Five reasons why organic farming is more profitable than chemical-based agriculture

In recent years, organic farming has shifted from a niche practice to a widely recognised and profitable alternative to conventional, chemical-intensive agriculture. With rising concerns about health, sustainability, and environmental degradation, farmers and consumers are turning towards organic methods that prioritise natural inputs, biodiversity, and soil health. 

What’s surprising, however, is that organic farming isn’t just better for the environment or consumers—it’s proving more profitable for farmers.

Despite the perception that chemical-based farming ensures higher yields and faster growth, the hidden costs tell a different story: infertile soils, rising input costs, pesticide resistance, and dependency on synthetic fertilisers. 

In contrast, organic farming minimises input costs and taps into a premium market of health-conscious consumers who value clean and chemical-free produce.

From wheat fields in Madhya Pradesh to mango orchards in Maharashtra, farmers across India are experiencing the economic benefits of going organic. Whether you're a farmer or consumer, understanding these factors is crucial to shaping the future of agriculture.

Here are five reasons why organic farming offers better returns than traditional farming: 

1. Higher market prices and premium demand

Organic produce consistently fetches higher prices than conventional crops. Consumers are willing to pay 20 to 100 percent more for food free from pesticides and synthetic chemicals. For example, organically grown wheat in Madhya Pradesh sells for Rs 30 per kg compared to Rs 18 per kg for chemically grown wheat. 

Organic Alphonso mangoes can fetch Rs 1 lakh per tonne in export markets, compared to Rs 40,000 to Rs 60,000 for conventional ones. This premium pricing directly translates to higher income for farmers, especially when linked with direct-to-consumer channels or niche organic platforms.

Similarly, organic vegetables produced by Bijesh PK in Kerala sell at over double the regular rates in Dubai and Qatar. He charges Rs100 per kg for lady’s finger against the regular price of Rs40 per kg. 

You can read Bijesh’s story here: How this Kerala man built a Rs 2 crore business by exporting organic veggies to Dubai

2. Reduced input costs 

Chemical fertilizers, pesticides, and herbicides are a significant percentage of conventional farming expenses. In contrast, organic farming relies on compost, biofertilizers, cow dung, and neem-based pesticides often available on the farm. 

Subhash Palekar’s Zero Budget Natural Farming model reduces input costs by up to 90 percent. For smallholders, this dramatically improves margins even if yields are initially modest.

A case in point is that of Umed Singh, who has turned barren land in Bachhohi, Hoshiarpur, Punjab, into a lush green organic farm without chemical inputs. He sells organic wheat at Rs 70 per kg against the market rate of Rs 30 per kg for inorganic wheat.

He says compared to traditional (chemical-based) farming, which costs Rs 6500 per acre for wheat (including urea, pesticides, and frequent watering), organic fertilisers reduce the cost to Rs 3500 per acre.

You can read Umed’s story here: Punjab farmer turns barren land into an organic farm of wheat, fruits and vegetables

3. Long-term soil health and yield stability

Organic farming enriches the soil with microbial life and organic matter, enhancing fertility and resilience to climate shocks. 

Soil organic carbon is the carbon component of organic compounds that increases oxygen in the soil and improves water drainage and retention, reducing the risk of nutrient leaching. Healthy soil means consistent yields and fewer crop failures, which reduces income uncertainty.

“Vermicompost is the best source to meet micronutrient and macronutrient requirements of plants,” says Mangesh Lawande, a custard apple farmer and vermicompost manufacturer. He earns Rs30 lakh from only two acres using organic farming. 

You can read his story here: Custard apple farmer forays into vermicomposting; clocks Rs30 lakh annually 

4. Access to subsidies 

Governments are promoting organic agriculture through training, certification assistance, and financial incentives. Sikkim, India’s fully organic state, reported a 27 percent increase in farmer incomes after widespread adoption. 

Initiatives like PKVY (Paramparagat Krishi Vikas Yojana) help offset transition costs and link farmers with premium buyers. A case in point is that of Samendra Singh Deo, a member of the former royal family of Hemgir, in Odisha. He began exotic vegetable farming in shade nets in 2023 using organic techniques.

He set up the project using a subsidy under the Mukhyamantri Krishi Udyog Yojna (MKUY) with support from the State Bank of India. He now clocks an annual turnover of Rs 30 lakh.

More about Samendra Deo here: This former royal of Odisha grows exotic vegetables using hydroponics; annual turnover at Rs 30 lakh

5. Export potential and market differentiation

Organic certification opens doors to international markets with stringent quality controls and higher returns. Farmers like Anita and Sanjay Ghogare practice organic farming of turmeric in Maharashtra’s Loni village. The rising demand for organic turmeric has created a good market for their powder, pickles, and an immunity-boosting doodh masala, which sells for Rs 2,000 per kg.

Since the products are organic, the couple commands are much higher rate and their products reach Germany, Australia and the US. Even domestically, organic branding helps farmers differentiate themselves in crowded markets.

Here’s their story: This couple earns Rs 8 lakh per acre from organic turmeric farming; products go to Germany, Australia and US

(Riya Singh is a Ranchi-based journalist who writes on environment, farming, sustainability, startups, & women empowerment)

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