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Case Study

Punjab Basmati Exporter Achieves EU Organic Certification and Commands 45% Price Premium

Challenge

A Punjab-based basmati rice exporter had conventional basmati certified by APEDA. German organic food retailers (Alnatura, dm, Denns Biomarkt) were actively seeking EU-certified organic basmati but existing Indian suppliers were struggling to meet EU organic certification requirements. The Punjab exporter' farms had not used prohibited pesticides for 3 years — potentially qualifying for immediate organic conversion certification.

Solution

AJG facilitated introduction to Control Union India — an EU-accredited organic certification body. Farm group certification was organised across 85 smallholder farmers (total 320 hectares) pooling their production. The 3-year pesticide-free history was documented from farm records and village panchayat attestations. EU organic certificate (Regulation 2018/848) obtained for the farm group and the processing facility. German market entry was facilitated through a Hamburg-based organic food importer with Alnatura and dm distribution relationships.

Outcome

EU organic basmati certificate obtained at month 7 for 320 hectares. First German organic retail orders placed at month 9. EU organic basmati selling price: EUR 4.20/kg versus EUR 2.90/kg for conventional basmati — 45% premium. Annual EU organic basmati revenue: EUR 2.8M. The farm group certification model has been replicated with 3 additional farmer groups.

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