anand, Gujarat. The global organic produce market is estimated to be worth Rs 10 lakh crore, with India accounting for Rs 27,000 crore.

Organic product demand is increasing all over the world, and India has everything it needs to expand exponentially. The United States, Canada, Germany, and China are among the top consumers. It is estimated that this sector has the potential to grow at a 15% annual rate globally. It is approximately 20-25% in India.


Australia has the most area under organic cultivation, followed by Argentina and India. The largest single source of pollution, according to the World Health Organization, is sewage. On what the government intends to do to increase the area and productivity of organic crops in India, the secretary stated that he believes the entire ecosystem will evolve as proper marketing improves.


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