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Latest News on Economy Policy, Government, Trade Policy | The HinduBusinessLine

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India may set up labs to certify natural farming produce,...
2026-03-06 · via Latest News on Economy Policy, Government, Trade Policy | The HinduBusinessLine
Prime Minister Narendra Modi addresses a post-budget webinar on 'Agriculture and Rural Transformation' in New Delhi on Friday.

Prime Minister Narendra Modi addresses a post-budget webinar on 'Agriculture and Rural Transformation' in New Delhi on Friday. | Photo Credit: ANI

Prime Minister Narendra Modi said on Friday that the government is considering establishing laboratories to certify agricultural produce grown using ‘natural farming’ technology to help Indian produce reach global markets. Currently, certification exists only for organic produce, which is also chemical-free and must meet specific procedures to be labelled ‘organic.’

Addressing a post-budget webinar on ‘Agriculture and Rural Transformation,’ Modi said: “There is a lot of interest in holistic healthcare, and within that, organic diets and organic food. In India, we must emphasise chemical-free agriculture and natural farming.” He further emphasised that natural farming, with its chemical-free products, creates a pathway for India to reach the global market.

“The government is considering certifications and laboratories for this purpose. But please share your thoughts on this,” Modi told the participants.

Focus on certification

The stress on natural farming and organic produce amid the current war against Iran also underscores the government’s focus, as there has been continuous growth in the use of chemical fertilisers and pesticides despite periodic schemes announced over the last 12 years.

Fertiliser demand rises

Urea sales during April–December 2025-26 increased 3.8 per cent to 31.16 million tonnes (mt), compared with 30.02 mt in the corresponding period last year, according to Fertiliser Association of India (FAI) data. However, domestic urea production during the same period slid 3 per cent to 22.44 mt, while imports rose 85.3 per cent to 8 mt. Urea imports, which are completely controlled by the government, dropped 20 per cent to 5.65 mt in 2024-25 from 7.04 mt in 2023-24.

Gas supply priority

The government has already asked companies to prioritise the supply of gas to domestic consumers for cooking fuel, followed by fertiliser companies for urea production, for which liquefied natural gas (LNG) is the key raw material.

Boost farm exports

Modi also called for a “unified approach involving experts, industry, and farmers to meet global quality and branding standards,” and appealed to stakeholders to set clear goals to connect local farmers with global markets.

“Today, world markets are opening up, and global demand is changing. This webinar should also focus on making our agriculture export-oriented. We have a diverse climate and are very rich in agro-climatic zones; we must take full advantage of this,” he said. To mitigate risks, the Prime Minister advocated for crop diversification and said that states must be inspired to fulfil their budgetary responsibilities.

High-value crops focus

Commenting on the Budget proposals, he said that they offer countless new opportunities. “It sets the direction for increasing productivity and fostering export strength. We focused on high-value agriculture. We discussed the region-specific promotion of products like coconut, cashew, cocoa, and sandalwood. Our southern states, especially Kerala and Tamil Nadu, produce a lot of coconut. But now, those crops and trees are so old that they no longer have that capacity. This year, the farmers of Kerala and Tamil Nadu should benefit from the special emphasis placed on coconut,” he said.

The Budget for 2026-27 has also focused on high-value agriculture, including cashew, cocoa, and sandalwood, Modi said, adding that the National Mission on Edible Oil and Pulses and the National Mission on Natural Farming are all strengthening the agriculture sector. He also highlighted the budget proposal to promote Agarwood in the North East and temperate nut crops in the Himalayan states.

“If we scale high-value agriculture together, it will transform agriculture into a globally competitive sector,” Modi said.

Blue economy potential

He also noted that India is the world’s second-largest fish producer, with an annual production of about 4.5 lakh tonnes from reservoirs and ponds. However, there is potential for an additional 20 lt of production, he said, adding: “Fisheries can become a major platform for export growth.”

The Prime Minister emphasised the need for new business models in hatcheries, feed, and logistics to realise the potential of the ‘Blue Economy,’ saying it can become a high-value, high-impact sector for rural prosperity.

Published on March 6, 2026