Domestic organic food market is Rs. 16800 Crores growing fast-Minister Bittu replies to MP Arora

Ludhiana, December 27, 2024: As per the report of the “Study of Indian organic market and export promotion strategy” conducted by CRISIL Limited for Agricultural and Processed Food Products Export Development Authority (APEDA), in the year 2023-24 the Indian organic market is estimated to be worth of Rs.16,800 crores constituting of exports of Rs.5,520 crore, organised (branded) domestic organic market of Rs 3,340 crore, sales through retail outlets of Rs 1,600 crore and an estimated Rs 6,340 crore of organic produce sold as conventional products.

This has been stated by the Minister of State for Food Processing Industries Ravneet Singh Bittu in an answer to questions on "Market size and growth rate of food products” asked by MP (Rajya Sabha) from Ludhiana Sanjeev Arora in the recently concluded winter session of Rajya Sabha.

Giving this information here today, Arora said while giving the details the Minister further mentioned in his answer that during the period 2019-20 to 2023-24, the organised domestic organic market grew at a growth rate of 17 per cent CAGR (Compounded Annual Growth Rate) from Rs 1,800 crore in fiscal 2019 to Rs 3,340 crore in fiscal 2023. The data on growth rate of health-oriented food products in India, with bifurcation based on India Origin and Foreign Origin food products is not maintained by the Ministry of Food Processing Industries.

The Minister further mentioned in his answer that as per Food Safety and Standards Authority of India (FSSAI), the mechanisms are deployed to regulate claims and advertisements. Section 24(1) of the Food Safety and Standards Act, 2006 provides that no advertisement shall be made of any food which is misleading or deceiving or contravenes the provisions of this Act, the rules and regulations made thereunder. FSSAI has established the Food Safety and Standards (Advertising and Claims) Regulation, 2018, to address issues related to misleading claims, labelling and advertisements. This regulation ensures that food –related advertisements and claims are accurate, non-deceptive, and align with food safety standards. It governs claims related to nutrition, health benefits, and labelling to prevent misleading information and safeguard consumer interests. The Food Safety and Standards (Organic Foods) Regulation, 2017 stipulates that organic food products sold in India must comply with specific certification systems such as National Programme for Organic Production (NPOP) and Participatory Guarantee System for India (PGS) to ensure their authenticity and quality. Any contravention of these regulations may lead to appropriate actions in accordance with the provisions of the Food Safety and Standards Act, 2006, and the regulations made thereafter.

Further, the Minister’s answer mentioned that the Agricultural and Processed Food Products Export Development Authority (APEDA) under the Ministry of Commerce and Industries provides financial assistance to its member exporters, including exporters of organic food products, for Development of Export Infrastructure, Quality Development and Market Development.

Further, APEDA is implementing the National Programme for Organic Production (NPOP). The programme involves the accreditation of Certification Bodies, standards for organic production, promotion of organic farming and marketing, etc. Under the National Programme for Organic Production (NPOP), operators are certified as per their scope of operation such as production, processing and trading.

Arora had asked about the current market size and growth rate of organic and health-oriented food products in India, with bifurcation based on Indian Origin and Foreign Origin food products. He has also asked for the details on mechanisms deployed by the Government to ensure that the claims made in branding of such products are scientifically proven, and penalties charged by the concerned authority for misleading claims. Besides, he had asked about the manner in which the Government is promoting the organic food processing industry, particularly through subsidies, certification assistance, and market access programs for organic products.