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Four-fold jump in the sale of organic goods
PURBA DAS  New Delhi | 30th Sep 2012

he domestic organic products market has witnessed a four-fold growth in the past two years. Sale of organic products is expected to touch Rs 3,700 cr by year end, which is four times more than Rs 964 cr sales in 2010, according to International Competence Centre for Organic Agriculture (ICCOA).

"While conventional trade has registered a growth of 2% to 3%, the organic sector is growing by an average 20% per year," said Gaurav Marya, chief executive officer of Francorp, the Indian franchise of international organic product major Moraka.

Francorp runs organic retail store chain Down to Earth, which has outlets in several cities including Delhi and Mumbai.

Commenting on the growth of the sector, Manoj Menon, managing director, ICCOA noted that the domestic growth rate is 30%-35% while the export growth is 25% to 28%.

"The key markets for these products are Bangalore, Chennai, Hyderabad, Mumbai, Delhi and Kolkota while among tier II cities, Ahmedabad, Coimbatore, Kochi, Pune are witnessing strong growth," said Menon.

Experts say that organic fruits, vegetables and fabric are some of the most popular organic products that generate demand in the market.

Meanwhile, several home-gown companies are innovating to reduce the prices. This is expected to further boost the market.

As per a study conducted by Morarka, a large number of consumers want to buy organic products and are willing to shell out 10% to 20% more than what they would pay for the conventional products available in the market.

Another FMCG player in the sector, Organic India, plans to launch organic grocery products such as rice, dal and spices by 2013. "With rapid expansion and awareness of organic products, we expect robust growth in our business. We are hoping to clock in revenue of Rs 200 cr by 2015-16," said Krishan Guptaa, global CEO and managing director, Organic India.

Earlier this year, the company doled out four new organic items which included green tea, chyawanprash, desi ghee and a health supplement for men. The company is exporting to 32 countries across the world.

"The company has so far invested Rs 100 cr on various activities, including setting up a finishing and packaging plant at Lucknow," said Guptaa.

As per the Agricultural and Processed Food Products Export Development Authority, India exported a total of over 1,15,000 metric tonnes of organic food worth Rs1,800 cr in 2011-12. In 2010-11, the export was 70,000 metric tonnes, valued at Rs 700 cr.

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