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QUESTION : WHY MANY ORGANISATIONS ARE SELLING ORGANIC PRODUCE AT HIGHER COST?
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Answer |
Post Date |
TEJ PARTAP
tej@iccoa.org |
Dear friend,
Organic products are sold at higher price most of the time but not always, at present, for two reasons. One the product is assumed to have taken higher cost of production. I say assumed because there are presently no studies on cost of cultivation/ prduction of organic products which can help us set the real price. Second, organic products are presently scarce so priced higher depending on the lavel of scarcity. Third, because of quality of the products and environmental sercvies the farmer rewnders to society by goin organic has a value additon in the costs, too. Tej Partap
| 23/8/2005 | V.Srinivasan
srinivasan_vk@indiatimes.com | Moreover, it is labour intensive business, for example in areas like weeding, mulching, etc. [more employment :-) ] and more care required to in all respect. Am I correct? Premium is to some extent, rather it is reward to farmers. Thanks | 17/8/2005 | ICCOA Admin
info@iccoa.org | It is a matter of demand and supply. Present scenario is such that people are asking for organic produce but unfortunately there is not enough produce available in the market. With more and more organic produce coming into the market, the price should definitely come down. The other factor is that in the initial years of converting a conventional farm to organic, there are likely reductions in yield. So the reduction in yield can be compensated by giving a premium to the produce. | 17/8/2005 |
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