A.G. Howard, one of the pioneers of organic agriculture observed farming in India for many years and established the theory of organic agriculture. The theory provokes for the sustainable farming through balancing the soil by recycling organic materials back to the soil i.e. resource-cycle farming which existed in Asia for over a thousand years. However, modern agriculture has been focusing an economic efficiency without giving much attention on environment. Without doubt; such pursuits followed side effects and the green revolution is one of the example (Murayma, 2001).
Evidences from all over the world shows that the organic farming has increased the crop yield by doubled or trippled in land where resources are poor, diverse and complex. In irrigated condition, if maintained the yield. While, in the industrialized agricultural system, transition to sustainable agriculture could decrease the production per hectare by 10-20% in short form, but provides better level of financial returns of farmers (Yadav, 2001).
Sustainable means keeping efforts/things continuously, that is development without destruction (Dhital et.al. 2005). It is to meet the needs of present without compromising the ability of future generation to meet their own needs (WCED, 1987).
Traditionally organic agriculture has always been practiced in Nepal. Hill farmers depends primary on organic manure (FYM) either as compost prepared from locally available organic materials as a FYM (Budathoki et.al. 1993 cited in Neupane, 2004).
Organic agriculture sector is developing rapidly around the world and is being practiced in approximately 110 countries. World wide land under organic agriculture is estimated to be 30.4 million ha. Nepal has 26 organic farms, but Yadav (2001) reports two certified two farms in Nepal with 125ha land. Accordingly countries with greatest organic area are Australia (12.3 million ha), China (2.3 million ha), Argentina (2.2 million ha) USA (1.6 million ha). and study by IOFAM show that, increase in 1.8 million ha area at the end of 2006.
The global market of organic products is increasing. The estimated sales expanded by 7 to 9% . The higher growths of sales were observed in Western Europe and North America. However, the home of 60% of the world population, Asia has a small market.
Organic certification or guarantee is required in Nepal. International certification is expensive. Affordable verification systems for the farmers should be developed (Bhat, 2005).
Major organic importer countries (like USA, Japan, EU) have developed extensive legislation for organic products to enter into their markets for which certification according to official standard is a precondition (Shakya, 2005).
Organic agriculture offers trade opportunities for farmers in the developing and developed counties. The market of organic product is expected to grow globally in the coming years and high growth rate (from 10-15 to 25-30%) are expected. The organic market expansion makes it possible for farmers to reap the benefits of trade with relatively high price premiums (Yussefi and Willer, 2002 )
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