Niche markets for organic agricultural products hold promise for producers in developing countries like India, where traditional system of agriculture is still in vogue in many places and use of chemical fertilisers and pesticides are at a low key. The worldwide heightened consumer concerns in the area of food safety and quality, has generated renewed demand for organic food. A review by the International Trade Centre (ITC), Geneva has also indicated that while the market share of organic food on an average is no more than two per cent in most developed countries, in several of these markets the rate of growth is 25 to 30 per cent per year.

The UNCTAD-IDRC study has identified different constraints in maintaining consistent production and exports of organic foods and have suggested solutions to the problems. It has called for involvement of large retailers and supply chain management of large companies, in marketing and exports of organic foods. There is a need to collect information on the potential supply of organic food products and to identify the supply constraints.

The NGOs can effectively promote this trade by estabilishing direct links between producers and buyers, producers and exporters in developing countries and between importers and consumer organisations in developed countries.

The study suggested use of organic food labels for product certification and differentiation. It stated that in mainstrean markets, self-certification under particular corporate brands has increasingly influenced green consumerism. The best example is the marketing of organic Darjeeling tea by Starbucks in the US. To make certification more affordable for small producers, the study suggested machanism of `umbrella certification' for specific products and common brand names for products grown, in specific geo-climatic regions. Brand names are necessary for moving organic products out of commodities markets and auctions and to ensure premiums. Also electronic commerce can be a useful tool, to reduce the transaction costs of niche marketing.

Regarding quality certification, the study stated that there are a number of standards formulated all over the globe. However, standards formulated by two important fora, namely Codex Alimentarius Commission and the International Federation of Organic Agriculture Movements (IFOAM) are important. The IFOAM members in India, have already constituted a national standards committee in January 1996, which has submitted the basic national standards to the Centre, universities and other organisations for review.