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How To Start Organic Farming in India

By Tata Capital
08 January 2026
10 mins read
2640

Sure, organic farming in India sounds like a hot trend today, but it is a practice adopted by Indians since time immemorial. Would you believe that the very first instances of this practice date back to no less than 10,000 years all the way to the Neolithic age. While this is a matter of history, even Indian mythology provides proof of organic farming in the Ramayana.

In the book of Ramayana, all dead things, including rotting corpses, garbage, etc., were returned to the Earth only to grow wholesome things that nourished life. Such was the prowess of organic farming in India.

The inorganic farming practices that encourage the use of pesticides, herbicides, hormones, antibiotics, and other such chemicals rip away several precious nutrients that should form a human diet. However, there is a soaring realisation to return to root farming practices once again.

So, if you plan to return to root farming by starting an organic farming business, congratulations. For starters, this is the right time to create an organic farming business, as the Indian market is ripe and ready to adopt organic produce, even if it means paying a tad extra.

How to Start an Organic Farming Business in India: Step-by-Step Guide

Starting organic farming in India can be daunting and can leave you with several questions. Where will I get funding? Which are the ideal sites for crop cultivation? Do I need any certification? If you’re dealing with such questions, our next section is bound to help you.

Here are the three things you need to know if you want to start an organic farming business in India.

1. Get certified

While organic farming in India for self-consumption requires no certification, starting an organic farming business does. You can apply for your organic farming certification at any testing centre accredited by the Agricultural and Processed Food Products Export Development Authority (APEDA).

Organic certification is an initiative to ensure the quality of your product and whether it is safe and fit for both domestic as well as international consumption. This certification ensures that organic farming businesses follow a set standard, ethics and guidelines.

Once you are certified, you can even export your farm’s produce to different countries around the world. Simply put, if you want your product’s packaging to read “100% organic”, you need to be certified.

2. Find funding

While certification comes cheap, the actual process of organic farming in India requires substantial investment. You need funds to purchase or lease a suitable plot of land if you don’t have one already.

Here is a rough breakdown of expenses other than land acquisition costs for organic agriculture in India.

Land prep costs – Rs 30,000 to Rs. 40,000
Planting costs – Rs. 20,000 to Rs. 30,000
Manures and organic fertilisers – Rs. 40,000 to Rs. 50,000
Irrigation = Rs. 3000 to Rs. 4000
Labour fees = Rs. 50,000 to Rs. 60,000 (depending on the state or province)
Miscellaneous expenses = Rs. 3000 to Rs. 4000 (you can also take this number as a small percentage of the total cost, like 5% or 6%)

Total (calculated as per the higher range figures) = Rs. 1,88,000

These approximations are for organic agriculture in India on a 1-acre land.

As you can see, you don’t require millions of rupees to start organic agriculture in India, but the amount is just right to apply for a business loan. Doing this will ensure you don’t dent your savings for starting your business.

3. Site selection

One of the most critical elements of organic agriculture in India is selecting a fertile plot of land. Here are the key things you must keep in mind while selecting a site for organic agriculture farming in India:

How far is a clean water source from the shortlisted site? A site too far might make it harder to deal with effective irrigation.
How far is your farmland from commercial districts and markets? A site too far will add to transportation costs, which will increase the price of your produce.
What do you want to grow? Suppose you want to farm green leafy vegetables. In this case, you must stay away from clay-like soil and opt for farming land rich in loamy soil.

Keep these factors in mind when selecting a site for organic-farming-related business in India.

Also, read – 5 Steps to Start a Transport Business in India

Market Potential and Profitability of Organic Farming in India

Since the need for organic farming in India is high, given its demand, you stand to book substantial profits. Let’s understand the market potential of this business with the following examples.

The farm gate price of a kilo of organic tomatoes is Rs. 15 (lower than usual). And the total production per acre equals 20 tonnes of tomato. So, your income per acre of organic tomatoes will be 20000×15= Rs. 3,00,000. This is more than your start-up cost, excluding the price paid for acquiring the farming land.

Talking about macro numbers. The Indian organic food market stood at a whopping US$ 849.5 million in 2020. It is further expected to grow by a staggering 20.5% between 2021 and 2026, reaching US$ 2601 million by 2026.

Top Organic Farming Methods and Techniques in India

Here is a quick summary of different techniques/types of organic farming in India.

#1 Soil Management: Recharging the soil after the cultivation of crops to restore nutrients is soil management. Organic farmers use good bacteria, animal waste and manure to manage soil post-cultivation and harvesting of crops.

#2 Crop Diversity: Another popular organic farming technique is to plant several different crops at once. Doing this helps meet the growing demands of crops.

#3 Biological Pest Control: Pests are a problem in any field. However, organic farms get rid of pests by using herbicides or pesticides that contain fewer chemicals or are completely natural. Doing this safeguards the produce from pests without coating them with chemicals.

Government Schemes and Subsidies for Organic Farming in India

The Indian government actively supports the growth of organic agriculture through several schemes and subsidies, making it easier for farmers to explore an organic farming business in India. One of the flagship initiatives is the Paramparagat Krishi Vikas Yojana (PKVY), which encourages cluster-based organic farming and provides financial assistance to farmers adopting sustainable practices.

Another significant program is the Mission Organic Value Chain Development for North Eastern Region (MOVCDNER), aimed at promoting certified organic cultivation of niche crops in the northeast.

Several state governments also offer tailored incentives. For instance, Kerala’s Haritha Keralam program provides up to ₹20,000 per acre for organic cultivation, while Maharashtra offers a similar subsidy of ₹20,000 per hectare annually for three years.

These schemes are especially useful for entrepreneurs planning an organic farming business plan, helping reduce initial investment risks. For those wondering how to start organic farming business, leveraging such subsidies can support production, certification, and marketing efforts. With the right guidance, these programs can help implement innovative organic farming business ideas and establish a profitable, sustainable venture.

Also, read – Plot & Construction Loan: Best Loan for Plot Purchase and Construction

Cost Breakdown: Setting Up an Organic Farm in India

Starting an organic farm may seem daunting, but with careful planning, costs can be managed effectively. A well-thought-out organic farming business plan helps you allocate resources efficiently, ensuring your venture is both sustainable and profitable.

Here’s a breakdown of organic farming setup cost in India when exploring how to start organic farming business:

Land Preparation and Soil Management: Investing in soil health is crucial for organic yields. Proper ploughing, composting, and soil testing ensure long-term fertility.
Seeds and Planting Material: Choosing certified organic seeds aligned with your crop strategy is essential for success.
Irrigation and Water Management: Efficient irrigation systems help conserve water while ensuring crops receive adequate moisture, reducing unnecessary expenses.
Organic Fertilizers and Nutrients: Targeted application prevents wastage, ensuring you only use what’s needed for healthy crop growth.
Pest and Disease Control: Implementing proactive organic pest management reduces losses and minimizes reactive expenditures.
Labor and Operational Costs: Skilled labour for planting, harvesting, and farm maintenance is a vital ongoing investment.

The above succinct breakdown of the organic farming setup cost in India helps you plan carefully and consider organic farming business ideas suited to your region. This way, entrepreneurs can successfully establish a thriving organic farming business in India without overspending.

Marketing Strategies for Organic Produce in India

Building a successful organic farming business in India goes beyond cultivation. It requires smart marketing to connect with conscious consumers.

Here are effective strategies to promote your organic produce:

Develop a strong brand identity: Highlight the purity, authenticity, and sustainable practices of your farming techniques. Consider sharing your journey, and dedication to build trust and loyalty.
Direct-to-consumer sales: Participate in farmers’ markets, organic stores, and local events to reach customers directly. This helps in establishing personal connections and gaining immediate feedback. This should be an integral part of your organic farming business plan.
Leverage digital platforms: Use social media to educate consumers about organic practices, seasonal produce, and health benefits.
Collaborate with businesses: Partner with restaurants, cafes, and supermarkets that value organic produce. This not only expands your reach but also reinforces your credibility.
Highlight product uniqueness: Promote specialty crops or niche offerings as part of your organic farming business ideas. Customers often look for distinct, high-quality organic products.

Even with careful planning of the organic farming setup cost in India, you need effective marketing to help ensure your venture grows sustainably while building a loyal customer base.

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Risks and Challenges in Organic Farming

Here are some common challenges associated with organic farming business plans:

Initial yield fluctuations: During the transition from conventional methods, soil takes time to adjust to chemical-free inputs, which may lead to temporarily lower productivity.
Complex certification process: Organic certification involves strict compliance, documentation, and inspections that can be time-consuming and vary across states.
Pest and disease management: Limited use of synthetic pesticides increases vulnerability to pests and crop diseases, requiring careful monitoring and natural control methods.
Higher planning requirements: A well-structured organic farming business plan is essential, as organic practices demand precise crop rotation and input management.
Operational preparedness: Understanding factors beyond the organic farming setup cost in India is crucial, including labour intensity and sourcing organic inputs.
Market alignment: While demand is growing, selecting the right organic farming business ideas and buyers remains critical for long-term sustainability.

Organic Farming Certification Process Explained

If you’re planning to sell organic produce commercially, understanding the certification process is essential. In India, organic farming certification is overseen by APEDA under the National Programme for Organic Production (NPOP).

The process begins with registering your farm with an accredited certification body, followed by detailed documentation of land history, inputs used, and farming practices. Your farm then undergoes inspections and a conversion period to ensure compliance with organic standards. Certification involves time and costs, so it’s important to factor it into your budget for the organic farming setup cost in India. Certified strengthens long-term organic farming business ideas, helping farmers build trust and scale sustainably.

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FAQs

Is certification required to sell organic produce in India?

Yes, certification is mandatory to sell organic produce commercially in India. APEDA-recognised certification ensures compliance with organic standards and allows legal sale in domestic and export markets.

What are the government schemes available for organic farming in India?

The government supports organic farming through schemes like PKVY and MOVCDNER, along with state-level subsidies, helping farmers reduce costs and adopt certified, sustainable organic practices.

How much does it cost to start an organic farm in India?

The cost of starting an organic farm in India depends on land size, crop selection, certification, inputs, labour, and infrastructure, making it flexible based on individual farming goals.

Can I get a loan for starting an organic farming business?

Yes, you can get a loan to start an organic farming business. Tata Capital’s business loan offers a competitive interest rate, flexible tenure and easy documentation.

Which crops are most profitable for organic farming in India?

Crops like organic vegetables, pulses, spices, tea, coffee, cotton, and medicinal plants are considered most profitable due to strong demand, premium pricing, and a strong export potential.

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