Introduction 

Organic and horticulture farming are two types of sustainable agriculture that aim to produce high-quality food and other products without harming the environment, human health, or animal welfare. Organic farming follows the principles of organic agriculture, which prohibit the use of synthetic pesticides, fertilizers, hormones, antibiotics, and genetically modified organisms (GMOs). Horticulture farming refers to the cultivation of fruits, vegetables, flowers, herbs, and other plants for human consumption or ornamental purposes. Horticulture farming can be organic or conventional, depending on the methods and inputs used. 

Organic and horticulture farming have many benefits for the farmers, consumers, and the society. Some of these benefits are: 

• Organic and horticulture farming can improve soil fertility, biodiversity, water quality, and climate resilience. By using organic inputs, such as compost, manure, biofertilizers, and biopesticides, and adopting crop rotation, intercropping, mulching, and agroforestry practices, organic and horticulture farming can enhance the soil health, structure, and nutrient availability, and prevent soil erosion, salinity, and acidity. By avoiding synthetic chemicals and GMOs, and promoting the use of indigenous and local varieties, organic and horticulture farming can conserve and enrich the biological diversity of the crops, animals, insects, and microorganisms, and increase the resilience to pests, diseases, and climate change. 
• Organic and horticulture farming can reduce the dependence on external inputs, such as chemical fertilizers and pesticides, and lower the production costs and risks. By using on-farm or locally available organic inputs, and optimizing the use of water and energy, organic and horticulture farming can save the input costs and reduce the dependence on the market fluctuations and uncertainties. By minimizing the exposure to toxic chemicals and GMOs, and improving the working conditions and safety measures, organic and horticulture farming can also reduce the health risks and environmental impacts of the farming activities. 
• Organic and horticulture farming can increase the income and livelihood opportunities for the farmers, especially smallholders and women, by accessing premium markets and value-added products. By obtaining organic certification and labeling, and participating in organic fairs, exhibitions, and networks, organic and horticulture farmers can access the niche and high-value markets, both domestic and international, and earn higher prices and returns for their products. By processing, packaging, and marketing their own products, or forming cooperatives, associations, or producer companies, organic and horticulture farmers can also add value to their products, and increase their bargaining power and income security. 
• Organic and horticulture farming can enhance the nutritional value, safety, and diversity of the food and other products, and meet the growing demand of health-conscious and environmentally-aware consumers. By producing organic and horticulture products, which are free from synthetic chemicals and GMOs, and rich in vitamins, minerals, antioxidants, and phytochemicals, organic and horticulture farmers can provide safe, healthy, and nutritious food and other products to the consumers, and prevent the risks of food contamination, poisoning, and allergies. By growing a variety of crops, especially fruits, vegetables, and herbs, organic and horticulture farmers can also offer a diverse range of products, colors, flavors, and aromas to the consumers, and cater to their preferences and tastes. 
• Organic and horticulture farming can contribute to the social and economic development of the rural areas, and foster the local culture and traditions. By creating more employment and income opportunities, and improving the food and nutrition security, organic and horticulture farming can enhance the living standards and well-being of the rural communities, and reduce the poverty and migration. By promoting the participation and empowerment of the farmers, especially women and youth, and strengthening the social capital and networks, organic and horticulture farming can also improve the social cohesion and harmony of the rural areas. By preserving and reviving the indigenous and local knowledge, practices, and varieties, organic and horticulture farming can also protect and celebrate the local culture and traditions of the rural areas. 

Organic and horticulture farming are also part of the manufacturing industry, as they involve the processing, packaging, and marketing of the raw agricultural produce into various finished products, such as juices, jams, pickles, sauces, chips, dried fruits, herbal teas, cosmetics, etc. These products have a higher value and shelf life than the fresh produce, and can create more employment and income opportunities for the farmers and entrepreneurs. However, to successfully enter and compete in the manufacturing industry, organic and horticulture farmers need to have adequate skills, knowledge, equipment, infrastructure, and market linkages, and comply with the quality, safety, and regulatory standards of the industry. 

Market Potential 

Organic and horticulture farming have a huge market potential, both globally and in India. According to the latest data from the Research Institute of Organic Agriculture (FiBL) and IFOAM – Organics International, the global market for organic food and beverages reached 106 billion US dollars in 2019, with a growth rate of 4.9% from the previous year. The largest markets were the United States, Germany, France, China, and Italy. The global organic agricultural land increased by 1.1% to 72.3 million hectares, with Australia, Argentina, China, Spain, and India as the top five countries. The global organic producers were 2.8 million, with India, Uganda, Ethiopia, Mexico, and Tanzania as the top five countries. 

In India, the market for organic food and beverages was estimated at 849 million US dollars in 2019, with a growth rate of 10% from the previous year. The domestic market was driven by the increasing awareness and demand of the urban consumers, especially in the metro cities, for healthy, safe, and eco-friendly products. The export market was dominated by the organic products such as oilseeds, cereals, spices, tea, coffee, and medicinal plants, which were mainly exported to the United States, the European Union, Canada, and Switzerland. The organic agricultural land in India was 1.9 million hectares, with Madhya Pradesh, Rajasthan, Maharashtra, Uttar Pradesh, and Karnataka as the leading states. The organic producers in India were 1.1 million, with Madhya Pradesh, Rajasthan, Maharashtra, Uttar Pradesh, and Uttarakhand as the leading states. 

In Andhra Pradesh and Telangana, the market potential for organic and horticulture farming is also promising, as these two states have a rich and diverse agro-climatic condition, a large and skilled farmer base, and a strong institutional and policy support. Andhra Pradesh and Telangana are among the leading states in India in terms of horticulture production, with a combined area of 3.4 million hectares and a combined output of 38.4 million tonnes in 2019-20. The major horticulture crops grown in these states are mango, banana, citrus, papaya, guava, tomato, onion, potato, chilli, turmeric, ginger, and flowers. Andhra Pradesh and Telangana are also emerging as the organic hubs of India, with a combined area of 0.4 million hectares and a combined output of 0.6 million tonnes of organic products in 2019-20. The major organic crops grown in these states are cotton, pulses, oilseeds, millets, spices, and medicinal plants. 

The market potential for organic and horticulture farming is expected to grow further in the future, as the global and domestic demand for organic and horticulture products is increasing due to the rising awareness and preference of the consumers for natural, healthy, and sustainable products. The government policies and initiatives are also supporting the growth of the organic and horticulture sector, by providing various subsidies, incentives, and infrastructure facilities. The technological advancements and innovations are also enhancing the productivity and quality of the organic and horticulture products, by introducing new varieties, methods, and equipment. 

However, to tap the market potential of organic and horticulture farming, the farmers and entrepreneurs need to overcome some of the challenges and constraints that they face, such as the lack of awareness and knowledge, the high cost and difficulty of certification, the low yield and quality, the inadequate supply and availability of inputs, the poor infrastructure and facilities, the weak market linkage and access, the low consumer awareness and trust, the high competition and price sensitivity, and the stringent quality, safety, and regulatory standards. 

Government Subsidies and Incentives 

The Government of India, as well as the Governments of Andhra Pradesh and Telangana, provide various subsidies and incentives to promote organic and horticulture farming among the farmers and entrepreneurs. Some of these schemes are: 

• The Mission Organic Value Chain Development for North Eastern Region (MOVCDNER) and the Paramparagat Krishi Vikas Yojana (PKVY) are the flagship schemes of the Ministry of Agriculture and Farmers Welfare, which aim to develop the organic value chain and clusters in the country. These schemes provide financial assistance for organic certification, organic input production, organic farming practices, organic market linkage, and organic infrastructure development. Under MOVCDNER, the farmers are given a subsidy of 50% of the total cost of certification, up to a maximum of Rs. 5 lakhs per hectare, for a period of three years. Under PKVY, the farmers are given a subsidy of Rs. 50,000 per hectare, for a period of three years, for adopting organic farming practices, and forming organic clusters of 20 hectares each. 
• The National Horticulture Mission (NHM) and the Horticulture Mission for North East and Himalayan States (HMNEH) are the flagship schemes of the Ministry of Agriculture and Farmers Welfare, which aim to enhance the horticulture production and productivity in the country. These schemes provide financial assistance for area expansion, rejuvenation, protected cultivation, integrated pest management, organic farming, post-harvest management, marketing, and processing of horticulture crops. Under NHM, the farmers are given a subsidy of 50% of the cost of planting material and inputs, up to a maximum of Rs. 30,000 per hectare, for area expansion of horticulture crops. Under HMNEH, the farmers are given a subsidy of 75% of the cost of planting material and inputs, up to a maximum of Rs. 45,000 per hectare, for area expansion of horticulture crops. 
• The Agricultural and Processed Food Products Export Development Authority (APEDA) is the nodal agency of the Ministry of Commerce and Industry, which regulates the export of organic and horticulture products from India. APEDA provides financial assistance for organic certification, organic infrastructure development, organic market promotion, and organic export facilitation. Under APEDA, the farmers and exporters are given a subsidy of 50% of the cost of organic certification, up to a maximum of Rs. 2 lakhs per certificate, for obtaining the National Programme on Organic Production (NPOP) certification. APEDA also provides a subsidy of 40% of the cost of infrastructure development, up to a maximum of Rs. 40 lakhs per project, for setting up organic processing units, cold storages, pack houses, etc. APEDA also provides a subsidy of 50% of the cost of market promotion, up to a maximum of Rs. 25 lakhs per activity, for participating in organic fairs, exhibitions, trade shows, etc. APEDA also provides a subsidy of 50% of the air freight charges, up to a maximum of Rs. 25 lakhs per exporter per year, for exporting organic products by air. 
• The National Programme on Organic Production (NPOP) is the regulatory framework of the Ministry of Commerce and Industry, which accredits the organic certification bodies and standards in India. NPOP ensures the quality and credibility of the organic products in the domestic and international markets. NPOP is equivalent to the organic standards of the European Union, the United States, Switzerland, Canada, Japan, South Korea, Taiwan, and Malaysia, and facilitates the export of organic products from India to these countries. NPOP also recognizes the Participatory Guarantee System (PGS) of India, which is a low-cost and farmer-friendly organic certification system, based on the participation and verification of the farmers themselves. 
• The Rashtriya Krishi Vikas Yojana (RKVY) is the umbrella scheme of the Ministry of Agriculture and Farmers Welfare, which provides flexibility and autonomy to the states in planning and executing their own agriculture and allied sector development programs. RKVY supports various projects and activities related to organic and horticulture farming, such as organic cluster development, organic input production, organic market linkage, organic value addition, horticulture nursery development, horticulture crop diversification, horticulture post-harvest management, horticulture processing, and horticulture marketing. Under RKVY, the states are given a grant of 60% of the project cost, and the remaining 40% is borne by the states themselves. 
• The Andhra Pradesh Organic Farming Policy 2016 and the Telangana Organic Farming Policy 2019 are the state-level policies that aim to promote organic farming in the respective states. These policies provide various incentives and support measures for organic farmers and entrepreneurs, such as organic certification subsidy, organic input subsidy, organic seed subsidy, organic infrastructure subsidy, organic market development fund, organic research and training fund, organic farmer welfare fund, and organic producer company fund, and organic brand promotion fund. Under these policies, the farmers are given a subsidy of 90% of the cost of organic certification, up to a maximum of Rs. 10,000 per hectare, for a period of three years. The farmers are also given a subsidy of 75% of the cost of organic inputs, up to a maximum of Rs. 10,000 per hectare, for a period of three years. The farmers are also given a subsidy of 50% of the cost of organic seeds, up to a maximum of Rs. 5,000 per hectare, for a period of three years. The farmers are also given a subsidy of 50% of the cost of organic infrastructure, up to a maximum of Rs. 50 lakhs per project, for setting up organic processing units, cold storages, pack houses, etc. The states also provide funds for organic market development, organic research and training, organic farmer welfare, organic producer company, and organic brand promotion, under various schemes and programs. 
• The Andhra Pradesh Horticulture Policy 2019 and the Telangana Horticulture Policy 2015 are the state-level policies that aim to promote horticulture farming in the respective states. These policies provide various incentives and support measures for horticulture farmers and entrepreneurs, such as horticulture crop insurance, horticulture input subsidy, horticulture micro-irrigation subsidy, horticulture mechanization subsidy, horticulture post-harvest subsidy, horticulture processing subsidy, horticulture marketing subsidy, and horticulture export promotion subsidy. Under these policies, the farmers are given a crop insurance for horticulture crops, covering the entire cost of cultivation, and providing compensation for crop loss due to natural calamities. The farmers are also given a subsidy of 80% of the cost of horticulture inputs, up to a maximum of Rs. 40,000 per hectare, for a period of three years. The farmers are also given a subsidy of 90% of the cost of micro-irrigation systems, up to a maximum of Rs. 1.5 lakhs per hectare, for a period of three years. The farmers are also given a subsidy of 50% of the cost of farm machinery and equipment, up to a maximum of Rs. 5 lakhs per unit, for a period of three years. The farmers are also given a subsidy of 50% of the cost of post-harvest infrastructure, up to a maximum of Rs. 50 lakhs per project, for setting up cold storages, pack houses, ripening chambers, etc. The farmers are also given a subsidy of 50% of the cost of processing infrastructure, up to a maximum of Rs. 5 crores per project, for setting up food processing units, agro parks, etc. The farmers are also given a subsidy of 50% of the cost of marketing infrastructure, up to a maximum of Rs. 50 lakhs per project, for setting up market yards, collection centers, etc. The farmers are also given a subsidy of 50% of the air freight charges, up to a maximum of Rs. 10 lakhs per exporter per year, for exporting horticulture products by air. 

Marketing and Sales 

Marketing and sales are the key aspects of any business, especially for organic and horticulture farming, which require a strong and reliable market linkage and customer base. Some of the strategies and tips for marketing and sales of organic and horticulture products are: 

• Identify the target market and customer segment, such as domestic or export, retail or wholesale, institutional or individual, urban or rural, premium or mass, etc. Depending on the type, quality, quantity, and price of the products, the farmers and entrepreneurs need to identify the most suitable and profitable market and customer segment for their products. For example, if the products are certified organic, high quality, low quantity, and high price, the target market and customer segment could be export, retail, institutional, urban, and premium. If the products are conventional, low quality, high quantity, and low price, the target market and customer segment could be domestic, wholesale, individual, rural, and mass. 
• Conduct a market research and analysis, to understand the market size, demand, supply, competition, price, trends, opportunities, and challenges of the organic and horticulture products. The farmers and entrepreneurs need to conduct a thorough and systematic market research and analysis, to gather and analyze the relevant and reliable information and data about the market and customer segment that they have identified. For example, they need to know the current and projected market size and demand for their products, the existing and potential supply and competition for their products, the prevailing and expected price and margin for their products, the emerging and changing trends and preferences of the customers, the opportunities and threats for their products, and the strengths and weaknesses of their products. 
• Develop a unique selling proposition (USP) and a brand identity, to differentiate the organic and horticulture products from the competitors and to create a loyal and satisfied customer base. The farmers and entrepreneurs need to develop a USP and a brand identity for their products, that highlight the distinctive and superior features and benefits of their products, and appeal to the needs and desires of the customers. For example, the USP and the brand identity of the products could be based on the organic, natural, healthy, and sustainable attributes of the products, or the local, indigenous, exotic, and rare attributes of the products, or the quality, freshness, taste, and aroma attributes of the products, or the social, environmental, and ethical attributes of the products. 
• Obtain the necessary certifications and standards, such as organic, geographical indication, quality, safety, etc., to ensure the credibility and quality of the organic and horticulture products. The farmers and entrepreneurs need to obtain the necessary certifications and standards for their products, that verify and validate the claims and features of their products, and comply with the requirements and regulations of the market and customer segment that they have identified. For example, if the products are organic, they need to obtain the organic certification from the accredited certification bodies, such as NPOP, PGS, or third-party agencies. If the products are from a specific geographical region, they need to obtain the geographical indication (GI) tag from the GI Registry of India. If the products are for export, they need to obtain the quality and safety standards from the relevant authorities, such as APEDA, FSSAI, BIS, etc. 
• Choose the appropriate marketing channels and platforms, such as online or offline, direct or indirect, e-commerce or physical store, etc., to reach the potential and existing customers effectively and efficiently. The farmers and entrepreneurs need to choose the appropriate marketing channels and platforms for their products, that match the characteristics and preferences of the market and customer segment that they have identified, and that enable them to deliver their products to the customers in a timely and convenient manner. For example, if the products are for domestic, retail, urban, and premium customers, the marketing channels and platforms could be online, direct, e-commerce, or physical store. If the products are for export, wholesale, rural, and mass customers, the marketing channels and platforms could be offline, indirect, distributor, or market yard. 
• Implement the suitable marketing mix and tools, such as product, price, place, promotion, etc., to communicate the value and benefits of the organic and horticulture products to the customers and to persuade them to buy. The farmers and entrepreneurs need to implement the suitable marketing mix and tools for their products, that convey the USP and the brand identity of their products, and that influence the buying decision and behavior of the customers. For example, the product mix and tools could include the packaging, labeling, grading, and branding of the products, that reflect the quality, safety, and attractiveness of the products. The price mix and tools could include the pricing, discounting, and bundling of the products, that reflect the value, affordability, and competitiveness of the products. The place mix and tools could include the distribution, transportation, and logistics of the products, that reflect the availability, accessibility, and convenience of the products. The promotion mix and tools could include the advertising, publicity, and word-of-mouth of the products, that reflect the awareness, interest, and trust of the products. 
• Establish a strong and long-term relationship with the customers, suppliers, distributors, retailers, and other stakeholders, to ensure the smooth and sustainable operation and growth of the organic and horticulture business. The farmers and entrepreneurs need to establish a strong and long-term relationship with the customers, suppliers, distributors, retailers, and other stakeholders, that are involved in the production, processing, and marketing of the organic and horticulture products, and that affect the performance and outcome of the organic and horticulture business. For example, they need to maintain a regular and effective communication and feedback with the customers, to understand their needs and expectations, and to provide them with the best quality and service. They need to maintain a fair and transparent transaction and collaboration with the suppliers, distributors, and retailers, to ensure the timely and adequate supply and delivery of the inputs and products. They need to maintain a positive and cooperative interaction and partnership with the other stakeholders, such as the government agencies, NGOs, research institutes, media, etc., to avail the benefits and support of the policies, schemes, programs, etc., and to overcome the challenges and constraints of the sector. 
• Monitor and evaluate the marketing and sales performance, to measure the results and outcomes of the marketing and sales activities and to make the necessary adjustments and improvements. The farmers and entrepreneurs need to monitor and evaluate the marketing and sales performance of their products, to assess the effectiveness and efficiency of the marketing and sales strategies and actions, and to identify the strengths and weaknesses, opportunities and threats, and successes and failures of the marketing and sales process. For example, they need to collect and analyze the data and information on the sales volume, revenue, profit, market share, customer satisfaction, customer loyalty, customer feedback, etc., of their products, and compare them with the set goals and objectives, and the market and customer segment that they have identified. They need to make the necessary adjustments and improvements in the marketing mix and tools, marketing channels and platforms, certifications and standards, USP and brand identity, market and customer segment, etc., based on the findings and insights of the monitoring and evaluation process. 

Investment Required 

The investment required for organic and horticulture farming depends on various factors, such as the type and scale of the farming, the location and size of the land, the inputs and equipment used, the infrastructure and facilities available, the labor and operational costs, the market and sales potential, etc. However, a rough estimate of the investment required for different production scales of organic and horticulture farming can be given as follows: 

The investment required for organic and horticulture farming can be categorized into two types: fixed capital and working capital. Fixed capital refers to the one-time investment required for the land, building, machinery, equipment, furniture, etc., that are used for the production, processing, and marketing of the organic and horticulture products. Working capital refers to the recurring investment required for the raw materials, labor, utilities, maintenance, transportation, marketing, etc., that are used for the day-to-day operation of the organic and horticulture business. 

The fixed capital required for organic and horticulture farming can be estimated as follows: 

• The land required for organic and horticulture farming can vary depending on the type and scale of the farming, the location and size of the land, the soil and climatic condition, the cropping pattern, etc. However, a general assumption is that one hectare of land can produce about 10 tonnes of organic and horticulture products per year. The cost of land can also vary depending on the location and size of the land, the availability and accessibility of the land, the market value and demand of the land, etc. However, a general assumption is that one hectare of land can cost about Rs. 10 lakhs. Therefore, the land cost for different production scales of organic and horticulture farming can be calculated as follows: 

• The building required for organic and horticulture farming can vary depending on the type and scale of the farming, the infrastructure and facilities required, the design and layout of the building, etc. However, a general assumption is that one square meter of building can accommodate about 100 kg of organic and horticulture products per hour. The cost of building can also vary depending on the type and quality of the construction material, the labor and transportation charges, the taxes and fees, etc. However, a general assumption is that one square meter of building can cost about Rs. 10,000. Therefore, the building cost for different production scales of organic and horticulture farming can be calculated as follows: 

• The machinery and equipment required for organic and horticulture farming can vary depending on the type and scale of the farming, the processing and packaging methods, the quality and safety standards, etc. However, a general assumption is that the machinery and equipment required for organic and horticulture farming can include the following items: plough, harrow, cultivator, seeder, sprayer, weeder, harvester, washer, sorter, grader, slicer, dryer, juicer, mixer, boiler, filler, sealer, labeler, etc. The cost of machinery and equipment can also vary depending on the type and quality of the machinery and equipment, the manufacturer and supplier, the warranty and maintenance, etc. However, a general assumption is that the cost of machinery and equipment can range from Rs. 10,000 to Rs. 10 lakhs per item. Therefore, the machinery and equipment cost for different production scales of organic and horticulture farming can be calculated as follows: 

• The furniture and fixtures required for organic and horticulture farming can vary depending on the type and scale of the farming, the infrastructure and facilities required, the design and layout of the building, etc. However, a general assumption is that the furniture and fixtures required for organic and horticulture farming can include the following items: tables, chairs, shelves, racks, bins, crates, boxes, bags, etc. The cost of furniture and fixtures can also vary depending on the type and quality of the furniture and fixtures, the manufacturer and supplier, the warranty and maintenance, etc. However, a general assumption is that the cost of furniture and fixtures can range from Rs. 1,000 to Rs. 10,000 per item. Therefore, the furniture and fixtures cost for different production scales of organic and horticulture farming can be calculated as follows: 

The working capital required for organic and horticulture farming can be estimated as follows: 

• The raw material required for organic and horticulture farming can vary depending on the type and scale of the farming, the cropping pattern, the yield and quality, the processing and packaging methods, etc. However, a general assumption is that the raw material required for organic and horticulture farming can include the following items: seeds, compost, manure, biofertilizers, biopesticides, water, electricity, fuel, etc. The cost of raw material can also vary depending on the type and quality of the raw material, the availability and accessibility of the raw material, the market value and demand of the raw material, etc. However, a general assumption is that the cost of raw material can range from Rs. 10 to Rs. 100 per kg of organic and horticulture products. Therefore, the raw material cost for different production scales of organic and horticulture farming can be calculated as follows: 

• The labor required for organic and horticulture farming can vary depending on the type and scale of the farming, the labor intensity and skill level, the labor availability and productivity, the labor wages and benefits, etc. However, a general assumption is that the labor required for organic and horticulture farming can include the following categories: farm labor, processing labor, packaging labor, marketing labor, etc. The cost of labor can also vary depending on the type and quality of the labor, the availability and accessibility of the labor, the market value and demand of the labor, etc. However, a general assumption is that the cost of labor can range from Rs. 100 to Rs. 1000 per hour of organic and horticulture products. Therefore, the labor cost for different production scales of organic and horticulture farming can be calculated as follows: