8. Risks and opportunities of the project
There is a fast growing demand for organic products in the European market, in many Asian and American countries, but also on the Indian domestic market (see chapter 2). Through facilitating market access, the project can therefore considerably contribute to the improvement of the farmer’s income and help create new jobs in the food processing industry. This project will give seco and FiBL the opportunity to gain experience on how to set-up a market and processing division of a newly established competence centre together with the civil society in a Developing Country.
Despite promising perspectives, one must be aware that the project also bears some risks:
| Risk |
Reasons |
How to cope with it |
| Loss of credibility of the term 'organic' on the Indian market |
Lack of regulations for domestic organic market, weaknesses in the present Guarantee System, possibility of fraudulent use of organic claims. |
Continue the dialogue with the Government to build up a credible and applicable regulatory framework under NPOP. Create an input approval system with relevant stakeholders. Promote Internal Control Systems among smallholder groups. |
| Poor quality management in production and processing |
Producers and traders without international exposure lack awareness of quality requirement for international markets. |
Quality is essential for export, but also for success on the domestic market. Integrate private companies into the marketing to ensure quality standards. Enhance knowledge on processing and packaging. Assistance of SIPPO in the field of export promotion and quality management. |
| Domestic organic market remains small and restricted to a few areas |
The set-up of a domestic market seems to be difficult in India, as it is very costly to launch a new product on this huge market. |
Study and explore the domestic market potentials. Collaborate closely with private companies. Focus on selected areas/states according to the targeted consumer groups. Use trade fairs to increase the range step-by-step. Organize media campaigns. |
| NGOs are not enough business minded |
It is in the tradition of most Indian NGOs to be very reluctant towards private business. |
Awareness building concerning the chances of co-operation with private business among NGO. Involvement of SIPPO. |
| Too high expectations towards organic agriculture |
Indian agriculture is in a depressed situation and organic agriculture is widely regarded as the solution out of the trap. NGOs and Indian Government agencies are promoting OA and there is a risk of them rising too high expectations among farmers. |
Training of the stakeholders in the framework of the project. This training will include realistic information about opportunities and threats of organic agriculture. Market intelligence should give a realistic and continous overview about the opportunities on the do-mestic and international organic market. |
| Mismatch between offer and demand of organic produces |
There is the risk that because of lack of proper information the quantities produced do not match the demand. |
Various measures to enhance availability of information for producers and buyers (e.g. market platform). Diversification of production and trade from the beginning, exploring export and domestic market opportunities. |
| Image that OA endangers food security |
There is the believe that due to lower yield potentials in OA, the national food security policy will be hampered; thus less public support than expected. |
Involvement of governmental agencies in organic research and extension activities of NGOs and private companies. Convincing case studies to be documented and widely spread. |
