Organic Food Business in India: A Survey of Companies

Abstract

In recent years, the Government of India has come up with policy initiatives to promote organic food for domestic market and exports. Such measures are expected to increase investment in organic food manufacturing and retailing, and create employment. Indian entrepreneurs have responded positively to these initiatives and a number of start-ups have come up in this sector. Many conventional food manufacturers, retailers, and exporters have diversified their businesses to include organic food products. India’s trade in organic food products has also increased.

This paper, based on a primary survey of companies engaged in organic food business in India, analyses their reasons for entering the organic business, their business models and sourcing process, how they work with organic farmers, what opportunities and risks they perceive, and what they want from the Indian government in terms of policies and incentives. It also examines the companies’ perception about the growth of this sector, and makes policy recommendations on how organic food can attract investment across the food supply chain and continue on a high growth trajectory.