The world economy is showing signs of a stable growth. The trading pattern is going through a sea change as the dominance of US economy over the world is reducing. The world is divided into 3 major trading compartments like, US & allied countries, EU, & Asia. India's performance in international trade is minimal with 0.67% of world trade value but slowly getting the momentum. Major sectors in India's exports are Gems & Jewelry, Garments & Textile, Agro- commodities & Manufacturing Goods. Agricultural commodities constitutes 13-18% of Indian exports figures. India is world famous for commodities like, Tea, Basmati Rice, Spices & Fresh or Processed Fruits. Organic food is the end result of a cultivation process or further processing of fruits or grains in which no chemical, no pesticides and no artificial growth drivers are used. This is a scientific process that includes the certification for organic status of farm, documentation of farming process & use of only permitted bio-fertilizers. The common perception about organic food is SAFE, NATURAL & HYGIENIC.
[...] Current position of Indian exporters in organic exports market. India is an agricultural country for years & years. India's 60% of working population is still engaged in agriculture. As far as the exports are concerned agriculture has a dominant role. As per the data of ministry of commerce, Government of India, the value of primary sector amounts to 6 billion US which forms 13 to of India's total exports. In India the total land under cultivation can be divided into 3 parts, 70% area is cultivated under the organic farm method but even the farmers are unaware that the cultivation technique used by them is known as organic. [...]
[...] -As the agricultural sector has potentials of employment generation, organic food sector can be a boon for manufacturing & processing industry. At the same time it can reduce the additional burden of disguised unemployment in agricultural sector Base for domestic economy- the boom in organic food sector can be leveraged in domestic sector also. The production of organic food will form the basis for the agro- processing industry in developing countries, which is equally important from export potentials point of view. [...]
[...] Some of the following factors make the North American market an interesting destination for world organic food exporters Tropical products like coffee, tea, tropical vegetables & spices are grown on negligible scale Demand for off-season fruits & vegetable is either constant or rising There are no official programs of the US govt. to aggressively promote & encourage the farmers to go for organic farming Consumer preferences for organic products are growing at a rapidly . Alike the EU markets here also the supermarket plays an important role in deciding the sales figures. [...]
[...] The world organic food market puts restrictions like quota & certification requirements on the imports of organic foods for various reasons. They are protection to the domestic farm producers, preventing entry to non-genuine & non-standardized organic foods & vegetables & to avoid diseases like SARS. Certification is a process by which the standard of any certain product is determined on set parameters. Certification can be done by first party (producer) or second party (customer) or through third party (independent authority). [...]
[...] According to the world bank survey Every year developed countries dole out farm subsidies amounting to 350 billion US It hampers the export competitiveness of the exporters from developing countries. There are many products from developing countries, which can't enter these potential developed markets because of these subsidies. In this subsidies issue the main accused are US, EU & Japan. With the help of subsidies, producers & farmers from developed countries can sell their products well below the cost of production. [...]
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