Report - Organic Food... · It gives me great pleasure in being associated with this report...

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Transcript of Report - Organic Food... · It gives me great pleasure in being associated with this report...

Page 1: Report - Organic Food... · It gives me great pleasure in being associated with this report prepared by YES BANK & Ingenus Strategy with assistance from APEDA. Sikkim is World’s
Page 2: Report - Organic Food... · It gives me great pleasure in being associated with this report prepared by YES BANK & Ingenus Strategy with assistance from APEDA. Sikkim is World’s
Page 3: Report - Organic Food... · It gives me great pleasure in being associated with this report prepared by YES BANK & Ingenus Strategy with assistance from APEDA. Sikkim is World’s

TITLE Organic Food Export from Sikkim: Perspective, Priorities & Way Forward

YEAR February, 2017

AUTHORS YES BANK & Ingenus Strategy

COPYRIGHTNo part of this publication may be reproduced in any form by photo, photo print, microfilm or any other means without the written permission of YES BANK Ltd., APEDA, AIOI and Ingenus Strategy

DISCLAIMER

The reader/ buyer understands that except for the information, products and services clearly identified as being supplied by YES BANK, APEDA, AIOI and Ingenus Strategy, it does not operate, control or endorse any information, products, or services appearing in the report in any way. All other information, products and services offered through the report are offered by third parties, which are not affiliated in any manner to YES BANK, APEDA, AIOI and Ingenus Strategy.

The reader/ buyer hereby disclaims and waives any right and/ or claim, they may have against YES BANK, APEDA, AIOI and Ingenus Strategy with respect to third party products and services.

All materials provided in the report is provided on “As is” basis and YES BANK, APEDA, AIOI and Ingenus Strategy make no representation or warranty, express or implied, including, but not limited to, warranties of merchantability, fitness for a particular purpose, title or non – infringement. As to documents, content, graphics published in the report, YES BANK, APEDA, AIOI and Ingenus Strategy make no representation or warranty that the contents of such documents, articles are free from error or suitable for any purpose; nor that the implementation of such contents will not infringe any third party patents, copyrights, trademarks or other rights.In no event shall YES BANK, APEDA, AIOI and Ingenus Strategy or its content providers be liable for any damages whatsoever, whether direct, indirect, special, consequential and/or incidental, including without limitation, damages arising from loss of data or information, loss of profits, business interruption, or arising from the access and/or use or inability to access and/or use content and/or any service available in this report, even if YES BANK, APEDA, AIOI and Ingenus Strategy are advised of the possibility of such loss.

This study has been done basis a pre decided scope of work between YES BANK, APEDA, AIOI and Ingenus Strategy with the objective of achieving specified outcome and does not cover all aspects/all opportunities pertaining to the cold chain sector in India.

CONTACTS

YES BANK LTD.

Nitin PuriSenior PresidentFood & Agribusiness Strategic Advisory and Research (FASAR)

D-12, South Extension - Part-2 New Delhi - 110049

Tel : +91 11 46029299 Email: [email protected] [email protected]

Registered & Head Office9th Floor, Nehru CentreDr. Annie Besant Road,Worli, Mumbai – 400018

Tel : +91 22 66699000Fax : +91 22 24974088 Corporate Office

YES BANK TowerIndia Bulls Finance Centre, Tower 225th Floor, Senapati Bapat MargElphinstone (West), Mumbai - 400013

Tel : +91 22 33479157

Ingenus Strategy & Creative Research LLP

Kishore Rao Brahmakamal, Rishikesh - 249202 Uttarakhand, India

Email: [email protected] Mob: +91 8130394108

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The North Eastern Region of the country is best known for its biodiversity, scenic beauty and near natural agriculture practices. Taking advantage of its natural situation and to keep its soils and environment free from the ills of agro-chemicals, Sikkim embarked upon a mission in 2004 to convert its agricultural produce into certified organic produce. After a decade long journey, this dream became a reality in January 2016, when Hon’ble Prime Minister Shri Narendra Modi declared the state as the first fully organic state of India.

With this unique distinction, Sikkim is all set to tap its organic agriculture potential in the international and domestic market. The study “Organic Food Export from Sikkim – Perspective, Priorities & Way Forward” developed by APEDA, AIOI, YES BANK and Ingenus strategy is expected to pave the way for bringing in new interventions to benefit Sikkim’s farmers in terms of better value realization, and also benefit consumers through supply of high quality certified organic food.

I congratulate all the study partners for their sincere efforts in bringing out this study and for providing a road map for defining the future directions for Sikkim organic products in the premium organic food market globally.

(Rita Teaotia, IAS)

MESSAGE

New Delhi01 February 2017

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MESSAGE

Growing awareness for safe and healthy food among consumers and increasing significance of sustainability in farming operations has brought organic agriculture practices in the forefront and demand is growing nationally and internationally for organic food. India, with diversified climate, vast natural resource pool and traditional wisdom of many centuries is home to such practices and has the potential to become organic food factory for the world. Many states have started to realize the potential of their traditional agriculture and are taking significant steps to convert traditionally organic area into certified organic. Sikkim being traditionally organic embarked upon this mission and has achieved the wonderful feat of becoming 100% certified organic during 2016. Blessed with diverse climate and biodiversity hotspot Sikkim is not only a dream destination for tourists but is also home to diverse agricultural crops and offer an opportunity for high value trade of specialty organic produce both for domestic and export market. To ascertain the potential and to suggest way forward, APEDA in association with AIOI, YES BANK and Ingenus conducted an extensive study on present status of organic production in Sikkim for short listing of prospective /potential commodities and recommend necessary initiatives to augment production and marketability with export focus. The study titled “Organic Food Export from Sikkim- Perspective, Priorities & Way Forward” not only analyses the current strength, weaknesses, opportunities and threats but also provides a roadmap to tap the organic market and shall be a stepping stone in positioning Sikkim as ideal destination for sourcing Sikkim specialty organic products. I hope that this report proves to be functionally handy and shapes the way forward to more useful interventions by policy makers and Indian Organic Industry.

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FOREWORD

Sikkim’s crowning as the first organic State in India by the Hon’ble Prime Minister has set a success story for the rest of the nation and the world. It is a testimony to the conducive policy measures by the State Government and diverse agro-climatic conditions of the State. The conversion of more than 7,000 sq km of geographical area into an organic state is truly a remarkable and an awe-inspiring achievement.

It is now imperative to leverage the full organic potential of Sikkim and also ensure sustainability and prosperity for the farmers. Regulatory, Procedural, Infrastructure, Skill building, Branding and Product specific interventions will be the key enablers. An industry-led market-driven approach coupled with interventions by policy makers and establishing backward linkages, will fuel a quantum leap in the growth agenda of the organic sector in Sikkim.

Sikkim and other North Eastern states should focus on their commodity strengths such as large cardamom, ginger, turmeric, chili and other spices which have distinctive features specific to the geography. Investing in infrastructure, adequate policy reforms and creating a congenial investment ecosystem will not only boost export earnings but also generate employment and make large scale socio-economic impact. Transformative measures and meticulous planning with focused execution will help in building a strong ‘North–East Brand’ worldwide and position the North Eastern region as an organic hub on the global organic map.

YES BANK is proud to partner Ingenus Strategy, APEDA and AIOI to prepare this study ‘Organic Food Export from Sikkim: Perspective, Priorities & Way Forward’. This report provides strategic recommendations for focused crops to augment organic production, value addition, marketability and branding of organic produce in Sikkim and ultimately enhance exports from the State. I am confident that the contents of this important publication will serve as a useful reference for industry, prospective investors, the Government and policy makers for planning a range of initiatives to make Sikkim and other North Eastern States a hub for the booming global organic market.

Thank you.Sincerely,

Rana Kapoor Managing Director & CEOChairman

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It gives me great pleasure in being associated with this report prepared by YES BANK & Ingenus Strategy with assistance from APEDA.

Sikkim is World’s first 100% Organic Geographical Entity. This has been the result of Vision of Chief Minister Shri Pawan Kumar Chamling for Green and Pristine Sikkim and determined pursuit of this objective by team of passionate officials with the support of APEDA and Industry. It was proud moment for the Organic movement when Prime Minsiter of India Shri Narendra Modi declared Sikkim as the first 100% Organic state on 18th January 2016.

Having realized this vision of converting the state to organic it was felt this should be translated into economic benefit for the farmers and people of Sikkim. Hence it was decided to take up this study and recommend strategies for realizing the true economic potential. As a Hill state Sikkim has the disadvantage of high cost of operations. Hence the focus is on converting the commodities to High value products so that the cost factor can be mitigated. The key to this is creating the right infrastructure by the Sikkim Government with assistance from Government of India.

We do hope the recommendations of this excellent study would be used in creating appropriate infrastructure by the state, bring in strategic vision and combine this with the dynamism of the private sector to realize the full benefits.

Mr. Rajashekar Reddy SeelamChairmanAssociation of Indian Organic Industry

Message from the Industry

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Acronyms and Abbreviations

APEDA : Agricultural and Processed Food Products Export Development Authority

AIOI : Association of Indian Organic Industry

CCS : Consumer Cooperative Societies

FIG : Farmer Interest Group

FiBL : ForschungsinstitutfürbiologischenLandbau

FPO : Framer Producer Organization

FSAD : Food Security & Agriculture Development Department

GPU : Gram Panchayat Unit

HCCD : Horticulture & Cash Crops Development Department

HMNEH : Horticulture Mission for North East and Himalayan states

Ha : Hectare

HS Code : Harmonized System of Codes

ICAR : Indian Council of Agricultural Research

ICCOA : International Competence Centre for Organic Agriculture

ICS : Internal Control System

IFOAM : International Federation of Organic Agriculture Movements

IPM : Integrated Pest Management

MIDH : Mission for Integrated Development of Horticulture

MPCS : Multi Purpose Cooperative Societies

MoA : Ministry of Agriculture

MoC : Ministry of Commerce

MoFPI : Ministry of Food Processing Industry

NCoF : National Center of Organic Farming

NERAMAC : North Eastern Regional Agricultural Marketing Corporation Limited

NFSM : National Food Security Mission

NHM : National Horticulture Mission

NPOP : National Programme of Organic Production

NPOF : National Project on Organic Farming

NSOP : National Standard for Organic Production

PGS : Participatory Guarantee System

RKVY : Rashtriya Krishi Vikas Yogna

SIMFED : Sikkim State Co-operative Supply and Marketing Federation

SOM : Sikkim Organic Mission

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TABLE OF CONTENTS

Introduction Organic Food Market: Global & Indian Scenario

Industry’s Perspective of Sikkim

Strategic Direction for Crop Focus

Recommendations

Page 1 Page 2

Page 5 Page 6

Page 16

I 2

3 4

5

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1RGANIC

FOOD EXPORT FROM SIKKIMPerspective, Priorities & Way Forward

The Indian Organic Sector is poised for a leap and is in the process of carving for itself a position in the global market. In this scenario, revolutionary steps like Sikkim declaring itself as 100% Organic makes it a safe bet. Exports drive the organic business in the country and is the most important factor for Sikkim planners to consider in their game plan.

The global market at over USD 90 billion is very large, mature and well integrated into International Trade. However, India with a share of less than 1% in the global market, is still to become a prominent player.

Last year, YES BANK and Ingenus Strategy in collaboration with APEDA & AIOI (Association of Indian Organic Industry) prepared a 2025 Vision document showing how India can take the gain leap from current minuscule size of around ` 2,000 crores to nearly ` 10,000 crores or even ` 50,000 crores depending on the different strategies the govt can adopt to reach these very achievable and practical targets. The Indian Organic Industry considers these targets very doable if the govt. can support and assist these plans. The time has come for exponential and strategic action as against incremental and slow growth.

Sikkim forms a critical component of this opportunity. Once again strategic and bold decisions are required which can benefit Sikkim immensely. The 100% Organic vision of the Chief Minister and the political leadership is not an end yet; it has just set a stage and created a launch pad for greater things to come. This summary report examines how the state can take this amazing achievement a step forward to enter the rapidly growing global organic market of USD 90 Billion.

The strategies recommended in the report can catapult Sikkim from a small organic agrarian economy of only about ` 500 crores to ` 3,000 crores and become an ‘international organic powerhouse’ in India.

Nitin Puri Senior President

Food & Agribusiness Strategic Advisory and Research (FASAR)

YES BANK

Hemendra Tiwari Assistant Vice President

Food & Agribusiness Strategic Advisory and Research (FASAR)

YES BANK

VSK Kishore Rao Partner-Ingenus Strategy &

Creative Research

1. Introduction

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2RGANIC

FOOD EXPORT FROM SIKKIMPerspective, Priorities & Way Forward

Category – Packaged FoodEstimated Global market size (2015) in USD Mn

Dairy 7,500

Bakery & Confectionery Products 6,000

Ready Meals 2,500

Chilled Processed Meat and Seafood 2,000

Frozen Food 1,500

Snacks 1,200

Oils and Fats 1,100

Sauces, Dressings and Condiments 1,000

Exhibit 2: Estimated Market Size of Packaged Food and Beverages

CountryMarket size in USD Mn-2013

Market size in USD Mn-2015

USA 32,000 39,000

Germany 9,800 11,200

France 5,700 6,700

China 3,100 4,500

Canada 3,000 3,600

UK 2,700 2,900

Italy 2,600 2,900

Switzerland 2,100 2,600

Australia 1,400 1,600

Sweden 1,300 1,650

Japan 1,300 1,450

Exhibit 1: Country-wise Estimated Organic Market Size

Source: Industry Sources

THE GLOBAL ORGANIC FOOD MARKET: Estimated at USD 90 Bn in 2015, the global organic food market has been growing at a CAGR of around 12% for last 14 years. Europe and North America together generate about 90% of the global organic food sales. Amongst the well-established organic markets, USA, Switzerland, Sweden and Norway have witnessed double digit growths in the recent years.

2. Organic Food Market: Global and Indian Scenario

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Category – Beverages

Fruit/Vegetable Juice 1,500

Coffee 1,100

Non Cola Carbonates 320

Herbal Tea 280

Green Tea 240

Black Tea 200

Source: Industry Sources

The organic packaged food and beverage products category occupies around 40-50% of the total global organic food market with an estimated market size of around USD 38-40 Bn (2015).

GLOBAL EXPORT/ IMPORT SNAPSHOT: Global trade in organic products is growing. Export and import data is not universally tracked, however, a snapshot of the latest trends which indicates a positive outlook for exports from India and Sikkim is captured below:

a) USA imported organic food amounting to nearly USD 1.3 Bn in 2014. The key imported commodities included coffee, soybean, olive oil, bananas, wine and honey. Commodities like coffee, bananas, wine and mangoes have seen a significant downfall in the import value, while the import value of soybean, ginger, almonds and apples have significantly increased since 2011. India has been a major exporter for tea, rice, ginger and soybean.

b) EU, the second largest market for organic products, majorly imports from 11 countries including Australia, New Zealand, Argentina, Costa Rica, India, Israel, Tunisia, Switzerland, USA, Canada and Japan. Germany is heavily dependent on imports of dairy products, cereals, fruits & vegetable, soybean etc. France is EU’s second largest market for organic food and roughly 25% of the entire consumed organic food is imported. The key imported products include dairy products, fruits and vegetables - both fresh & processed, meat, eggs & beverages. Italy is the fourth largest market for organic food in the EU and imported products include soybean, wheat, rice, sugar, maize, tea, coffee, nuts etc.

Organic Scenario in India: The latest estimates by APEDA indicate that the total area under organic cultivation in India including wild area is close to 4.9 Mn hectares (2014-15) of this, the certified farm area is only 24 % or 1.18 Mn ha while 76% or 3.7 Mn ha is wild collection area. Sikkim, with 0.08 Mn ha of organic area, contributes around 1.6% to the total organic area.

Projections indicate that by 2025, the Indian Organic food business can be worth ` 75,000 crore, a manifold growth from the current level, if the Industry can develop both export & domestic markets. It is estimated that it will generate ` 12,500 crore income per annum for farmers, impacting about 5 Mn farming families across about 6 Mn ha. Another 1 Mn jobs can get created in rural and semi urban areas. India can also earn valuable foreign exchange of ` 50,000 crores per annum.

ORGANIC EXPORTS FROM INDIA & DOMESTIC MARKET: India exported 0.29 Mn MT of organic products worth USD 327 Mn in 2014-15, a growth of 49% from previous year. However, India has a meagre share of around 0.5% in the global market of USD 90 Bn. The major share of exports was oil

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4RGANIC

FOOD EXPORT FROM SIKKIMPerspective, Priorities & Way Forward

seeds, cereals and millets, and processed foods with a combined share of around 87%. In the oilseeds category, soybean with exports of 1.46 lakh MT during 2014 - 15 had a share of around 91%. In cereals and millets, category, rice, maize, wheat and millets are being exported. In rice, the quantity of basmati rice exported was around 10,300 MT.

The organized domestic certified organic market is estimated between ` 250 to ` 300 crores. While the unregulated domestic ‘unorganized uncertified-unmonitored’ organic market size is guesstimated to be ranging between ` 300 to ` 500 crores. Total domestic market size estimates range widely from ` 500 crores to ` 1,000 crores.

Category Volume (MT) Major Destinations

Oil Seeds & Crops 1,60,559 USA, Canada, European Union

Cereals & millets 63,622 Canada, European Union, USA

Processed Foods 23,626 European Union, USA, Canada

Sugar Crops 19,450 European Union, USA

Tea 5,488 European Union, USA, Japan

Pulses 2,547 USA, Canada, European Union

Dry Fruits 2,417 USA, European Union, Canada

Spices & Condiments 2,403 USA, European Union, Switzer-land

Medicinal, Aromatic and Herbal Products 1,223 European Union, USA, Australia

Coffee 1,214 European Union

Essential & Aromatic Oils 866 USA, European Union, Japan

Fiber Crops 397 Turkey

Tuber Crops 139 USA, European Union

Edible oils 130 Switzerland, USA, European Union

Fruits 124 USA, European Union

Vegetables 109 Canada, European Union, USA

Ornamental Plants & Flowers 78 USA

Plantation Crops (other than Tea & coffee) 32 European Union

Honey 18 Australia, USA, Malaysia

Others 1,165 European Union, USA, New Zealand

Total 2,85,608

Exhibit 3: Organic Exports from India

The Indian organic products are majorly exported to USA, European Union, Canada, Switzerland and Israel with a (combined share of 99%). In terms of value the key destinations include USA, European Union, Canada, Switzerland, and Japan have a (combines share of 97%).

Source : APEDA

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5RGANIC

FOOD EXPORT FROM SIKKIMPerspective, Priorities & Way Forward

Herbs & Aromatic plants Fruits Vegetables Others

• Lemongrass• Vanilla• Palmarosa• Basil

• Oranges• Passion Fruit• Sea buckthorns• Kiwi• Avocado• Stone Fruits

• Chillies (Sikkimese Cherry & Naga)• Celery & other green vegetables

• Quinoa• Ragi• Nursery plants• Medicinal plants

PERCEPTION ABOUT SIKKIM BY ORGANIC INDUSTRY

a. As per the results of interaction done with the key players in the organic industry, around 66% are willing to consider Sikkim as an organic sourcing hub for domestic and export markets. They are willing to procure products from Sikkim due to high organic integrity, give the fact that the universal organic eco-system reduces the chance of contamination from external environment.

b. 55% of organic industry respondents are willing to procure from Sikkim to export globally. High value products such as ginger flakes, ginger oil, and oleoresins are much sought after products internationally. Products from Sikkim are perceived to be of premium quality and are in much demand in the EU and USA.

e. Relaxation in land related laws, better road connectivity and sizeable quantity on time are the key expectations from Sikkim.

f. Few reasons hindering investment in Sikkim are: high procurement cost, logistic infrastructure, inadequate trade-able quantity and high lead time to receive the consignment.

3. Industry’s Perspective of Sikkim

Sikkim is entirlyOrganic

Organic Integrity

Food Safety

c. Easy availability, contract farming possibilities, relevant govt. schemes, right price and quantity, efficiency in cost of operation-sourcing are factors necessary to make Sikkim attractive to organic companies.

d. Interest levels in sourcing products available from Sikkim is as follows:

High Medium Low

• Ginger• Turmeric• Buckwheat• Large Cardamom• Honey• Temi Tea

Fruits Vegetables

Other products which the exporters feel can be developed from Sikkim are:

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6RGANIC

FOOD EXPORT FROM SIKKIMPerspective, Priorities & Way Forward

I. Crops Focus: Primary analysis from multiple dimensions of government/ experts’ opinion reveals Ginger, Tea, Turmeric, Cardamom, Buckwheat and Honey as the crops that Sikkim can focus on, immediately for exports.

Ginger Turmeric Large Cardamom

Temi TeaBuckwheat Honey

Dried Ginger Powder, Oil,

Candies, Flakes,

Oleoresin

Curcumin Dried

Powder, Oil Flakes,

Oleoresin

Cardamom Oil, Powder, Oleoresins

Buckwheat Powder

Processed Flavored & Wild Honey

Black Tea Green Tea Herbal Tea

Blends

4. Strategic Direction for Crop Focus

Sikkim, the cleanest state of India, nestled in the Himalayas and endowed with exceptional natural resources, is a part of a global bio-diversity hotspot. The unique terrain, climate and biogeography of the state have resulted in the sustenance of varied eco-zones in close proximity. The harmonious presence of several ethnic groups having their distinct identity and practicing traditional livelihood adds to the treasure house of knowledge related to this biodiversity.

In many aspects, the state has been a leader in the environment sector, having not only successfully pioneered nature conservation polices, but also implementing them successfully. Sikkim started the journey to be the first organic state in year 2003. In January 2016, approximately 76,000 hectares of Sikkim’s cultivated land was certified as fully organic. Sikkim has all the elements of a natural organic agro production system along with a progressive population, a vibrant tourist economy and a stable and enlightened political leadership.

Despite being a fully organic state, Sikkim faces various challenges in terms of marketing of organic produce. The sector is also constrained by low productivity, high input cost, lack of post-harvest infrastructure and improper market access. The dependence on Siliguri market leads to mingling of produce with conventional commodities and hence no organic premium is fetched. One of the foremost requirements for the state is to develop a crop focus (identify crops that are in surplus, have high value and international & domestic demand) and a proper marketing channel for its premium organic produce, so that the benefits can trickle down to the grassroot level.

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7RGANIC

FOOD EXPORT FROM SIKKIMPerspective, Priorities & Way Forward

S. No Category Product Name CountryQuantity (MT)

Estimated Value (in ` Lakh)

1 Tea Tulsi Tea Blend, Vata, Pitta, Spice Mix, Black Tea, Green Tea, White Tea, Specialty Tea, Caramel Tea etc.

USA, European Union, Australia, Canada, Japan, Kenya, China, Hong Kong, Malaysia, Mauritius, New Zealand, Korea, Thailand, Taiwan, UAE, Ukraine

5,488 21,950

2 TurmericPowder, Dried, Fingers, TBC, Fresh, Extract, Capsule

USA, EU, Switzerland, Canada, Australia, Korea, Taiwan, Malaysia, New Zealand, Turkey, Israel, UAE, Japan, Mauritius.

679 1,400

3 Ginger

Sliced (Dried) USA, Canada, Japan, EU 294 765

TBC USA, Australia, EU, Switzerland 60 285

Flakes USA, EU, Egypt 60 160

PowderUSA, EU, Switzerland, Canada, New Zealand, Australia, Turkey, Singapore

45 90

Whole/Fresh Australia, EU 10 10

Extracts USA EU 0.2 10

4 Honey Wild Honey, Raw Honey, Processed wild/Forest Honey

Australia, USA, Malaysia, Canada, UAE, Mauritius

18 90

5 Cardamom L. Cardamom USA 0.01 0.2

Exhibit 4: Export of Shortlisted Products from India (Organic)

Source: APEDA, YES BANK & Ingenus analysis

India currently exports minuscule quantities of the shortlisted organic products which includes around 5,488 MT of Tea, 475 MT of Ginger, 700 MT of Turmeric, 18 MT of Honey and 0.01 MT of Cardamom. All these products however have large conventional trade in the world and India has had a competitive advantage and position here historically. An analysis of this trade throws light on a very promising scenario.

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8RGANIC

FOOD EXPORT FROM SIKKIMPerspective, Priorities & Way Forward

Ginger Value (USD Mn)Volume (‘000 MT)

Japan 104 57

USA 104 70

Netherland 68 45

Pakistan 64 89

UAE 43 38

Bangladesh 43 61

Saudi Arabia 34 34

United Kingdom 30 20

Germany 28 11

Malaysia 24 30

CardamomValue (USD Mn)

Volume (‘000 MT)

Saudi Arabia 122 11

United Arab Emirates 89 11

India 54 4

Bangladesh 17 3

Singapore 12 1

Pakistan 11 3

Kuwait 10 1

United States of America

9 1

Syrian Arab Republic 8 2

Jordan 8 1

Exhibit 5: Top Importers of Conventional Commodities in the World

TurmericValue (USD Mn)

Volume (‘000 MT)

United States of America

24 6

India 20 14

Iran 16 12

Japan 10 5

Malaysia 10 7

United Arab Emirates 9 7

United Kingdom 8 4

Sri Lanka 7 5

Germany 7 3

Netherlands 5 3

Natural Honey Value (USD Mn)Volume (‘000 MT)

United States of America

605 175

Germany 325 87

United Kingdom 131 42

France 128 33

Japan 118 36

Belgium 90 32

Italy 85 24

China 75 77

Spain 73 31

Saudi Arabia 56 15

Buckwheat Value (USD Mn)Volume (‘000 MT)

Japan 43 55

Spain 11 16

Italy 9 14

France 8 13

United States of America

7 8

Lithuania 7 16

Poland 6 12

Germany 3 4

Netherlands 3 4

Ukraine 2 6

Tea Value (USD Mn)Volume (‘000 MT)

Russian Federation

638 173

United States of America

468 130

Pakistan 458 165

United Kingdom 401 135

Egypt 290 88

Saudi Arabia 254 37

Iran 254 59

Germany 222 57

Morocco 197 66

Kenya 175 96

Source: International Trade Centre

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9RGANIC

FOOD EXPORT FROM SIKKIMPerspective, Priorities & Way Forward

Relative Importance of Crops for Sikkim: A deeper study and analysis of major crops of Sikkim was done across five important parameters- a) Production Quantity b) Productivity c) Expert’s Rating of Exportability d) International Demand Trade Trends e) Turnover Value

Considering these factors, an overall ranking of relative importance of crops for Sikkim was arrived at.

Crop Final Ranking

Cumulative Production Productivity Expert Rating

Intnl Demand/Trade

Turnover

10% 10% 30% 25% 25%

Ginger 1 1.5 3 1 1 1 2

Cardamom 2 3.8 8 9 2 5 1

Mandarin Orange 3 4.3 4 6 5 4 3

Turmeric 4 4.4 7 5 3 2 7

Potato 5 5.0 2 2 7 6 4

Buckwheat 6 5.7 9 8 4 3 8

Maize 7 7.0 1 7 9 9 5

Vegetables 8 7.1 5 4 9 8 6

Pea 9 7.3 6 3 8 7 9

Source: YES BANK & Ingenus analysis

Exhibit 6: Overall Ranking of Relative Importance of Crops for Sikkim

Other than the crops identified above, mandarin orange, seed potato and vegetables are economically important crops with a good production base. The state government needs to give attention to these crops.

II. Need for Economic Impact Analysis: Agriculture planning in Sikkim is currently being done primarily on production base and acreage. Most of the current assessment and future projections reflects this perspective. However, the economic impact on the state is an essential aspect of planning for Sikkim’s future. A preliminary analysis of the current impact of the crops on Sikkim’s economy is very revealing.

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Crop Area (in Ha) Production (MT)Annual Turnover

in ` Cr

Cardamom 16,010 3,842 230

Ginger 9,250 51,568 103

Sikkim Mandarin 9,457 16,850 67

Seed Potato 5,300 23,982 36

Offseason Vegetables 5,762 5,292 9

Turmeric 1,300 4,680 7

Buckwheat 3,560 3,380 6

Pea including seed pea 1,995 9,147 6

Flowers (no. in Lakhs) 67 217 3

Source: Sikkim Organic Mission, YES BANK & Ingenus analysis

Exhibit 7: Annual Turnover of Key Crops of Sikkim

Sikkim Mandarin14%

Seed Potato8%

Offseason Vegetables

2%Turmeric

2%

Buckwheat1%

Pea including seed pea1%

Flowers 1%

Relative Economic Importance of Crops in Sikkim( Aprx. ` 470 Cr)

Ginger 22%

Cardamom49%

Source: Sikkim Organic Mission, YES BANK & Ingenus analysis

Exhibit 8: Relative Economic Importance of Crops in Sikkim

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The government should consider its targets as well as investments in terms of economic impact to the state instead of acreage-production.

85% of the state’s turnover comes from just three crops-Cardamom, Ginger and Sikkim Mandarin, however, the budget is allocated across the commodities, without any specific focus on these major crops. Sikkim government should rationalize its budgetary allocations according to the present and future economic assessment. Based on the gross economic return, the policy makers should allocate the budget. The emphasis and apportioning of future investments and outlay will have to be based on future value projections and value contribution. This is a pragmatic necessity for Sikkim.

III. Sikkim needs to look at new segments that are unique to it

1. Developing consumer products that can be exported directly: Herbal teas with infusion of medicinal and aromatic plants and flowers that are unique to Sikkim could be a beginning point. This segment is a high value growth segment in the EU as well as other developed organic markets. The presence of Temi Tea can be used advantageously to initiate this.

2. Special spice mixes/designer herbal products: Sikkim has large cardamom, ginger, turmeric and other spices available locally. This is to be taken advantage of and exported after careful customization and manufacturing of products. The product concepts need stringent testing and branding measures. Similarly, herbs and aromatics ethnic to Sikkim need to be checked, tested and made into usable products. Both of these products have ready markets abroad but need a lot of product development, branding and marketing.

3. New crops: High value crops other than traditional crops need to be introduced and developed in a planned manner.

Some of these may include:

• High value Medicinal and Aromatic Plants (HMAPs): Some of the identified high value Medicinal and Aromatic Plants in the high altitude region of Himalayas include Kuth (Saussurea costus), Kutki (Picrorhiza kurrooa), Atees (Aconitum heterophyllum), Jatamansi (Nardostachys jatamansi), Buch (Acorus calamus), and Chiraita (Swertia chirayita)

• Tree Crops for difficult terrain- tree nuts like mountain hazelnuts have a good export demand. (Bhutan has a very successful program with a private company planting hazelnuts which is a high value ingredient for products like nutella)

• High value niche seasonal vegetables need to be specifically looked at for high value Korean and Japanese markets looking for organic produce from reliable sources.

IV. Sikkim’s Route To Prosperity:

Sikkim’s agricultural route to prosperity currently makes the following assumptions:

a. Getting a better price for the output through an organic premium. It is expected the farmers will receive about 20% - 30% higher price than what they get for conventional produce. This premium will impact large number of farmers of the state. It is envisaged that organic companies shall procure organic products from Sikkim. However, currently the quantities produced are not enough to meet the local and domestic demand.

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b. Farmer Producer Companies (FPC) are being formed with an expectation that they will collectively ensure primary processing of the raw material which will not only add value but also be economically viable for transportation which is currently a hurdle. They are also expected to market the produce. Supporting primary processing is a great step but putting it in the hands of FPC is an economic model that is a work in progress.

Sikkim’s farm produce needs right buyers. Therefore, Sikkim needs to work its way around and beyond these assumptions and encourage the private sector/companies to come in. Private companies have a direct experience of selling the product to the buyers and consumers. They also have a perfect understanding of the customer dynamics and marketing process, thus it is imperative that Sikkim government encourages and fosters the private enterprise in its organic sector if the farmer production has to be bought with an organic premium. If not, there will be no alternative for the farmer other than to sell his organic produce in the conventional commodity market till such a time the FPC’s succeed. Companies today are a reality of the market; their sustained long term participation in Sikkim is imperative. The farmer and value chains have to be anchored by private companies; so that they operate as per the market needs. This is the model that has ushered agriculture prosperity in pockets in India and one that works. (Example - seeds production systems - gherkins - pepsico - ITC tobacco - many others). Organic companies have international links with the global market as well as a domestic market position.

The short term projections for the shortlisted focus crops, in terms of quantity, value-added products, processing capacity required to be developed is as follows:

GINGER:

The low average yields of current varieties, poor agronomic practices and lack of processing, storage and handling are the major value chain gaps in ginger. The lack of market for organic produce follows from the above apart from non-linkage with buyers. The preliminary projections for value-added products and capacity building for Sikkim is as follows:

Products Contribution Quantity (MT) Unit Value (`) Value (Lakh `)

Recovery in (%) 2020 2025 2015 2020 2025 2015 2020 2025 2015 2020 2025

Ginger Fresh 50% 30% 26,815 16,733 25 35 6,704 5,856

Ginger Dried (35%) 20% 30% 3,754 5,856 105 110 3,942 6,442

Ginger Oil (2.8%) 10% 20% 150 312 1700 1800 2,553 5,622

Other (Candy) (60%) 20% 20% 6,436 6,693 200 220 12,871 14,725

Total 53,631 55,776 26,070 32,646

Exhibit 9: Preliminary Projections for Value-added Products and Capacity Building for Ginger

Source: YES BANK & Ingenus analysis

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LARGE CARDAMOM:

Products Contribution Quantity (MT) Unit Value (`) Value (Lakh `)

Recovery in (%) 2020 2025 2015 2020 2025 2015 2020 2025 2015 2020 2025

Essential Oil (2.5%) 20% 30% 20 31 16,00 1,700 320 530

Capsules (Whole) 80% 70% 3,197 2,909 800 900 25,572 26,180

Total 3,842 3,996 4,156 600 23,052 25,892 26,710

The biggest value chain gaps in cardamom are the traditional method of curing using local kilns apart from poor genetic material. Part of the large cardamom produced is auctioned through the conventional method and part of it is sold outside the state. The preliminary projections for value-added products and capacity building for Sikkim is as follows:

Exhibit 10: Preliminary Projections for Value-added Products and Capacity Building for Large Cardamom

Source: YES BANK & Ingenus analysis

Negligible area of ~ 1,300 ha under the crop is the largest shortcoming for this crop. It has one of the largest value potential if curcumin extraction can be successfully implemented. The poor average curcumin yields of current varieties, poor agronomic practices and lack of processing, storage and handling are the other major value chain gaps for turmeric. The lack of a market for organic produce follows from the above apart from the negligible acreage in the crop. Lackadong and other ICAR selections (eg Megha-1) have good adaptability here.

TURMERIC:

The preliminary projections for value-added products for modest target of 5,000 ha and capacity building for Sikkim is as follows:

(A target of 10,000 to 15,000 acres replacing other non-remunerative crops is warranted)

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Products Contribution Quantity (MT) Unit Value (`) Value (Lakh `)

Recovery in (%) 2020 2025 2015 2020 2025 2015 2020 2025 2015 2020 2025

Turmeric Dried (30%) 50% 40% 1,053 1,264 60 65 632 821

Turmeric Powder (30%)

30% 30% 632 948 75 80 474 758

Turmeric Oil (8%) 20% 30% 112 253 4,000 4,500 4,493 11,372

Total 4,680 7,020 10,530 16 749 5,598 12,952

Exhibit 11: Preliminary Projections for Value-added Products and Capacity Building for Turmeric

Source: YES BANK & Ingenus analysis

The reduction in acreage, lack of processing, storage and handling are the major value chain gaps in buckwheat. The lack of a market for organic produce follows from the above apart from non-linkage with buyers. The preliminary projections for value-added products and capacity building for Sikkim is as follows:

Projections for buckwheat and value-added products for ~ 6,000 ha are as follows:

BUCKWHEAT:

Products Contribution Quantity (MT) Unit Value (`) Value (Lakh `)

Years 2020 2025 2015 2020 2025 2015 2020 2025 2015 2020 2025

Whole 50% 50% 1,757 1,828 30 40 527 731

Powder 50% 50% 1,757 1,828 70 80 1,230 1,462

Total 3,380 3,515 3,655 20 676 1,758 2,193

Exhibit 12: Preliminary Projections for Value-added Products and Capacity Building for Buckwheat

Source: YES BANK & Ingenus analysis

Projections for turmeric and other value-added products:

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This is an undeveloped product in Sikkim. A large forest area with rich biodiversity (having medicinal and aromatic species in abundance) surrounding most farms, a pristine environment, and organic farming makes honey a very attractive proposition for exports.

The complete lack of organization of this sector right from the basics and negligible production is the current limitation. The organic industry suggested that a honey action plan after commissioning a focused study is required as the returns could be immediate.

Very preliminary projections for capacity building for different types of honey are as follows:

TEA:

Products Contribution Unit Value (`) Value (Lakh `)

Years 2015 2020 2025 2015 2020 2025 2015 2020 2025

Organic flavored and wild honey

252 500 800 40 60 70 101 300 560

Total 252 500 800 101 300 560

HONEY:

Temi tea is a big export prospect as the tea is already recognized to be of very high quality. Herbal teas of different kinds of specific Sikkim origin apart from specialty herbs of indigenous Sikkim origin have good potential here. India already has a competitive position in the global market and getting a place for Sikkim organic tea is not a problem. A separate branding and product strategy for this category can give immediate returns unlike other crops. Honey and Tea are two products that can be at the final stages of value addition- consumer product stage unlike ingredient supply in other crops.

Exhibit 13: Preliminary Projections for Value-added Products and Capacity Building for Honey

Source: YES BANK & Ingenus analysis

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Sikkim 2025: Way Forward- Sikkim has inherent advantages of being 100% organic state with high organic integrity and legal barriers to non-organic contamination. But the current strategy of focusiing on ‘low-volume high-value’ crops and marginal value addition-processing is a very small step-up in delivering an actual economic impact to the state. The value-addition strategy of current crops like cardamom, ginger, turmeric and others have an overall cottage industry philosophy behind them. Undoubtedly a large number of farmers will stand to benefit in terms of increasing their incomes from current levels. But overall, it is unlikely to increase the revenue of the state from current ` 500 crores to more than ` 650 crores considering a value-addition of 30% till 2025. A very optimistic projection could mean no more than 50% increase.

Limitations of this strategy are:

1. Due to restricted availability of land, only marginal increase in acreage is possible. There will always be an upper ceiling on the gross returns because of this.

2. FPCs are expected to run the business; however, without required competence which FPCs don’t possess today, the experiment may be compromised.

3. Sikkim produce is good, but quantities are small and more expensive than other locations within India even at the farm gate.

4. Organic companies with competence have limited motivation to put up establishments with the kind of business Sikkim can provide today with the above strategy.

After great deliberation and studying limitations and the uniqueness of Sikkim, and the trends worldwide, we recommend following ways ahead. These require a significant change in thinking on the part of Sikkim establishment.

1. Establishing Autonomous Organic-Industry-Empowered Food Park.

The large Organic companies / exporters which can make a difference to Sikkim are mostly based in Delhi, Mumbai, Hyderabad and other metro cities with their established supply chains in the surrounding states. Our survey reveals that on date, and in the near future, the private companies at best will send buyers to Sikkim to purchase organic produce. To them Sikkim is just another source of procuring raw material. Their interest in the state is unlikely to be a continuous commitment. Therefore, we strongly recommend that the Sikkim Government encourages creation of a specialty organic food park with organic-customized infrastructure, so that it can serve as a magnet and a hub for organic companies, to set their base and operate in a conducive environment. This organic food park requires a different kind of specialized storage, handing and processing and may require large investments.

Three distinct inputs would be needed to run such an organic food park

1. Specialized knowledge of not only needs of companies and exporters but also how to use it

2. Specialized infrastructure for organic which is known by private companies with extensive experience in the field.

3. Ability to implement and execute the organic process through this park/infrastructure/facility.

5. Recommendations

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These three are specialized jobs which can be best performed by the private sector.

The Association of Organic Industries can be invited to set up an SPV along with the Sikkim government to run this food park. Invested by the govt and run by the SPV. Since AIOI members contribute over two third of India’s organic food exports, they are competent to carry out this job. Having said that the private companies can implement and set up this, the next issue is who will initiate the process, and get them to invest here. This is also a specialized need and we recommend that YES BANK and Ingenus with their expertise and network in the Organic field (at national and international level) should be retained by the Sikkim government to coordinate the process of attracting private companies and setting up the organic food park.

This will usher in many things, companies will establish contract farming, ensure organic economic activity, give business to FPC’s and also introduce crops that the market needs. This will be the magnet that can attract global companies to find Sikkim meaningful.

2. High-tech Agriculture

Sikkim’s livelihoods come from farmers with small land holdings. Most of Sikkim’s youth today is disinterested in agriculture and seeking prospects in white collared jobs. This is natural and could continue if the incomes from agriculture are not substantial. The answer thus lies in reinstating the state’s interest in agriculture by providing Sikkim’s people both increased income from agriculture and jobs in high tech agribusiness companies.

High tech agriculture is complex and capital intensive. It can be run by sophisticated companies adept at the particular business. To this end, Sikkim could invite both Indian and multinational companie/ global leaders to set up their base in Sikkim and pursue high tech agriculture and allied contract farming and become a global organic production base for select commodities.

The impact to Sikkim can be dramatic. Agriculture economic outcome can become ` 1,000 to ` 2,000 crores by 2025-30 as against ` 650 to 750 crores with the current strategy being implemented.

These companies will not only deliver dramatically higher yields, but also start working on new crops to suit their marketing interests thus opening up new possibilities in Sikkim.

In a land-scarce state like Sikkim, productivity is the only route forward to make its agro-economy paying.

The private players will have a special interest in operating in Sikkim because it is a 100% Organic state. The know-how and ultra-modern high tech agri practices brought in will revolutionize Sikkim’s overall agro economy. This will lead to industrial growth for which high tech agriculture and processing units will only be the stimulus.

The 100% organic vision of the Chief Minister and the political leadership is not an end yet; it has just set a stage and created a launch pad for greater things to come. Sikkim is already a ready-to-use location for the international business community because of its covetous 100% organic reality. If Sikkim can prepare itself to be “host and a mega facilitator” for high-tech organic agriculture, it can achieve the dramatic ` 3,000 plus crore turnover and take the vision to its logical conclusion.

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Sikkim has 3 special features why a high tech agri-system is conducive and can be set up advantageously:

1. Varied agro-climatic zones in a small geography to cater to multiple products with minimum energy usage. (Companies look for optimal climatic conditions for cutting energy costs). For example in blue berry specialized industry for instance High Chill, Medium Chill, Low Chill and No-Chill berries can all be grown in a compact geography being marketed in different time windows.

2. Sikkim has an advantageous hydropower situation which is a critical competitive advantage for this industry

3. High level of literate population looking for jobs

Some strategic pointers for setting up a very high value-high tech agri system for Sikkim’s global exports and major Indian Metro Markets:

1. Global greenhouse companies understand that organic is a very high value niche fast growing segment, a 100% organic ecosystem is a dream come true for them.

2. All of them state “there is a huge unmet demand for organic fruits & vegetables”.

3. Sikkim can have potential revenue of USD 150 Mn or about ` 1,000 crores from about under 900 ha with a medium tech system. This is achievable for Sikkim; Mexico has been increasing 1,200 ha under greenhouses every year to meet export demand!

4. Sikkim needs to revisit it’s NHB policy driven green house plan, which supports subsidizing small green houses. The global experience has been over 50% of small enterprises (under 1,000 meters) have abandoned greenhouses for four basic reasons

• Lack of knowledge from planning to investment and production under new growing environments

• Insufficient size to make the operation profitable and investments for improvement in necessary quality.

• Lack of market and ability to shift production reacting to market conditions in time

• Absence of professional management in many departments.

5. The route therefore is greenhouse high tech companies growing organic produce like it is being done in Mexico, African countries and many countries worldwide. Small farmers can also supply to the companies but the large companies will essentially anchor this industry and growth.

6. A single company Driscoll’s Australia is an illustration, which has been hugely successful, with a business growing to over AUD $ 100 Mn (USD 102.95 Mn) in Australia in less than three years, consisting mostly of blueberries and raspberries.

7. Sikkim can have a high-tech step-up organic agriculture plan over a time frame. Low-tech, mid-tech and high-tech, wherein the capital requirements, and investments can be planned.

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We suggest that a high level committee takes this forward with the Hon’ble Chief Minister chairing the same. Just as Sikkim took a huge leap in hydro power, it can do the same in high-tech agriculture.

3. Branding and Positioning of Sikkim Organic

Branding and Communication Plan

“Brand Organic Sikkim” is the state’s most important wealth, and therefore the task of Branding Sikkim state’s Organic sector is both critical and challenging. Sikkim is unique in being a 100% Organic state - this is a fact but is not necessarily a universal perception. To make “reality” match with “perception” is the task of branding and promotion.

Kerala is synonymous with Ayurveda, Assam is synonymous with Tea, but Sikkim currently is NOT synonymous with Organic. It is important to leverage the uniqueness of Sikkim fast and position it as INDIA’S CAPITAL OF ORGANIC. The first target of communication for INDIA’S CAPITAL OF ORGANIC campaign should be people in other states of India, and overseas, where there is extremely low awareness of Sikkim’s enviable achievement of being 100% Organic. The second target of communication/branding is the business community in India and overseas who should be attracted with COME TO INDIA’S ORGANIC HUB theme/message and the third target of communication/ branding is the citizens of Sikkim. They should be made to feel proud that they live in an “ALL ORGANIC STATE”.

The government announcements and notifications do not constitute branding efforts. A comprehensive Brand Personality/Identity/Communication plan needs to be charted out. Goals must be set for the Brand Sikkim & budget allotted in order to achieve awareness targets with different audience. An aggressive promotion strategy for Sikkim using a strong branding theme in all vehicles including trade

The high-tech agriculture for Sikkim needs to look at the following high value sectors with good potential and fit for Sikkim:

Niche Berries: Blueberry

Raspberry & Strawberry

Flowers-Orchids & Cut flowers

Organic Vegetables: High Value Tomatoes

Peppers, Exotics

Ornamental Plant

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fairs should be linked to Sikkim’s branding strategy. To act in tandem with the multimedia campaigns aimed at the three targets mentioned above, Sikkim government should undertake other initiatives such as establishing and promoting Organic Cafes and Restaurants and ORGANIC HOME STAYS, promotions through trade missions and business meetings, assistance in fairs, congresses and other events abroad.

Positioning Platforms for Sikkim Organic:

4. Sikkim Organic to Form a Part of Tourism Agenda

We strongly recommend that Organic is made a state-level treasure and used in tourism promotions. The tourists coming to Sikkim will be delighted to know that they can go on a responsible eating binge in Sikkim because it’s 100% Organic. This is a huge advantage which we feel is not being given enough emphasis and budgetary support.

A first step towards connecting tourism with organic is to organize home-stays, where people can live and feel the Sikkim experience.

The government through FPOs should design souvenirs and gift packs containing Sikkim’s organic produce –particularly spices, tea, honey etc. which people can carry back with them.

We feel a medium and long-term branding and promotion strategy is desirable to drive home the positioning statement and the financial and technical resources required need to be identified to implement the branding/ promotional strategy. The overall promotional program for the first five years, outlining activities, targets and cost estimates on a yearly basis should be put in place.

Of the above, we strongly recommend a shortlist of winning statements

• Sikkim… Vow Organic! Wow Organic!

• BraveOrganicWorld• World’sFirstOrganic

State• AnOrganicTributeTo

Mother Earth- Sikkim

An ALL Organic State

World’s First Organic State

Sikkim… Vow Organic! Wow Organic!

Talk Organic. Walk Organic.

Brave Organic World

Walking The Organic Talk

Nature Made Us Heirs To Organic

Kingdom

India’s Organic Capital.

Organic Kingdom For Nature’s

Citizens

360 Degrees Organic. Because

Life is Precious

An Organic Mother State.

On Mother Earth

An Organic Tribute To Mother Earth

Ingenus and YES BANK after several brainstorms and experts consulting have arrived at 12 positioning platforms for Sikkim which can meet the Sikkim’s objectives. At a generic level we recommend that Sikkim takes the 100% Organic route through any of the positioning platforms below after studying their impact.

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5. Establishing Marketing Infrastructure

1. Development of assembly points near crop producing area. Few recommended crop cluster for assembly points are following:

• West Sikkim: Mangalbaria, Chakung, Chumbung, Zoom, Tharpu, Malbansey, Gyalshing.

• South Sikkim: Turuk, Salghari, Sumbuk, Ratepani, Namthang, Mellidara, Maniram, Namchi, Tarku, Bermiok, Dong.

• East Sikkim: Rhenock, Rongli, Rorathang, Pakyong, Pachekhani, Pandam, Khamdong, Sirwani, Sang, Nazitam

• North Sikkim: Dzongu and Mangan

2. Development of collection centers at the following locations: Gyalshing(West Sikkim), Namchi(South Sikkim),Gangtok(East Sikkim), Mangan (North Sikkim). Each collection center to have facilities of Sorting, grading, cleaning, drying, weighing

3. Development of key nodes/terminal markets at Gangtok and Rang Po.

4. Establishment of e-Auction center for Ginger, Cardamom and other crops. This shall lead to lesser price volatility and better price realization for the produce.

6. Creation of Post Harvest Infrastructure

1. Establishment of NABL accredited food lab to check trace element and other contaminants needed as per the requirement of USDA & EU in order to tap the respective markets.

2. Establishment of Quarantine laboratory in order to meet the international standards

3. Processing unit for value-added products

• Ginger: Establishment of Ginger processing unit for value-added products such as dried ginger, ginger flakes. ginger powder &TBCs, extracts such as oleoresins and ginger oil, ginger candies, ginger pickles, ginger based beverages and squash

• Cardamom: Modern drying and curing as well as processing unit for cardamom & value-added products such as extracts i.e. oleoresins and essential oil.

• Turmeric: dried, powder, flakes, TBCs, oleoresins, curcumin.

• Buckwheat: whole, powder, rutin.

7. Input Support to Farmers

1. Establishment of vermi-compost, bio-fertilizer and bio-pesticide unit with required capacity to meet the internal demands of the farmers under the guidance and collaboration with National Center of Organic Farming (NCoF)

2. Better varieties of ginger, turmeric and cardamom need to be developed in consultation with ICAR institute and size board to increase the productivity and at the same time keeping the quality of indigenous variety intact.

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Timebound Actionables

Long Term

Short Term

Medium Term

1. Focus on Recommended Crop 2. Initiate branding and positioning of Sikkim3. Input Support to Farmers

1. Establishing Autonomous Organic-Industry-Empowered Food Park.

2. Sikkim Organic to Form a Part of Tourism Agenda

3. Marketing Infrastructure Creation 4. Creation of Post-Harvest Infrastructure5. Capacity Building

1. High-tech Agriculture

3. Modern nursery for developing better variety of crop and plant propagation.

4. Distribution of Honey bee boxes in the major flower cluster for easy pollination and collection of honey.

8. Capacity Building

1. Developing and strengthening FPCs/FPOs across Sikkim with help of NGOs/SOMs and other government bodies.

2. Trainings to FPCs/FPOs on business planning, marketing strategies and project implementation

3. Introduce mentorship of FPCs/FPOs by export houses, private companies and expert individuals

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YES BANK, India’s fifth largest private sector Bank with a pan India presence across all 29 states and 7 Union Territories of India, headquartered in the Lower Parel Innovation District (LPID) of Mumbai, is the outcome of the professional & entrepreneurial commitment of its Founder Rana Kapoor and its Top Management team, to establish a high quality, customer centric, service driven, private Indian Bank catering to the future businesses of India. YES BANK has adopted international best practices, the highest standards of service quality and operational excellence, and offers comprehensive banking and financial solutions to all its valued customers. YES BANK has a knowledge driven approach to banking, and offers a superior customer experience for its retail, corporate and emerging corporate banking clients. YES BANK is steadily evolving as the Professionals’ Bank of India with the long term mission of “Building the Finest Quality Bank of the World in India by 2020”.

As a part of its knowledge driven approach to banking, YES Institute, a new practicing think-tank is established as a division of YES BANK, focuses on India’s inclusive and green socio-economic development and growth. A specialized Food & Agribusiness Strategic Advisory & Research group (FASAR) is domiciled within the Institute. FASAR works with corporates, small & medium enterprises, multinationals, Central Government & State Governments, multilateral agencies across sectors such as dairy, agri inputs, food processing & food services, food parks, agri-infrastructure, logistics, agri supply chain and rural retail among others. The team executes project advisory, strategic advisory & policy advisory across the food and agri sector. FASAR also conducts in-depth research on various sub-sectors of Food & Agri domain and publishes knowledge reports and research papers on key trends and developments in the sector.

Mr. Kishore Rao & Raj Supe of Ingenus Strategy are niche Global & Indian Agri-Business Strategy Specialists, intricately involved with Organic business strategy for over a decade. They have had the privilege of conducting India’s first nationwide study on organic foods “The Market for Organic Foods in India – Consumer Perceptions & Potential” for ICCOA-FIBL- SOLIDARIDAD a decade back, as well as the very recent “Organic Sector Vision 2025. Identifying India Organic Food Export Priorities” along with Yes Bank, APEDA and AIOI.

Their other seminal work in the sector includes being appointed FAO’s India marketing consultant to study the acceptance of certification/labels/PGS concept from a market perspective and advice the way forward, Social Services Audit for major Organic Cotton projects in the country for Organic Exchange, and many focused individual studies for NGO’s as well as individual companies in Organic foods, right from farmers, consumer clubs to national marketing.

They have pioneered many national studies in Agriculture –Agri Business and worked on global projects with a number of leading Indian and Multinational firms. Internationally, Ingenus has been working with the Context Network, global leaders in Agri-Consulting for nearly two decades on varied in-depth business strategy issues for the Big Five as well as many smaller firms worldwide.

Page 37: Report - Organic Food... · It gives me great pleasure in being associated with this report prepared by YES BANK & Ingenus Strategy with assistance from APEDA. Sikkim is World’s

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Page 38: Report - Organic Food... · It gives me great pleasure in being associated with this report prepared by YES BANK & Ingenus Strategy with assistance from APEDA. Sikkim is World’s

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Page 39: Report - Organic Food... · It gives me great pleasure in being associated with this report prepared by YES BANK & Ingenus Strategy with assistance from APEDA. Sikkim is World’s
Page 40: Report - Organic Food... · It gives me great pleasure in being associated with this report prepared by YES BANK & Ingenus Strategy with assistance from APEDA. Sikkim is World’s