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The agriculture sector in India has gone under significant structural change. Traditional methods of farming have left the farmers of today searching for something better. The pursuit of chemical intervention to push crop yield has only led to harming the earth. Farmers and communities have faced numerous socio-economic problems. The soil is depleted using harmful chemicals. In this background, the solution for this problem now lies in Organic Farming System (OFS), a notion strongly felt world-over.

Thinking of starting a venture in the organic food business? Then look no further

We are going to get you started in your venture into the organic food business by including all the requirements you will need in the terms of capital, property, and manpower, registrations, and financing that you will need for your venture.

Key requirements to start business in the organic food market

1. Finding the right location.

The organic food business is not only about organic products but involves an entire process that needs to be made organic. The first step of finding the right spot to start business is most crucial of all. 

A poorly chosen location will lead to more capital being spent on sales and promotion, educating your customers, discounting of products, and lead to lessening your profits in the long run. Try to start business in a prime location. People are willing to spend on organic products, and where there isn’t much competition.

2. Documentation

Depending on the location, you may need to negotiate prices with your landlord provided you are renting the place out. You will also need to sign or apply for a lease agreement.

3. Apply for necessary permits and registrations

There are a few formalities that need to be completed before you begin operations:

  • Any entity that seeks to enter the organic food business requires a permit from the Health Department.

  • The entity is also required to apply for a PAN.

  • The entity must also procure a certificate for its store from the Organic Trade Association.

  • The entity must also apply for an Employment Identification Number (EIN).

  • The entity must either be a sole proprietorship, a partnership or a limited liability company.

  • The entity must also be GST registered if expected annual turnover is over Rs. 20 Lakhs.

  • The entity must also possess a bank account.

4. Financing Initial Investments

On an average, gaining an entry in the organic food business takes around Rs. 10 Lakhs, which includes a deposit for the rented location, running costs for paying salaries, operation and inventory costs for the products, furnishing and interior decoration for the store. It is often recommended to apply for startup loans as they offer many attractive features that are beneficial for businesses. Startup business loanhave lesser interest rates, easier pay ups without additional costs for early repayment, and many other benefits that help your business grow.

5. Deciding what to sell/produce

Organic crops must be grown without the use of synthetic pesticides, herbicides, fertilizers, and bioengineered genes (GMOs). Organic livestock have to be raised in living conditions accommodating natural behaviors and be fed organic feed and forage. They may not be given antibiotics, growth hormones, etc.

6. Setting up the right price

Finding out the right price requires ample amounts of calculations and market research. A price too low, might increase sales volume but leave you unable to cope up with the costs. Prices set too high will make price-sensitive customers turn around and never return. Hence right pricing is essential for any organic food business.

7. Manpower and Management

The success of any business relies on optimal manpower required for various functions. Bigger stores might also need to be equipped with CCTV cameras to control theft. You must also maintain optimal quality of your products and adapt to the changing needs and preferences of your customers.

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Where to find the ideal loan?

While you are browsing through scores of startup loans and startup business loans that are available in the market, you might want to have a look at loans that are tailor-made for you, such as the Business Loans available on Bajaj Markets. These business loans have an end-to-end online process. You can secure funds of up to Rs. 50 Lakhs at attractive interest rates and. The facility of zero collateral and flexible repayment tenure is just the tip of the iceberg.


Organic farming conserves and builds soil health, replenishes natural ecosystems, provides for cleaner air and water, lowers toxic pesticide residues, all while having a smaller carbon footprint. With the given background, organic farming and production is the way to go for a sustainable future.

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