Project title: Organic foods - Consumer awareness, safety and regulation

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Project title: Organic foods - Consumer awareness, safety and regulation Scope The objectives of this project were to study consumer perceptions and practices with regard to organic foods, raise consumer awareness about quality and safety issues and advocate relevant food laws and regulations for such foods. While calling for changes at the policy level by advocacy, we attempted to sensitise the regulatory authorities to the issues of concern to consumers and the environment. Key findings emerging from online survey 99% respondents were aware of the term organic foods However, only 10% bought organic foods regularly or occasionally While 43% respondents did not buy because the products were expensive, 54% were discouraged by the limited availability and 44% had doubts about the origin/source of product. Those who bought organic foods did so because they were healthy, safe to consume, ecofriendly and did not have pesticides and chemicals. Some of the respondents supported the organic movement and local farmers. Some felt organic foods led to saving of resources for the next generation while others felt that cultivating them preserves soil quality. Organic vegetables and fruits were the most popular products followed by powdered spices. For 82% respondents,organic certification was important but 65% were not aware about organic standards and labels. Between conventional and organic food products, 72% preferred organic foods while 8% said it did not make any difference to them which category they bought. Methodology The first activity we conducted was an online survey. Since many consumers were not fully aware of organic foods and their impact on health, we conducted an online survey to get an idea about consumer perceptions and practices with regard to organic foods. The survey results helped us draw up a strategy for consumer awareness so that we could educate consumers further. In theanalysis of the survey results we evaluated consumer knowledge and awareness of organic foods, attitudes about buying organic, frequency of and motives for purchasing organic foods, reasons why consumers did not buy them and knowledge of current organic certification processes. We surveyed consumers online in 2014 by distributing a questionnaire through Facebook and mass mailing system.the two-page questionnaire consisted of 21 questions(appendix I) and took 10-15 minutes for the respondent to complete.a total of 108 people responded to the survey. Demographic profile Sixty-one per cent of the 108respondents were in the 41-65 age group and 62% were men. Most of the respondents were postgraduates, lived in metropolitan cities and were salaried with annual income of more than Rs. 4 lakh.

Gender Profile Age Group Male Female 20-40 41-50 51-65 Above 65 Qualification Occupation Under Graduate Graduate Post Graduate Self Employed Salaried Housewife Retired Student Other Location Annual Income Metropolitan City Mega City Other Urban Area Rural Areas Less than Rs 2 Lakh Rs 2 Lakh to Rs 4 Lakh More than Rs 4 Lakh Familiar term Ninety-nine per cent of respondents were familiar with the term organic food. When asked to define the term, a majority of respondents related organic to ideas of freshness, being natural, healthy and absence of pesticides. While 68% of the respondents said it was food not sprayed with pesticides, 77% said it was food grown using manure and without chemical fertiliser. Thirty-seven per cent mentioned that such foodswere environment friendly, 62% said they did not have chemicals, 24% perceived them as healthy and 32% said they were natural. Interestingly, there were respondents who considered organic foods as herbal foods (7%), foods without antibiotics (28%) and traditional/indigenous foods (14%). This indicates that consumers interpreted the term organic in a variety of ways and many did not have a correct understanding of the term.

Familiar with the term 'organic food' Yes 9 8 7 6 5 4 3 2 1 Understanding of organic foods Few buyers Surprisingly, though 99% of the respondents were familiar with organic foods, only 10% actually bought them, whether regularly or occasionally. The main reasonsfor this according to respondents were: less availability/supply(54%), costly/not affordable (43%) and origin/source of product was not credible/trustworthy (44%).Eighteen per cent said they did not know where to buy organic foods and there was less variety in this category, while 9% did not specify any reason for not buying them. Do you purchase organic food? Yes

6 Reasons for not purchasing 5 4 3 2 1 difference t affordable variety Less availability Origin not trusted Don t know where to get them Indifferent Other reasons Purchase behaviour Those who bought organic food indicated the place and frequency of purchase. Around 40% of respondents who bought organic foods go to supermarketswhile only 17% purchasedthem online or through mailorder. Organic foods were also bought at local shops (33%), greengrocers (33%), local market (35%), organic shops (15%) and farmers market/shop (15%). As for the frequency of purchase, 44% of buyers purchased organic foods once a month while 6% did so once a week. Around 38% hardly ever bought such foods. Respondents who buy organic foods regularly had been consuming them since the last 10-12 years. 9 8 7 6 5 4 3 2 1 Regularly Occasionally Never

50 40 30 20 10 0 How often do you buy organic products? Once in a week Once in a month Hardly ever What they buy Among organic products, vegetables and fruits were the most popular with 56% of buyers opting for them. While 40% boughtpowdered spices (turmeric powder, chilli powder, coriander powder, etc.), 22% bought beverages (tea, coffee) and 19% dairy products (cheese, yogurt, milk). Other products purchased were pulses, cereals, jaggery, honey and breakfast cereals. Among the nonfood products organic toiletries, cosmetics and cleaning agents were popular. Which organic products do you buy? 60 50 40 30 20 10 0 Produce Spices (vegetables, (turmeric powder, fruits) chili powder, Dairy coriander Products (cheese, powder, yogurt, etc.) Beverages milk) (Tea, Coffee) Other Products Reasons for buying Buyers of organic foods were asked why they buy them. While 47% said it was because they were safe to consume, 46% said it was the fact that such foods were free from chemical pesticides and fertiliser was what motivated them. Other reasons cited were that they were healthy (40%), environment friendly (43%), savedresources for the next generation (33%) and their purchase supported local/small farmers(53%) instead of big multinational companies. While 30% of buyers supported the organic movement, 9% said organic foods had a positive image and it was a fashion to consume them.

6 5 4 3 2 1 Strongly agree Agree Neutral Disagree Strongly disagree Don t Know Interestingly, around 41% were neutral to the appearance and taste of the foods and were only concerned with it being organic. Factors that would encourage buying While some people didn t buy organic foods at all, others did so occasionally or bought only one or two products. The factors that would encourage buying were: (i) if they were more affordable and easily available (58%) (ii) if the method followed in cultivating the product could be trusted (50%) (iii) if they had recognisable label (40%) (iv) if they were seasonal products (32%) (v) if they were from the local region(39%) (vi) if there was more information in the media about them (40%) (vii) if they had more shelf life(38%) Products people would like to buy When consumers were asked which organic food products they would like to buy or consume, 99% of the respondents indicated fresh vegetables and 94% fruits. Eighty per cent indicated that they would like to buy powdered spices like turmeric powder, chillipowder, cumin powder andcoriander powder.this was followed by pulses (76%), cereals (71%), milk and milk products (69%), dry fruits and nuts (64%), oil (61%), tea and coffee (56%), herbs (57%), sugar (49%), bread and bakery products (46%), meat and meat products (26%) and baby products (24%).

12 Product group(s) people would consume daily if they were organic 10 8 6 4 2 Eighty two per cent said organic certification was important to them but 65% were not aware about organic standards and labels.if they were to choose between conventional and organic food products, 72% preferred organic foods while 8% said it did not make any difference to them which category they bought. Importance of organic labels Awareness of the organic standards and labels Yes Yes

8 7 6 5 4 3 2 1 Choice between two similar products Organic product Locally produced product Make no difference to me What respondents had to say PrabhakarKotiyanfelt that foods were sometimes touted to be organic in order to lure buyers. S.Dayalsaid he had to commute a long distance to procure organic vegetables. Availability at nearby stores seems to be a critical aspect. Samir Shiralidid not buy organic as certified products were not available. R.J. Vasavada andarchana Sabniswere not sure the manufacturing company was authentic. M. Jha commented that he wished organic foods were abundantly available. According to him, their non-availability is a great stumbling block to their popularity. Besides, their benefits too need to be properly and adequately highlighted. While some respondents found it difficult to trust the genuineness of the product and said standards and certification were vital, others wanted more variety and a greater range of products. For some the high price was a deterrent, while for others lack of awareness was a problem.some felt the credibility of existing suppliers was not established. (Blurbs:) It has become a fashion to claim that a product is organic and charges exorbitantly for not using pesticides without ensuring standards are maintained. - Dilipkumar Mehta Three issues primarily affect consumer behaviour towards organic products: affordability,availability andawareness. A market needs to be created and the government should help out if funds are a problem. - Niyati Parikh Deshpande Conclusion Some consumers not clear about term organic Most consumers think all organic foodwas sustainable and define organic as natural, lacking pesticides, fresh and essentially good for the environment. They hadexpressed interest in healthy and nutritionally rich food as well as environmental concerns and sustainability. Interestingly, there are respondents who considered organic food as herbal foods or foods that did not have antibiotics and some even understood them as traditional/indigenous foods.

High Price The major problem that inhibitedpeople from buying organic food was the price.it wasthe major barrier to increased purchasing among those who bought organic products on a limited scale. It also prevented those who didn t buy at all from taking that first step. Many people would purchase organic foods if they were affordable. Availability Problem Another major hurdle was lack of availability and doubts about origin. However, perceptions that organic food was becoming more readily available and getting cheaper were among the main motivating factors for those who intended to buy more. Supermarkets/retail chains were the most preferred place for buyers. Consumers were keen to have more organic shops in their area and to see more organic foods in the market.fresh vegetables and fruits were the most preferred produce. Consumers believed that organic farming was in harmony with nature and the environment.many bought organic foods to support local farmers and farm workers. Lack of Awareness of Labels People do not seem to know much about certification (standards) and labels of organic food products but it is an important issue for them. The government should inform consumers about certifications and genuine labels. Also, if more organic foods can carry an indicator of the region, salesare likely to rise. Marketers should raise awareness among consumers about regional products to support local farmers. Moreover, labour standards should also be included in the certification process. Action Areas Consumers interpreted theterm organic in variety of ways. It indicates that they did not have a correct understanding of the term.there is need to raise awareness on this issue. As 17% respondents purchased online, there is need to monitor organic products sold online. Around 65%respondents were not aware of organic standards and labels. It indicates that there is strong need for creating awareness.