IFFCO Announces New JV with Sikkim Government

IFFCO plans to enter the organic market in Sikkim and access the markets of the North-Eastern region in India

India: Indian Farmers Fertilizer Cooperative Limited (IFFCO), India's biggest cooperative announced the formation of a new joint venture with the Government of Sikkim, to form Sikkim IFFCO Organics Ltd.

In 2016, Sikkim became the first state in India to go officially organic but the initiative began in 2003. Of the 1.24 million tonnes of organic production in India, around 80,000 tonnes is supplied by Sikkim. IFFCO is the world's largest fertilizer cooperative federation which primarily makes urea and other chemical based fertilizer. This JV provides a separate footprint into the organic space and diversification of the product portfolio.

The company has committed to promoting the organic products of the state on it digital platform and has opened cooperative membership for Sikkim. Women will be given preference for membership. In addition, a detailed research of traditional Sikkimmese agricultural practices will be conducted and opportunities will be sought to blend them with modern practices.

According to TechSci Research the initiatives taken by the IFFCO would help the co-operative to successfully supply its organic fertilizers in the north-eastern states. Also these states would be benefitted, as farmers would have access to more knowledge and market for organic food as well as would have an easy access to organic fertilizers and plant growth promoters.

According to a recently published report by TechSci Research, “India Organic Food Market By Product Type (Organic Pulses & Food Grains, Organic Processed Food, Organic Fruits & Vegetables, Organic Dairy Products and Others), Competition Forecast and Opportunities, 2011 – 2021”, the market for organic food in India is anticipated to grow at a CAGR of over 25% during 2016–2021, on account of changing food consumption patterns and increasing instances of contamination of farm produce with chemical fertilizers and pesticides, surging investments in organic food market and rising use of bio fertilizers. Organic pluses and food grains segment dominates India organic food market, as pulses and food grains form an important part of staple diets in India. Further, West India is anticipated to continue dominating the organic food in the country through 2021, on account of high disposable income levels and rising health consciousness among consumers in the region.