India’s Rs 2,600-crore organic food industry will get a credibility boost from July, when standards and certification norms will kick in, helping to bridge a trust deficit for its produce among foreign buyers, mainly those in the US, Europe and China.
In addition, the trade is seeking exemption from the goods and services tax to narrow the vast difference in prices between conventional and organic products. Domestic growers of organic food have been demanding strict implementation of certification norms and penalties to prevent companies from selling poor quality products.
“The traceability of organic products is not very well established and hence some companies with vested interests take advantage and start supplying conventional products in the garb of organic products. This has created a trust deficit among buyers and consumers. Strict norms will help us to win the trust of foreign buyers,” said Pankaj Agarwal, managing director of Just Organik.