Agribusiness Opportunities of Organic Agriculture in West Bengal – An Empirical Analysis

Abstract

Increased evidences on harmful effect of excessive use of chemicals and fertilisers in farming, environmental degradation and rising demand from health-conscious consumers, farmers are now gradually shifting to organic farming across globe, including India. During last five years, the area under certified organic agriculture in West Bengal has increased by 18 per cent despite facing several challenges while practicing organic farming. Objectives of the study were to analyse the current status and economics of organic cultivation; production and marketing constraints of organic produce; factors affecting adoption of organic agriculture; and consumer behaviour towards organic commodities. Result indicated that average organic farming experience of the farmers in the study area was six years. Cost of cultivation of organic paddy and vegetables were lowered by ₹4280 per ha and ₹11910 per ha, respectively, but per unit of production of organic crops were also less by 1.37 t per ha and 3.12 t per ha for paddy and vegetables, respectively, as compared to inorganic practices. Net return was positive for both paddy and vegetable grown organically. However, farmers producing organic vegetable were not gaining profit as comparable to inorganic farming, mainly due to absence of specialise market/linkages for organic produce which led to lack of premium price for the organic commodities. Only 2 per cent of organic farmers had the marketing linkage with the specialised organic market and rest (98 per cent) had to depend on the open market only. On other hand, consumer survey indicated there was a good agribusiness potential for a range of organic commodities including cereals, fruits, vegetables, spices and pulses. Towards harnessing the potential of agribusiness opportunities of organic farming in the state, there is a need of creation of value chain connecting farmers to the final consumer with the help of institutional linkages. Promotion of high value paddy such as aromatic and scented rice variety was effective and increased the interest of farmers in organic farming and the price premium was also available for such quality rice produced by the farmers. Besides, educating farmers about the consumer preference of the specific organic commodities, accordingly production of those specific commodities and positioning of product to the ‘niche’ market through creation of separate value chains is essential.