The worldwide recession has hit most industries. Yet, one industry that seems to have escaped it has been the Organic products industry in Uttar Pradesh. The units engaged in organic foods, especially, have been relatively safe from the downturn.
Organic foods are made according to certain production standards, meaning they are grown without the use of conventional pesticides and artificial fertilisers, free from contamination by human or industrial waste, and processed without ionising radiation or food additives.
The small and medium entrepreneurs in this field in Uttar Pradesh are happy, as the sales have remained steady., even though the products are offered at a premium. The SMEs and MSMEs units in the in sector say that the recession cannot hamper their growth. The quality experts , who certify the quality of the organic produce produce also exude a sense of optimism.
They say there is no reason for people to stop buying organic products. AK Srivastava, former director of Quality Control Institute, Lucknow University, says: “The retail chains established in all the big cities by various groups has given strength to this sector.”
In Lucknow alone, Organic India, a company in the field of Tulsi Tea and Indian Spices is launching new products almost every month. The company is expanding and has launched Tulsi Tea in different flavours, informed Krishan Gupta, the managing director and global CEO.
However, Gupta is of the opinion that everyone should not be allowed to use the brand organic and government must make a law in this regard. Till now only Agricultural & Processed Food Products Development Authority (APEDA) gives one such certification to the companies making organic products. According to Gupta, there are a number of small players in Uttar Pradesh who have been giving competition to his company, but it is the brand name and quality that makes Organic India a leader in the market.
Another major player in the field of organic products, Meghdoot too feels that recession will not affect their business. Meghdoot, which started as a SME in just one room, has now its branches in all the districts of Uttar Pradesh.
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Another company, Aaradhya Dev, a manufacturer of organic products of daily usage, is offering a package for the entire family for a month in just Rs 2,500. “Our package includes everything except green vegetable for a family of husband, wife and two children’, informed Harendra Yogi, the promoter of the company. “ We provide rice, pulses, mustard oil, wheat flour, ghee, dalia and spices for a month in this package, which is sufficient for a family of four members,” he added. Ajai Prakasha, an MBA faculty said as there has been no impact of recession on the FMCG manufacturers and same was the case with companies in the organic space.
“In fact during stress there could be more sale of organic products,” Prakash added. Gupta from Organic India added that that though there was a recession worldwide but even then the number of people using herbal tea of his company is growing. He said organic products have great potential in UP as well as outside this state. “There is a need to support and create awareness about such products,” said Gupta.