How To Start Organic Farming in India?

The shift from conventional farming practices to starting organic farming in India is gaining momentum as more people recognise the health risks associated with chemical-laden produce. The Indian organic farming market is expanding rapidly, presenting new opportunities for farmers and entrepreneurs alike. However, the challenge lies in knowing how to start organic farming effectively. 

Starting an organic farming business in India can be a rewarding venture, especially given the growing demand for organic products. To start an organic agriculture business in India, you first need a well-structured business plan. Organic farming can be tricky in the tropical Indian climate, but with the right strategy, you will be able to effectively start organic farming from scratch. 

This article serves as an organic farming startup guide that will provide insights into the steps to start organic farming and strategies for building a sustainable organic farming business in India.

How to Start an Organic Farming Business in India?

Questions such as how to start organic farming or how to establish an organic farming business are among the first to crop up in the minds of budding organic farmers. Without clear guidance, the entire process can seem daunting. The following steps will help you understand how to set up your own organic farming business plan. 

1. You Need Certifications

Yes, you read that right. If you’re starting an organic farming enterprise, you will require organic farming certification from the Agricultural and Processed Food Products Export Development Authority (APEDA). 

This ensures that your products are ‘100% organic’ and meet the quality standards for distribution in the domestic market. Once you are certified, you can also export your products for huge margins. 

If you wish to start an organic farming business in India, it is mandatory to get certified. For self-consumption of organic products, you need no certification. 

2. Get Financing for Your Organic Farming Business

Organic farming business can be expensive. The process of setting up an organic farm includes expenses for land preparation, planting, manures, fertilisers, irrigation, labour, and so on. The costs of individual elements may seem low, but they do add up to a significant amount. Ideally, you should explore funding options to implement your organic farming business model. A smart organic farming business plan can help in obtaining financing. This plan should detail your organic farming business strategy, with a complete breakdown of anticipated costs and revenue projections.

A business loan can be ideal for planning an organic farming business. These loans come with minimal interest rates, flexible repayment options, and quick disbursal time. Lenders are more inclined to support applicants with a well-structured organic agriculture business plan that demonstrates a solid understanding of the steps involved in starting organic farming and the potential within the Indian organic farming market.

3. Selection of Your Site

The most important question to answer before you dive into the organic farming business is where you will base your operations. 

The land on which your business will operate can make or break your business. This land should be fertile, so you don’t have to use excessive chemical fertilisers and pesticides. Here is a list of some questions you should ask yourself while choosing the right piece of land:

• Is the soil suitable for what produce I wish to grow?
• Are there clean water sources nearby? 
• How far is the site from the market or other organic farms?
• Has the land been previously exposed to chemicals, pests, or diseases?

These questions will clarify if the land suits your preferred crops and if the transportation and irrigation costs are under control.

The Market Potential of Organic Agriculture Business in India

The opportunities in organic farming in India are expanding rapidly, with the organic food market projected to reach around INR 625.69 billion by 2028. This growth is fueled by rising consumer demand for healthier food options, increased environmental awareness, and government support for the industry. 

The market offers significant potential for those interested in learning how to start organic farming. However, for successful entry, entrepreneurs require careful planning of the organic farming business setup and adherence to standards to maintain consumer trust. As the industry evolves, organic farming businesses in India will benefit from technological advancements, but challenges such as unregulated practices must be addressed to fully realise the market's potential.

Different Methods of Organic Farming

There are various methods of organic farming that you can apply in your organic farming setup process. Some of these are as follows:

Crop Rotation

Crop rotation involves growing different types of crops sequentially on the same land to maintain soil fertility and reduce pest and disease cycles. This method helps restore soil nutrients and improve crop yields.

Green Manure

Green manure refers to plants that grow specifically to be ploughed back into the soil. These plants decompose, enriching the soil with essential nutrients and organic matter.

Composting

Composting decomposes organic waste like food scraps, leaves, and manure to create a nutrient-rich fertiliser. This natural fertiliser enhances soil health and supports sustainable crop production.

Business Loan for Organic Farming

Embarking on a venture in organic farming can be quite costly. Starting from scratch, the expense of acquiring land can significantly add to your financial burden. To alleviate these financial constraints, consider applying for a business loan in India. These loans are highly convenient, with many lenders offering a completely online and paperless application process. Repayment terms are flexible, and interest rates can be favorable, depending on your eligibility and creditworthiness. You can utilize these funds for a variety of business expenses, such as leasing land or purchasing necessary equipment. However, to qualify for SMFG India Credit business loans, your business must have been operational for at least 3 years, with a stable income and profit record for the past 2 years.

Conclusion

Setting up an organic farming business in India offers great potential but requires careful planning and investment. You can tap into the growing demand for organic products with the right strategy, certification, and financing. 

If you’re looking to expand your organic farming business operations, SMFG India Credit offers unsecured business loans up to INR 75 lakhs* at attractive interest rates. Check your eligibility and apply online or contact us for more information.