Article Mr. Jacob Jose - Organic products exports.

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Mr. Jacob Jose, Manager, PDS Organic Spices, Kittikkanam, Kerala, talks about organic products exports.

Statistics of organic spice production and exports in India shows that during 2021-22 it was 95 thousand MT and 8 thousand MT respectively. The value of the export of organic spices during the same period was Rs. 32483 lakhs. The major spices exported from India are turmeric, ginger, pepper, apart from spice mixes, chili, cumin, and coriander. The main countries where the exports take place are USA, EU, Great Britain, Australia, and Canada.

To export organic spices or to trade in them, we need to have certification from the concerned bodies. In India, there are two types of organic certification – PGS or Participatory Guarantee Scheme which works between the small sale producers, group of producers and other groups, and it works mainly for the domestic market. The advantage is that the process here is very simple, less documentation, and fee involved is also less compared to the other system. The next system is Third Party System which is called NPOP in India. Here, there are 3 levels of certification – one for production and farming, next for processing units, and third one for trading. The trading certification is for companies who export or trade in the product within India or outside. The cost involved in this is quite high compared to the PGS system, and documentation is also very large. Process is not simple compared to PGS system. This system comes under Ministry of Commerce and called APEDA. The certification has to be obtained from APEDA accredited control bodies. There are currently 29 accredited bodies. The total cultivated area under organic system is 12 lakhs hectare and area under conversion is 36 lakhs hectare. Production under organic farming is 26 lakhs MT, farm products 21 MT, wild harvest 1 lakh MT, and total export quantity 312800 MT valued at Rs. 5525 crores. To export to other countries, we have to get certification from those countries, such as for USA from USDA, Japan from JAS, and for Korea from Korean Organic.

There are many legal requirements for this. The organic company operating in India has to register the product to get the certification proving that the product they sell is produced through organic methods and standards as mentioned under NPOP standards of India. The company has to get the license from FSSAI, register with the organisation to qualify for organic farming and export. The company with turnover of under Rs. 12 lakhs should have FSSAI registration, if more than Rs. 12 lakhs FSSAI state license from the respective state, and if more than Rs. 20 crores annually or exporting from India or online business, they should get FSSSAI Central License from the authority. Once FSSAI license is allotted to the company, it is legally approved to deal in organic products export. The company also has to get Indian organic certificate. It has to place a certification logo on the package to prove that products inside are produced using organic methods. The other certificates include Phytosanitary certification, grade or quality standards certification from the concerned department, pesticide contaminant report confirming to organic production India, and customs handling certification. The company has to register with the Spices Board of India for export of organic or nonorganic products and get IEC from DGFT.

The main documents needed for organic spices consignment are bill of lading, packaging list, invoice, certificate of origin, spices board clearance certificate, transaction certificate issued by organic control body, third party sampling and analysis report, certificate of inspection, labels approved by organic control body, etc. The organic product should be stored at the ambient temperature. We have to avoid comingling of nonorganic and organic products to prevent pesticide contamination from the nonorganic products. If only a part of the unit is certified as organic and the other products are nonorganic, the organic products should be stored separately to maintain their integrity with correct label and identification marks. Bulk stores of organic products should be separate from conventional product stores and clearly labelled to the effect. Storge and transport containers should be clean using methods and materials permitted in organic production.

Labelling should convey clear and accurate information of the organic status of the product. The label for conversion products should be clearly distinguishable from the label for organic products by mentioning the year of conversion, which means the organic certificate should have been obtained at least 3 years before. The name and address of the person or company legally responsible for the production and processing of the product should be mentioned on the label. It should list processing procedures such as sterilisation and grinding. The products derived from wild production should be declared properly. The product can be labelled organic when all standards are met after all conversion and certification process are complied with. If it is a multi-ingredient, it has to be minimum 95% certified as organic and made with 70-95% organic ingredients. The raw materials should be mentioned in the label as per the weight percentage. The logo of accredited certification body, number, and India organic logo should be depicted apart from the destination where it is being exported. That country’s organic logo also should be displayed. We have to send them a draft and make modifications as per their requirements.

The farm to folk traceability in organic products to maintain the integrity of organic standards should be maintained. The TraceNet is an electronic service from APEDA to the stakeholders for facilitating process for exporting organic products from India. We have to provide the data, from farm production, harvesting, processing, storage, and certification details to the TraceNet system to keep traceability. It collects, reports, stores the quality assurance data provided by the producers and certification bodies within the organic supply chain in India. The accompanying report, pesticide test report and export logo should be provided to TraceNet to issue a transaction certificate to the companies which needs to be sent to the buyer.

The Peermade Development Society focuses on empowerment of village communities, especially tribals, women, and marginal farmers towards sustainable development by conserving and enhancing local resources. The major objective is sustainability of Western Ghat agro ecosystem through rural empowerment. Idukki is one of the backward districts in the area with lot of tribal population. Most of the companies are looking for private labelling in India, and they need to pack in their own pouches. We need to help them to save labour cost and regulatory requirements in their countries.

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What are the specific demands for organic crops in terms of variety, quality, and quantity? How can small scale farmers access training and resources to transition from commercial to organic farming for export purposes?

When European market is looking at Indian market, they look for geographical products and indications. For example, pepper from Malabar and Tellicherry, ginger from Kochi, and Alleppey green cardamom are geographically tagged and indicated. The fair trade requires specific demands such as no child labour, men and women treated equally, getting fair income through their farming operations etc. These are the major demands in the market. For export, the small scale farmers have to get party certificate, follow the documentation process, and pay the fees which is high. So, the NGOs like us from government agencies support the small and marginal farmers in terms of capacity building and documentation purposes and impart knowledge about the organic farming documentation. With the support of external agencies and government programs, the small and marginal farmers can convert their conventional land into organic land, set up small facilities, and start exporting. The legal requirements each year are getting stricter every year.

How can farmers assure compliance with international organic certification standards to facilitate exports? Are there any specific crop rotation or intercropping technique that is recommended for organic farming to enhance exportable yields?

They have to keep a good traceability system though online or through manual paper system. They should demonstrate the integrity of their organic products. To do this, some agencies, be it government agency or private agency or NGO, has to give good support in terms of knowledge sharing, documentation, and technical aspects. For exporting any product, we need volume, and for standalone farmers they cannot start an export firm if they are alone. They have to join together to form FPO, NGO, or groups, and they have to look for some support from external funding agencies. Yes, because organic farming mentions that the intercropping and crop rotation are advisable to get more yields. The Western Ghat where most important spices like pepper and cardamom are grown, the farmers are cultivating about 6 to 10 varieties of crops and more tree varieties to keep more biodiversity. This increases the yield as income diversification also as the farmers follow cattle rearing, fish ponds, and agriculture practices. They can manage with other crops if one crop gets less price in a year. So intercropping and crop rotation are useful for farmers.

What types of soil management are essential to maintain the organic certification and meet export regulations? How can farmers ensure traceability and documentation for organic farm practices to meet transparency demand of international market?

In NPOP and other countries’ standards, there are specific soil inputs that need to be used. We cannot use chemical pesticide or fertilisers. Own farm input is highly recommended. The soil conservation methods like boundary trees, plants like hibiscus are helpful. If we apply some external inputs in the farm, we have to get approval from the certification agency. We have to write to the certification body about the components of inputs and company details to get approval for this input use. Only own farm inputs are recommended for organic products. TraceNet is helpful in traceability. The farmers have to maintain the diary with all updates which will be checked by the auditors. Once after the harvest, the farmers have to provide data to the certification body which will be entered in TraceNet. Thus, traceability is maintained.

Are there any cooperative collaborative model farmers can engage into collectively meeting the export standards for organic products? Are there any financial support programs to help farmers manage the initial cost associated with transitioning to organic farm for exports?

Peermade Development Society has 2500 small and marginal farmers. If there are any standalone farmers with no support and cannot achieve the export market for their products even if they are certified organic, they should be helped to comply with the documentation, get market, and we are helping the farmers since the last 25 years. We are one of the most successful models in India in the field of organic product export. Each state has different kinds of schemes. There are some financial assistance and technical assistance given to the farmers. The support is usually given by MSME Department. In Kerala, the scheme, One District One Product Scheme is used. Government is giving subsidies and other things. MSME is giving subsidy for small scale producers to attend national and international fairs to find out the market.

Are there any specific postharvest handling practices the farmers should follow to maintain the quality of organic produces during export? How can farmers establish effective relationships with organic produce exporters and partners to expand their market reach?

The practices are mentioned in the certification process itself. For spices like pepper, there should be proper drying under sunlight with moisture level below 12%, and for ginger and turmeric they should be sliced and dried to prevent any rot. For every spices, there are specific standards mentioned. The small farmers have to demonstrate their integrity and capacity, products should be genuine, have good traceability, and they should be able to supply continuously and consistently to the companies. By attending fairs and exhibitions, they can establish relationship with national and international buyers. Farmers usually face documentation problems which is quite large for organic farming and exporting. They have to get assistance from some kind of organisation and agencies to get the technical expertise in that.

Mr Jacob Jose
Email: marketing@pdsorganicspices.com
Phone 9072368480
 
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