The Growing Yields

Introduction

In recent times, India has experienced a significant change in dietary preferences as the global trends of organic farming and veganism heavily influence people. In the fight against climate change and animal cruelty and to have a healthier lifestyle, both organic farming and veganism have been adopted by millions of people across the country. Organic farming is the practice of cultivating fruits and vegetables and rearing animals by traditional methods of using cow dung or green manure instead of using synthetic products such as chemical pesticides or fertilizers. On the other hand, veganism is the practice of not consuming or even using any animal products. Both of these play an important role in sustainable living. 

Growth 

Organic Farming positively impacts GDP growth, employment generation, and export earnings. Due to its diverse agro-climatic conditions, India has the most producers of organic food in the world. There has been around a 15% reduction in the cost of production for organic farmers. Organic produce contributes 14% to GDP and employs 42% of the workforce. The market size of organic food was estimated to grow to $77 million by 2025. 

Indian Vegan Food Market Value Share (%), based on region as of 2022

(source: Coherent Market Insights)

Owing to cultural heritage and people’s religious beliefs, according to a survey conducted by the Indian Council of Medical Research in 2021, 24% of the Indian population is strictly vegetarian and 9% is vegan. This simply means that nearly 574 million Indians follow a meat-free diet. 

 Indian Vegan Food Market Value Share (%), by product type as of 2022

(source: Coherent Market Insights)

As of 2022, the market value of the plant-based industry, which includes dairy alternatives, meat substitutes, and vegan snacks, was around $1.3 billion. Further, studies show that this market is expected to grow about 11.32% every year until at least 2027. 

Export and import of organic produce

India earns huge revenue from exporting organic products like pulses, spices, etc. The National Programme for Organic Production(NPOP), also aims at regulating and promoting organic produce for exports. India’s global market shipments are valued at around $135 billion while it has a potential of over $700 billion. The leading organic importer from India is Germany. India significantly contributes around 51% of the global organic cotton production. India’s fresh grape exports jumped from US$ 102.5 million in 2019 to US$ 307.9 million in 2020. Agri-export zones and GrapeNet were instrumental in this growth. In addition, India’s potato exports grew from US$ 0.64 million in 2019-20 to US$ 11.36 million in 2020-21. The Ukraine crisis raised demand for Indian corn, whose prices surged from Rs. 19.50 (US$ 0.25) per kg to Rs. 22 (US$ 0.29) per kg.

      Export and Import of Vegan Products

Regarding the importation of vegan foods, in June 2022, FSSAI issued a new compliance clause stating that  “no vegan food products shall be imported except with a certificate issued by the recognized authorities of the exporting countries in the format as specified by the Authority is accepted.” 

The commerce ministry of India discovered that due to the popularity of vegan products in developed countries, they have huge export potential in the international market and hence India started exporting vegan products in September 2022, when the first consignment of plant-based meat products was shipped from Gujarat to California. India’s export potential is projected to range between Rs 2,194 crore to Rs 6,824 crore by 2030. 

Economic Impact of Organic Farming

Organic farming heard it quite often? Of course. People around the world are taking a step towards sustainable living and organic farming plays an important role in it. Farmers are often exploited by middlemen and large corporations, but organic farming allows them to get better prices for their produce because of the growing demand. The Paramparagat Krishi Vikas Yojna (PKVY) promotes cluster-based organic farming with PGS (Participatory Guarantee System) certification. The scheme assists INR 50,000 per hectare for three years, of which 62% is given as an incentive towards organic inputs. Under this program, there were 13.9 million certified organic farmers in 29,859 organic clusters, covering 0.59 million hectares (about 0.4% of the cropped area in India).

Economic Impact of Veganism

There has been a surge in demand for vegan products in the country. By 2030, the industry is expected to be valued at $162 billion and account for 7.7% of the global protein market. The market for plant-based dairy products is estimated to expand at a CAGR of 20.7%, from $ 21 million to $ 63.9 million. The plant-based food industry in India is expanding significantly as more startups and FMCG businesses enter the market to provide substitutes for conventional animal-based products. In addition to offering commercial opportunities, this development might help solve concerns related to public health, climate change, food scarcity, and farmer incomes. 

(source: Statista)

Although veganism claims to be a step towards sustainability, that is not entirely true. While it does leave a smaller carbon footprint than a meat-based diet, it uses up much water, adding to the water shortage. In many cases, it even leads to soil pollution and air pollution as well. There is a dark side of veganism which is often overlooked. With the growing popularity of synthetic meat and other meat alternatives, the local markets and traditional farms are facing a huge loss because these products are only produced by biotech companies and multinationals. This is putting a lot of traditional farmers out of business. Even with technology to help reduce the cost of production of vegan products, they are still expensive and unaffordable for a major part of our population. Nearly 71% of Indians cannot afford these products, and most of them cannot even afford to have a healthy diet. 

Conclusion

Organic farming and veganism have significantly contributed to employment generation and GDP growth. In the following years, its export and import potential has also gone up and is expected to reach greater heights. Food produced by organic farming is safe and nutrient-rich. Organic farming promotes consumer health by preserving environmental integrity and maintaining healthy soil. Veganism, although it does have a darker side, proves to be profitable for the economy. The living standards of the people around the world have changed for the better. Life has become more about the quality and not the quantity. 

References

1. How is vegan food disrupting the Indian market?

2. Regulations & Requirements | USDA Foreign Agricultural Service

3. Veganism Statistics India In 2022 – How many vegans are there in India?

4. India Vegan Food Market Size, Growth, Report 2023-2028