The need for state
assistance
The basic point about dealing with
certification and meeting of various international standards, is of course
that it is very expensive. Therefore, almost by definition, it excludes
the millions of small cultivators who do not have either the resources or
the knowledge or technical expertise to meet standards or to go through
processes of certification., In addition, for all producers, the process
itself can be lengthy and quite cumbersome and bureaucratic, creating
delays in shipment and often disrupting the distribution process. In
general, therefore, it means an increase in costs and therefore possibly
in prices.
Obviously, there is a critical role for the state in this, in terms of
providing both internationally recognized certification and accreditation
agencies, and the technical and financial resources for farmers to meet
such requirements. Unfortunately, while there has been some attempts,
especially through the Bureau of Indian Standards and APEDA, to meet the
first role, the second and probably the more crucial role has been mostly
neglected or underfulfilled.
Thus, agricultural extension services across rural India typically do not
provide either knowledge or technical expertise about prevailing national
and international standards, nor are they designed to assist farmers in
changing cultivation practices to meet these standards. Information about
certification and assistance in certification of products is very limited
and inefficient, so much so that those few farmers who can afford it take
the help of profit-oriented private companies for this. And of course,
resources for such activities are not provided to farmers in the form of
financial assistance, which puts our cultivators at a clear disadvantage
relative to those from other countries with more organised and financially
secure systems.
There is therefore much that needs to be done in this regard by the
government now especially, in order both to protect Indian farmers and to
allow them to use whatever opportunities do exist in international
markets.
The organic food market and organic labelling
The concept of food quality
has changed dramatically in recent years. It now refers not only to the
characteristics of the final product, but also to the way in which it is
produced, processed and transported. Retailers and importers in developed
country markets are applying their own quality standards, which are often
more stringent than the national quality regulations. Consumers in
developed countries and a few in developing countries have become more
health conscious and they have restored spending to greener, healthy and
natural foodstuffs. They are willing to spend more on organically produced
and labeled products. As a result, farmers in developed countries are
encouraged to convert their existing farm into organic farms and are often
fully supported with financial incentives and technical assistance.
Of course, a basic issue is defining what exactly is meant by “organic
farming.” Among the more stringent definitions is that of the US
Department of Agriculture, which has defined it as follows : “a system
that is designed and mailed to produce agricultural products by the use of
methods and substances that maintain the integrity of organic agricultural
products until they reach the consumer. This is accomplished by using,
where possible, cultural, biological, and mechanical methods, as opposed
to using substances, to fulfill any specific fluctuation within the system
so as to: maintain long-term soil biological activity; ensure effective
peak management; recycle wastes to return nutrients to the land; provide
attentive care for farm animals; and handle the agricultural products
without the use of extraneous synthetic additives or processing in
accordance with the act and the regulations in this part.”
But it is also true that consumer perception on the organic production
method may, in certain detailed but important provisions, differ from
region to region in the world. That is why both national and international
norms for the definition of organic farming and organic foodstuffs become
necessary.
In
many developed countries as well as in some of the higher income
developing countries, the sale counters of retail chains and supermarkets
have been given special 'green status' to promote and sell organic and
natural foods. The organic food processing companies are being nurtured
and labelled as environmental friendly companies. This is already a huge
market – even in 1997, the size of the US organic food market was valued
at $4.2 billion, while the German market was estimated at $ 1.2 billion
and that of Japan at $ 2.5 billion. It is also a rapidly growing market
all over the world and particularly in the developed countries, as Table 3
suggests. The rapid growth in market estimates by 2000 indicate a much
larger market now, especially as the recent food scares relating to the
products of “industrial” agriculture and livestock rearing make consumers
more willing to pay more to ensure food safety.
Further, organically grown food
commands higher prices, with premiums for organic products ranging from 10
to 100 per cent. However, it should be remembered that these can disappear
when supply increases, especially in those countries with policies to
encourage organic farming.
Table 3 >>
Source :
Bhagirath Choudhary,
"Organic
farming: Indian farmers set to go green",NISTADS, 2000
Partly because of this growing demand, many countries are in
process of developing their own 'organic food' standards and regulations.
The US and the European Union have already announced comprehensive
National Organic Programs. Japan, Canada and Australia have national
standard for organic products in practice since early nineties. New
Zealand, Israel and Brazil have almost attained the equivalency status
with the standards of the European Union and USA. China, Thailand, South
Korea, Philippines, Turkey and Mexico have established credible organic
certifying agencies and are on the verge of deciphering organic policy.
The major organic products sold in global markets include( in order of
importance) dried fruits and nuts, processed fruits and vegetables, cocoa,
spices, herbs, oil crops, and derived products, sweeteners, dried
leguminous products, meat, dairy products, alcoholic beverages, processed
food and fruit preparations. Non-food items include cotton, cut flowers,
animals and pot plants.
Certain very large organic food markets such as the United States present
particular problems for exporters because of the rigid requirements for
labelling. In the US products are accepted as “organic” only if they
conform to US Department of Agriculture requirements, which are fairly
stringent and require certification which can be costly and cumbersome for
exporters form poor countries.
The process of certification is as follows : A grower or handler seeking
organic certification submits an organic farm plan or organic handling
plan to a USDA-accredited private or state certification program. The
organic plan must detail all current growing or handling methods, and any
materials which will be used. The plan must also cover future intentions
and improvements to all areas of production. Even growers or harvesters of
organic wild crops must develop a plan showing that harvesting practices
will not be destructive to the environment or to the future productivity
of the crop.
The USDA further requires that records of all management practices and
materials used in organic production must be kept for five years. In order
to be certified as organic, crops must be grown on land which has been
free of prohibited substances for three years prior to harvest. Crops
grown on land in transition to organic (during the first three years after
switching from conventional farming) cannot be labeled as organic. The
Organic Foods Production Act (OFPA) makes no provision for a
USDA-sanctioned "transitional" label.
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