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Consumers may have to bear an additional expense of Rs 1,200-1,500 per month for a family if they want to switch to organic food products, which are sold at high prices, a latest study said, while suggesting that the government should take steps to bring down the cost. According to a joint study by Assocham and Ernst & Young LLP, the purchase of organic food products is restricted to affluent class of consumers due to the high cost. The organic food products are costlier because of low volumes and high expenses involved in processing and inventory holding, packaging, logistics and distribution besides training of farmers, the study observed. High certification charges and growing demand and lower supply -- are key reasons for organic products to have higher price mark-ups than conventional products, it added. According to the study, there exist several challenges for all stakeholders involved at every stage of the value chain despite organic farming being promoted by both Centre, .
Clear absence of a single nodal agency for regulating, approving and setting the standards is one of biggest bottlenecks in India emerging as big destination for organic products both for domestic markets and also for exports, a working paper by Indian Council For Applied Economic Research (ICRIER) said.The paper which was recently released has been jointly written by Arpita Mukherjee, Souvik Dutta, Disha Mendiratta, Avantika Kapoor, Tanu M Goyal is based on a survey of all companies and other stakeholders involved in organic products trade.It said that unlike most countries worldwide where agriculture ministry is the main nodal agency for all matters related to organic production, in India multiple government bodies are trying to come up with regulations and standards for organic food products, which are difficult to adhere to if a company is catering to both the domestic market and exports."There are concerns about which standard will be applicable pan-India. At the time of the ...