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PARLIAMENT of INDIA RAJYA SABHA Export of Organic Products REPORT NO. 150 PARLIAMENT OF INDIA RAJYA SABHA DEPARTMENT RELATED PARLIAMENTARY STANDING COMMITTEE ON COMMERCE ONE HUNDRED AND FIFTIETH REPORT Export of Organic Products: Challenges and Opportunities (Presented to the Rajya Sabha on 11th December, 2019) (Laid on the Table of Lok Sabha on 11th December, 2019) Rajya Sabha Secretariat, New Delhi December, 2019/ Agrahayana, 1941 (Saka) Website : http://rajyasabha.nic.in E-mail : [email protected] PARLIAMENT OF INDIA RAJYA SABHA DEPARTMENT RELATED PARLIAMENTARY STANDING COMMITTEE ON COMMERCE ONE HUNDRED AND FIFTIETH REPORT Export of Organic Products: Challenges and Opportunities (Presented to the Rajya Sabha on 11th December, 2019) (Laid on the Table of the Lok Sabha on 11th December, 2019) स配यमेव जयते Rajya Sabha Secretariat, New Delhi December, 2019/ Agrahayana, 1941 (Saka) CONTENTS PAGES 1. COMPOSITION OF THE COMMITTEE (i)-(iii) 2. INTRODUCTION (iv) 3. ACRONYMS (v)-(vii) 4. REPORT 1-36 5. RECOMMENDATIONS/OBSERVATIONS AT A GLANCE 37-51 *6. MINUTES -- 7. ANNEXURES/APPENDICES 52-58 ________________________________________________________________________ * To be appended at printing stage COMPOSITION OF THE COMMITTEE (Constituted w.e.f. 1st September, 2017) 1. Shri Naresh Gujral Chairman RAJYA SABHA &2. Shri Joy Abraham 3. Shrimati Roopa Ganguly 4. Shri Ram Kumar Kashyap 5. Shrimati Thota Seetharama Lakshmi @6. Shri Kiranmay Nanda 7. Shri Vayalar Ravi 8. Shri Kapil Sibal 9. Dr. Kanwar Deep Singh #10. Dr. Abhishek Manu Singhvi $11. Shri Sushil Kumar Gupta %12. Shri M.P. Veerendra Kumar LOK SABHA 13. Shri Dibyendu Adhikari 14. Shri Subhash Chandra Baheria 15. Shri Abhishek Banerjee 16. Shri Bodhsingh Bhagat 17. Shrimati Bijoya Chakravarty 18. Shri Jitendra Chaudhury 19. Shri Dushyant Chautala 20. Shri Chhotelal 21. Dr. Kambhampati Haribabu 22. Shrimati Kavitha Kalvakuntla 23. Shri Saumitra Khan 24. Shri Dhananjay Mahadik 25. Shri Thota Narasimham 26. Shri Kamal Nath 27. Shri Kamlesh Paswan 28. Shri K.R.P. Prabhakaran 29. Shri T. Radhakrishnan 30. Shri Janak Ram 31. Shri D. S. Rathod 32. Adv. Narendra Keshav Sawaikar 33. Shri Vinod Kumar Sonkar ________________________________________________________________________ @ Retirement w.e.f. 2nd April, 2018. # Retirement w.e.f. 3rd April, 2018. $ Nominated w.e.f. 2nd June, 2018. % Nominated w.e.f. 2nd June, 2018. & Retirement w.e.f. 1st July, 2018. (i) COMPOSITION OF THE COMMITTEE (Constituted w.e.f. 1st September, 2018) 1. Shri Naresh Gujral Chairman RAJYA SABHA 2. Shrimati Roopa Ganguly 3. Shri Sushil Kumar Gupta 4. Shri Ram Kumar Kashyap 5. Shri M.P. Veerendra Kumar #6. Shrimati Thota Seetharama Lakshmi 7. Shri Vayalar Ravi 8. Shri Kapil Sibal 9. Dr. Kanwar Deep Singh 10. Shri Rakesh Sinha $11. Shri Y. S. Chowdary LOK SABHA 12. Shri Dibyendu Adhikari 13. Shri Subhash Chandra Baheria 14. Shri Abhishek Banerjee 15. Shrimati Bijoya Chakravarty 16. Shri Jitendra Chaudhury 17. Shri Dushyant Chautala 18. Shrimati Kavitha Kalvakuntla 19. Dr. Hari Babu Kambhampati 20. Shri Nityanand Rai 21. Shri Dhananjay Bhimrao Mahadik 22. Shri Kamal Nath 23. Shri Kamlesh Paswan 24. Shri K.R.P. Prabakaran 25. Shri T. Radhakrishnan 26. Shri Dipsinh Shankarsinh Rathod 27. Shri Khan Saumitra 28. Advocate (Shri) Narendra Keshav Sawaikar 29. Shri Kirti Vardhan Singh 30. Shri Vinod Kumar Sonkar 31. Shri Narasimham Thota @32. Dr. Farooq Abdullah # Retired w.e.f. 3rd December, 2018 $ Nominated w.e.f. 3rd December, 2018 @ Nominated w.e.f. 19 th September, 2018. (ii) COMPOSITION OF THE COMMITTEE (Constituted w.e.f. 13th September, 2019) 1. Shri V. Vijayasai Reddy Chairman RAJYA SABHA 2. Shrimati Roopa Ganguly 3. Shri Sushil Kumar Gupta 4. Shri M.P. Veerendra Kumar 5. Shrimati Thota Seetharama Lakshmi 6. Shri Jugalsinh Mathurji Lokhandwala 7. Shri Om Prakash Mathur 8. Dr. K.V.P. Ramachandra Rao 9. Shri Vayalar Ravi 10. Dr. Kanwar Deep Singh LOK SABHA 11. Shri D. M. Kathir Anand 12. Shri Sukhbir Singh Badal 13. Shri Prasun Banerjee 14. Shri Rajkumar Chahar 15. Shri Arvind Dharmapuri 16. Shri Chandra Prakash Joshi 17. Shri Srinivas Kesineni 18. Shri Manoj Kishorbhai Kotak 19. Shri Ajay Kumar Mandal 20. Shrimati Manjulata Mandal 21. Shri Nakul K. Nath 22. Shri Hemant Patil 23. Shri Nama Nageshwar Rao 24. Shri Ashok Kumar Rawat 25. Shri Magunta Sreenivasulu Reddy 26. Shri K. Shanmuga Sundaram 27. Shri Gowdar Mallikarjunappa Siddeshwara 28. Dr. Amar Singh 29. Shri Atul Kumar Singh alias Atul Rai 30. Shri Shantanu Thakur 31. Shri Mansukhbhai Dhanjibhai Vasava SECRETARIAT Dr. P. P. K. Ramacharyulu, Secretary Shri Sunil Dutt Nautiyal, Joint Secretary Shri S. Jason, Director Shri S.C. Dixit, Additional Director Shri Kuldip Singh, Under Secretary Ms. Saraswati Saraf, Assistant Committee Officer ( iii ) INTRODUCTION I, the Chairman of the Department Related Parliamentary Standing Committee on Commerce, having been authorised by the Committee, present this One Hundred and Fiftieth Report on 'Export of Organic Products: Challenges and Opportunities'. 2. The Committee took up the subject for detailed examination on 2nd August, 2018 and the same was notified vide Parliamentary Bulletin Part-II dated 14th August, 2018. As a part of examination of the subject, the Committee considered the subject in detail in its seven meetings. The Committee heard the views of Secretaries of Department of Commerce (Ministry of Commerce and Industry), Department of Agriculture, Cooperation & Farmers' Welfare (Ministry of Agriculture & Farmers' Welfare), Ministry of Food Processing Industries and Ministry of Textiles. The Committee also had interaction with the representatives of National Centre of Organic Farming (NCOF), Federation of Indian Export Organisations (FIEO), Associated Chambers of Commerce and Industry of India (ASSOCHAM), Federation of Indian Chambers of Commerce and Industry (FICCI), Confederation of Indian Industry (CII), All India Food Processors' Association (AIFPA), Cotton Textiles Export Promotion Council (TEXPROCIL), Confederation of Indian Textile Industry (CITI), Central Institute for Cotton Research (CICR), Cotton Corporation of India (CCI) and Cotton Advisory Board (CAB). 3. The Committee undertook one study visit to Gangtok and Guwahati from 19th to 23rd November, 2018 on the subject. During the study visit, the Committee had meetings with various stakeholders and representatives of State Governments of Arunachal Pradesh, Assam, Meghalaya, Mizoram, Nagaland, Sikkim and Tripura. 4. The Committee considered the draft Report and adopted the same at its meeting held on 9th December, 2019. 5. The Committee expresses its sincere gratitude to the representatives of the Ministries/ Departments and the representatives of various organizations for placing before it the valuable suggestions, materials and information required in connection with the examination of the subject. NEW DELHI; V. VIJAYASAI REDDY 09 December, 2019 Chairman, Agrahayana 18, 1941 (Saka) Department Related Parliamentary Standing Committee on Commerce Rajya Sabha. (iv) ACRONYMS AEZ Agri Export Zones APEDA Agricultural and Processed Food Products Export Development Authority AROS Asia Regional Organic Standard ASEAN The Association of Southeast Asian Nations BCI Better Cotton Initiative Bt-Cotton Bacillus thuringiensis-Cotton CCI Cotton Corporation of India CISS Capital Investment Subsidy Scheme COF Certified Organic Fiber DGFT Directorate General of Foreign Trade EU European Union FCO Fertilizer Control Order FCT Fair Cotton Trade FIGs Farmers' Interest Groups FPCs Farmers' Producers Companies FPOs Farmers' Producers Organisations FSSAI Food Safety and Standards Authority of India FTDR Foreign Trade Development & Regulation Act GM Genetically Modified GMO Genetically Modified Organisms GOTS Global Organic Textile Standard GST Goods and Services Tax HS Harmonised System (v) ICAR Indian Council of Agricultural Research IFOAM International Federation of Organic Agricultural Movement IGNOU Indira Gandhi National Open University MIDH Mission for Integrated Development of Horticulture MoT Ministry of Textile MOVCDNER Mission Organic Value Chain Development for North Eastern Region MSP Minimum Support Price MT Metric Tonnes NAB National Accreditation Body NABARD National Bank of Agriculture and Rural Development NABL National Accreditation Board for Testing and Calibration Laboratories NCDC National Cooperative Development Corporation NCOF National Centre of Organic Farming NCOP National Council of Organic Programme NePOF Network Project on Organic Farming NGOs Non Governmental Organisations NHM National Horticulture Mission NMSA National Mission for Sustainable Agriculture NOFRI National Organic Farming Research NOP National Organic Program NPOF National Project on Organic Farming NPOP National Programme for Organic Production NSC National Steering Committee OCAB Organic Cotton Advisory Board (vi) OCS Organic Content Standard OPZ Organic Processing Zones PGS Participatory Guarantee System PKVY Paramparagat Krishi Vikas Yojana PSI Public Sector Institutions RCs Regional Councils RKVY Rastriya Krishi Vikas Yojana SAARC The South Asian Association for Regional Cooperation SHM Soil Health Management SSOCA State Organic Certification Agency USc US cent USD US Dollar USDA United States Department of Agriculture WTO World Trade Organisation (vii) REPORT INTRODUCTION 1.1 Organic Farming involves cultivation of plants, crops and rearing livestock in natural ways. It is a farming technique that makes the use of biological materials for growing and nurturing crops without utilizing synthetic based fertilizers and pesticides.
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