Enhancing Competitiveness in Organic Farming through Capacity Building

India’s organic farming sector has grown significantly over the past decade, but competing in the global organic market requires more than just good produce. It demands knowledge of international trade rules, strong certification systems, and robust market intelligence. That’s exactly where the Scheme on Capacity Building for Organic Products steps in – a government initiative focused on equipping Indian agriculture with the tools, training, and financial backing needed to stand tall in a competitive global marketplace.

What is the scheme on capacity building for organic products? 🔗

The Scheme on Capacity Building for Organic Products is a central government initiative aimed at strengthening the competitiveness of Indian organic agriculture in international markets. Unlike production-focused schemes such as Paramparagat Krishi Vikas Yojana (PKVY) or MOVCDNER that concentrate on farm-level organic conversion, this scheme targets the trade and market access side of things.

Its core objectives include supporting research related to organic trade, conducting training programmes on WTO-related agreements, building market information systems, and providing financial assistance for registering Indian organic products in overseas markets. In short, it addresses the “business end” of organic farming – helping Indian products actually reach and compete on global shelves.

Why capacity building matters for organic trade 🔗

Organic farming in India covers a substantial area. According to the Press Information Bureau, the total cumulative organic area under NPOP and PGS certifications has reached approximately 59.74 lakh hectares across the country. India also ranks among the top ten nations globally in terms of certified organic agricultural land.

However, having a large organic area doesn’t automatically translate into strong export performance. Indian organic food exports have actually fluctuated in recent years. As reported by Global Agriculture, organic food exports stood at 3.68 lakh metric tonnes valued at USD 665.97 million in 2024-25, which is a notable decline from the 8.88 lakh metric tonnes worth USD 1,040.95 million exported in 2020-21. This downturn has been linked to factors such as sluggish global demand, geopolitical tensions, regulatory changes in importing countries, and certification-related challenges.

This is precisely why capacity building is critical. Without understanding international trade rules, certification requirements of importing nations, and market trends, Indian organic exporters will continue to face barriers that have nothing to do with the quality of their produce.

Key components of the scheme 🔗

Research and knowledge development 🔗

A major pillar of the scheme is funding and supporting research on organic trade competitiveness. This includes studies on how Indian organic products can better meet international standards, analysis of trade barriers, and investigation into new export markets. Research institutions and agricultural universities may receive support for projects that directly address challenges faced by organic exporters.

This research component also covers understanding global consumer preferences, organic certification equivalence across countries, and the technical barriers that often restrict market entry for developing-nation exporters. As noted by UNCTAD, constraints such as lack of information, insufficient awareness of commercial benefits, and inadequate certification infrastructure have historically hindered organic exports from developing countries including India.

Training on WTO-related agreements 🔗

One of the most distinctive features of this scheme is its focus on training programmes specifically related to World Trade Organization (WTO) agreements that affect agricultural trade. The WTO Agreement on Agriculture governs how member countries manage subsidies, market access, and export competition in the agricultural sector. For organic products, additional WTO frameworks like the Agreement on Technical Barriers to Trade (TBT) and the Agreement on Sanitary and Phytosanitary Measures (SPS) are especially relevant.

These agreements determine what standards importing countries can enforce, what kinds of support governments can provide without distorting trade, and how disputes around organic certification equivalence are resolved. The scheme trains stakeholders – including exporters, policymakers, and agricultural officers – to navigate these complex frameworks effectively. Without this knowledge, Indian organic producers risk being blindsided by trade regulations that could block their products at the border.

The Ministry of Commerce has outlined India’s positions and obligations under the WTO Agreement on Agriculture, which directly impacts how the government can support organic product exports without breaching its trade commitments.

Market information systems 🔗

The scheme also supports the development of market information systems – databases and platforms that provide real-time data on international organic markets. This includes information on pricing trends, demand patterns in key importing countries, regulatory changes, and new market opportunities.

Access to such systems is vital for small and medium exporters who may not have the resources to conduct their own market research. When exporters know which products are in demand, which countries are easing or tightening organic regulations, and what price premiums they can realistically expect, they can make smarter business decisions.

The government has already taken steps in this direction. Platforms like Jaivik Kheti serve as online marketplaces for organic produce, and over 6.22 lakh farmers have been registered on this portal. Additionally, APEDA’s AgriExchange portal provides trade data and market intelligence for agricultural products including organic goods.

Financial assistance for product registration abroad 🔗

Perhaps the most directly impactful component of this scheme is the financial assistance provided for registering Indian organic products in foreign markets. Entering international organic markets isn’t just about growing chemical-free crops. Each major importing region – the European Union, the United States, Japan, South Korea – has its own organic standards and certification requirements.

For exports to the US, certification under the USDA National Organic Program (USDA-NOP) is mandatory. For EU markets, products must be certified by EU-accredited certification bodies. In 2022, the delisting of some certification bodies in the EU reduced available certification capacity and raised transaction costs for Indian exporters, directly affecting export volumes of processed organic foods.

Obtaining these certifications is expensive, especially for smaller exporters and Farmer Producer Organizations (FPOs). The scheme offsets these costs by providing financial support for the registration process. This includes expenses related to obtaining certifications, meeting documentation requirements, and complying with specific labelling or packaging norms mandated by importing countries.

APEDA, which functions as the secretariat for the National Programme for Organic Production (NPOP), plays a central role in implementing this support. APEDA’s Financial Assistance Scheme covers market development, infrastructure development, and quality development – all of which overlap with the objectives of organic product capacity building.

Role of APEDA and NPOP in organic capacity building 🔗

The Agricultural and Processed Food Products Export Development Authority (APEDA) is the primary institutional anchor for organic export promotion in India. Established under the APEDA Act of 1985, the authority is responsible for export promotion and development of scheduled agricultural products.

APEDA also administers the National Programme for Organic Production (NPOP), which sets out the standards for organic production, accreditation of certification bodies, and promotion of organic farming. NPOP-certified products are recognised in several international markets, and APEDA manages the TraceNet system – a traceability platform that tracks organic products from farm to export point.

Under its Financial Assistance Scheme, APEDA provides support to registered exporters for activities like participation in international trade fairs, laboratory testing to meet importing country requirements, quality improvement, and infrastructure development. For organic exporters specifically, this can mean funding for obtaining international organic certifications, upgrading packaging to meet foreign standards, or attending buyer-seller meetings abroad.

How WTO agreements shape India’s organic trade policy 🔗

Understanding WTO agreements isn’t an academic exercise – it has real consequences for how India supports its organic farmers and exporters. The Agreement on Agriculture (AoA), which came into force in 1995, established rules around three pillars: market access, domestic support (subsidies), and export competition.

For organic products, the most relevant aspects are the rules around technical barriers to trade and sanitary and phytosanitary measures. These determine what quality, safety, and certification standards importing countries can impose. Organic food standards have been notified under the WTO Agreement on Technical Barriers to Trade, and trade policy issues around organic products include equivalence of organic standards, conformity assessment procedures, and subsidy classification.

India’s domestic support to organic farmers – through schemes like PKVY and MOVCDNER – falls largely under what the WTO classifies as Green Box subsidies, which are considered minimally trade-distorting. This is important because it means these support programmes are unlikely to face WTO challenges. The capacity building scheme reinforces this by focusing on trade facilitation rather than production subsidies, keeping India’s support framework well within WTO-compliant boundaries.

Training stakeholders on these nuances ensures India can continue to expand its organic support programmes without running afoul of international trade obligations.

Challenges in building organic trade capacity 🔗

Despite the scheme’s strong design, several challenges persist on the ground. First, awareness about the scheme among small-scale organic farmers and local FPOs remains low. Many organic producers focus entirely on production and are unaware of export opportunities or the financial support available for accessing them.

Second, certification costs and complexity remain a significant barrier. While the scheme provides financial assistance, the process of obtaining and maintaining international organic certifications involves ongoing compliance, annual inspections, and detailed record-keeping that can overwhelm smaller operators.

Third, the lack of assured market linkages continues to be a bottleneck. Even with proper certification, many organic farmers end up selling their produce in conventional markets at regular prices because reliable export channels are not accessible to them. Strengthening market information systems and trade facilitation infrastructure is essential to bridge this gap.

Finally, there is a need for greater equivalence agreements between India’s NPOP standards and the organic standards of major importing countries. Currently, Indian organic certifications are not automatically recognised in all target markets, which means exporters often need multiple certifications – adding to cost and complexity.

The bigger picture: organic exports and India’s agricultural competitiveness 🔗

India holds a unique position in the global organic sector. It has the highest number of organic farmers in the world and ranks among the top ten in terms of certified organic area. States like Sikkim have achieved fully organic status, and the country produces a wide range of organic commodities from basmati rice and tea to spices and cotton.

Yet, India’s share of the global organic market remains relatively small. Capacity building schemes like this one are crucial for closing the gap between production potential and market realisation. By investing in trade literacy, international certification, and market intelligence, India can move its organic sector from being primarily production-driven to being genuinely export-competitive.

The scheme also aligns with broader national priorities like Aatmanirbhar Bharat (self-reliant India) and the push to double farmers’ incomes. When organic farmers can access premium international markets, they earn significantly more than those selling through conventional domestic channels. The multiplier effect – from higher farm incomes to rural employment to foreign exchange earnings – makes capacity building in organic trade a high-return investment for the country.

Looking ahead 🔗

The future of India’s organic exports depends heavily on how effectively capacity building programmes are implemented and scaled. Several areas deserve priority attention going forward. Expanding the reach of training programmes beyond major agricultural hubs to include farmers in remote and tribal regions – many of whom practice organic farming by default – would significantly broaden the export base. Investing in digital market information platforms that provide multilingual, easy-to-use trade data for grassroots exporters is equally important.

Pursuing mutual recognition agreements with key trading partners for organic standards would drastically reduce certification costs and time for Indian exporters. And strengthening the integration between production-focused schemes (like PKVY) and trade-focused schemes (like the capacity building scheme) would create a seamless pathway from organic farm to international market.

What do you think? Can India’s organic sector achieve its true export potential through better trade training and market access support, or are there deeper structural issues – like farm size, infrastructure, and logistics – that need to be addressed first?

References

1. https://www.pib.gov.in/PressReleaseIframePage.aspx?PRID=2100761
2. https://www.global-agriculture.com/india-region/indias-organic-food-exports-at-3-68-lakh-tonnes-valued-at-usd-665-97-million-in-2024-25/
3. https://unctad.org/system/files/official-document/ditcted11d.pdf
4. https://www.wto.org/english/thewto_e/whatis_e/tif_e/agrm3_e.htm
5. https://www.commerce.gov.in/international-trade/india-and-world-trade-organization-wto/trade-in-goods-agriculture/wto-agreement-on-agriculture/
6. https://apeda.gov.in/about-us