Organic Farming Business Best Idea: 05 Requirements for Getting Started

Organic Farming Business Best Idea: The apprehensions surrounding chemical usage in agriculture have influenced people’s lives in multiple ways. A growing number of individuals are becoming more mindful of their dietary choices, seeking healthier options. As a result, there has been a notable rise in the demand for organic products, which are cultivated without the use of synthetic chemicals.

Over the last ten years, organic farming has gained significant traction in India, driven by a growing emphasis on health and wellness among the population. This guide will explore key concepts such as the definition of organic farming and provide a comprehensive business plan to assist you in launching your own organic farm. Let’s begin.

What is Organic Farming?

Organic Farming Business Best Idea: The allure of organic farming lies in its straightforward promise: to deliver food devoid of harmful chemicals, which can benefit our health. Consequently, there has been a significant increase in both domestic demand for organic products and their exportation. Entrepreneurs are increasingly recognizing this trend, drawn by government backing and the sector’s dedication to health-conscious practices. As public awareness of the significance of a healthy lifestyle continues to grow, the outlook for organic farming in India appears bright and lucrative for investors.

The Nimbus Agro Farms’ Approach

Organic Farming Business Best Idea: Nimbus Agro Farms is dedicated to sustainable agricultural methods that prioritize environmental preservation while enhancing soil vitality and biodiversity. By employing environmentally responsible practices and renewable resources, they aim to deliver premium organic products that are advantageous for both consumers and the environment.

Developing a Comprehensive Business Plan for Organic Farming: A Step-by-Step Approach.

Step 1: obtain organic certification

Organic Farming Business Best Idea: Securing organic certification is an essential milestone for launching your organic farming venture. The following outlines the steps to take, based on whether your goal is to export your products or serve the local market.

1. Regarding the Export of Produce:

India Organic Certification: This certificate, granted by the Agriculture and Processed Food Products Export Development Authority (APEDA), is acknowledged globally and enables you to export your organic products. The certification adheres to the National Programme for Organic Production (NPOP).

Procedure for Application:

• Visit the APEDA website to review the list of accredited certification bodies associated with NPOP.
• Choose an agency and reach out to them for comprehensive procedures, or obtain the application form directly from their website.
• Please send the completed form together with the necessary supporting documents to the agency.
• The certification fee ranges from approximately Rs. 40,000 to 50,000 for a land area of 56 acres.

2. Regarding the Domestic Market:

PGS Organic Certification: This complimentary certificate, issued by regional councils under the Ministry of Agriculture and Farmers Welfare, enables you to distribute organic products throughout India.

Procedure for Application:

• Explore the PGS India website.
• If you are a solo farmer, consider joining an established local group or creating a new group with a minimum of five members. Organic Farming Business Best Idea:
• Sign up on the PGS India website and provide the necessary information.
• Upon approval, you will be issued a PGS India Green certificate valid for the first three years, after which you will receive a complete PGS India Organic certificate.

Additional Licenses You May Need

To operate an organic farming business legally in India, several essential licenses are required. Organic Farming Business Best Idea:

• Goods and Services Tax Registration: This serves as an authorization for your business to operate, ensuring that you fulfill your tax obligations appropriately.
• Registration for Micro, Small, and Medium Enterprises (MSMEs): Registering as a Micro, Small, and Medium Enterprise (MSME) allows you to take advantage of unique benefits and assistance provided by the government.
• FSSAI Certification: This is to guarantee that your organic products comply with the safety regulations established by the Food Safety and Standards Authority of India (FSSAI), thereby ensuring the safety of your food for consumption.

Step 2: Choose Appropriate Crops

Contrary to common misconceptions, a diverse range of crops can be cultivated using organic methods. It is recommended to: Organic Farming Business Best Idea:

• Choose crops that are suitable for the specific geographical, soil, and environmental conditions.
• Take note of the crops being cultivated by other farmers in your region and evaluate the prevailing market prices.
• Select crops that command high market prices to guarantee profitability.

Step 3: Determine Target Markets

It is crucial to have a well-defined strategy for selling your organic produce. Consider the following options: Organic Farming Business Best Idea:

• Agricultural Produce Market Committees (APMCs): Explore APMCs to connect with traders specializing in organic products.
• Contract Farming: Partner with businesses to ensure a guaranteed repurchase of your products.
• Computing Units: 1. Enhance the worth of your raw ingredients by transforming them through processing, such as creating ketchup from organic tomatoes.
• Storage Facilities and Refrigerated Warehouses: Preserve your crops during periods of low market prices at harvest and sell them later when the prices rise.

Stage 4: Application of Fertilizers and Management of Pests and Diseases

Employ organic fertilizers and pesticides to mitigate negative impacts on the environment and human health. Below are several methods: Organic Farming Business Best Idea:

• Organic Fertilizers: Substitute DAP with a blend of cow dung, cow urine, jaggery, gram flour, and nutrient-rich soil. For micronutrient supplementation, incorporate neem kernel powder, gram flour, jaggery, and a liquid waste decomposer.
• Natural Pest Control Solutions: Create pesticides by utilizing branches or leaves from the neem tree along with datura plants. Boil the combination and dilute it prior to application.
• Pre-prepared Organic Materials: If you choose not to create your own, consider buying pure organic fertilizers and pesticides from reputable suppliers.

Step 5: Collection and Promotion

When your crops reach maturity, gather them and utilize the designated market channels to sell your products.

Organic Farming Business Best Idea: By engaging in thorough planning and conducting comprehensive research, you will be positioned to launch a thriving organic farming enterprise.

Financial Support

The initial capital needed to launch an organic farming business in India generally falls between ₹5 lakhs and ₹10 lakhs.

The government provides capital investment subsidies to support the National Bank for Agriculture and Rural Development (NABARD) in promoting organic farming initiatives.

• A subsidy of 25% is offered for the acquisition of pesticide units and biological fertilizers.
• A subsidy of 33% is available for the organic cultivation of fruits and vegetables.
• Furthermore, eligible farmers have access to credit-linked subsidies.

What are the steps to begin organic farming?

• Begin by acquiring knowledge about the practices, principles, and techniques associated with organic farming.
• Identify Appropriate Land: Locate an ideal parcel of land for establishing your organic farm.
• Organize Your Agricultural Operations: …
• Organic Certification: …
• Cultivate the Soil: …
• Crop Management: …
• Irrigation: …
• The process of composting involves the decomposition of organic matter, which plays a crucial role in enhancing soil health and fertility. Organic Farming Business Best Idea:

Participation in Diverse Organic Agriculture Associations.

Organic Farming Business Best Idea: Joining various organic farming organizations can enhance your agricultural practices. A key group to explore is the National Project on Organic Farming, established by the government. The headquarters is situated in Ghaziabad, complemented by additional support centers in Bangalore, Nagpur, Panchkula, Patna, Bhubaneswar, Imphal, and Jabalpur.

Organic Farming Business Best Idea: You have the option to select a local center and contact them for assistance. These centers are designed to assist you in utilizing biological techniques to enhance your agricultural practices. They provide training and support, educating you on quality standards, cutting-edge technology, and sources for appropriate equipment. Throughout the training, you will explore various types of fertilizers and understand the significance of testing specific crops prior to application on your farm. Becoming a member of these organizations can significantly benefit your organic farming endeavors.

In summary

Organic Farming Business Best Idea: The increasing demand for organic products indicates a promising future for organic farming in India. Regions such as Maharashtra, Madhya Pradesh, and Rajasthan are at the forefront of this movement, presenting significant opportunities for aspiring organic farmers. It is essential to develop a comprehensive organic business plan prior to commencing operations. The profit margins in this sector are notably appealing, typically falling between 22% and 35% of your revenue. This positions organic farming as a lucrative and promising venture to pursue.

FAQs – Organic Farming