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Organic Products: Organic refers to agricultural production systems used to produce food and fiber. All kinds of agricultural products are produced organically, including produce, grains, and processed food products. Organic farming management relies on developing biological diversity in the field to disrupt habitat for pest organisms, and the purposeful maintenance and replenishment of soil fertility. Organic farmers are not allowed to use synthetic pesticides or fertilizers. Some of the essential characteristics of organic systems include: design and implementation of an “organic system plan” that describes the practices used in producing crops and livestock products; a detailed recordkeeping system that tracks all products from the field to point of sale; and maintenance of buffer zones to prevent inadvertent contamination from adjacent conventional fields.

Letter Codes for the information below for display on the package of organic food indicate position on package and are defined as follows:

PDP:  Principal Display Panel
IP: Information Panel
IS: Ingredients Statement
OP: Any Other Panel

The information for display on the package of organic food

If you want to claim:  “100 percent Organic” (or similar statement)
Your product: Must contain 100 percent organically produced ingredients, not counting added water and salt.
Your label MUST: Show an ingredient statement when the product consists of more than one ingredient.Show below the name and address of the handler (bottler, distributor, importer, manufacturer, packer, processor, etc.) of the finished product, the statement:”Certified organic by ____” or similar phrase, followed by the name of the Certifying Agent.  Certifying Agent seals may not be used to satisfy this requirement. (IP)
Your label MAY show: The term “100 percent organic” to modify the product name. (PDP/IP/OP)
The term, “organic” to identify the organic ingredients1.  Water and salt included as ingredients must not be identified as organic. (IS)The USDA organic seal and/or certifying agent seal(s). (PDP/OP)The certifying agent business/Internet address or telephone number. (IP)
Your label MUST NOT show: Not applicable
If you want to claim: “Organic” (or similar statement)
Your product: Must contain at least 95% organic ingredients, not counting added water and salt.Must not contain added sulfites.May contain up to 5% of:

  1. nonorganically produced agricultural ingredients which are not commercially available in organic form; and/or
  2. other substances allowed by 7 CFR 205.605.
Your label MUST: Show an ingredient statement.List the organic ingredients as “organic” when other organic labeling is shown.1  Water and salt included as ingredients must not be identified as organic. (IS)Show below the name and address of the handler (bottler, distributor, importer, manufacturer, packer, processor, etc.) of the finished product, the statement:”Certified organic by ___” or similar phrase, followed by the name of the Certifying Agent.  Certifying Agent seals may not be used to satisfy this requirement.  (IP)
Your label MAY show: The term “Organic” to modify the product name. (PDP/IP/OP)”X% organic” or “X% organic ingredients.” (PDP/IP/OP)The USDA Organic seal and/or certifying agent seal(s). (PDP/OP)The certifying agent business/Internet address or telephone number. (IP)
Your label MUST NOT show: Not applicable

 

 

If you want to claim: “Made with Organic Ingredients” (or similar statement)
Your product: Must contain at least 70% organic ingredients, not counting added water and salt.Must not contain added sulfites; except that, wine may contain added sulfur dioxide in accordance with 7 CFR 205.605.May contain up to 30% of:

  1. nonorganically produced agricultural ingredients; and/or
  2. other substances, including yeast, allowed by 7 CFR 205.605.
Your label MUST: Show an ingredient statement.List the organic ingredients as “organic” when other organic labeling is shown.1  Water and salt included as ingredients must not be identified as organic. (IS)Show below the name and address of the handler (bottler, distributor, importer, manufacturer, packer, processor, etc.) of the finished product, the statement:”Certified organic by ___” or similar phrase, followed by the name of the Certifying Agent.  Certifying Agent seals may not be used to satisfy this requirement.  (IP)
Your label MAY show: The term “Made with organic ___ (specified ingredients or food groups).” (PDP/IP/OP)”X% organic” or “X% organic ingredients.” (PDP/IP/OP)The certifying agent seal(s). (PDP/OP)The certifying agent business/Internet address or telephone number. (IP)
Your label MUST NOT show: The USDA Organic seal

 

If you want to claim: That your product has some organic ingredients
Your product: May contain less than 70% organic ingredients, not counting added water and salt.May contain over 30% of:a.            nonorganically produced agricultural ingredients; and/or

b.            other substances, without being limited to those in 7 CFR 205.605

Your label MUST: Show an ingredient statement when the word organic is used.Identify organic ingredients as “organic” in the ingredients statement1 when % organic is displayed.  Water and salt included as ingredients must not be identified as organic.  (IS)
Your label MAY show: The organic status of ingredients in the ingredients statement.1 Water and salt included as ingredients must not be identified as organic. (IS)”X% organic ingredients” when organically produced ingredients are identified in the ingredient statement.  (IP)
Your label MUST NOT show: Any other reference to organic contents.The USDA Organic seal.The certifying agent seal.

1 To identify an ingredient as organically produced, in the ingredients statement, use the word, “organic” in conjunction with the name of the ingredient, or an asterisk or other reference mark which is defined below the ingredient statement.

Organically Produced Food Products

All the vegetables shown in the handout can be grown through contracts with farmers at reasonable prices and exported by creating export channels as desired by importers.

 org1 Organic Farming is a production system which avoids the use of synthetically manufactured fertilizers, pesticides and growth regulators. Organic farming systems rely on crop rotation, crop residues, animal manures, legumes, green manures, off-farm wastes and biological pest control to maintain soil productivity, to supply plant nutrients and to control pests.
 org2 The average yield of field crops particularly the cereals grown in the Punjab state is equal or even higher than that obtained in many advanced countries. There is a need to improve the quality alongwith along any further improvement in quantity. Quality produce can only be possible with the adoption of organic farming. Apart from improving food quality, soil health can also be maintained and improved with organic farming system.
 org3 Farming organically is more than just abandoning harmful chemicals, it requires the elimination of the persistent chemicals in the soil. Therefore, there is a need of conversion period from chemical to organic farming. This period is decided on the previous uses of the land. Generally, a three years transition period is required to convert from chemical to organic farming, with all the organic practices during the intervening period. The organic farm has to make sure that there is no run off coming from the adjoining chemical farming plots. There is need to have a buffer around organic field.
 org4 During the initial 3-4 years the yields of organically grown crops are generally lower as compared to inorganically grown crops and later on the yield of both the systems becomes equal.
 vermi_co Vermicompost is an organic manure (bio-fertilizer) produced as the vermicast by earth worm feeding on biological waste material; plant residue. Earthworms are small, soft, cylindrical bodied invertebrates that play a vital role in soil ecosystem maintenance. Aristotle referred to them as ‘intestines of the earth’ because of their habit of ingesting and ejecting the soil. Earthworms greatly influence soil properties
and cast production, which results in the continuous turnover of the soil and mixing of minerals and organic constituents. Worms that live in the soil are the farmer’s and gardener’s friends. They consume dead organic matter and turn it into rich and fertile humus with added natural nutrients. One species of worm, the Californian Red Worm, is particularly productive at making humus, reproduces vigorously, is easy to breed and has good longevity. Through their feeding and burrowing activities earthworms incorporate surface organic matter, spatial distribution of soil, improve porosity and soil aeration increase water infiltration, encourage plant root growth improve soil aggregate stability, enhance nutrient availability and reduce incidence of root diseases.
 vmp2 Vermicompost, the end product, is extremely useful for enriching and fertilising the soil. It is odourless and safe to handle. It is rich in hormones, antibiotics and vitamins that produce healthy plant growth. Although its nitrogen, phosphorus and potassium values are not as high as for chemical fertilisers, it is a multi-purpose compost that provides all the ingredients needed to improve most soils and is much better for the environment as well. By contrast, to improve poor soils chemical fertilisers are not enough by themselves and other materials need to be applied as well.Vermicompost is also seven times richer than compost that has been rotted without introduction of worms, so only one seventh of the quantity is needed to enrich the soil. Tests in India have shown that vermicompost application can double wheat yields and quadruple yields of fodder. For best effect vermicompost needs to be applied before the growing season over a two or three year period.Vermicompost can be used for organic cultivation of crops as it do not have any toxic residue effect. It is cheap and easy to produce Vermicompost. It does not small like manure but just like healthy rich soil.Casting of earthworms contain a high percentage of humus. Humus helps soil particles from into clusters, which create channels for the passage of air and improve its capacity to hold water. Humic acid

in humus, provides binding sites for the plant nutrients but also releases them to the plants upon demand. This also aids in the prevention of harmful plant pathogens, fungi, nematodes and bacteria.

Vermicompost can be used for organic cultivation of crops as it do not have any toxic residue effect. It is cheap and easy to produceVermicompost. It does not small like manure but just like healthy rich soil.

Casting of earthworms contain a high percentage of humus. Humus helps soil particles from into clusters, which create channels for the passage of air and improve its capacity to hold water. Humic acid in humus, provides binding sites for the plant nutrients but also releases them to the plants upon demand. This also aids in the prevention

Specification

·        pH 6.5-7.5
·        Organic Carbon 17.50 – 30.31 %
·        Nitrogen 0.80 – 2.05 %
·        Phosphorus 0.70 – 1.93 %
·        Potassium 0.30 – 1.50 %
·        Carbon : Nitrogen 14-15 : 1 %
·        Calcium 1.50 – 4.5 %
·        Magnesium 0.2 – 0.7 %
·        Sodium 0.02 – 0.30 %
·        Sulphur Traces to 0.40 %
·        Iron 0.08 – 0.7 %
·        Zinc 0.028 – 0.036 %
·        Manganese Traces to 0.40 %
·        Copper 0.0027 – 0.0123 %
·        Boron 0.0034 – 0.0075 %
·        Aluminum Traces to 0.071 %
·        Cobalt, Molybdenum Present in available form
·         Biological Total bacterial count of 2.5 ´ 106 comprising of Azotobacter, PGPR, PSB, Actinomycetes. Also contains Gibberalline, Auxins & Cytokinine in sufficient quantities.  Contains sufficient moisture (25-35%) at the time of packing.

SCEINTIFIC VERMICULTURE

Type of Culture Rate (Per Kg) Genetic Purity No. of Worms Eggs Percentage
Foundation Vermiculture F1 650/Kg 98% 1000/Kg 50%
Foundation Vermiculture F2 500/Kg 94% 1000/Kg 40%
Foundation Vermiculture Pedigee 350/Kg 85% Unpredictable 25%
General Vermiculture 150/Kg 60% Unpredictable 12%

Discount on larger quantities may be considered accordingly.

Advantages of Vermicompost.   Minimizes need for chemical fertilizers, makes thesoil healthy with high NPK content and yields cropsof better quality.
.   Agricultural and kitchen wastes are put to gooduse.
·   Can be done at a smaller scale and at a faster ratethan other methods of composting.
·   Can be done for commercial purposes as well as for use on one’s
own farm.
·   Surplus earthworms can be converted into good livestock feed.

The Diverse Uses of Worms

Worms that live in soil are not just useful for making humus, or as fishing bait, which is another common use. Other uses include:

  • Drying and grinding of the flesh of the worm to produce a high protein powdered food additive used, for example, in hamburgers, sausages and other minced meat products, and as an additive to animal feed (for horses, rabbits and chickens, for example) to provide nutritional balance
  • As live food for rearing fish and frogs
  • Extracting collagen from the worms for pharmaceuticals
  • Making antibiotics from the ceolomic liquid (the fluid that transports nutrients and respiratory gases through a worm’s body) extracted from the worms
  • Research into how the skin of worms repairs itself to discover if this can be used for repair of damaged skin for people and whether substances obtained from worms can strengthen a person’s auto immune system

Production

It can be produced in bins, pits or troughs either below or above the soil surface, using bricks or stone slabs or even plastics. If the pits are over it as moisture in the thatched roof should be built over it as moisture in the 40-50% range and temperature in the 20-30° C range need to be maintained. Any organic waste or agricultural residue can be used as feed mixture, etc. farmyard wastes, green wastes, sugarcane theash, kitchen wastes etc. They should be mixed with cow dung in the ratio of 8:1. Once the feed mixture is seen to largely contain casts, then it is dumped in conical heap for few hours. The worms collect at base and can be easily retrieved for reuse. The rest of the dried material is passed through a 3 mm sieve to collect the casts as vermicompost.

 

Vermicast vs. Chemical Fertilizers in Soil

Criteria for Comparison Chemical Fertilizers Vermicast
Macro nutrient contents Mostly contains only one (N in urea) or at the most two (N & P in DAP) nutrients in any one type of chemical fertilizer Contains all i.e. nitrogen (N), phosphorus (P) & potassium (K) in sufficient quantities
Secondary nutrient contents Not available Calcium (Ca), magnesium (Mg) & sulphur (S) is available in required quantities
Micro nutrient contents Not available Zinc (Zn), boron (B), manganese (Mn), iron (Fe), copper (Cu), molybdenum (Mo) and chlorine (Cl) also present
pH balancing Disturb soil pH to create salinity and alkalinity conditions Helps in the control of soil pH and checks the salinity and alkalinity in soil
EC correction Creates imbalance in soil EC affecting nutrients assimilation Helps in balancing the EC to improve plant nutrient adsorption
Organic carbon Not available Very high organic carbon and humus contents improves soil characteristics
Moisture retention capacity Reduces moisture retention capacity of the soil Increases moistures retention capacity of the soil
Soil Texture Damages soil texture to reduce aeration Improves soil texture for better aeration
Beneficial bacteria & fungi Reduces biological activities and thus the fertility is impaired Very high biological life improves the soil fertility and productivity on sustainable basis
Plant growth hormones Not available Sufficient quantity helps in better growth and production

 

Economic Evaluation: Vermicast vs. Chemical Fertilizers Generally cost comparisons for different fertility inputs are carried out on per unit of cultivated area basis. However, the correct methods for comparison should be either the cost per unit of output or the cost per unit of fertility inputs. Here a comparison has been made on the basis of cost per unit of fertility inputs provided through chemical fertilizers Vs. vermicast.Cost of Chemical Fertilizer Use
Presently chemical fertilizers are used for providing nutrients such as nitrogen, phosphorous and potash. The cost of these chemical fertilizers in the context of their plant uptake i.e. fertilizers use efficiency are estimated as follows.
Urea

  • Say 100 kg of urea is used per hectare, containing 46% nitrogen.
  • Cost of urea is Rs.4.50/- per kg and thus cost of nitrogen is Rs.9.80/- per kg.
  • Plant uptake i.e. use efficiency is 15-40 percent (average 20%) for nitrogen.
  • Therefore, the cost of nitrogen actually used by the plants is Rs.49.00 per kg.

DAP

  • Say 100 kg of DAP is used per hectare.
  • This contains 18 percent nitrogen and 46 percent phosphorus.
  • Cost of DAP is Rs.8.50/- per kg and thus the cost of nutrients (combined for nitrogen plus phosphorus) is Rs.13.30/- per kg.
  • Plant uptake i,.e. use efficiency is 15-40 percent for nitrogen (average 20%) and 10-25 percent for phosphorus (average 15%).
  • The cost of nutrients actually used by the plants from DAP is Rs.75.94/- per kg.

          SSP

  • Say 100 kg of SSP is used per hectare, containing 16% phosphorus.
  • Cost of SSP is Rs.2.60/- per kg and thus cost of phosphorus is Rs.16.25/- per kg.
  • Plant uptake i.e. use efficiency is 10-25 percent for phosphorus (average 15%).
  • The cost of phosphorus actually used by the plants is Rs.108.82/- per kg.

          CAN

  • Say 100 kg of CAN is used per hectare, containing 20% nitrogen.
  • Cost of CAN is Rs.4.20/- per kg and thus the cost of nitrogen is Rs.21.00/- per kg.
  • Plant uptake i.e. use efficiency is 15-40 percent (average 20%).
  • The cost of nitrogen actually used by the plants is Rs.1005.00/- per kg.

Cost of Vermicast Use

In case of vermicast, over 70 percent is consumed by the farmers through their in-house production. For remaining, the farmers are buying vermicast from commercial production units at an average price of Rs.2000/- per metric tone.

1.      The average nutrients contents reported for vermicast are nitrogen-1.5 to 2.5 percent (average 2%), phosphorus-1.25 percent (average 1.75%), potash-1.00 to 2.00 percent (average 1.5%).

2.      In addition vermicast contains all micronutrients and trace elements, that would also add up to atleast one percent equivalent of nutrients.

3.      The vermicast has active biological life containing Azatobactor, PSB, PGPR, etc. During 90-100 days of crop duration they also add up to 1.5 to 2.5 percent nutrients (average 2%).

4.      Say 1000 kg of vermicast is used per hectare.

5.      The total nutrients provided by 1000 kg of vermicast will add up to 82.50 per kg (8.25%) and at an average plant uptake i.e. use efficiency of 65 percent will provide 53.60 kgs of nutrients.

6.      At an average cost of vermicast at Rs.2000/- per MT per hectare, the cost of nutrients is Rs.37.00/- per kg.

In addition to nutrients, vermicast will also provide better aeration, water retention capacity and many other benefits. Some of the major advantages of vermicast use are also the lower cost of labour (saving due to lesser weeds in the field) and saving from the cost of treatment for termites.

Vermicast on subsequent use has been found to provide at least 20-30 percent more nutrients. This ability can continuously reduce the quantities of vermicast used in the field over long durations.

From the above the actual nutrient used and the cost incurred for various chemical fertilizers, it clearly indicates that the chemical fertilizers are more expensive than vermicast.

The use of chemicals has also been promoted by large amounts of subsidies that enabled them to be used as nutrients for crops.

Economics (One Bed)

A. Capital Cost of 100 beds

Item Cost (Rs.)

Vermiculture cost@ Rs 600/kg for 100 beds 1500000

1 Construction of a temporary shed for setting up 400 tpa vermi-compost unit 120,000.

2 Implement and Machinery for a 400 tpa unit 80,000

3 Office cum store 120000

4 Water source 40000

Total 1860,000

B. Recurring Cost

Item Cost (Rs.)

1 Feed stock & handling cost @ Rs. 30,000 per cycle for 6 cycle in a year 1,80,000

2 Rent on lease @ Rs. 8,000 per year 8,000

Total 188000

(Operational cost of two cycles is capatalised)

Total Project Cost : Capital cost – Rs. 1860,000

Recurring cost – Rs. 188000

capitalized

Total Rs 2048000

5. Margin 20%

6. Bank loan :80%

7. Rate of interest : 12% pa

8. Repayment period : 8 years including grace period of one year

9. Income

Item Cost (Rs.)

(I year)

1 Sale of vermi-compost 400 tons @ Rs. 2000 per ton 800000

Total 8,00,000

Net Benefit 8,00,000-2048000= -1248000

(II year)

C. Recurring Cost

Item Cost (Rs.)

1 Feed stock & handling cost @ Rs60,000 per cycle for 6 cycle in a year 36,0000

2 Rent on lease @ Rs. 8,000 per year 8,000

Total 3,68,000

Additional Construction of a temporary shed for setting up 400tpa vermi-compost unit 1,20,000

Total input 4,88,000

Sale of vermi-compost 800 tons @ Rs. 2000 per ton 16,000,00

Less Total recurring cost 4,48,000

Net Benefit 11,52,000

OVERALL PROFIT AFTER 2 YEARS

Net benefit of 2nd years- recovery for the 1st year 11,52,000 – 1248000 =-96000

D. Recurring Cost Item Cost (Rs.)

1 Feed stock & handling cost @ Rs. 1,20,000 per cycle for 6 cycle in a year 7,20,000

2 Rent on lease @ Rs. 8,000 per year 16,000

Total 7,36,000

Additional Construction of a temporary shed for setting up 800tpa vermi-compost unit 2,40,000

Total input 9,76,000

Sale of vermi-compost1600 tons @ Rs. 2000 per ton 32,00,000

Less Total recurring cost 9,76,000

Net Benefit 22,24,000

Overall profit after deducting recovery= 22,24,000 –96,000 = 21,28,000

note :

• Margin of 20% is assumed, but the actual margin will be as per the discretion of the banks.
• Interest rate of 12% is assumed, however, the actual rate will be as per banks’ discretion.
• Similarly, the other economic / financial parameters such as the repayment period, DSCR, IRR

 

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