1. INTRODUCTION 1.1- Industry Profile The idea of quality food has seen an extensive change in the past years. It currently alludes not exclusively to the qualities of the finished products, but the techniques of production, processing and transportation also play an equivalent role. Nowadays buyers are will to pay more for organic food as they have become more health conscious. This is because of the extensive use of pesticides and synthetic fertilizers artificially delivered manures and illness control measures in agricultural practices, those are affecting the soil fertility, natural resources, health and wealth of human beings. This gravity of draining soil wellbeing and ecological perils have drawn the consideration of scientists and policy makers to discover a route for maintainable and eco inviting cultivating framework in the different agro climatic conditions around the world, keeping in view the necessities of the present and who and what is to come for the present and future generation. Various distinctive cultivating frameworks and procedures can be gathered under the umbrella of sustainable agriculture. These frameworks share for all intents and purpose that they lessen or keep away from the utilization of chemical pesticides and composts, dismiss hereditarily altered organisms and work with regular cycles so as to oversee pests and improve soil fertility. 1
77
Embed
ijrar.orgijrar.org/papers/IJRAR_222603.docx · Web viewQuantitative information is gathered by online study strategy comprising of organized inquiries which are just focused to natural
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
1. INTRODUCTION
1.1- Industry ProfileThe idea of quality food has seen an extensive change in the past years. It currently alludes not
exclusively to the qualities of the finished products, but the techniques of production, processing
and transportation also play an equivalent role. Nowadays buyers are will to pay more for
organic food as they have become more health conscious. This is because of the extensive use of
pesticides and synthetic fertilizers artificially delivered manures and illness control measures in
agricultural practices, those are affecting the soil fertility, natural resources, health and wealth of
human beings. This gravity of draining soil wellbeing and ecological perils have drawn the
consideration of scientists and policy makers to discover a route for maintainable and eco
inviting cultivating framework in the different agro climatic conditions around the world,
keeping in view the necessities of the present and who and what is to come for the present and
future generation.
Various distinctive cultivating frameworks and procedures can be gathered under the umbrella of
sustainable agriculture. These frameworks share for all intents and purpose that they lessen or
keep away from the utilization of chemical pesticides and composts, dismiss hereditarily altered
organisms and work with regular cycles so as to oversee pests and improve soil fertility. In
perspective on resurgence of interest for exchange economical horticulture lately, organic
farming has been viewed as a feasible alternative in the majority of the nations. Organic farming
isn't about simply cultivating less synthetic chemicals. It is in reality about our farming
conventions and practices, local seeds, regional values, environment, animal welfare,
communities, sensible energy use, soil and water conservation and more. It is additionally about
us and our family, our wellbeing and our welfare. Critically, it is likewise about the farmer, his
employment, his sustenance efficiency and security. Organic farming is accordingly considered
as a development coordinated towards the reasoning of "Back to Nature."
Organic farming is the production of crops without the absolute use of any chemical pesticides,
modified fertilizers or genetically-modified organisms. Organic farmers depend essentially on
inexhaustible recourses and on-farm information sources, for example, fertilizer, compost and
1
bio-pesticides. Soil fertility is kept up and pests are overseen through elective procedures, for
example, crop rotation, crop diversification, cultivation of legumes, and mechanical or biological
pest control. Organic domesticated animals is supported on organic developed feed, without the
utilization of anti-microbial or growth hormones. No ionizing radiations, nourishment added
substances or development advertisers are permitted in organic Food processing. In excess of a
stock of methods, natural horticulture is planned as an all-encompassing and fundamental way to
deal with agribusiness.
1.2 Sustainable Farming Systems
Various approaches have been defined by various nations on the planet all together to manage
and institutionalize the cultivating methods unmistakable formally as natural. In 2000, a national
natural guidelines and affirmation plot was built up in India. Outsider affirmation has been made
obligatory just for fares under the National Program for Organic Production (NPOP).
Comparable guideline has been told for the residential market likewise however this has not been
actualized yet. The customary and privately adjusted strategies which are a piece of non-
managed economical agribusiness frameworks, play an equivalent and at times much bigger job
than affirmed natural creation, in the residential market. Natural cultivating has the imposing
business model having a lawful structure backing its gauges, affirmation and marking, whenever
contrasted and other supportable cultivating frameworks.”
Non-pesticide the executives is one of the non-controlled supportable farming frameworks
actualized all through India. The core is for the most part to preclude the utilization of
engineered pesticides. This is less strict than natural, however relies upon different strategies like
that utilized natural cultivating, specifically home-made arrangements of neem, garlic, and bean
stew extricates, dairy animals pee and manure, just as pheromone traps and other conventional
vermin control techniques. NPM is seen as an activity for the confirmed natural creation. Some
others see it as a mean to reduce the farmers‟ introduction to pesticides. NPM likewise causes a
2
lot to diminish the expense of generation that incorporates cost of engineered pesticides utilized
by the ranchers, prompting increment in the general gainfulness of the homestead.”
1.3 Principles of Organic Agriculture
Natural cultivating depends on upgrading the regular natural cycles in soil, harvest and
domesticated animals; on working up soil ripeness using Nitrogen obsession by vegetables and
improving soil natural issue; and on dodging contamination. Subsequently, the point is to work
with regular procedures and not to overwhelm them, and to limit the utilization of non-renewable
characteristic assets, for example, the non-renewable energy source utilized for the production of
composts and pesticides. Natural cultivating standards likewise include high creature welfare
norms and the improvement of the ecological framework of the ranch.
1.4 Need of Organic Farming
“Adverse impacts of using harsh synthetic chemicals for cultivating and farming all through the
world in the second half of the last century with unsustainability of agribusiness creation and
furthermore the bad impacts of the conventional farming systems and cultivating framework on
environment has prompted the rise of the need of organic farming.”
“In India, larger part of poor, little and marginal farmers are subject to precipitation for
cultivating because of absence of adequate water system facilities. As in the recent times the high
cost of input of pesticides, irrigation, etc. have made organic farming very important. Massive
use of harmful chemicals and pesticides has increased the cost of production and also has harmed
the environment. Increase in the use of chemical fertilizers have reduced the land productivity.
The idea of organic farming comes from massive pollution that is being caused to the
environment and hazards to the health due to conventional method of farming. Organic farming
fetches more income through exports and more margins in selling the organic products in the
market. Consumers are getting educated about organic farming which is causing a need for the
same. More labours are required for organic farming this is a way of generating employment.”
3
1.5 Institutional Framework and Regulatory Environment
“In the year 2000, The Indian Ministry of Commerce started the National Program for 0rganic
Production. It additionally set out National Standards for Organic Products which expected to
direct labelling, processing, stockpiling and transport notwithstanding examination and
accreditation systems for natural items. These gauges build up the premise of affirmed natural
creation in India. A national organic mark was created under the NP0P system. This mark is
granted to the makers after review and confirmation by one of the broadly licensed affirmation
offices for consistence with the organic norms. 26 certification organizations are authorizing
under NP0P.”
4
“All the organic items that are exported, and furthermore a portion of the marked items implied
available to be purchased in the Indian organic stores and grocery stores show the official India
Organic name on its compartment. At present, it is being utilized for the most part by vast scale
and export companies. So as to export organic items, a maker or processor has to be third-party
certified by one of the 26 certification offices right now authorize under NPOP, and the India
Organic mark must be shown on the item bundling. A few fare arranged natural organizations are
guaranteed under the Indian just as European and US natural models. The NPOP was informed
under the act, yet utilization of the name isn't compulsory in the local market. In the meantime,
organic produce can likewise be sold without accreditation and the expression "organic" isn't
lawfully ensured for use in retail. The Food Safety and Standards Authority of India is informing
natural guidelines for the residential market.”
5
2. REVIEW OF LITERATURE
(Kumar & Ali, 2011)
This article talks about analysing the factors affecting awareness level of consumers on organic
food products. It has been empirically investigated that socio-demographic profiles, food buying
behaviour and nutritional knowledge of the consumers are most likely to affect the awareness
level and purchase decisions of organic foods. The study is based on primary survey of 200
respondents belonging to New Delhi and Lucknow, using a structured questionnaire. The
questionnaire was designed to record, the responses on food safety concerns, awareness, attitude
and behaviours towards organic food and effectiveness of sources for organic information.
Growing consumers concerns on food safety, health and environment in the recent decade has
resulted increased demand for organic food across the world, including emerging economies
6
such as India. The organic food industry in 1ndia is export oriented, with rapid production
growth. As the state of consumer knowledge on various attributes of organic foods is
fundamental for inducing the demand of organic food products, a study to understand the level of
consumer awareness becomes important.”
“The survey results revealed that only 58.8% of total respondents were aware of organic food in
which only 12.8 percent irregularly/regularly consumed organic food. It indicates that for
majority of the even aware people ‘organic food’ is still away from their food basket.
Based on awareness on food label, potential consumers of organic food can be grouped into five
categories - Humanists, Food Phobics, Healthy Eaters, Environmentalists and Hedonists by using
factor analysis. A logit regression model has been estimated to identify the most likely socio-
demographic and other important factors affecting the consumers’ awareness of organic food.”
(Shrivastava, Panwar, & Yadav, 2010)
This article talks about certified organic farms in the country The survey was conducted during
2008-09 in Maharashtra, Karnataka, Tamil Nadu (including Puducherry), Kerala and
Uttarakhand involving 50 certified organic farms and 50 comparable conventional farms to know
the benefits of organic farming related to capability of production of organic products compared
to conventional farms.
“The study revealed that organic farming, in spite of the reduction in crop productivity by 9.2%,
provided higher net profit to farmers by 22.0% compared to conventional farming. This was
mainly due to the availability of premium price (20-40%) for the certified organic produce and
reduction in the cost of cultivation by 11.7%. In cases, where such premium prices were not
available and the cost of cultivation was higher primarily due to purchased off-farm inputs,
organic farming was not found economically feasible.”
7
On a normal, the mean land property of each ensured natural ranch was 12.7 hectares. The
normal age of these confirmed natural ranches was 6 years. The normal number of cows
controlled by every natural ranch was around 11-12. Distinctive excrements utilized for
providing plant supplements in natural homesteads incorporate ranch yard compost,
vermicomposting, Narayan Devraj Pandey fertilizer, green excrements, bio manures, neem cake,
fish dinner, biogas slurry, bone supper, press mud, biodynamic arrangements which are viable
microorganisms, minerals like gypsum, and so on. Distinctive plant assurance materials utilized
in natural cultivating incorporate neem oil, aged margarine milk, dairy animals pee, plant
separates like Aloe Vera, cassia, garlic, ginger, cold and bio-specialists like Tricho derma,
HNPV and Spray. Distinctive yields become under these confirmed natural homesteads and their
efficiency levels in contrast with customary.
On a normal, the efficiency of harvests in natural cultivating is lower by 9.2% contrasted with
traditional cultivating. There was a decrease in the normal expense of development in natural
cultivating by 11.7% contrasted with ordinary cultivating. In any case, because of the
accessibility of premium cost for natural produce by and large, the normal net benefit was 22.0%
higher in natural contrasted with the ordinary cultivating. Yields in respect to equivalent regular
frameworks are specifically identified with the power of cultivating of the predominant
customary frameworks. This isn't just the situation for correlation between districts, yet
additionally between harvests inside an area, and for individual yields after some time 5. In
zones of escalated cultivating framework, moving to natural farming declines yield; the range
relies upon the in thickness of outside info use before transformation. In the purported green
transformation territories, change to natural agribusiness as a rule prompts practically
indistinguishable yields. In conventional downpour bolstered horticulture, natural farming has
appeared potential to expand yields.
(Paul & Rana, 2014)
8
This article talks about the factors that influence consumer behaviour and purchase intention for
organic food. The principle goal of this examination is to comprehend the conduct of biological
shoppers and their aim to buy organic products. The strategy utilized for the information
gathering was a face to face interview with, utilizing a structured questionnaire with closed
ended questions. Altogether, 463 respondents took part in the study. It was chosen to utilize
different multivariate analysis like multiple regressions, factor analysis and cluster analysis,
group investigation with huge example estimate. Discoveries – The outcomes demonstrate that
wellbeing, accessibility and instruction from statistic factors decidedly impact the purchaser's
disposition towards purchasing organic products. In general fulfilment of shoppers for organic
products is more than inorganic products yet the fulfilment level changes because of various
variables. This examination proposes that retailers can create successful advertising project and
systems to impact purchasers decidedly. They can put emphasis on all the health and medical
advantages and nature of natural sustenance. They can make these items effectively accessible to
pull in shoppers to purchase organic products. This examination gives important understanding
into purchaser conduct in regards to organic products by looking at the elements that impact
customers' expectation to buy organic products, inside the Indian setting. The exercises can
likewise be repeated in different nations for advertising organic products.
This examination centres around the variables which impact the goal of buyers to buy natural
sustenance. These components make biological mindfulness and create natural inclinations
among buyers which impact the aim of customers to buy. It turns out to be simple for naturally
mindful customers to incorporate natural nourishment in their ordinary buy and get happy with
it. Truth be told buyers buy natural sustenance if generally speaking fulfilment from such
nourishment is more than inorganic nourishment however their dimension of fulfilment
fluctuates for various qualities
(Scialabba, 2015)
9
This articles talks about organic agriculture and factors that influence the policies with a focus on
developing countries which is frequently understood as a way of producing food and consuming
it which is proper to the environment and to the health conscious consumer across the globe.
The main objective of many countries is to produce organic food so as to get hold or tap the
markets of developed countries. In developing countries, especially in low-input traditional
systems, properly managed organic agriculture systems can increase agricultural productivity
and restore the natural resources base. The development of organic agriculture policies in
developing countries requires widening market-oriented objectives to include food security
objectives. There are, however, other concerns that determine choices towards organic
management. An overview of different entry-points to organic agriculture, with examples of
country policy and support measures for organic agriculture around the world are presented in
the paper. The main aim of several developing countries policies for organic agriculture is
income generation through the promotion of certified organic food. Non-market objectives of
organic producers have not, as yet, been supported by government policies, but there are a few
exceptions. Converting agricultural systems that are organic are caused by various varied objects.
Such objects are having a place in the global market, doing various promotion, economically
being self-reliance, having some different alternatives to reduce agricultural efforts. Developed
countries are economically, socially and ecologically better options to reduce surplus.”
“Natural horticulture has developed outside open help – and at times regardless of government
enmity. The eagerness of ranchers to explore and of buyers to pay premiums on natural
nourishment speaks to a noteworthy private interest in the segment. IFOAM has been
instrumental in sustaining the development through intentional principles. Enactments are these
days planned in many creating nations to encourage fares of natural items to northern nations
that have strict natural enactments. Specialized obstructions to exchange are dreaded.
Worthwhile markets and extreme interest for natural nourishment do anyway invigorate
government endeavors to advance natural exchange. Much should be done in building up
conditions that give meet open doors for makers and equivalency among various national
models. The emphasis on confirmed natural items has diverted consideration on this present
framework's capability to add to nearby sustenance security, particularly in low-potential
territories in creating nations. Market-driven natural rural approaches should be supplemented
10
with natural farming strategies that objective nearby nourishment security. For both ensured
natural horticulture and non-advertise natural generation, the real advantage to be gotten from
government and worldwide hierarchical help is from sufficient research and instruction. This
would involve a move of capital ventures from hard to delicate advances - that is, from agrarian
information sources to learning building. This is a noteworthy test.”
(Sikka & Narula, 2016)
This article talks about how India as a country can get the benefit of growing demand of the
organic product market and the key benefits that organic farming has to offer. There are a lot of
problems that India faces before it gets in the world of organic markets. The products that are
produced in the country have to create a distinct presence in the global market. Demand for the
organic products have increased in the recent years. Much of the growth which has been there in
EU and America is now growing at a rapid rate. In countries like Germany and Italy sales are in
billions of dollars. And this is only going grow from here on. India has huge hectares of farmland
and the potential is huge in the organic market. States in Sikkim has already declared the only
state to be fully be organic. Many issues are there related to International Marketing of organic
food like certification, standardization of products, tastes and preferences, knowledge about the
sector, branding and promotion. Factors like technologies, certification, proper infrastructure,
research and government policies affect the production of organic products. This affects to tap
the world of global organic market.
“Therefore, the study is based on the strategic analysis of Indian organic product industry with
respect to global markets. Through SWOT analysis and TOWS matrix, the study aims to
highlight the opportunities and threats existing in global markets and strategies to develop
markets worldwide for India.”
The worldwide interest for natural nourishment items is developing at an extremely fast rate. As
far back as the preservationists raised their worry with respect to destructive impact of expanding
utilization of synthetic compounds in cultivating, the purchasers are getting cognizant and
particular about palatable items. This expanding mindfulness has caused moves in buyers'
11
preferences and inclinations which have prompted the household just as worldwide ascent sought
after for natural items. The natural nourishment industry on the planet is worth US $ 35 billion
with a development rate of 15 percent with a large portion of the development packed
predominantly in United States of America, United Kingdom. also, Japan. To enhance this
interest, ranchers have taken to natural cultivating for getting cost premiums which brought
about around 3.5-million-hectare land over the globe under natural cultivating. In India, the
ranchers have pursued the way for natural nourishment creation, however the offer of India on
the planet natural market is short of what one percent. So as to help exchange Indian agrarian
items and catch critical offer in worldwide market, it is a basic that India centres around natural
items which give it focused edge in worldwide market, specifically natural cotton, flavours,
fundamental oils, restorative and fragrant plants and new products of the soil. Natural cultivating
in watered and concentrated cultivating regions holds another sort of guarantee, a wellspring of
economical and esteem included business cultivating.
What is found in India by and by are two sorts of solid under flows of natural cultivating; from
restricted to quickly expanding confirmed natural homesteads, primarily delivering at a top notch
cost in the local or fare advertise, and the extensive number of those non-affirmed natural
ranches which produce for their own family units getting to neighbourhood showcases just, if
there is surplus In India, the Government is advancing natural cultivating which can be a
beneficial technique to raise the salary dimension of little and medium ranchers. A portion of its
states, for example, Sikkim have effectively announced themselves as totally organic. There are
numerous zones where the generation is as a matter of course natural. Uttaranchal is one such
state, where in uneven regions, irrelevant measure of concoction is utilized. The ranchers are
additionally swinging to natural creation on account of the high premium told by natural items. A
portion of the natural producer’s affiliations have likewise risen in the nation. Understanding the
potential existing in natural cultivating, corporates are likewise prepared to put resources into
this territory. The household showcase for natural market is yet to create as a large portion of the
Indian populace has a place with the lower working class stratum of society, thus cannot manage
the cost of the extravagant natural products. The just choice left for natural sustenance industry is
to target tip top local clients and extensive fare markets.
12
(Dasari.Pandurangarao & Chiranjeevi, 2017)
This article talks about the factors that are affecting the consumers in Hyderabad and
Secuderabad to purchase organic products. In this study samples of 500 consumers where taken
using questionnaires to understand what influences them to buy organic products in those two
cities. Data from the survey were analysed using various methods like factor analysis, percentage
method and the results told us that factors like health, safety , way advertising, location of the
retail stores, price of the products, accessibility of the products. Health concerns among the
people are the major factor of buying organic products. Organic products are usually bought
from stores in major cities in India. Smaller towns are not aware of it or the prices are to high
from them to buy organic products every day. Which makes the market for the organic products
very niche at this level and the prices of the products have to come down.
“Also health, environment and safety are key factors that are found primary influencers for
consumers to buy organic products Hyderabad and Secuderabad. In 2011, the total sales value of
organic products, according to our estimates, was Rs. 9.9 crore for Hyderabad. This number has
grown in tens of crores in the recent years. The main reasons for this growth are a growing
awareness of the dangers of pesticide residues in food and growing disposable incomes of the
urban middle classes. There is also a significant relation is found between buying behaviour and
environment concern.”
In this it represents the status of Indian Organic items. The real natural items delivered in India
are tea, flavours, products of the soil, rice, espresso, cashew nuts, oil seeds, wheat, heartbeats,
cotton and home grown concentrates. The diverse districts in India has relative preferred
standpoint for the generation of various items, explicitly tea in the eastern locale, flavours and
espresso in the southern area, rice and wheat in the northern district, cotton in the western locale.
Items with potential in the household showcase are organic product, vegetables, rice and wheat.
Items with potential in the fare advertise are tea, rice, foods grown from the ground, cotton,
wheat and flavours. The real possibilities of India in the astounding creation of tea, flavours, rice
claims to fame, Ayurveda herbs and rich legacy of rural conventions which are appropriate for
13
structuring natural generation frameworks; More than that, the work is moderately shabby
contrasted with agro-synthetic concoctions and NGO segment in India is solid and has built up
close linkages to extensive quantities of minor ranchers. The examination condenses that the
Organic horticulture is a best model for the improvement of agribusiness in India which various
advantages in various viewpoints. In the monetary perspectives value premiums are high
worldwide interest are the significant advantages. In the ecological viewpoint regular asset
protection, enhanced soil fruitfulness, anticipation of soil disintegration, safeguarding of agro-
biodiversity and water quality is the significant preferred standpoint. With respect to the social
perspective, age of rustic work, comparing lower urban relocation, enhanced family unit
nourishment, decreased reliance on outside information sources and neighbourhood sustenance
security are the real welfare factors.
(Kumar & Pandey, 2014)
In this article the fundamental goal of this examination is to comprehend the purchasing
behaviour of customers towards organic food through online channel. The examination expects
to decide the variables affecting customer conduct towards organic food. The strategy utilized for
the information accumulation was the study led among IT experts, utilizing an organized survey,
with close-finished inquiries. Altogether, 110 respondents took an interest in the review. For
information examination it was chosen to utilize multivariate analysis like logistic regressions
and structural equation modelling. The outcomes show that wellbeing cognizant, openness and
time are the main considerations that decidedly impact the buyer's disposition towards
purchasing organic food on the web. This investigation recommends that retailer check create
successful
promoting project and systems to impact buyers decidedly. They can stress the medical
advantages and nature of organic food. They can make these items effectively accessible online
to draw in buyers to purchase organic food. This examination gives significant knowledge into
buyer conduct in regards to natural nourishment through online by looking at the components
that impact buyers' expectation to buy natural sustenance, inside the Indian setting.
14
We utilized both subjective just as quantitative research philosophies with the end goal of
research. Subjective examination gave us clearness to making the theory and concluding the
factors. So for subjective investigation, in-depth talk with technique is being utilized. Top to
bottom meetings for various gatherings of individuals were done to get bits of knowledge from
alternate point of view. We have picked top to bottom meeting technique over centre gathering
discourse strategy for subjective inspecting in light of the fact that natural items lack adequate
attention to conjure unconstrained perspectives from average citizens. Furthermore, we find that
centre gathering exchanges may have predominance impact in the talk which may prompt
mistaken information. We have taken profundity meetings of individuals, who structure our
objective populace for example MBA understudy in Chennai, who originate from a corporate
foundation and will right away be returning again to be corporate representatives/chiefs.
(Kerr, 2009)
Differing technical standards can be barriers to international trade. Harmonizing standards is one
means of removing barriers to trade. It is argued in this article that international harmonization
may not be welfare enhancing if consumers have a strong attachment to their domestic standards.
Standards for organic products differ among countries and act as a barrier to trade. International
harmonization has been proposed. Consumers were surveyed in the United States, United
Kingdom, and Canada to determine their likely attachment to existing domestic organic
standards. The results suggest that consumers, even those with a preference for organic foods,
have little understanding of their domestic standards and only weakly identify with them. As a
result, harmonization could be pursued. Agribusiness firms that are interested in harmonization
to expand their access to export markets should promote the development of a new international
standard rather than harmonization to one of the existing domestic standards.
Divergent technical standards can act as barriers to trade. This means that the benefits from
international trade cannot be realized by societies and firms must forgo profitable opportunities
in foreign markets. As a result, harmonization of technical standards is often suggested as a
means to remove the barriers to trade—and to realize the standard welfare-enhancing benefits
15
from trade liberalization. The standard trade result—a beneficial price effect— however, is
dependent on consumers not having a strong attachment to their existing domestic standard. If
consumers suffer a loss from moving from their domestic standard to the harmonized standard—
a perceived decrease in quality—then harmonization may not be welfare enhancing. It becomes
an empirical question as to whether the negative quality effect is larger than the beneficial price
effect. Although formal estimation of the quality effect prior to harmonization presents empirical
challenges, it is clear that for consumers to suffer a significant negative quality effect from a
change in standards, they must recognize the existing standards and be knowledgeable about
them. Technical standards for organic agriculture food products vary among countries and can
act to inhibit trade. As a result, international harmonization of organic standards has been
proposed. This study surveyed consumers in three major markets for organic products where
standards differ. The results suggest that consumers have little knowledge of their domestic
standards and the methods by which they are verified—few could even identify products
produced to their domestic standard. This suggests that the negative quality effect associated
with harmonization is likely to be small. The results also suggest that agribusiness firms that
wish to promote harmonization to improve their access to foreign markets should propose the
development of an international standard that is independent of any existing domestic standard.
Harmonizing to an existing domestic standard such as that of the United States is likely to
subsequently present a marketing challenge to overcome negative consumer perceptions in
countries that must accept the existing foreign standard.
(Paul; Rana, 2017)
The principle goal of this examination is to comprehend the conduct of biological shoppers and
their aim to buy organic products. The examination plans to decide the variables impacting
shopper conduct towards organic products. The strategy utilized for the information gathering
16
was an eye to eye talk with, utilizing an organized poll, with shut finished inquiries. Altogether,
463 respondents took part in the study. It was chosen to utilize different multivariate
investigations like numerous relapses, factor examination and group investigation with huge
example estimate. Discoveries – The outcomes demonstrate that wellbeing, accessibility and
instruction from statistic factors decidedly impact the purchaser's disposition towards purchasing
organic products. In general fulfilment of shoppers for organic products is more than inorganic
nourishment yet the fulfilment level changes because of various variables. This examination
proposes that retailers can create successful advertising project and systems to impact purchasers
decidedly. They can underscore the medical advantages and nature of natural sustenance. They
can make these items effectively accessible to pull in shoppers to purchase natural nourishment.
This examination gives important understanding into purchaser conduct in regards to natural
nourishment by looking at the elements that impact customers' expectation to buy organic
products, inside the Indian setting. The exercises can likewise be repeated in different nations for
advertising organic products.
This article discusses how shoppers worldwide are getting to be wellbeing cognizant and are
worried about nourishment security issues thinking about different elements. This investigation,
utilizing factor examination, helps purchasers and makers/advertisers of natural sustenance items
to comprehend the significance of different factors on in general fulfilment towards natural
nourishment items. Here the advertisers can concentrate on proper valuing and limited time
techniques specially to build the deceivability of natural items to have a beneficial outcome on
their recognition in order to expand potential deals in the local market. Purchasers are both
quality cognizant and value sensitive. Marketers and makers ought to all things considered work
towards getting quality produce the market to pick up market acknowledgment. In the meantime,
the two advertisers and makers should work in agreement with the evaluating factor which is
seen to be a standout amongst the most vital elements affecting customer discernment just as
their general fulfilment towards natural nourishment items. This investigation has distinguished
accessibility of data and special exercises embraced by advertisers to be one of the critical
components affecting customer observation towards natural sustenance items in Bangalore.
Advertisers can investigate methods for expanding shopper learning on natural sustenance items
17
and help them separate the advantages of utilization of natural versus nonorganic nourishment
items.
The investigation depended on essential overview of 100 respondents having a place with Odisha
state, utilizing an organized survey. The poll was intended to record the reactions on natural
nourishment mindfulness, demeanour and practices towards natural sustenance and adequacy of
112 hotspots for natural data. The financial profiles of the respondents were additionally
recorded on the parameters, for example, sexual orientation, age, training level, occupation and
family pay. Basic arbitrary inspecting system was utilized. From the investigation, it is
coincidental that financial factors are related with buyer uplifting frame of mind towards natural
nourishments. Family, self-choice and companions assume an imperative job in the buy basic
leadership procedure of natural sustenance’s. The elements eco well-disposed and compound or
pesticides free factor greatly affect the basic leadership process. A portion of the buyers are not
as yet mindful about the natural nourishment which those segments are yet to determine the
advantages of natural sustenance utilization. Purchaser frames of mind towards various natural
sustenance items quality for example wellbeing, security, and so forth and towards the situations
are the most vital components that disclose 113 buyers' goal to buy natural sustenance items. The
Government and NGO need to make fundamental strides in making mindfulness in the psyches
of shoppers on the characteristics of utilizing natural sustenance’s and extend important help
with developing high quantum of natural nourishments by most of the ranchers.
(Dash, Dash, & Samantaray, 2014)
This article discusses how shoppers worldwide are getting to be wellbeing cognizant and are
worried about nourishment security issues thinking about different elements. This investigation,
utilizing factor examination, helps purchasers and makers/advertisers of natural sustenance items
to comprehend the significance of different factors on in general fulfilment towards natural
nourishment items. Here the advertisers can concentrate on proper valuing and limited time
techniques specially to build the deceivability of natural items to have a beneficial outcome on
their recognition in order to expand potential deals in the local market. Purchasers are both
quality cognizant and value sensitive. Marketers and makers ought to all things considered work
18
towards getting quality produce the market to pick up market acknowledgment. In the meantime,
the two advertisers and makers should work in agreement with the evaluating factor which is
seen to be a standout amongst the most vital elements affecting customer discernment just as
their general fulfilment towards natural nourishment items. This investigation has distinguished
accessibility of data and special exercises embraced by advertisers to be one of the critical
components affecting customer observation towards natural sustenance items in Bangalore.
Advertisers can investigate methods for expanding shopper learning on natural sustenance items
and help them separate the advantages of utilization of natural versus nonorganic nourishment
items.
The investigation depended on essential overview of 100 respondents having a place with Odisha
state, utilizing an organized survey. The poll was intended to record the reactions on natural
nourishment mindfulness, demeanour and practices towards natural sustenance and adequacy of
112 hotspots for natural data. The financial profiles of the respondents were additionally
recorded on the parameters, for example, sexual orientation, age, training level, occupation and
family pay. Basic arbitrary inspecting system was utilized. From the investigation, it is
coincidental that financial factors are related with buyer uplifting frame of mind towards natural
nourishments. Family, self-choice and companions assume an imperative job in the buy basic
leadership procedure of natural sustenance’s. The elements eco well-disposed and compound or
pesticides free factor greatly affect the basic leadership process. A portion of the buyers are not
as yet mindful about the natural nourishment which those segments are yet to determine the
advantages of natural sustenance utilization. Purchaser frames of mind towards various natural
sustenance items quality for example wellbeing, security, and so forth and towards the situations
are the most vital components that disclose 113 buyers' goal to buy natural sustenance items. The
Government and NGO need to make fundamental strides in making mindfulness in the psyches
of shoppers on the characteristics of utilizing natural sustenance’s and extend important help
with developing high quantum of natural nourishments by most of the ranchers.
(WJ, 2010)
19
This article talks about how the entire organic food industry is wrapped around with the idea of
how the organic products are way healthier than conventional products and free from pesticides
and harmful chemicals. But this varies from product to product as the nutrient content in organic
foods vary in results due to differences in the ground cover and maturity of the organic farming.
It says that organic food provides more nutrients than normal food as they claim to contain more
levels of iron, magnesium, phosphorus, vitamins, etc. that non organic products. This definitely
varies from farmers to farmers and farms to farms. Though there are higher in these nutrients,
they are also significantly lower in nitrates and pesticide residues. In addition, with the exception
of few of the products like wheat, oats, and wine, organic foods typically provide greater levels
of a number of important antioxidant. Organic fruits and vegetables consistently demonstrate that
organic foods have greater antioxidant and are more strong suppressors. They also help in
preventing different types of cancer. Clear health benefits from consuming organic dairy
products have been demonstrated in regard to allergic problems.
Natural sustenance utilization proceeds with 5. to increment as buyers, look for sustenance’s saw
as more advantageous (more noteworthy healthy benefit and less lethal synthetic compounds).
While the measure of nutrients and minerals will clearly differ from yield 6. to trim and from
rancher to rancher, natural assortments do give more prominent dimensions of nutrient C, iron,
magnesium, and phosphorus. They likewise tend to give more noteworthy dimensions of cell
reinforcement phytochemicals (anthocyanin’s, flavonoids, and carotenoids), in spite of the fact
that these 7. levels have not yet been appeared to have any kind of effect in vivo cancer
prevention agent status. With respect to oxidation anticipation, it seems red wine is more intense
than white wine and natural assortments give 8. no additional advantage. Natural products of the
soil seem to can possibly reduce the mutagenic activity of harmful mixes and restrain the
expansion of certain disease cell lines. 9. For anticipation of hypersensitive dermatitis, the
utilization of natural dairy and meats can have a critical effect in wellbeing results. Furthermore,
natural sustenance’s have less bug spray build-ups than customary nourishments.
(H.R.Barretta, Cadoretc, & Harrisbc, 2002)
20
Demand inside the UK for organic products is expanding significantly. Quite a bit of this interest
is met by imports, including numerous item classifications from the creating scene. Organic
measures in Europe are thorough, with all phases of the natural showcasing chain managed by
law and ensured inside every part state by a 'capable expert'. The paper gives a proper review of
survey of current instruments of confirmation and examination and talks about the deterrents to
getting to be guaranteed that face natural makers in the creating scene. The paper proceeds to
give an account of the broadness and quickening of organic imports into the UK from the
creating scene, using information as of late made accessible by the European Commission and
the UK's natural administrative expert. Effectively more than 60 nations are associated with this
undeniably worldwide exchange and a few nations, for instance, Brazil, Mexico and Sri Lanka,
command current import authorisations. Practical accreditation is fundamental for a development
of this trade.
(Mishra & Kaushik, 2013)
Natural sustenance’s are presently effectively accessible wherever unessential of the area. The
example of natural sustenance utilization in India is entirely different than in the created nations.
So what do Indian natural nourishment buyers incline toward? This examination shows an
investigation on purchaser conduct and demeanour towards natural nourishment in Delhi-NCR.
Quantitative information is gathered by online study strategy comprising of organized inquiries
which are just focused to natural buyers in Delhi-NCR and broke down with SPSS 16. The
outcomes have given some exceptionally smart discoveries about the socio statistic and buy
conduct of natural sustenance buyers in Delhi-NCR. Natural sustenance showcasing is the new
changed pattern in the Indian agribusiness division. The extension for showcasing natural
nourishment in India is tremendous and still not yet investigated to its maximum capacity.
Natural sustenance advertisers can pick up from these discoveries by fusing these bits of
knowledge while strategizing their showcasing plan. This examination additionally fills in as
great knowledgebase for more research in understanding natural sustenance market and
purchaser inclinations.
21
The examination utilized was descriptive in nature and concentrated essentially on populace
comprise of buyers of Organic nourishment in Delhi-NCR. The inspecting procedure utilized
was convenient sampling. Data was gathered from essential information sources that from
natural sustenance customers and furthermore from optional information sources that is from
natural nourishment advertisers, which comprised of some understand natural sustenance marks
in Delhi-NCR. One hundred and twenty responses were gotten through online survey, face to
face and telephonic interviews. Various measurable systems utilizing SPSS 16 were connected to
do information investigation and draw surmising’s for the examination. The information
gathered for the investigation was constrained to shoppers of Organic sustenance in Delhi-NCR.
The examination is emotional in nature and inclined to analyst's understanding and elucidation of
the specific situation and respondent's input.
(Singh, 2004)
Natural homestead generation and exchange has risen as an imperative segment in India as in
different parts of the creating scene, and is viewed as an essential technique of encouraging
maintainable improvement. This paper finds the basis for natural cultivating and exchange the
issues of regular cultivating and exchange rehearses, both worldwide and local, and reports the
Indian involvement in natural creation and exchange. It investigates the fundamental issues in
this segment and examines procedures for its better execution from a showcasing and
aggressiveness viewpoint.
There has been a lot of approach accentuation on natural cultivating and exchange the ongoing
a long time in India at different dimensions as the nation is accepted to be all around set in such
manner. Natural produce is being viewed as a characteristic decision by buyers, and thusly by
makers, in both universal and local markets because of the issues in the supply
chain of regular or mainstream agro produce. The developing wellbeing concerns and
expanding non-levy boundaries like Sanitary and Photo Sanitary (SPS) measures in the
worldwide market (Naik, 2001), combined with non-practicality of present day cultivating on a
little scale, are a portion of the variables behind the move from compound based to natural
22
creation and utilization frameworks.
Organic farming has been observed to be as or more practical than traditional cultivating in the
United States of America (USA) and the European nations because of either higher yield, lower
cost or higher market costs (Lampkin, 1994). In India, ecological concerns have driven numerous
NGOs and governments to advance natural cultivating. Staggering expense current cultivating
and its unsustainability because of overcapitalization and rising information costs has made
natural cultivating a need in numerous horticulturally developed locales. Natural cultivating isn't
just monetarily less depleting for the little rancher and useful for condition, it likewise
encourages the legislature to lessen its appropriation bill implied for present day inputs.
(Rieple & Singh, 2010)
This paper analyses the different activities within the value chain of organic cotton production in
India to understand where, and how, value is added at each stage. Transforming a cotton crop
into a textile and then into a final item of clothing involves many stages of processing, using
many skills and technologies. We examine the activities and the prices achieved at each stage of
this chain, from the farming of the cotton crop to its eventual sale in clothes' retailers.”
Our examination has demonstrated that the utilization of natural cotton can include an incentive
at each phase of the creation procedure, both to ranchers and middle people. Natural techniques
additionally have more extensive social and ecological advantages that originate from the
utilization of maintainable strategies. We likewise distinguished open doors for esteem
expansion that are as of now being missed, for instance the closeout of naturally developed
revolution crops like clover. Later on, various changes to the cotton generation industry are
probably going to influence the shape and extent of the esteem chain. It is anticipated that the
interest for natural cotton will develop considerably in the coming years. This interest is
probably going to be progressively met by makers in creating nations, who are currently
profiting by better help administrations, know-how, and the monetary and administrative
foundation important to enable them to move to natural generation. This is probably going to
23
influence the cost of natural cotton at each phase of the generation procedure, in spite of the fact
that whether this will be up (as the monetary forms of creating nations increment in esteem), or
down (as progressively natural cotton enters the market prompting economies of scale), is hard
to foresee. Be that as it may, despite the fact that natural cultivating is conjecture to develop,
natural colouring might be an alternate issue. Natural colours add to the expense of full
accreditation just as adding to other ecological issues, for example, deforestation and corrosive
waste. This recommends interest for completely natural cotton items might be diminished by
campaigning with respect to the most proficient ecologically mindful customers. The suggestion
is that naturally cultivated cotton, not completely guaranteed all through the entire esteem chain,
is probably going to be the greatest dealer later on. It additionally appears to be conceivable that
classification C retailers are probably going to be the greatest purchasers of naturally cultivated
cotton later on, as they are presently, with blended natural and non-natural filaments expanding
in significance. Despite the fact that this kind of methodology is probably not going to fulfil the
more perfectionist purchaser, it seems prone to animate development in the natural cotton
showcase. We have likewise featured some critical social impacts from the selection of natural
techniques, for example, the improvement in wellbeing and prosperity of natural ranchers in
India. In spite of the fact that the financial advantages may appear to be moderately little at the
cultivating stage contrasted with a portion of alternate stages, they are significant adds up to a
little rancher in a creating nation. Notwithstanding the increase on the harvest itself, famers can
accomplish other profitable advantages. Over the long haul, natural strategies bring down the
expenses of vermin the board, increment yields, diminish crop disappointments, and thus help to
pay off ranch obligations—and along these lines the suicide rates in ranchers. Ranchers likewise
can get free preparing in natural creation from the feasible cultivating offices which has a side
advantage of expanding the ranchers' general skill in productive cultivating procedures. They
likewise have better wellbeing which implies that medicinal expenses are brought down and time
off wiped out is diminished.
At later phases of the esteem chain, there are more subtle wellbeing or social advantages of
natural strategies—rather there are financial ones. At all phases of the chain, natural items had
the capacity to order better costs, even after the greater expenses of keeping up independent
offices, or reasonable bundling, were considered. It was difficult to explain why a few phases of
the chain had the capacity to accomplish multiple times the rates of different stages; this is an
24
angle that would profit by further research. For instance, the sewing stage accomplished multiple
times the pay per shirt than the sewing stage, yet the idea of the item or the association's sort,
externally at any rate, does not seem, by all accounts, to be any unique.
(Charyulu & Biswas , 2010) “
This article talks about organic farming systems have attracted increasing attention over the last
one decade because they are perceived to offer some solutions to the problems currently
besetting the agricultural sector. Organic farming can possibly give benefits regarding ecological
security, preservation of non-inexhaustible assets and enhanced nourishment quality. India is
offered with parcel of potential to deliver all assortments of natural items because of its different
agro-climatic locales. In a few sections of the nation, the acquired custom of natural cultivating
is an additional preferred standpoint. This holds guarantee for the natural makers to tap the
market which is developing consistently in the household showcase identified with the fare
advertise. In India, the land under affirmation is around 2.8 million hector. Be that as it may,
there is significant inert enthusiasm among agriculturists in change to organic farming.
Nonetheless, a few agriculturists are hesitant to change over on account of the apparent mind-
boggling expenses and dangers associated with organic farming. In spite of the consideration
which has been paid to organic farming in the course of the most recent couple of years, next to
no open data really exists on the expenses and returns of organic farming in India. The exact
confirmations of productivity investigation of natural and traditional cultivating frameworks are
rare or even missing. In this way, the present paper centres primarily around the issues like
financial matters and productivity of organic farming vis-à-vis customary cultivating in India.
Four states specifically Gujarat, Maharashtra, Punjab and U.P were purposively chosen for the
present examination. Also, four noteworthy yields i.e., cotton, sugarcane, paddy and wheat were
picked for examination. A model based nonparametric Data Envelopment Analysis was utilized
for breaking down the productivity of the cultivating frameworks. The yield financial aspects
results demonstrated a blended reaction. Generally speaking, it is inferred that the unit cost of
generation is lower in organic farming if there should arise an occurrence of cotton and
sugarcane crops where as the equivalent is lower in traditional cultivating for paddy and wheat
crops. The Data Envelopment Analysis proficiency examination led on various yields showed
25
that the effectiveness levels are lower in natural cultivating when contrasted with customary
cultivating, in respect to their creation boondocks. The outcomes infer that there is plentiful
extension for expanding the effectiveness under natural ranches.”
26
3. RESEARCH DESIGN
3.1 Statement of The Problem
The organic food industry in India is growing at a rapid rate and many companies and brands are
coming up with organic products. Consumers are getting conscious about their health and
making a shift to organic products from conventional products. Organic food has now become a
top choice for consumers who are now worried about the sort of pesticides and chemicals that are
used to grow conventional products. Now farmers are seeing organic farming as a way of
increasing their income by growing organic products and catering to the demand. The need for
this study is to see how organic products will take over the conventional products in the coming
years and will the consumers will be ready to pay the premium price for the organic products.
3.2 Objectives Of The Study
The main objective of the research is to discover the market opportunities, challenges and
future scenarios for organic products
i. To examine the product-wise trend, pricing structure and distribution system for
organic products
ii. To explore the factors influencing production and marketing of organic products
iii. To understand the consumers concern about organic products.
iv. To examine the market potential and growth for organic products.
27
3.3 Scope Of The Study
The topics that are being covered in this study are of market opportunities, challenges and
future scenarios for organic products and creating an awareness among consumers about
organic products. There is a huge opportunity in the organic products market. The market is
still untapped and organic farming and products are the future in the FMCG sector.
3.4 Data Collection Method Questioners circulated to consumers around the city
Collection of data from gym members who are health conscious
Other secondary sources
Primary data: The primary data source would be a survey on how consumers are using
organic products on a daily basis
Secondary data: The secondary data sources are from website data sources from sources.
3.5 Research Question and HypothesisQuestion- Are the consumers ready to pay a premium price for organic products.
Null Hypothesis – Consumers are ready to pay a premium price for organic products in the
market for better quality products.
Alternate Hypothesis- – Consumers are not ready to pay a premium price for organic products in
the market for better quality products.
LIMITITATIONS OF THE STUDYThe variables influencing the study are mostly unknown with minimal research conducted on the
organic product industry. While a plethora of unknown variables can influence the buying
decision of organic products in the Indian market, with a larger disparity in incomes and
28
demographic diaspora. A research this scale cannot factor in all the variables that are relevant but
can focus on some prominent variables that influence the consumer’s buying decision.
4. ANALYSIS AND INTERPRETATIONS
4.1 Analysis
Figure 1: Gender of the respondents
Interpretation:
As per the data collected in this graph 54.4% are of female and 45.6% are of male. This
shows that female respondents are more than male respondents. It tells us that female
respondents have taken more initiative on this topic and to fill the questionnaire. Female
respondents are more health conscious and want to switch to organic products as it is
healthier to consume organic products than conventional products.
29
Figure 2: Age Group
Interpretation:
This graph shows us that majority of the respondents i.e. 67% of the respondents are
between the age group of 18-24. This age group consists of young people who are more
health conscious than ever. They are switching to healthier and organic food from
conventional food products. 16.5% of the respondents belong to the age group between 35-
54 who are the working class people followed by 9.7% of the respondents who belong to the
age group of 55-64. Rest belong to the age group between 25-34.
30
Figure 3: Employment Status
Interpretation:
This graph shows the employment status of the various respondents and which category they
belong to. 48.5% of the respondents are students who are the young group that belong to the
age group of 18-24. They are the ones who are more health conscious. Followed by 18.4%
that belong to the professional and self-employed personnel’s and 14.6% that belong to
businessman and businesswomen rest are followed by salaried and homemakers. Salaried
people are getting more health conscious about the importance of organic products and how
they are better than the conventional products.
31
Figure 4: Monthly gross household income
Interpretation:
This graph shows the approximate monthly gross household income of the various
respondents. 32% of the respondents belong to the income group between 1,00,000-5,00,000
who can easily afford to buy organic products from the stores. Followed by 24.3%
respondents who belong to the income group of more than 10,00,000 for whom it’s very
easy to purchase organic products. Followed by 17.5% of the respondents belong to the
income group of less than 50,000 for whom it is difficult to buy organic products on a
regular basis. 15.5% of the respondents belong to the income group between 5,00,000 –
10,00,000 for whom also it is easy to afford organic products.
32
Figure 5: Purchase of Organic Products
Interpretation:
This graph shows that 23.3% of the respondents are neutral about how often they buy
organic products and 33% of the respondents agree that they purchase organic products on a
regular basis. 24.3% of the respondents strongly disagree with how often they buy organic
products as they hardly buy organic products. This means that a number of respondents buy
organic products on a regular products.
33
Figure 6: If, no
Interpretation:
In this pie chart 45.7% of the respondents say that organic products are not easily available
to them which tells us that people are wanting to try organic products but it is not easily
available in the market which makes it difficult for the respondents to buy it. 25.9% of the
respondents have never given a thought on buying organic products even once which means
that these respondents are clearly not aware of the product and they need to be given more
information about the products. 19.8% of the people are not aware of the authenticity of the
organic products in the market.
34
Figure 7: From where do respondents buy organic products
Interpretation:
In this graph 66% of the people buy organic products from supermarkets where it is easily
available in the market these days. 35% of the people go to the general retail stores to
purchase organic products and 33% of the respondents buy organic products directly from
the organic specialty stores which are coming in cities and towns. Online or e-commerce
also plays an important role from where customers purchase organic products, here 23.3% of
the respondents purchase from e-commerce sites.
35
Figure 8: Awareness of certification process
Interpretation:
In this graph 35.9% of the people disagree that they are aware of the certification process for
organic products where as 18.4% of the people strongly disagree that they are aware of the
certification. This shows that people have to be made more aware of the certification process
of the organic products and give the consumers with proper information. 19.4% agree that
they are aware of the certification process which is very less compared to the respondents
who disagree.
36
Figure 9: What kind of organic products do respondents buy
Interpretation:
In this pie chart 48.5% of the respondents do not know about the certification of organic
products and buy organic products not knowing about the certification of the organic
products. Only 18.4% of the respondents buy only certified organic products and are very
conscious about what they are buying from the market. 29.1% of the respondents buy both
private labelled and certified organic products from the market. The key finding is that more
people have to know more about the certification of organic products.
37
Figure 10: On which social media are respondents most active
Interpretation:
This graph shows us that most of the respondents are active on Instagram which is 66% of
the respondents followed by on television 42.7% and 36.9% of the respondents are active on
Facebook and 29.1% of the respondents are active on E-commerce websites and the rest are
on print media which is very less i.e. 11.7%. This shows that most of the people are active
on social media and the marketing should be done on social media platforms.
38
Figure 11: How much more are respondents willing to pay extra for organic products
Interpretation:
This graph shows that most of the respondents are willing to pay more for healthier , safer
and products that are produced to higher ethical standards which is a good sign for the
industry as people are ready to accept the higher prices so that they can get healthier
products for consumption. 66% of the respondents are ready to pay premium price for
products which is healthy and only 10% respondents have disagreed to it.
39
Figure 12: With increase in price will respondents still buy organic products
Interpretation:
This graph shows tell us that if the prices of the organic products continued to rise will the
consumers pay more. 39.8% of the respondents are neutral about the rise in price and 21.4%
of the respondents and 9.7% of the respondents have agreed on paying a premium on the
organic products. This is a good sign as respondents are ready to keep purchasing organic
products from the market even if there is a price hike on the organic products.
40
Figure 13: Sceptical about the products which are said to be organic
Interpretation:
In this pie chart 93.2% of the respondents are sceptical about the products which are said to
be organic where as 6.8% of the respondents have responded saying no because they are not
sceptical about the products which are said to be organic. This means that consumers are
still doubtful or hesitant to go for or completely accept organic products and buy it from the
market. Consumers have to be given more information about organic products
41
Figure 14: Do respondents read labels
Interpretation:
This graph shows that do consumers read the labels and ingredients of the products before
buying. Majority of the respondents have responded or agreed to reading labels and
ingredients of the products before buying. 34% of the respondents have strongly agreed to
reading labels and ingredients and 20.4% of the respondents have agreed to reading labels
and ingredients. 36.9% of the respondents are neutral about reading labels and ingredients of
the products before buying and very few respondents have agreed not to read it. This means
that consumers do give an importance on about what the product offers and what has gone
into making of the product.
42
Figure 15: How important is brand name
Interpretation:
This graph shows how consumers give importance to the brand name of a product.
According to the data 29.1% of the respondents have strongly agreed to looking at the brand
name before buying a product and 41.7% of the respondents have agreed to looking at the
brand name before buying a product. Most of the respondents have agreed to reading the
brand name compared to those who don’t see the brand name before buying. This shows that
most of the consumers are brand conscious and prefer a good brand when it comes to
purchasing products. Branded organic products are more preferred by the consumers as they
are paying a premium price for it.
43
Figure 16: What kind of organic products do respondents buy
Interpretation:
This graph shows what type of organic products are most bought by the consumers. Here
vegetables and fruits and bought the most as they are easily available in the market. 79.6%
and 76.7% respectively are the percentage for vegetables and fruits that are bought by the
consumers. Followed by spices and milk products which stand at 25.2% for both. Nowadays
even meat products have started selling in the market which are certified as organic in nature
and 18.4% of the respondents have agreed to purchase these products. This tells us that most
of the consumers are buying organic fruits and vegetables from the market as they are easily
available in the market.
44
Figure 17: What factors are most important while buying organic products
Interpretation:
The graph shows what factors are important while buying organic products. 67% of the
respondents say that products should be free from synthetic chemicals while 59.2% of
respondents say that health factor is what matters to them while buying of organic products.
50.5% of the respondents say that organic products which are high in nutritional value is the
factor that is important to them. Pricing is also an important factor which matter to the
consumers which is about 42.7% followed by certification. This shows that all the
respondents are concerned about one or the other factor while buying organic products from
the market.
45
5. SUMMARY OF FINDINGS
From the analysis done on the data collected above some stimulating findings were brought out.
Mostly the younger generation are more concisions about their health and what they consume.
They prefer to have organic and healthy food. Most of the people are in the higher income
bracket and they do buy organic products on a regular basis. 23.3% of the respondents are
neutral about how often they buy organic products and 33% of the respondents agree that they
purchase organic products on a regular basis. 24.3% of the respondents strongly disagree with
how often they buy organic products as they hardly buy organic products. This means that a
number of respondents buy organic products on a regular product.
Here 45.7% of the respondents say that organic products are not easily available to them which
tells us that people are wanting to try organic products but it is not easily available in the market
which makes it difficult for the respondents to buy it. 25.9% of the respondents have never given
a thought on buying organic products even once which means that these respondents are clearly
not aware of the product and they need to be given more information about the products.
“Here we see that most of the people buy organic products from supermarkets where it is easily
available in the market these days. 35% of the people go to the general retail stores to purchase
organic products and 33% of the respondents buy organic products directly from the organic
specialty stores which are coming in cities and towns. This tells us that there is a huge scope for
organic specialty stores as people trust these stores when they are paying a premium price for the
organic products. Online or e-commerce also plays an important role from where customers
purchase organic products, respondents purchase from e-commerce sites. This also tells us that
more marketing on this platform is required for people to be completely be aware of the
necessary information.”
“To explore the consumers concerns about description of organic products it was found that
frequent and infrequent buyers agreed to nutritious value, products grown in harmony with
nature, produced without the use of chemical pesticides and fertilizers, and with environmentally
friendly
46
techniques. Organic products are healthier and free from genetically modified organisms, their
opinion was different. This positive perception about characteristics of organic products will be
helpful in creation of more demand in the near future. It was also found that there is very little
knowledge and recognition among consumers about the official Organic label prescribed by the
government to be displayed on certified organic products.”
“Growing number of high-income middle-class families coupled with economic growth and
growing health concerns also signals an opportunity for organic products in future. The study
also reveals that the frequency of purchase of organic products is influenced by the household
income of the family instead of the demographic factors. Therefore, increase in per capita
income and high-income middle-class families will create more demand for organic products in
future.”
“The lack of knowledge about organic in general, about the specifics of this production method
and its distinction from other labelled products. Consumers are not able to identify organic
products, as they don’t know the organic labels well. The variety of labels makes it difficult to
find the kind of product they are looking for. Neither is the availability of organic products
always satisfying nor is their presentation in some supermarkets.”
Most of the respondents are willing to pay more for healthier, safer and products that are
produced to higher ethical standards which is a good sign for the industry as people are ready to
accept the higher prices so that they can get healthier products for consumption. 66% of the
respondents are ready to pay premium price for products which is healthy and only 10%
respondents have disagreed to it.
The study also tells us that if the prices of the organic products continued to rise will the
consumers pay more. Most of the respondents are neutral about the rise in price and 21.4% of the
respondents and 9.7% of the respondents have agreed on paying a premium on the organic
products. This is a good sign as respondents are ready to keep purchasing organic products from
the market even if there is a price hike on the organic products.
47
Consumers give importance to the brand name of a product. Most of the respondents have
strongly agreed to looking at the brand name before buying a product and the respondents have
agreed to looking at the brand name before buying a product. Most of the respondents have
agreed to reading the brand name compared to those who don’t see the brand name before
buying. This shows that most of the consumers are brand conscious and prefer a good brand
when it comes to purchasing products. Branded organic products are more preferred by the
consumers as they are paying a premium price for it. This tells us that brand name is very
important for making the product a trustworthy among the customers.
The study tells us what type of organic products are most bought by the consumers. Here
vegetables and fruits and bought the most as they are easily available in the market. 79.6% and
76.7% respectively are the percentage for vegetables and fruits that are bought by the consumers.
Followed by spices and milk products which stand at 25.2% for both. Nowadays even meat
products have started selling in the market which are certified as organic in nature and 18.4% of
the respondents have agreed to purchase these products. This tells us that most of the consumers
are buying organic fruits and vegetables from the market as they are easily available in the
market.
48
6. RECOMMENDATIONS AND CONCLUSION
6.1 Recommendations It is evident from the study that the demand for organic products is growing fast due to the
factors such as increasing per capita income, shifting from saving orientation to expenditure
orientation, increasing awareness among people regarding health and food safety concerns, etc.
Many countries have been able to convert a significant portion of their cultivated areas into
organic farming. However, it appears that India needs to pace up in the adoption of organic
farming. Consumers perceive organic products as healthy possessing high nutritious value,
grown in harmony with the nature, free from chemical pesticides and fertilizers, and free from
GMOs. These factors may have an influence on the future demand of organic products. Thus, the
following recommendations can help to create more demand of organic products and to bring
more area under organic farming so that the supply of organic products may be able to balance
with their increasing future demand To boost demand of organic products in the domestic
market, more emphasis should be laid on creating awareness among consumers about the health
benefits and nutritional value of organic products. The negative aspects of agro-chemicals should
also be brought to the notice of people by preparing pamphlets, circulars, advertisements,
exhibitions, organic fairs, use of social media, seminars, and channel discussions, etc”.
“Price and availability are perceived to be the major barriers to the consumption of organic
products. At present, the organic products are available at a premium price. Efforts should be
made to bring down the cost of organic products so that its price may be able to come within the
reach of common man. To promote sale of organic products in the domestic market, institutions
such as hotels, hospitals, airlines and railways, etc. should be targeted.”
“At the same time, measures for the improvement in the accessibility of organic products in the
market should be taken and more varieties of organic products need to be introduced in the
market.
49
There is a need to create more trust in the production and certification process of agriculture
products. Thus, informative packaging, giving appropriate information about organic product
and its contents and nutritional value, and proper labelling should be there to make people aware
about organic products, which, in turn, will increase the demand.”
“Further, home delivery can prove an effective tool in high-end segment of the market.
Presently, the sale of organic products is dominated by supermarkets/shopping malls. The
supermarkets should display the organic products more offensively and there should be separate
counters for organic products. There is also a requirement to promote exclusive organic shops
and availability of organic products at general departmental stores to augment the sales.”
“A vigorous campaigning is required for popularity of the official India Organic label for identity
of certified organic products. At present, the display of this label on certified organic products is
optional or voluntary for sale in domestic market. The display of organic label on certified
organic products should be made compulsory for domestic sales also so that feeling of trust may
be created among consumers to the origin as well as process used in the production of organic
products.
There is need for marketing research for export potential of organic products. There should be
proper planning for marketing of organically grown fruits, vegetables and food grains that should
help farmers to get a better price for their produce. This, in turn, will motivate them to convert
more area under organic cultivation.”
“For boosting organic exports, a nodal agency may be created exclusively for the promotion of
organic cultivation and exports. The nodal agency can be mandated with the responsibility of
creation of an organic market and knowledge repository. It will also be responsible for collecting
market intelligence reports, latest consumer trends, database on buyers and sellers, national and
international organic rules and regulations, certification norms and agencies, and imports norms
and tariffs, etc. This nodal agency may also be given the task of identification of best prospects
for India in organic consuming markets in terms of products, seasonality and supply chain.”
50
“As organic farming system is not a new technology to India, rather a traditional approach to
farming, the technical as well as scientific persons who are involved with research and
development must identify the districts of India, where the fertilizer use is either negligible or too
low and then promote the adoption of organic farming techniques there. This will lead to lesser
conversion cost and lesser conversion time.”
“The government should come forward in simplification of the certification process and help in
reduction of the certification cost so that small resource poor and marginal farmers are
encouraged towards organic farming. Self- help groups or cooperatives can also be formed. This
will help the farmers in making collective decisions during production and cost of certification
can be reduced by group certification.”
“Adequate number of certification agencies may be identified and registered/ recognised. The
certification agencies may be financed by the Government to carry out free certification for the
farmers for intended export of organic products.”
“Certification of organic farms, their produce and products along with providing logos may also
be initiated by regional and non-profit organisations, who could be empowered for this by the
government with the condition that they will not commercialise these efforts and exploit the
growers and consumers as well.”
“There should be a regulatory authority composed to define and regulate the quality of all
products that are marketed as organic and the inputs that are recommended and marketed for use
in organic agriculture, to remove undesirable and unethical elements from exploiting farmers.”
“The study also explored that inability to obtain a premium price, at least during the period
required to achieve the productivity levels equivalent to the conventional crop, will be a setback
for the farmers converting their lands in organic farm. Thus, NGOs and farmers‟ organisations
should be encouraged to ensure marketing linkages and sale of products, that too at some
premium over the conventional produce.”
51
“The practical benefits of organic products should be included in the general education, home
science, medical curriculum, as well as in the nutritional courses. In addition, courses relating to
practices of organic farming should be introduced at both undergraduate and postgraduate levels
in all State Agricultural Universities and affiliated colleges.”
6.2 Conclusion It is apparent from this research that there is an increasing concern of consumers about the
health, quality, and safety issues, nutritional value of food products, environmental degradation,
and about the residues of chemicals pesticides and fertilizers in the food products. Advantages
about organic products are known to the consumers but when it comes to purchasing, not many
people buy organic. This is majorly because of the price availability factors. Well-educated and
people earning high income frequently opt to purchase organic products. This is mainly due to
the awareness among educated people regarding the extensive and sometimes excessive use of
agro chemicals. This has resulted in more demand of organic agricultural products. Nowadays,
farmers are also more concerned about health hazards in conventional farming due to growing
use of chemical pesticides and fertilizers and resultantly the continued deterioration in soil
fertility. Consequently, many feel that a shift to some degree from conventional toward organic
farming would alleviate some of these adverse effects, and in the long term would ensure a more
stable, sustainable, and profitable agricultural system.
52
LIST OF FIGURES
Figure 1: Gender of the respondents..............................................................................................28Figure 2: Age Group......................................................................................................................29Figure 3: Employment Status........................................................................................................30Figure 4: Monthly gross household income..................................................................................31Figure 5: Purchase of Organic Products........................................................................................32Figure 6: If, no...............................................................................................................................33Figure 7: From where do respondents buy organic products........................................................34Figure 8: Awareness of certification process.................................................................................35Figure 9: What kind of organic products do respondents buy.......................................................36Figure 10: On which social media are respondents most active....................................................37Figure 11: How much more are respondents willing to pay extra for organic products...............38Figure 12: With increase in price will respondents still buy organic products.............................39Figure 13: Sceptical about the products which are said to be organic...........................................40Figure 14: Do respondents read labels...........................................................................................41Figure 15: How important is brand name......................................................................................42Figure 16: What kind of organic products do respondents buy.....................................................43Figure 17: What factors are most important while buying organic products................................44