Indian Council for Research in International Economic Relations (ICRIER) has conducted a study on organic farming which gives an overview of growth of organic food production and processing industry in India.
The study has sample of over sixty eight companies and the revenue generation prospect study came with very potential outcomes. It says that 63 companies in study, which makes 85.33 per cent of total population, had witnessed growth in revenue terms in previous two years.
It can be termed as a potentially profitable trade for majority of companies involved in organic farming.
There are various factors which may affect the overall revenue generation of organisations engaged in organic farming business in India.
Few of such factors include dimensions of time culture of produce, its selling preposition and geography of trade.
It was only seven companies, which make merely 9.33 per cent of population, faced decline in income from organic trade.
Out of the seven companies, which witnessed decline in revenue, included three firms involve in tea business. One company was involved in fruit and vegetables business, while the other three had organic business of different categories as classified by ICRIER study. Concentration of loss faced by organic tea companies indicates that an otherwise lucrative organic tea market is difficult to catch than it appears.
The decrease of revenue witnessed by three companies had been recorded less than 10 per cent.
[“Source-businessworld”]
