National Co-operative Organics Limited (NCOL), which got the approval of the Union Cabinet last week, aims to propel India’s share (currently less than 3 per cent) in the global organic market estimated at ₹10 lakh crore where the US, Germany and France together have nearly two-thirds share.

With an authorized share capital of ₹500 crore, NCOL will be established with initial paid-up share capital of ₹100 crore to be equally shared by the Gujarat Cooperative Milk Marketing Federation (GCMMF), National Agricultural Cooperative Marketing Federation of India (NAFED), National Cooperative Consumers’ Federation of India (NCCF), National Dairy Development Board (NDDB) and National Cooperative Development Corporation (NCDC). The registered office will be at NDDB’s head office in Anand, Gujarat where GCMMF is also located.

Also read: Need to explore ways to reduce climate impact on milk production: Rupala

NCOL will manage the entire supply chain of organic products produced by cooperatives and related entities through member cooperatives, an official said. It will adopt various business models by utilising the brand and marketing network of GCMMF, which owns the AMUL brand. NCOL will develop its own brand simultaneously, the official said.

Balanced approach

It will facilitate in providing technical guidance, training and capacity building of organic producers and developing and maintaining a dedicated market intelligence system for organic produce. While promoting organic farming, a balanced approach will be maintained between regular mass farming and organic farming, the official said adding there will be no threat to food security.

As the government wants to substantially bring down the cost of testing and certification in organic products, NCOL will empanel accredited organic testing labs and certification bodies which meet the criteria specified by it. However, experts said the process of certification is a major hindrance to the growth of the organic sector in India. There has to be one certification which is recognised by the importing countries, said an expert referring to two processes in the country.

Also read: Indian wheat surges to a new high of ₹3,000/quintal on shortage

While the National Programme for Organic Production (NPOP), implemented by the Agricultural and Processed Food Products Export Development Authority (APEDA), is recognised by most of the importing countries in the world, the PGS-India (Participatory Guarantee System of India) is a quality assurance initiative that is locally relevant as it operates outside the frame of third party certification.

Striking balance

India ranks fourth with 27 lakh hectares (lh) under organic cultivation - Madhya Pradesh 7.6 lh, Rajasthan 3.5 lh and Maharashtra 2.8 lh – in which as many as 16 lakh farmers are engaged. The annual turnover of the certified organic sector is around ₹27,000 crore, including ₹7,000 crore from export.

“Organic farmers have been endeavouring to position up in the value chain without much success as 99 per cent of Indian organic agriculture certification belongs to grower groups, which are mostly promoted by traders. The current organic co-operative will strike a balance and create new independence for farmers,” said trade policy expert S Chandrasekaran. Terming the recent government initiative a correct approach, he said: “It is also imperative that APEDA should become a stakeholder in order to create synergy in the public interest.”

Also read: ReshaMandi diversifies into cotton value chain, eyes jute and wool to expand operation

Related Topics