Revitalization of Rivers in India Draft Policy - Isha Guru Jaggi Vasudev

Revitalization of Rivers In India
Draft Policy Recommendation
significant additional complexity in terms of creating the on-ground capability to
recover the funds after five years.
SUBSTANTIAL ADDITIONAL FINANCIAL BENEFIT OF MOVING FROM INORGANIC TO
ORGANIC CULTIVATION
There is a substantial additional benefit of having the farmer transition from
inorganic to organic cultivation of fruits. This is because the sale price realization
of organic crops is about 200% more than the inorganic versions (See Table 11).
However, in future, as organic fruit supply increases, we have assumed that prices
will drop 30% relative to inorganic fruit – and therefore the sustainable premium
over inorganic fruits assumed in the modeling, is much lower, at 120%. There are
annual organic certification costs – but these are nominal (about Rs. 2500 per
annum) and we have built these into the earnings model.
TABLE 11: PRICES OF ORGANIC VS INORGANIC PRODUCE
Organic - Chennai
In Organic - Chennai
Sl.No
Fruits
Retail Selling Price
Retail Selling Price
% Difffernce
(Rs per kg)
(Rs per kg)
2 Apple 350 130 169%
4 Guava 100 50 100%
8 Mango Alphonsa 180 100 80%
15 Mosambi 125 45 178%
16 Orange 160 45 256%
19 Pomegranate 280 110 155%
20 Sapota 140 25 460%
Average % increase is 200%
Based on this, if one takes the base multi-crop pattern of mango + guava +
pomegranate, the net earnings of the farmer in Year 5 rises to Rs. 4.4 lakhs compared
to the Rs. 1.8 lakhs per annum for the inorganic fruit crop scenario. Correspondingly,
the farmer’s earnings in Year 10 rises to Rs. 7.5 lakh for organic production compared
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