Market Potential for

Organic Food Products

in INDIAN MARKET TOWARDS

In partial fulfilment of the requirement of

MASTER OF BUSINESS ADMINISTRATION
In
Rani Duragvati Vishwavidyalaya Jabalpur
SUBMITTED BY
RAVINDRA NATH SHUKLA
MBA IVth Sem. (Session 2011-13)
Enr. No. BA/7459 Roll No.094954
 INTRODUCTION
The Indian economy is still quite
relevant on agriculture and it
contributes nearly 14% of the
country’s gross domestic product
and almost 60% of the population is
dependent on agriculture.
Organic Floriculture
The trend of organic food that was
initiated in the developed regions. Europe
and North America are the largest
consumers of organic food, however, the
organic food market in Asia is likely to
account for the highest growth rate over
Organic Wheat Crop the coming years.
Organic foods are produced through
systematic farming methods that do
not involve any usage of pesticides
and harmful chemicals for
production. India has around 4.2
Million hectares of land which is
certified for organic farming.
Community based Organic Farming

Increasing awareness towards

nutritious and healthy food and
changing lifestyle are aurging the
demand for organic food, particularly
across the metro cities. Majority of the
demand for organic food is being
contributed by cities such as Mumbai,
Chennai, Delhi, Gurgaon, Bengaluru
and Pune.
 Objectives of study
TO ANALYZE THE POTENTIAL FOR ORGANIC PRODUCTS
IN THE INDIAN DOMESTIC MARKET.
TO IDENTIFY THE NECESSARY STEPS TO DEVELOP THE
DOMESTIC MARKET;
TO ASSESS DEMAND AND REQUIREMENTS IN THE
INTERNATIONAL & INDIAN MARKET

TO IDENTIFY MEASURES TO IMPROVE THE QUALITY OF

ORGANIC PRODUCTS IN LINE WITH THE MARKET
REQUIREMENTS;

To formulate strategies for markets.

 About Organization- MPVJHDF
M.P. Vindhya Jaivik Herbal Development
Foundation established as a Public Private
Partnership (PPP) venture by MP Govt. in August
2005 with the following objectives :
 To Promote Organic Farming.

 To Develop Organic Agri Export Zone .

 To Enhance India’s Agro Export.

 To Enhance the Living Standards of Farmers.

 Improve the Health of people by providing Good & Quality
Product.
 To reduce the role of Middle man in agriculture.
 To Develop a Chain of Technology-Production & Market.
 Market Potential
Market Potential : The capacity of a location,
such as a country, to become or to grow as a
demander of goods and services that outside
suppliers might provide. Various measures of
market potential are provided especially for
emerging economies, intended as guides to
exports and foreign direct investment
Major Uses of Potential Estimates
 To make entry / exit decisions
 To make resource level decisions
 To make location and other resource allocation decisions,
 To set objectives and evaluate performance as an input to
forecast.
 SWOT ANALYSIS
SWOT analysis -Organic Food Market-INDIA
Strengths
 Wide variety of fruits and vegetables and other
commodities can be grown organically.
 Very less consumption of chemicals in India as
compared to developed nations. These areas can be
turned into organic.  
 Organic pockets existing in different parts of the
country
 Differentiation can be easily created
 Rising interest of farmers as well as Government
interests in Organic farming
 Various niches in fruits & vegetables can be created
 Increasing investments by Indian corporate firms in
agribusiness and specially in Organic farming
Opportunities
 Favorable Government vision
 WTO offering global opportunities
 Price –premiums in different markets
 Export opportunities in new product/market (section
)
 USA, Europe and Japan are rising markets
 Branding offers new opportunities for differentiation
 Rising demand for Organic products
 Big retail stores/chains coming up 
 New developments in post harvest technologies.
 Private sector keen to join Organic value chain
Weaknesses
 Short shelf life varieties
 Lack of farmer awareness about agricultural
practices, products and technologies for Organic
farming
Price competitiveness
 Lack of market information and intelligence
 Lack of Global market research
 Inadequate post harvest management and related
specialized infrastructure to support Organic food
production
 Lack of R& D in Organic food production
 Unavailability of inputs used in the system
 Certification and labeling
 Less access to international market
Threats
 Competition from domestic industry.
 
 Threat from imported products.
 
 
 Non-tariff barriers may be imposed by developed
nations
 
 
 Findings & Conclusions
The demand for organic products is growing fast (@20 percent per
annum in the major developed countries). The organic food market
in India is expected to grow at the AGR of around 19% during 2012-
17. After the research, I found following points regarding market
potential for organic food Products in Indian Market, –
 
 People are much more conscious to their health nowadays.
 Consumer do have demand for pure, natural and holistic food
products.
 Producers also shown that they are willing to go through organic
farming system.
 Govt., regulatory authorities, corporates, non-government
Organizations etc. are also promoting and supporting such market.
 There are huge market possibilities in future for Organic Food
Products as well as are Organic agro inputs for farming activities.
 Organic market is a future scope of entire food industry, have global
demand, have local requirement and have a national opportunity.
 Limitations
 Recent Primary data was not found, as very little awareness is in
market regarding organic food products.
 Sample size of 500 consumers over internet blogs , social net-
workings and personal interviews, do not frame 100% righteous
picture on table.
 The findings has been framed out from the questionnaire hence
it is dependent on the responses , hence in a limit.

 Major part of research is based on research reports, thesis

presented and Statistics of Govt. sources, that may some time
right or may be malfunctioned.

 Extensive Media Coverage and advertisement required for

promotion & Expansion of Organic Products.
Thanks !