Organic farming seems to be the new growth area for Indian farmers.

So what exactly is a Cash crop?

In agriculture, a cash crop is a crop which is grown for money. The term is used to differentiate from subsistence crops, which are those fed to the producer’s own livestock or grown as food for the producer’s family. In earlier times cash crops were usually only a small (but vital) part of a farm’s total yield, while today, especially in the developed countries, almost all crops are mainly grown for cash. In non-developed nations, cash crops are usually crops which attract demand in more developed nations, and hence have some export value.

The Mint reports that 9 India states have applied to the “Agricultural and Processed Food Products Export Development Authority (Apeda), a government-run export promotion body, asking for accreditation to do the same.”

In the seven years since the National Programme for Organic Production was notified by the government, only 11 accreditations have been issued by Apeda, of which only one is to a state government organization, the Uttaranchal State Organic Certification Agency. The rest are international private agencies.

“Now, nine states, Andhra Pradesh, Chhattisgarh, Gujarat, Haryana, Karnataka, Madhya Pradesh, Maharashtra, Rajasthan and Tamil Nadu, have submitted proposals for approval (for accreditation),” says K.S. Money, chairman, Apeda.
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According to a study by the US department of agriculture, consumers in the US and the European Union account for 95% of the world’s retail sales of organic foods, estimated at more than $25 billion (Rs1.03 trillion).

In 2005-06, India exported organic products worth $228 million.

Currently, India ranks 33 in the world in terms of total land under organic cultivation and 88 in terms of the ratio of agricultural land under organic crops to total farming area. With an eye on the market, a few states have begun to take organic farming seriously.

Interestingly, the state of Orissa, which has no policy for Organic farming has the largest organic farming production. Why?

“If you see, organic farming is working out in states which have a higher percentage of smaller farmers. It is difficult to push farmers, who own large tracts of land, to go organic. These farmers have been using pesticides for years and years,” says Arun Chandra, executive director, Chetna Organic Farmers Association, a group representing 7,500 organic farmers across five states.

The market is clearly there for the taking.