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

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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

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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.”

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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.”

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“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.”

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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

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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.”

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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)

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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)

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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

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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'

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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.

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(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

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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.

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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

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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

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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.

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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.

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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.

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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.

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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.

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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.

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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.”

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“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.”

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“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.

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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

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