Organic Food Products in India

Pages: 9 (2941 words) Published: March 14, 2010
The decision to buy organic food products in India
Siddharth Narayanan, Soumya De,
Purpose – The purpose of this paper is to investigate the consumers’ decision-making process for purchase of organically produced foods in India Design/methodology/approach – Using already existing research model and scale, forming hypothesis, and testing its validity in Indian context. Using convenient sampling (Tier 1, 2 B school Graduates) to gather data for factor loading. Type of Research – Descriptive Research

Organic production system is a system that produces organic foods in harmony with nature and the environment. In other words, this is a unique system which ensures that the “best practices” in the area of production are utilized to ensure that the output is a healthy and safe apart from having a positive symbiotic effect with the environment. Thus, one can say in lay man’s terms that an organic food product is one that has been produced using only natural agents in the production process. For the vast majority of human history, food has been produced organically. It was only during the 20th century that new synthetic chemicals were introduced to the food supply. Under organic production process, the use of conventional non-organic pesticides, insecticides and herbicides is heavily regulated. In the case of livestock, they are reared without the routine use of antibiotics and growth hormones. Scenario in India

Organic foods are fast changing from a fad to a serious proposition in India. Today, the reach of organic foods is expanding to gradually find its way into the average Indian household. An indicative reason for the same is the rising health consciousness among Indian consumers. Pegged at Rupees 6.5 billion in 2010, the organic food market is witnessing the shift from being an elitist to a healthy product. Although production and consumption figures for organic food in India are way behind the world average, the market is now showing signs of a strong growth trend. Slowly the deterrent of high price is being out-weighed by nutrition, quality and a chance to shape a safe environment. The organic food products market has been continuously facing the issue of absence of recognizable brands, small range of products, high prices and faulty government policies and a general lack of retail presence which has translated to low demand in the domestic market. In spite of this industry players are optimistic about the future prospects, as they are of the opinion that this industry holds a lot of promise. The export industry remains undeveloped with most producers being either small or marginal farmers, small cooperatives or trade fair companies. The small farmers, scattered across the country, offer an incomplete product range that are mostly available as a local brand. This is especially an issue in developed countries where the shelves of an average supermarket is stocked with a large range of certified organic foods. Problem Statement

The question on everyone’s mind is where exactly is the organic food industry falling short? What are the main factors that influence a consumer’s decision to purchase organic foods? The fact of the matter is that this area has suffered from lack of interest/attention and a very low level of research. Thus, our Problem Statement is as follows “What influences the decision to buy organic food products in India?” Research objective

The purpose of this assignment is to understand the primary influencers that motivate our target study group of individuals belonging to the upper middle-class category in their decision to buy organic foods products in India. Since the students of the top B-Schools either belong to or will be a part of the aforementioned category and will be starting new families, they are part of core prospective customer segment for this market. Hence, we have decided to focus our research on them. Literature...

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