Literature
Review

 

Organic awareness is on a widespread and the food
industry’s focus is now on producing and supplying chemical free food items on
their consumer’s plates. There is an estimate that Europe and Australia would
experience an approximate production of 30% of nature based dietary provisions.
The deciding factor that limits the use of organic products is the price and availability
(Lockie et al.,2002). Supermarkets attract the most number of organic
consumers. The research further segregated the organic consumption based on
income and education where it was discovered that people with low income were
least interested in consuming them. On the other hand, basic education impacted
the overall consumption positively. A similar behavioural pattern was observed
in the consuming habits of organic and non-organic users. Due to poverty, the
consumer is left to buy products of cheap price, that is why increase in the
consumption of organic product is in a slow process and transition in retail
outlet is also facing a major problem (Kumar, Elangovan., 2016) . However,
based on the interference of the policy makers and initiatives by the
government, the organic business is also prospering. A growing interest in
organic food products have tilted consumer’s buying pattern towards healthier
and chemical free food products. Customers who prefer quality over taste and
are inclined towards the development of the overall health opt for organic food
productsThe study also reveals price as the main constraint while buying
organic products. Around 30% of organic product consumers have a moderate to
high income.(Rao et al.,2017) Since the low income group cannot afford organic
products, the organic consumption remains limited. Organic products are not easily available in the rural areas(Kumar,Gulati.,2017)
.People with low level income cannot afford the expenses on these products. The
limited variety of organic food in the market and lack of awareness also plays
a role in buying behaviour of customers.

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India has made a big leap in organic farming by
increasing the farmland for organic farming from 2.5 million hectares to 21
million hectares(Mukherjee.,2017). It also stresses on the fact that the main
hurdle to improve the global competitiveness for organic products is
certification and meeting the quality standards .The study suggested that in
order to achieve the export target, India should certify its unorganized
segment of organic farmers which produces the major part of the agricultural
produce. It also suggested that the focus should be on production of variety of
items which will give a competitive edge in the global market.

There are groups of consumers who are willing to pay
premium prices for the organic products. (Attanasio,Papetti et al., 2013).The
data obtained from the study showed that more than half of the consumers of the
organic product were females (58%) It was also found that more than 1/3 of the
consumers were buying organic products for more than 6 years. 58% of the
purchases of the organic products were from large stores and 22% from
specialized shops. The study showed that people who were not educated (40%)
were less likely to know about organic products. The main motive for choosing
organic products is health. Taste, freshness, quality, and health rank among
the top reasons for organic purchase in Europe, United States, and India. 61.50%
of consumers are willing to pay premium price. Even the price rises does not
impact the preference to purchase organic product.(Jolly.,1991) The consumption
of organic products is not advocated as there is lack of in-depth knowledge,
price, unavailability and lack of choices . Certification of safety of product
helps in developing trust which will boost confidence among customers.
Government certifications help in determining the safety and consumer education(Mukherjee.,2017)