Organic food consumption hit by high price

New Delhi, Jan 27 | Updated: Jan 28 2008, 07:26am hrs
Organic food consumption in the country is low among educated and health conscious people in the metros due to its high cost, an Assocham study said.

In its survey Use of Organic Products visvis Non-Organic Products in Metros, the industry body said only one out of every 30 people in metros are customised to consume organic products, whereas 20% of farmers are engaged in organic farming.

The industry chamber claimed that the price difference ranges from 35-40% due to the scarcity of organic products and poor marketing strategies.

About 300 retailers said consumers purchase organic products on health and environmental grounds. However, around 60% of those surveyed said the customers do not purchase foods that promote specific health benefits due to high cost, it said.

Also, over 58% retailers blamed unavailability of organic products in stores for low consumption, it said adding that lack of credibility is the key barrier for consumption of food products claiming to promote health benefits.

Though Indians are getting more and more conscious about health, organic products are yet to make a mark amongst the average Indian household. Marketers of organic food need to not only educate consumers about the benefit it offers, but also build credibility for the offer and thereby buy consumers trust before they can expect any takers, Assocham president Venugopal Dhoot said.