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India: Organic farm business fails to grow in Faridabad

As awareness about organic food catches up with the middle class, newer markets have emerged in Delhi-NCR. But unlike Gurgaon, Faridabad has been struggling to measure up as a profitable market for organic food retailers.

When Vivek Ghai launched A-One Organic Farms in Faridabad three years ago, he was quite sure that people would embrace the idea. However, after investing about Rs 1 crore in the business and even running into losses, Ghai still waits for people to wake up to the merits of organic food.

Promises

According to media reports of December 2007, Haryana government had then decided to promote organic farming across the state and had stipulated Rs 50 lakh as assistance to farmers of the state for certification of organic produce that time.

Harmohinder Singh Chattha, the state minister for agriculture at that time had said that the cost of certification of organic produce would be subsidised and financial assistance of Rs 1,000 per acre would be provided to the farmers, who get their organic produce certified from the accredited certification agency. However, as local business owners maintain, nothing has been done till date.

"Government has taken no steps to encourage us to continue with the farming. Rather the authorities are telling us to close down the organic farms," alleges Ghai.


Apart from government's indifference towards organic farming in Faridabad, several business owners have other reasons as well. "Faridabad is fast turning into an industrial zone and the agriculture is disappearing from the area," said Amber Jayna, owner of Bionics Technology, a company that used to provide many types of biotech products for agricultural and environment sciences but closed down operations in Faridabad a year ago.

Ghai also said, "Construction companies pay much higher prices for the land than an organic vegetable yield can produce. So it is natural people are opting out of the business," he said.


source:economictimes.indiatimes.com
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