In the past few years, there has been a steady rise in demand for organic products as it is best suited for health and the environment. With the rise in demand for organic products, many brands have been taking notes from Ayurveda to come up with 100% organic foods. This growing trend of organic products offers a huge growth to the Indian organic industry as this trend is soon to be caught up by India and also offers huge growth to investors in the Organic Industry.
Here are the 5 reasons on Why to Import Organic Products from India:
- Rise in requirement of organic products : Organic products in India is still a new concept. The current market growth is on rise due to increased awareness and benefits to health and the environment. The current market value is at INR4000 Crores and expected to grow to INR10,000-12,000 Crores. The rapid growth rate is also an important factor to attract investors.
- E-Commerce: With access to the internet getting easier and cheaper, Indian citizens have changed the way they shop. The ease of shopping online with just one click has saved a lot of time for Indian consumers, be it monthly grocery or personal care items. There has been a significant growth in online platforms for organic products manufacturers in India that helps the consumer to choose the best available product for them.
- Export of organic products in India: India is the second largest exporter of organic products in Asia after China. It is one of the largest turmeric powder manufacturers and psyllium husk exporter in the world. The increase in the export market coupled with the help of the Government’s support has helped India grow in the organic products industry. The estimated value of Indian organic food exports was US$299 million during the year 2015-16 with a total volume of 263,688 MT. The major of exports going to the US, European Union, Canada and New Zealand.
- Introduction of new variety of organic products: Superfoods were unheard of in Indian diets. However, due to the increase in awareness about the health benefits of organic products has led to the introduction on new organic products. Brands like Organic Products India have already started introducing daily used products in organic variants like spices, flax seeds, amaranth seeds, pulses and lentils etc. for health-conscious consumers.
- Growing support from Government of India: The government of India has been actively participating in promotion of organic farming and the consumption of organic products. Financial assistance is also provided to farmers who are ready to adopt to organic farming in the country through various schemes such as National Mission for Sustainable Agriculture (NMSA), Mission for Integrated Development of Horticulture (MIDH),etc. The government has also allocated lands specifically reserved for Organic farming in the Northeast Region of India.
All of the mentioned factors have been favourable for the Indian Organic Industry. However one must also keep in mind the high production cost and risks of producing organic products which is higher than conventional goods. These products are also subject to higher tax rates which increases the cost of organic products. Cost of organic products has also hampered the sale of these products.