Economic Impact of Organic Agriculture: Evidence from a Pan-India Survey

The demand for organic foods is increasing worldwide due to health and environmental benefits. However, there are several unanswered questions, such as: Do farmers generate higher profits? Will the cost of cultivation reduce compensate low yields? Can practice as per agriculture protocols obtain certification? literature on varies widely in terms profitability, yields costs products. A few studies have researched site-specific agriculture, but none compared with conventional at larger scale India. Indian government has promoted since 2015 through its pan-India scheme—Paramparagat Krishi Vikas Yojana (PKVY). Under this program, were 13.9 million certified 29,859 clusters, covering 0.59 hectares (about 0.4% cropped area India). This study assessed implementation process PKVY impact farmer level using Difference-in-Difference approach. An economic surplus model was employed observe macro data from an all-India representative sample 576 clusters crop year 2017. results identified that experienced 14–19 percent less 12–18 lower than farmers. net result a marginal increase profitability traditional agriculture. economy-wide indicates will be reduction producer consumer reduced yields. if shift confined rainfed, hilly tribal areas, both surplus.