The Economics of Organic Farming: Financial Aspects and Market Trends

This paper discusses organic farming economics, focusing on its growth and challenges. Since the 1960s, when the green revolution began, the utilization of pesticides and chemical fertilizers has Enhanced agricultural productivity, but this has come at a significant environmental cost. Increasing consumer Awareness of the benefits of organic farming for sustainability and health have made it more in demand. However, changing to organic practices faces challenges, especially in densely populated areas, where the urgency of food security is stronger. While organically farmed land may have fewer yields at the beginning, it offers long-term environmental benefits such as stronger soil health, biodiversity, and reduced carbon emissions. Despite low awareness about organic produce and the high cost of certification, the Indian organic food market has seen tremendous growth both within and outside of India as well. This paper concludes by describing the government's programs for supporting organic agriculture, which include the PKVY and providing financing, as well as promoting traditional methods and market access. The study also examines the market, farmers' perceptions of organic farming practices, and a comparison of conventional and organic systems. The performance of organic farming in the country will become even more sustainable if it overcomes the problems such as lower yields, lack of regulations for domestic markets, and shortage of organic seeds.