AgriNation News Network

New Delhi. 8 August 2018

The current position of organic farming area covered across the country is 23.02 lakh hectares  under the schemes Paramparagat Krishi Vikas Yojana (PKVY), Mission Organic Value Chain Development for North Eastern Region (MOVCDNER) and National Programme  of Organic Production (NPOP).

Cost of organic agriculture largely depends on on-farm generation of inputs. When on-farm organic inputs are used, cost of production per unit area is less by 13 % under organic agriculture than inorganic management. However, if organic inputs from outside the farm are purchased and utilized, the cost of production increases by about 15-20 % depending on the nature of inputs used. Integrated Organic Farming System (IOFS) models being developed under NPOF promises to meet 70-80 % of organic inputs within the farm thus reducing the market input cost considerably. During the conversion period of initial two to three years, yield levels are expected to be low till soil system regains to respond to organic production system especially in the intensive agriculture areas.

Government of India under the schemes- PKVY & MOVCDNER is supporting the production and marketing of organic produce in the country to reduce their costs and prices. Use of organic inputs like PROM, vermicompost, organic/bio-fertilizers, city compost, waste decomposer have been promoted under these schemes which will further reduce the costs of production in organic farming.

Under PKVY and MOVCDNER schemes enough assistance is provided to Farmer Producer Companies (FPCs)/ entrepreneurs for development of value chains/ marketing of organic produce. The policy measures are taken by the Government to develop/ boost marketing of certified organic produce easily available to households consumers to promote organic farming:

Paramparagat Krishi Vikas Yojana (PKVY) :

1. Financial assistance is given for direct marketing to the groups and clusters including procuring common packing material, printing of packing material, brochures, leaflets, preparation of labels, holograms, transportation expenses to local markets, hiring spaces on rent for specific organic markets and branding of organic products @ Rs. 15 lakhs/ cluster of 1000 ha. each.
2. Clusters can develop their own post-harvest, value addition and processing facilities, preferably under their institutions such as Farmer Producer Organisations (FPOs)/ Farmer Producer Companies (FPCs) for creation, collection and aggregation of post harvest process centre (one between every 5-10 groups) @ Rs. 20 lakhs/ cluster of 1000 ha. each.
3. Market linkage/ brand building with FPO/  Small Medium Enterprises (SME) including the cost of organic fare to be provided on submission of appropriate proposal to the Executive Committee (EC) on case to case basis @ Rs. 53 lakhs/ cluster of 1000 ha. each

Mission Organic Value Chain Development for North Eastern Region (MOVCDNER):

Financial assistance is given for setting up of the following:

1. Functional infrastructure for collection, aggregation, grading units and North-Eastern (NE) organic bazaar @ Rs. 15 lakh (75% subsidy).

1. Integrated Processing Units with Total Financial Outlay (TFO) of Rs. 800 lakh or more limited to 75% to Farmer Producer Companies (FPCs) and 50% to private entrepreneurs as credit linked back ended subsidy.

1. Integrated pack house with 75% subsidy to FPCs on TFO of 50 lakh or more and 50% to private entrepreneurs or maximum of 37.50 lakh whichever is less as credit linked back ended subsidy.

1. Transportation/ 4 wheeler up to TFO of 12 lakh (50%).
2. Refrigerated transport vehicle/ Pre-cooling/ cold stores/ ripening chambers  upto TFO of 25 lakh (75% subsidy to FPC and 50% to private).
3. ———————————————————————————————————————————