India’s organic farming sector has long been seen as a promising pathway toward sustainable agriculture. Despite rising awareness and growing consumer demand, farmers adopting organic practices have struggled to realize its full economic benefits. A lack of organized markets, weak supply chains, and high certification costs have prevented organic farming from emerging as a viable large-scale alternative. However, a new initiative by the National Co-operative Organics Limited (NCOL) is raising hopes of a structural shift in the sector.
According to a report by the Agricultural and Processed Food Products Export Development Authority (APEDA), India’s organic market was valued at Rs 16,800 crore in 2023–24, while exports reached $665.9 million in 2024–25. These figures underscore the sector’s potential. Yet, farmers on the ground often fail to secure premium prices and are compelled to sell organic produce at rates comparable to conventional crops, undermining the incentive to shift to chemical-free farming.
Bridging the Market Gap
A key challenge in India’s organic ecosystem has been the disconnect between production and market access. Small and marginal farmers, in particular, struggle to connect with reliable buyers who can ensure consistent demand and fair pricing. While consumer demand exists, supply chains remain fragmented and inefficient.
Established in 2023, NCOL aims to address this gap by strengthening the organic value chain and building structured market linkages. Under its “Bharat Organics” brand, the cooperative markets staples such as pulses, wheat, flour, and rice. Its strategy is based on aggregation, onboarding certified farmer groups to create economies of scale, improve price realization, and ensure consistent quality at affordable prices.
The Real Challenge is Availability
Contrary to popular perception, industry stakeholders argue that demand is not the primary constraint in India’s organic sector. The real challenge lies in ensuring a consistent supply.
NCOL’s Managing Director, Vipul Mittal, notes that sourcing reliable volumes of certified organic produce is a bigger hurdle than finding buyers. “There is no shortage of markets for organic products. The real challenge lies in availability and sourcing. We aim to connect directly with certified farmer groups to build an organized marketplace,” he says.
India had 5,566 farmer groups registered under the National Programme for Organic Production (NPOP) in 2024–25, representing over 2.18 million farmers. However, this number has declined to around 4,000 groups. Under the Participatory Guarantee System (PGS), more than 78,000 groups with over 2.34 million farmers are registered, but only a fraction have formal certification.
The lack of aggregation and structured marketing means even certified farmers often miss out on premium markets. NCOL seeks to address this through a digital platform that allows farmer groups to register, list produce, and engage in direct trade negotiations.
A Farmer-Centric Approach
To connect directly with the certified organic farmers groups, NCOL has started the registration process on the online portal (https://ncol.coop/sourcing-registration.html). Since March, it has been negotiating directly with producers and offering premium prices for quality produce, often above conventional market rates. Importantly, the cooperative tracks how much of this premium reaches individual farmers, ensuring transparency.
A notable intervention is NCOL’s willingness to bear certification costs, which can range from Rs 5 lakh to Rs 2 crore depending on group size. This could significantly reduce entry barriers and encourage more farmers to adopt organic practices. At the same time, NCOL aims to keep retail prices competitive to expand domestic consumption. Balancing higher farmer incomes with consumer affordability remains central to its strategy.
The Missing Ecosystem
A major constraint in scaling organic farming is the absence of a robust ecosystem. Unlike conventional agriculture, which benefits from decades of institutional support, organic farming lacks adequate infrastructure, inputs, and technical guidance.
The transition period poses a significant challenge. Farmers shifting to organic methods must undergo a conversion phase of around two and a half years, during which their produce cannot be sold as certified organic. This leads to income losses and discourages adoption. There is also a shortage of technical knowledge and extension services. Farmers often lack access to training on organic inputs, pest management, and soil health practices, making it difficult to maintain productivity and quality.
Structural Challenges
Certification remains a critical bottleneck. Organic farming operates within a closed-group framework, where farmer collectives must meet strict criteria related to landholding, group size, and monitoring. A group can include up to 500 farmers, with additional scrutiny for larger landholders. While these norms ensure traceability and quality, they also limit participation. Although revisions were introduced under NPOP in January 2024, industry stakeholders believe more flexible and inclusive standards are needed to scale up organic farming.
Storage and Logistics
Post-harvest handling adds another layer of complexity. Organic produce requires certified storage facilities and cannot be treated with chemical pesticides. Instead, carbon dioxide-based methods are used to prevent pest infestation, significantly increasing costs.
Packaging standards, including the use of specialized bags, further add to logistical expenses. Experts note that a substantial portion of chemical residues in conventional food originates during storage, underscoring the importance of strict organic protocols.
To build consumer trust, NCOL has introduced QR code-based traceability under its “Bharat Organics” brand. Consumers can scan codes to access batch-specific chemical residue reports, enhancing transparency and authenticity.
Expanding the Domestic Market
Despite a strong export performance, India’s domestic organic market remains underdeveloped. Private players have largely focused on exports, leaving significant untapped potential in the domestic segment.
Expanding this market will require making organic products more affordable and widely available. The NCOL goal is a delicate balancing act: paying the farmer more while keeping the product affordable for the consumer.
By streamlining supply chains and absorbing certification costs, NCOL aims to make organic staples accessible on major e-commerce platforms. If successful, this approach could mark a turning point for India’s organic farming sector, transforming it into a more inclusive, scalable, and economically viable system.