Assessing the profitability of organic agriculture in India: A meta-analytical approach

Abstract

Global concerns about the sustainability of chemical-intensive farming have spurred interest in organic agriculture, which promotes ecological balance and avoids synthetic inputs. In India, with its strong tradition of organic farming, the potential for expanding organic agriculture is significant. However, debates persist regarding its economic viability compared to conventional methods. This study addresses this issue by analyzes and investigates the profitability of organic farming across India using meta-analysis, synthesizing findings from 27 studies that compared mean incomes from organic and inorganic farming. The results reveal a significant variation in the performance of organic farming, with mean incomes ranging from Rs. 801.60 per acre (Red gram) to Rs. 13,799.20 per acre (Tomato). While most studies indicate higher profitability for organic agriculture, four studies reported negative gains, with losses ranging from Rs. -8,092.30 per acre (Turmeric) to Rs. -1,935 per acre (Cotton). The meta-analysis, employing a Random Effect Model due to significant heterogeneity, confirms an average profit of Rs. 3,850 per acre for organic agriculture over inorganic farming in India. These findings are consistent with global studies and highlight the economic viability of organic agriculture, although the benefits may vary depending on the crop and region. The study provides crucial insights for policymakers and farmers, emphasizing the need for targeted support to enhance the profitability and adoption of organic farming practices in India.