Page 1 of 7
Journal for Studies in Management and Planning
Available at
http://edupediapublications.org/journals/index.php/JSMaP/
ISSN: 2395-0463
Volume 04 Issue 02
February 2018
Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 135
Marketing of Organic Products in
Tamilnadu
Mr. K. SIVASUBRAMANIA DEEPAK
Research Scholar, Department of Business Administration, Annamalai University,
Chidambaram-608002 TamilNadu, India.
Email: task.deepak75@gmail.com
&
Dr. D. SENTHIL
Assistant Professor, Department of Business Administration, Annamalai University,
Chidambaram,-608002 TamilNadu, India
Abstract
The study was conducted using a descriptive research design to evaluate organic
product challenges and marketing. Out of the 1052 organic farmers, a sample size of 418
respondents are determined depending upon the pilot study standard deviation values.
Further, Chi-Square has been applied to find out the changed based on their farmer
characteristic. It is found that there is significant association between type of the farm and its
owners’ opinion on marketing related challenges.
Keyword: consumer, demand, retail and product issues.
Introduction
An organically grown product in
India is rapidly emerging as one of the
largest growing marketing sector in the
world. It includes all facets of the organic
farming sector, especially in terms of
increases in organic vegetable production
volumes, diversity of other crops,
increases the number of producers and
growing domestic consumer market,
(Kumara, and Jain 2003).
A country like India can enjoy a
number of benefits from the adoption of
organic production. Economic and social
benefits like generation of rural
employment, increased earning capacity of
household, poverty alleviation, social
uplifting, ensuring the health of young
generations, women empowerment,
sustainable development, prevention of
disasters caused by the pesticides,
improving the environmental conditions,
conservation of the natural resources,
improved soil fertility, prevention of soil
erosion, preservation of natural and agro- biodiversity are the major benefits, (Singh
Sukhpal, 2006). The threat posed by the
conventional food products to the human
health and the damage done to the ecology
are being viewed seriously. Efforts are
made to produce healthy foods and the
demand for them is increasing. Though
50% of the organic food production in
Page 2 of 7
Journal for Studies in Management and Planning
Available at
http://edupediapublications.org/journals/index.php/JSMaP/
ISSN: 2395-0463
Volume 04 Issue 02
February 2018
Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 136
India is targeted towards exports, there are
many who look towards organic food for
domestic consumption. Salvador (2003)
surveys indicated that 21000 consumers in
38 countries to find their preference for
foods that have additional health benefits.
The survey revealed that India was among
the top ten countries where health food,
including organic food, was demanded by
the consumers. The most important reason
for buying organic food was the concern
for the health of children. Organic food is
expensive than conventional food and
customers have to pay a premium
generally 20-30% for that. Still many
people are willing to pay this higher
premium due to the perceived health
benefits of organic products. Rising
incomes, urbanization, the development of
retail trade, changing life styles, and rapid
economic growth have been the other key
drivers of the increase in sales of organic
foods, Kumar Sarvana and Jain (2003).
Farmers are just like everyone else,
who need more than just subsistence diet.
They need to have an income so that they
can send their children to school, pay for
health care, and veterinary care for their
livestock, clothes, housing and other basic
necessities etc. The funds for these
necessities of life must come from the
organically grown produce that is surplus
to their subsistence food needs. They need
to have market for their surplus produce so
that they can earn the required money from
organically grown products. If farmers
cannot sell organically grown products for
profitable financial return, they lose money
due to production expenditures,
transportation and marketing expenditure,
(Leroux and Matthew, 2009).
Marketing of organically grown
products are the key, so it needs to cover
all areas from short chain marketing such
as local farmer markets and local shops,
direct to consumers such as Community- Supported Agriculture, regional markets
with Participatory Guarantee Systems
(PGS) to national and international trade
using third party certification systems (Joe
K. W. Hill, 2016).
RESEARCH PROBLEM
The mechanism of organic
marketing is quite different from that of
regular marketing. Careful selection and
development of large markets and
distribution channels are of utmost
importance. Such marketing requires not
only additional costs but also specialized
skills, know-how and experience all of
which the unorganized individual farmers
are usually incapable to develop. About 85
per cent of the total organic production in
the country heads for the export market.
The domestic market for organics is thus
undeveloped in India. Lack of domestic
marketing channels adds to the difficulties
faced by the farmers converting to organic
methods in agriculture. Market access for
small producers depends on (a)
understanding the markets, (b)
organization of the firm or operations, (c)
communication and transport links, and (d)
an appropriate policy, environment. In this
changing scenario, small farmers mainly
need better access to capital and education.
Management capacity, which is as
important as physical capital, is the most
difficult thing to provide. Further,
collective action to deal with scale
requirements needs to be designed in order
to satisfy new product and process
standards to avoid exclusion from the
Page 3 of 7
Journal for Studies in Management and Planning
Available at
http://edupediapublications.org/journals/index.php/JSMaP/
ISSN: 2395-0463
Volume 04 Issue 02
February 2018
Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 137
supply chain. Marting Hingley, Adam
Lindgreen (2002), Collective action
through cooperatives or associations is
important to be able to buy and sell at a
better price and also to help small farmers
in adapting new patterns and facing much
greater levels of competition. Small
farmers require professional training in
marketing as well as in the technical
aspects of production, (Sue Evan Wong,
1996). There is also a need to strengthen
small farmer organizations and provide
them with technical assistance to increase
productivity for the cost-competitive
market and to provide help in improving
the quality of produce in order to capture
value addition in the supply chain (Rajesh
Dubey and Nidhi Shukla, 2014).
Methodology
This research work has been
examined that marketing of Organic
Products in TamilNadu. The study was
conducted using a descriptive research
design to evaluate organic product
challenges and marketing. Out of the 1052
organic farmers, a sample size of 418
respondents are determined depending
upon the pilot study standard deviation
values. Further, Chi-Square has been
applied to find out the changed based on
their farmer characteristic.
Analysis and Discussion
Table 1 Association between Level of Marketing Challenges Based on their size of the
farm
S.No. Size of the Farm
Level of Marketing Challenges
2
Low p
Level
Medium
Level
High
Level Total
1 Small Size Farm 40 29 95 164
98.674 0.001
24.4% 17.7% 57.9% 100.0%
2 Medium Size Farm 20 76 62 158
12.7% 48.1% 39.2% 100.0%
3 Large Size Farm 55 20 21 96
57.3% 20.8% 21.9% 100.0%
Total
115 125 178 418
27.5% 29.9% 42.6% 100.0%
Source: primary data
Above table is run on sample of
418, to know the association between size
of the organic farm and its owners’
opinion on marketing challenges on their
farming process. For the statistical purpose
the size of the farm is classified into three
groups such as small size farm, medium
size farm and large size farm. It is
concluded from the above table that the
marketing related challenges attains the
score as (Low- 115, Medium- 125, and
High- 178) based on their size of the farm.
