Overview: Organic Food Businesses
If you want to begin your own organic food business, you will require a variety of permits and licenses from a variety of regulatory bodies that are in charge of implementing regulations and laws for the food industry and other related industries.
An Organic Food Business is a kind of business that deals with the selling, buying labels, and other aspects of organic food items.
Organic foods business, defined in Section 22 of the Food Safety and Standardization Act, 2006, is the term used to describe foods that are made in compliance with the established guidelines to ensure organic farming.
In this article, you will be able to learn the necessary input to begin an organic food business.
What is Section 22 of the FSS Act Define?
Article 22 under the Food Safety and Standardization Act 2006 provides the laws regarding “Genetically altered foods, organic nutrition, helpful foods, proprietary foods, etc.
It states that no individual or company is permitted to distribute, sell or manufacture any novel food items that are genetically modified, functional foods, organic food products, and irradiated food items, foods specifically designed for dietary use Nutraceuticals and health supplements, or any other food items as specified from the Central Government.
Government bodies implicated in offering the required approvals for Organic Food Businesses
The Food Safety and Standards Authority of India maintains a close eye on organic companies and ensures that they have two different systems of certification.
The Participatory Guarantee System (PGS) is offered through the Ministry of Agriculture and Farmers Welfare and the National Program for Organic Production NPOP, which is administered by the Ministry of Commerce and Industry.
It is the Participatory Guarantee System, or PGS can be described as an internationally acknowledged organic quality assurance, such as ISO 9000, which is managed and monitored by dedicated organic producers and farmers through actively engaging with consumers and in a system that is built on confidence.
The National Program for Organic Food Business is a procedure to ensure certification that is designed for natural farmers. It was created to aid natural planters to flourish in both regional & worldwide markets.
It is required to obtain an Indian organic certificate which ensures that the product meets the standards of the country. In the context of Pradhan Mantri Kaushal Vikas Yojana, it is not possible to export the product.
The Agricultural and Processed Food Products Export Development Authority (APEDA) certification makes it mandatory for proprietors to acquire a third-party certificate to send abroad their products.
License and Permit
- Food companies must apply to FSSAI for a Food license which is valid for up to five years.
- FSSAI registration licenses are issued when the revenue is less than 12 lakh.
- State licenses are granted if the company’s revenue is greater than 12 lakhs.
- FSSAI Central licenses are granted when the company’s total turnover is more than 20 crores.
- Organic Food Businesses need to apply for a statewide government license to run an organic company.
Instructions to be Followed
The new regulation makes it mandatory for firms to be certified by any of these bodies:
- National Program for Organic Production (NPOP)
- Participatory Guarantee System for India (PGS-India).
Businesses are also able to opt for having a logo that is voluntary from FSSAI to prove that their product is natural. USDA’s Organic Program (NOP) is shifting its method of monitoring substances coming from India.
This change has triggered the transition period to permit Indian organic businesses certified by APEDA-accredited certifiers to seek direct certification from USDA-accredited certifiers by the standard of USDA’s organic practices.
Certification by certified USDA accredited certifiers will be expected for exports by India in India to the USA.
Valid Documents Required
- PAN card
- Aadhar card
- Voter ID
- Driving license
- Ration card
- Business commitment
- Memorandum of Association
- Articles of association
- NOC (No objection certificate)
- Statement of a bank.
Expansion in the Market
The food industry online is thriving and experts are forecasting a 25% increase over the next three years that will follow.
The rise in the organic farming sector, the creation of new products as well as research into genetically modified plants as well as the assistance of authorities have been crucial factors in maintaining and growing this industry.
As rising numbers of people acknowledge the privileges of organic products the trend will increase exponentially. So the government is trying to help companies to recognize and make use of these opportunities to increase their productivity and innovation.
Struggles and Hopes
The increase is positive because the beginning of the organic industry has been afflicted with many problems and hiccups, the primary ones being adulteration, inadequate standards for safety, and a lack of awareness.
The organic food business also has an impressive margin, however, as a comparison, the global organic food market is less than 0.2 percent of India’s $300 billion economy.
Although the scope of opportunities has grown thanks to the quick advent of online platforms, the organic food market is still difficult to break into.
Small-scale farmers are unable to gain access to large-scale markets where their goods can sell for a fair price. Natural foods require separate storage to avoid cross-contamination, which increases the logistics effort.
But, as the younger generation is better equipped with the latest information and data, they’re more aware of the benefits organic food has to offer. Therefore, we are seeing many people turning to organic alternative options.
More money to spend and increasing interest in organic products have led to this expansion of organic food businesses. The government is moreover offering an olive limb through a series of new endeavors.
The Government's Stance & Powers
- It is the central government that has established a Participatory Guarantee System (PGS) to offer subsidies for small-scale farmers. this scheme is standing backed through the Pradhan Mantri Kaushal Vikas Yojana (PKVY) scheme.
- Presently, farmers cannot export their goods since it requires certification from APEDA.
- Another way that governments can help farmers is by assisting those who have shifted away from traditional methods and have switched to organic.
- The introduction of laws that allow farmers to convert farms to organic farms will help in aiding farmers.
- Furthermore, standardizing the practices regarding fertilizers as well as making organic fertilizers more readily available by expanding their production can aid organic farmers in increasing their production
- This year, the Indian government announced an initiative called the Jaivik Bharat logo and the Indian organic innocence database portal to help farmers and firms that sell natural food.
- The FSSAI is trying to aid small farmers and has agreed to relax the certification requirements for individuals and organizations whose annual earnings do not exceed 12 lakhs.
- They also have relaxed rules for companies whose revenue is below the threshold of Rs50 lakh to allow the sale of products with no approval from NPOP or PGS India. But, organic aggregators do not be allowed to utilize the Jaivik Bharat logo.
Why should Organic Food businesses in India see an increase in demand soon?
Exports are extremely high.
In India, numerous food entrepreneurs have made investments in organic food production because of the ever-growing demand for organic food items among Indian customers. The Indian organic food industry has been receiving praise not just within the boundaries that define India but also beyond the country.
Insignificant Difference in Prices
The distinction between the costs of organic and non-organic food items is not significant. Do not think about price as you will reap benefits to your health by eating organic food products.
The consumption of organic foods assures the safety and security of our health since it can stop your body from taking an excessive amount of fertilizers, as well as pesticides.
Digital Awareness & E-Commerce Facilitation
The advancement of digital platforms has increased the knowledge level of users online concerning organic food, as they constantly seek greater knowledge about the organic food industry by exploring different websites
Wholehearted Support of the Indian Government
The government of India is working to help encourage organic agriculture in India. The government has devised a range of strategies and plans and implemented them to boost the organic food industry in India. Indian market.
Organic food is a sector that has lots of possibilities for growth in many ways, including using a variety of methods if provided with adequate financial backing.
Furthermore, with the advancement and adoption of sustainable farming methods, customers can enjoy more nutritious foods and remain healthy.
If you’re still having questions regarding the Organic Food Business, we are ODINT Consultancy. We are here to help you in every way.
Organic products marked as “100% organic’ should contain ingredients and processing aids – but not salt and water – which are produced organically.
The certification process for products that are that is sold by the name of “organic” in India is not a requirement. There are however two widely used certification systems that are followed by people who are looking to sell products in this category.
Begin an Organic Food Business in India: A Complete Guide
- Find a Good Location for Store.
- Secure the Location Chosen.
- Apply for Required Permits and Registrations.
- Decide About the Items to be Sold.
- Set Prices for the Items.
- Hire Manpower.
- Management and Safety of the Store.
- Marketing of the Organic Food Store.
To be able to use the India Organic logo on your organic products, a certified body acknowledged by the authorities, like EcoCERT INDIA and ECOCERT INDIA, must be able to verify that your agricultural produce is organic by the specifications in the NPOP (NATIONAL PROGRAMME for Organic Production).