Recently, India and Australia signed a Mutual Recognition Arrangement (MRA) for organic products, under which both countries will accept each other’s organic certification.

• The agreement is expected to simplify compliance, reduce regulatory barriers, and open access for Indian exporters to the high-value Australian market.
• The arrangement is aligned with the India–Australia Economic Cooperation and Trade Agreement (ECTA) and strengthens their strategic partnership.

Key Features of the MRA

• Coverage: The MRA covers organic products grown and processed in both countries, including:
  • Unprocessed plant products (excluding seaweed, aquatic plants, greenhouse crops).
  • Processed foods with certified organic ingredients (including third-country ingredients processed in India or Australia).
  • Wine.
• Implementing Agencies:
  • India: Agricultural and Processed Food Products Export Development Authority (APEDA), Ministry of Commerce & Industry.
  • Australia: Department of Agriculture, Fisheries and Forestry (DAFF).

Significance of Agreement for India

• Boost to Trade:
  • India’s organic exports to Australia were USD 8.96 million in FY 2024–25, covering 2,781.58 MT, led by psyllium husk, coconut milk, and rice.
  • The MRA is expected to expand exports in cereals, tea, spices, beverages, and wines.
  • Australia leads the world with 53 million hectares of organic farmland, presenting large-scale opportunities for bilateral trade.
  • Certification Equivalence: Builds trust in each other’s standards and certification systems, reducing duplication of testing and certification.
  • Compliance Simplification: Reduces costs and regulatory hurdles for exporters.
• Farmer Benefits:
  • Organic products fetch 30–40% higher prices, boosting farmer incomes.
  • Supports the government’s vision of making India the “Organic Food Basket of the World.”
• Facilitates wider access to premium international markets.

India’s Organic Sector

• Production and Area:
  • India ranks second in the world in organic agricultural land and first in number of producers.
  • In FY24, India produced 3.6 million tonnes of certified organic products across categories like oilseeds, cereals, pulses, spices, fruits, vegetables, tea, coffee, cotton, and medicinal plants.
  • Total organic area: 7.3 million hectares (4.5 mn farm area + 2.8 mn wild area).
• Major Producing States: Maharashtra, Madhya Pradesh, Rajasthan, Karnataka, Gujarat, Odisha, and Sikkim.
• Exports:
  • India exported 2.61 lakh tonnes of organic food in FY24, earning USD 494.8 million.
  • Major markets: US, EU, Canada, UK, Sri Lanka, Switzerland, Vietnam, Australia, Thailand, New Zealand, Japan, South Korea.

Organic Certification Process in India

• It is governed by the National Programme for Organic Production (NPOP) under the Ministry of Commerce and Industry. It ensures that organic products meet defined standards to maintain authenticity and market acceptance globally.

Key Steps in the Certification Process

• Applicability: Farmers, processors, traders, and exporters involved in organic products must seek certification under NPOP to legally market their goods as organic in India and for export.
• Certification Bodies: it is issued by accredited certification agencies authorized by the Agricultural and Processed Food Products Export Development Authority (APEDA), which acts as the regulatory body.
• Inspection and Audit: Certification agencies conduct detailed on-site inspections and audits of farming practices, processing facilities, and storage to verify adherence to organic standards as per NPOP requirements.
• Soil and Product Testing: Samples from the farm and produce are tested for pesticide residues, contaminants, and adherence to organic norms.
• Conversion Period: Land undergoing organic certification must complete a conversion period, typically three years, during which no prohibited substances are used, and organic practices are followed rigorously.
• Certification Validity: Once certified, organic products and processes can use the “India Organic” logo. Certifications are usually valid for one year and require annual audits for renewal.
• Compliance with International Standards: NPOP certification aligns with international organic standards, facilitating export under arrangements like the India-Australia MRA

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