Category: Commerce Notes PPT

A joint venture can be defined as an arrangement in any business organization by more than two parties where they agree to put in their resources to carry out a specific task for the growth of the company. In the case of a joint venture, all the people who have invested their money have the right to know about the profits and losses that the project or the business activity is making. It can be a partnership, a corporation or an LLC or limited liability company. 

Meaning of Joint Ventures and their Features

JV means a business arrangement where more than one independent party participate together after forming a single entity legally. They undertake the responsibility of bearing the profits and losses that the company shall make for a specific period. 

Joint venture can be defined as a temporary partnership that is made for a specific purpose that leads to the growth or establishment of the company or business association. 

Features of the Joint Venture are the following:

More than one company come forward with a definite purpose for the growth of the company and they remain bound to their decision.

All the parties have equal right over the operations, business assets, administration as well as the company’s ventures.

• The Pooling of Expertise and Resource: 

All the company’s pool their resources that include manpower, capital, technical parts, which help the company to produce in large-scale.

• Sharing the Profits and Losses: 

As per the joint company definition, the co-ventures are responsible for all the profits and losses that the company makes for that period. The computation of loss and profit is generally done when the business activity or the project comes to its end. However, if a project continues for a longer period then the loss and profit are calculated yearly. 

• Getting Access to the New Technologies: 

While describing the meaning of joint ventures and their features, this calls for special mention. When a party enters a joint venture with a company then it gets access to all the techniques of the production, business performance, and marketing that results in decreasing the cost and improving the quality. 

Joint Venture Company Definition 

Joint venture company meaning refers to the joint venture that involves more than one business company or party taking part in the resource to achieve a set of goals that can lead to the development and growth of the company. The rewards and risks of the company organization are also equally shared. 

Joint Venture Account Meaning 

This refers to an account that is prepared for measuring venture profits. These accounts are debited with all the expenses of the ventures and then credited with all collections or sales. The loss and profits made by the venture are transferred to their accounts in the profit-sharing ratio. 

Definition of Joint Venture in Business

Meaning of joint ventures refers to the parties coming together by investing their resources to a new project and agreeing to share the loss and profits that are made from the specific project.

Why Choose ?

The last thing that a parent would want for the child is to spend his whole time glued to the mobile phone. But with , spending time on Smartphone will become more interesting and beneficial also. The major USP factor of lies in its ability to combine all its content with strong design and technology. All the modules presented on the site are curated by experienced teachers smoothly and easily so that they can be easily understood by the students. Another important factor of this learning app is that it not only provides lessons but also test papers that can be solved by the students. 

There are many forms of communication that businesses use. These vary depending on the type of communication, formal or informal. Memos are the most popular form of internal communication in a written format maintaining the confidentiality of the business.

What is a Memo in Business Communication?

A memo is an abbreviation for memorandum. It serves the purpose of delivering the information to a mass of people. It is written from the perspective of one-to-all. Memo notes normally include the interest of the business. You can use a memo to explain any upcoming task or event, as a reminder, highlighting the event and for many other purposes. However, memos hardly include a call to action elements. It is the ideal document that helps in addressing several people formally. 

Memorandum Format

Every part of the memorandum format has a justifiable reason. Always write the memo in a professional format. It should include all the required details and no unnecessary information. The format and details to be included while writing a memorandum are as follows.

• Heading: After writing the information that is added in the header format, ‘Memo’ is written, before starting with the body and adding content.

• Recipient: Next, the address of the recipient is added. For example, “Employees of the marketing department.”

• Writer: Here, the name of the person writing the memo is added. 

• Additional Receipts: These people receive the memo just like others; however, the memo does not address them. These can be members of the managing committee who need to keep track or any other people. They are just a part of the loop.

• Date: It is an integral part of every formal document, and so is it necessary for writing memos, also.

• Subject Line: This provides an outline of what the memo is about, in just a line or two. This allows the reader to know the context that the memo is referring to. For example, Subject: Induction seminar for the recruits of the company.

• Body: Here you get all the information. It contains the ‘when’, ‘what’, ‘where’, ‘why’, and answers to all these questions. This will help in providing all the information readers need to know in a concise, professional, and well-structured format. It is necessary to convey all the information with precision and clarity. Try ending the body with a positive note.

• Proofread and Editing: The final and most important step is to proofread the content before sending it out. Ensure that it does not contain any minor issues either.

Effective Tips for Memo Writing

Here is a list of the tips one can follow for memo writing and these are:

• The Orientation of the Audience: While drafting a memo, it is essential to understand the audience well. Try to offer a clear and concise memo without any ambiguities. There might be cases when only a department of the company is aware of an acronym. Under such cases, use the full forms for appropriate communication.

• Professional Tone: A memo speaks volumes, representing a part of the organization. This makes it vital to take note of how you communicate with one and all.

• Subject: A special emphasis is to be laid on the subject line. Make it clear and concise. In case of any specific event or occasion, ensure that its name is added in the subject line.

• Direct Format: Make it direct. You cannot be passive about declaring any information. Keep the information related to the topic.

• Objectivity: Without any personal bias, make the memo objective. Place the facts right away without any addition of subjective information.

Modern Approach To Management

Contingency Theory Of Management is a new approach to leadership, and the basic premise of this modern organisation theory is that there is no best way to lead an organisation. This theory gives a modern approach to management and enlists the various internal and external constraints that will alter as per the situation. In other words, the approach depends upon the situation at hand and the measures that will be the best course of action.

In the study of Modern Organisational Theory, we will discuss Simple Theory and Contingency Theory. This article on Modern Organization Theory Contingency Theory will help you comprehend all about Contingency Theory and how this approach differs from other organisational theories.

Contingency Theory of Management

The Contingency Theory of Management is an extension of the Systems Organisational Theory. According to the Contingency Theory, there is no specific Organisational design or executive action appropriate for all situations.

The organisational design and the managerial decision of the Contingency Theory depend on the situation, that is, whether it is contingent on the circumstances and the situation. Therefore, the Contingency Theory is commonly referred to as a Situational Theory.

Contingency Theory considers an organisation a system that comprises several subsystems, just as encompassed in the Systems Organisational Theory. Further, both theories emphasise the maintenance and adoption of the activities for the system’s survival and growth.

The two theories also deal with interdependence among the elements of the system and the patterns of relationships. However, there exist some key differences between the two theories.

Key Differences Between The Systems Organisational Theory and Contingency Organisational Theory

The key differences between the Modern Theory Of Organisation- The Contingency theory and the Systems Organisational theory are as follows:

• The Systems Theory mainly focuses on the internal dynamics that deals with an organisation’s behaviour and structure. Contrarily, the Contingency Organisational Theory focuses on the external determinants that deal with an organisation’s behaviour and structure. 

• The Systems Organisational Theory enlists and emphasises the universal principles for its application in all situations. While the Contingency Organisational Theory works on the prescription that ‘it all depends’, the Contingency Organisational Theory elucidates the relationship between an organisation and its external environment and endeavours to fill an analytic break of the Systems Theory.

• The Contingency Organisational Theory offers a more detailed comprehension of the connection between the environment’s multiple variables. It is also action-oriented and is directed towards the application of the System Theory’s concepts. Hence, The Contingency Theory offers practical and useful insights to managers or leaders during a turbulent working environment.

• The theory focuses its views towards the recommendation of the executive actions and organisational designs which are best suited for specific situations. The theory also proposes that apt organisational design is based on environmental variables such as people, size, technology, and more.

Fred Fiedler’s Modern Theory of Organisation- Contingency Theory

The Modern Organisation Theory – Contingency Theory of leadership, was proposed by the well-known Austrian psychologist Fred Edward Fiedler. The Contingency Theory focuses on the importance of the leader’s situation during the crisis and his/her personality. Fred Fiedler and his associates studied leaders’ behaviour in various contexts but mostly based on military context. Therefore, Fred Fiedler’s model is based on this section of the research findings.

Fred Fiedler and his associates enlisted the outline of two leadership styles- Task-motivated and Relationship-motivated. The task-motivated leadership refers to the task accomplishment, and relationship-motivated leadership refers to the interpersonal relationships.

However, central to the Contingency Organisational Theory is the concept of situation, which is characterised by three significant factors which determine the favorableness of various situations in organisations. They are-

Leader-member Relations

deals with the group’s general atmosphere and the various emotions associated with the group and leader, such as loyalty, trust, and confidence. 

Task Structure

deals with the means of task accomplishment and task clarity.

The Position Power

deals with reward-punishment authority the leader possesses over the group.

Before we proceed to understand the Principles of Management, let us brush up on our knowledge about management concepts. Management, in its most basic form, refers to the processes of planning, organizing, making decisions, motivating, and leading human resources in an organization. Management also includes the control of a company’s information, physical, and financial resources to achieve its objectives.

What are Principles of Management?

Principles of management encompass activities connected with organizing, planning and controlling of basic aspects of an organization, like materials, people, methods, machines as well as financial resources. 

 

It engages in coordinating and directing human efforts with a common objective of meeting established goals. 

 

Nature and Principles of Management 

The nature of principles of management is elaborated below.  

• Universal Application- These principles have universal nature due to which these are applicable for all kinds and sizes of organizations. However, the method of application for these principles can be modified, and the outcome may vary. For instance, a specialization degree will vary across an organization, but the principle of labor division remains the same. 

• Experiments and Practice- The development of management principles involves trial and error and extensive research. It includes experiments and observations before these principles are developed. Hence, management principles are understood to be evolutionary.

• General Guidelines- These principles have to be applied in an organization while keeping in mind the nature, size and objectives of that firm. Management principles are not absolute statements in themselves and cannot be implemented rigidly. It provides broad guidelines to resolute issues that may arise in the course of operations.

 

For instance, the salary amount that an employee receives is dependent on a host of factors, but the fair remuneration principle applies to all organizations.

• Flexibility- Management principles are flexible enough to be applied in different situations. Based on the requirements of an organization, the principles may be modified by administrators. It is this absence of rigidity that makes management principles effective.

 

For instance, the concentration of power is indicated at the apex level in an organization by the centralisation principle. However, the degree and extent of it will have to consider the nature of the organization as well. 

 

For instance, even though the principle of discipline mandates a certain degree of commitment of employees extended towards a company, the Esprit de Corps principle leads to the building of team spirit. 

• Contingency- Application of management principles is dependent on contingent factors for existing situations in a company. The effect and application of such principles will also have to consider the function, requirement and nature of an organization. The application will have to be tailored accordingly. 

• Cause and Effect Relationship- The establishment of management principles takes into account causal relationships with respect to stock situations. It means that if those principles are applied in a particular scenario, a general effect may be assumed. However, one cannot anticipate the exact result borne out from applying management principles.

Nature of Management

• The authority structure- The authority system consists of well-defined regulatory principles, the regulation of proper power, and efficiency at all levels of decision-making. This is necessary so that each self performs what is expected of him or her and reports to whom he or she is accountable.

Significance of Principles of Management 

The significance of Principles of Management is twofold. 

 

Firstly, the adoption of management principles equips managers to handle numerous situations. They will have the necessary understanding of practical situations. With proper policy implementation, managers may enhance their managerial capabilities. 

 

Secondly, implementing management principles also helps in optimally utilizing resources which is likely to lead to efficient management. Human resources, as well as other material resources, are available in a limited manner with an organization. Hence, to minimize cost and maximize profit, resources should be effectively utilized. Management principles enable managers for influence and predict the outcome of activities and choices. 

 

Importance of Principles of Management 

The very nature of principles of management contributes to its importance. 

• Adhering to Social Responsibility- Managers can observe their commitment not only towards their subordinates but also the society at large. Organizational goals are also achieved efficiently. It can be understood in the context of the fair remuneration principle. An organization becomes not only compliant with government regulations but also ensures social justice for its members.

• Adapting to an Ever-Changing Business Environment- Due to the dynamic nature of management principles, the broad guidelines are subject to modification consistent with changes in the business environment. With such modification, an organization may continue to retain its efficiency.

• Training and Development- The principles will have to be clearly understood to initiate proper training and development. Managers need to undergo training programs to stay updated with due knowledge and expertise. It will help them to engage in proper decision-making and carry out their duties responsibly. 

• It aids in the accomplishment of group objectives- It aids in the achievement of group goals by arranging the factors of production, assembling and organizing the resources, and efficiently integrating the resources to achieve goals. It directs the efforts of a group toward the achievement of predetermined goals. There would be no waste of time, money, or effort if the organization’s objectives were clearly defined. Management organizes the disorganized resources of men, machines, money, and so on into productive enterprise. These resources are coordinated, directed, and controlled for the enterprise to achieve its goals.

• Optimum utilization of resources- Management makes efficient use of all physical and human resources. This leads to management efficacy. Management maximizes the utilization of scarce resources by selecting the best possible alternate use in industry from a variety of options. It employs experts and professionals, and these services result in the use of their skills, knowledge, and proper utilization, as well as the avoidance of waste. When employees and machines are working to their full potential, there is no underutilization of resources.

• Reduces cost- It achieves maximum results with minimal input by properly planning and using minimal input to achieve maximum output. Management allocates physical, human, and financial resources in the most efficient way possible. This aids in cost-cutting.

• Creates a sound organization- There is no duplication of effort. Establishing a sound organizational structure is one of the goals of management that is aligned with the goals of the organization, and to do so, it establishes effective authority and responsibility relationships, i.e. who is accountable to whom, who can give instructions to whom, who are superiors and who are subordinates. Management fills various positions with the right people who have the necessary skills, training, and qualifications. Everyone should have access to all jobs.

• Establishes Equilibrium- It allows the organization to thrive in an ever-changing environment. It maintains contact with the changing environment. The initial coordination of the organization must be changed as the external environment changes. As a result, it adapts the organization to changing market demand and changing societal needs. It is in charge of the organization’s growth and survival.

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When it comes to the double entry system in Accounting, the Debit is always equal to the Credit. This refers to the fact that each individual Account is matched in a perfect manner. It also refers to the fact that all the Accounts of the entity should match perfectly. One manner in which this accuracy can be checked is with the help of the Trial Balance of the respective company.

In this context, let us know in detail about the trial balance – its objectives and limitations will alos be dealt here accordingly. 

Trial Balance

Trial Balance is similar to a bookkeeping worksheet which the company makes during the end of the financial year. It refers to an Account which tends to list the closing Balance of every Account on the Debit or Credit side respectively. Amongst the main objective of the Trial Balance is ensuring that the sum total of all the Debits is equal to the sum total of all the Credits.

The third step of the Accounting process is to prepare the Trial Balance. Once the journalizing and posting of the entries is done in the Ledgers, the Bookkeepers would make the Trial Balance. A full Balanced Trial Balance makes sure that there is an Arithmetic accuracy of the respective Accounts. The Trial Balance also provides reasonable assurance that the Account books are free from any sorts of Clerical Errors too.

For example, the bookkeeper records the entries for the Credit sales in the journal or the book. However, he does not make the corresponding entries in the Account of the Creditor by mistake. While making the Trial Balance, the difference would show up between these amounts of the Debtor and the Creditor. The bookkeeper would be able to rectify his mistake by taking a look at the Trial Balance.

Objectives of Trial Balance

Given below are the objectives of the Trial Balance and the reasons why it is prepared.

1. The Trial Balance makes sure that the posting from the ledgers is carried out in the correct manner. In case there are any arithmetic errors present in the Accounting, then it would automatically get reflected in the Trial Balance. This can be determined if the total from the Debit column and the total of the Credit column do not match.

2. Trial Balance also helps in detecting the clerical errors such as mixing up of the figures, faults in the posting, etc.

3. The Trial Balance also helps to prepare the final Accounts and the Balances for the financial statements are taken from the Trial Balance itself.

4. The Trial Balance also serves as an important summary of the total Accounting records and the ledger Accounts of the business or firm.

Trial Balance ensures that all the posting from the ledger Accounts should be done correctly without any errors. If any error is present in the Accounting, you will get to know about it in the Trial Balance. If the Debit column and Credit column don’t match with each other, there is an error present in it. 

• Trial Balance also helps in detecting the clerical errors namely mixing up of figures, fault in posting, etc. 

• Trial Balance also helps in preparing the final Accounts. Trial Balance also provides the Balances for the financial statements. 

• Trial Balance is also being used as a summary of all Accounting records which is very useful for bookkeepers. Basically it is said that Trial Balance is a summary of all the ledger Accounts of the organization.

Limitations of Trial Balance

Trial Balance is an essential Account, especially for the bookkeepers. However, there are certain limitations of the Trial Balance too. The main limitation of the Trial Balance is that it does not find out all kinds of errors. This means that even if there is a fully Balanced Trial Balance, it would not assure that there is 100% accuracy in all the Accounts. There are several kinds of errors that the Trial Balance does not draw attention to. These errors are as follows:

1. A transaction which is entirely missing is not journalized.

2. If wrong amounts are written in both the Accounts.

3. If the posting is carried out in the wrong Account but the amount is right.

4. The entry which is not posted in the ledger at all.

5. Double posting of the entry mistakenly.

6. One of the main and important limitations of Trial Balance is that it does not point out every type of error. This basically means that even if you have fully Balanced Trial Balance, there will not be 100 percent accuracy of all the Accounts. 

7. Any transaction which is missing completely and wasn’t even journalised, then Trial Balance will not detect any error. 

8. When there are wrong amounts written on both the sides of Trial Balance, it will be unable to detect the error.  

9. If any posting was done on the wrong Account of the ledger but in the right amount, then Trial Balance will not draw attention to this error. 

10. Any double posting of entry in the ledger Account by mistake will not be able to be identified by the Trial Balance. 

A Trial Balance is a report or it is like a bookkeeping worksheet that collects the Balances of all the general ledger Accounts which is prepared by a company at the end of the financial year. Basically, it is an Account which lists the closing Balances of every Account on the Debit and Credit sides. One of the important functions of objective is that it has to ensure that all the Debit sides and Credit sides must be equal to each other. The Accounts mentioned in the Trial Balance are related to Accounting items like assets, liabilities, revenues, gains and losses, equity etc. It is being prepared by companies to make the adjusting entries to the general ledger which are necessary. 

Preparation of Trial Balance is the third step or process of the Accounting process. After journalising and posting each and every entry in the ledger Accounts, Trial Balance is prepared. Accuracy of the Accounts is being judged by analysing the Trial Balance whether it is Balanced or not. Trial Balance also provides reasonable and proper assurance about the books of Accounts that they are free of any errors. The main function of Trial Balance is to check the accuracy of all the Accounts of the entity. 

Agriculture in India is exposed to the interference of several environmental issues such as climate change, global warming, preservation of soil, water and air agents, etc. 

These forces compel the agricultural sectors of our country to find innovative modes of production which are more respectful towards Nature. Search for such newer techniques and methods led to the idea of organic farming to be used as an alternative to the current agricultural operations. 

Various types of organic farming are cited in all the scenarios of ‘Agriculture Energy 2030 Prospective’. These are classified as the essential elements to reduce the total energy footprint of the agriculture industry of India. 

What is Organic Farming Definition?

In order to define organic farming, the current agricultural strategy needs to be discussed first. Such strategy involves repeated use of fertilisers, chemicals, pesticides which degrades the quality of crops for the commercial benefits by increasing the units of production. 

According to experts, such actions will take its toll and will have a notable effect on the health conditions of the consumer as well as the fertility of the land used as agricultural lands.

The definition of organic farming states that it is an agricultural technique which sustains, improves and maintains the standard of quality of our ecosystem. 

Organic farming is a mode of farming where the production of crops is done without using any synthetic chemicals, recycled inorganic fertilisers, other harmful substances such as pesticides, insect repellents, etc.

 

What is Organic Farming Meaning?

In simple terms, the meaning of organic farming is that it is a farming process where use of fertilisers and pest control means are created or acquired from organic materials. Such a process does not enforce a harmful and degrading effect on our environment. 

All operators who are engaged in such a type of agricultural process comply with the strict particulars which favour non-polluting farming and thereby respect the ecosystem and its residents.

What is the Relevance of Organic Farming?

The current agricultural system in most countries primarily focuses on the production output. The Indian agricultural sector remained self-reliant during the emergence of the green and golden revolution. It also launched multiple farming techniques, such as HYV seeds, fertilisers and pesticides, which adopted advanced technology to focus heavily on the generated output.

During the time of famines, the green revolution helped a lot in leading to a drastic rise in the stock of food grains in India. Our country not only managed to remain self-sufficient but also became one of the top producers of food grains across the continent and beyond. 

Our country introduced HYV seeds, pesticides and fertilisers created with the help of adept scientific research, in an effort to increase productivity by a significant amount. This was one of the driving factors of the green revolution, which subsequently helped India to become one of the leading producers of rice and wheat across the globe.

Task for you: Find out when the Green Revolution was introduced in India. Also, find out which were the primary grain types that were chosen to battle a dwindling supply?

The golden revolution was essential for our country’s agricultural sector to establish itself in the horticulture market on an international scale. During the time this revolution took place, the Indian agricultural industry began to produce horticulture crops such as fruits, vegetables, spices, herbs, etc. 

Hence, owing to this revolution, the farming process now involved an increase in the variety of crops produced and thereby improving the industry as a whole, substantially. 

Task for you: Who led the core groups overseeing the Golden Revolution? What were some milestones achieved during that period?

This is how the green revolution and the golden revolution resulted in a drastic change in the history of Indian agriculture and secured our country from the possibility of further famines. 

Environmental Impact

However, such farming processes eventually led to severe deterioration of our environment. Organic farming was introduced as a solution to environmental impact which is increasing each passing day for the over-use of harmful chemical, pest control tools and synthetic and inorganic fertilisers. 

In other terms, this form of agricultural process is an innovative system of farming which helps substantially to repair, maintain and enhance ecological balance.

Hence, it can be concluded that the scope of organic farming in India to bring in more profits is quite high as lesser pollutants in our environment will help to yield top-quality crops which will, in turn, generate higher revenue. 

Moreover, since organic farming requires fertilisers and pesticides to be made of biodegradable elements, the cost of production will also be comparatively lower.

Check your Progress 

1. What is the primary objective of organic farming?

1. Promote eco-friendly farming

2. Produce more crops

3. Both

3. None of the above

2. What kind of seeds were used for high yield during the green revolution?

1. HVY seeds

2. HYV seeds

3. VYH seeds

4. VHY seeds

What do you Understand from the Concept of Organic Farming?

As per the definition of organic farming, it is clear that the objective of organic farming is for the betterment of the ecosystem. Moreover, organic farming is also the answer to the search for sustainable development in the Indian agricultural sector without resulting in depletion of natural resources, which will surely help us to restore the country’s ecological balance.

According to a recent analysis on 50 and above types of crops grown in about 15 countries across five continents, substantial data was received to judge the longevity of the financial stability surrounding organic farming. 

Data suggested that there are multiple factors which affect the financial elements behind organic farming. These include – 

1. Production yield

2. Labour expenses

3. Price of premiums for biodegradable products

4. Affordability of going through a phase of reduced earnings during the transition from traditional farming to organic farming

5. Cost-saving potential from lesser use of non-renewable resources and their accessory tools and machinery

Based on all these factors, analysts conducted a cost-benefit study which proved that organic farming is comparatively more profitable than traditional agricultural processes. 

Data also showcased the fact that the labour cost for proper usage for mechanical pest control and other approaches such as weeding, marketing and selling of biodegradable products was comparatively higher than conventional agricultural systems. 

Cost – Benefit Analysis of Organic Farming

The cost-benefit analysis indicates that the economic advantages of organic farming help to offset these costs and thereby incur a higher overall profit. The price premiums and lesser requirements of expensive fertilisers and pesticides make up for the increased labour costs of implementing such a kind of farming process.

Moreover, this analysis also helped to determine that the labour-intensive features of organic farming techniques possess the potential to revitalise the economic condition of rural sectors of the country. Hence, organic farming benefits can help in redistributing agricultural resources in rural areas and therein promote financial stability through various openings in employment.

Another important data derived from the above cost-benefit analysis stated that several organic farmers depend primarily on the production of one or more crops in search of a steady source of income. 

Hence, organic farming can also help our country’s agricultural sectors to encourage production of multiple types of crops simultaneously.

Importance of Organic Farming

The above discussion regarding the cost-benefit analysis of organic farming techniques and the traditional forms of agricultural processes implemented throughout the years help us to realise the importance and benefits of organic farming. 

The importance of such a kind of agricultural technique is summarised in these points mentioned below –

1. Organic Farming Helps to Maintain Ecological Balance

The most important factor of organic farming is its strength to maintain ecological balance. The environment that humans survive in is affected each and every day with harmful ingredients. This affects the ecological system, which in turn brings hazardous effects on our daily lives that most are unable to recognise. 

Organic farming uses biodegradable products which do not harm the Earth’s soil compared to conventional agricultural methods. So, this farming process is essential in maintaining the ecological balance. 

2. This Farming Technique is Cost-Effective

According to a cost-benefit analysis portrayed above, organic farming techniques require increased costs on labour expenses. Since, mechanical pest control along with other methods that need constant labour is a primary feature of organic farming, initially overall expenses may seem to be comparatively higher than traditional agricultural methods.

However, the price premiums and lesser use of expensive agricultural fertilisers and pest control tools make organic farming processes more cost-effective than conventional agricultural techniques. 

3. Use of Biodegradable Items Improves Production Quality

Organic farming acknowledges use of biodegradable items which act as stronger fertilisers than the synthetic fertilisers used in traditional farming methods. 

Synthetic chemicals used in these fertilisers can help in producing an increased number of crops, but they come at a huge price, i.e. degradation in quality of the produced crops. 

In the case of organic farming, biodegradable elements which are formed mostly by the remains of the dead plants and animals not only help to improve the fertility of the soil but also enhance the quality of the produced crops.

4. Promotes Increased Amount of Organic Products

Organic farming also promotes increased production of eco-friendly items in the market. This will help to decrease the production of toxic, harmful chemicals that are the primary source of pollutants affecting our environment at a large scale. 

Fewer requirements of inorganic items will lead to lesser use of these harmful elements amongst the general public which in turn will save our environment from further pollution.

5. Organic Farming has a High Export Yield

Since use of biodegradable elements help to increase the quality of produced crops substantially, they possess more nutritional value compared to those produced through traditional farming methods. 

Hence, these crops yield a substantial export value for their improved health benefits thereby indicating the organic farming importance in an increased inflow of foreign currency reserves of India.

6. Work Alongside IT to Enhance Sustainable Development

Organic farming is deemed to bring sustainable development in the agricultural sector of India and Information Technology, a branch of software engineering, is one of the important domains which provide significant help in the implementation of the guidelines and fundamentals of sustainable development. 

Information Technology helps us all to be aware of the various vulnerabilities and downsides of a large stretch of cultivable land and the most suitable crops which can grow in that land without hampering the quality of the soil.

Hence, organic farming can work along with IT services to avail the production of the finest quality of crops possible in India. Information Technology services are capable of providing essential information to the agricultural sectors of our country, about the current condition of the cultivable land and several crops which have been grown previously in it. 

Moreover, IT services can also provide substantial help in gathering information about the climate and weather changes, soil conditions, presence of toxicity in chemical compositions, etc. An adept research on these parameters with the help of IT services can help to improve the process of organic farming. 

Finally, IT services can also help in making the agricultural sector aware of emerging technology which can be adopted to increase production efficiency and thereby generate higher revenue.  

Types of Organic Farming

Organic farming can be broadly categorised into two types, which are –

1. Pure Organic Farming

Pure organic farming corresponds to those types of farming methods where all kinds of unnatural, toxic, harmful chemicals are avoided. In such processes of agricultural methods, the fertiliser and pest control chemicals are obtained from natural and biodegradable sources, such as green manures, cow dung, dead remains of plants and animals, etc.

2. Integrated Organic Farming

Integrated organic farming corresponds to those types of farming methods where certain synthetic elements are used to form pesticides and fertilisers. 

Advantages and Disadvantages of Organic Farming

The various advantages of organic farming are explained with the help of these points mentioned below –

1. Economic Benefits

Among the multiple organic farming advantages, the most important element is its economic benefits. There is no requirement for expensive fertiliser and pest control tools, HYV seeds for production of crops. 

Although the expense on labour is comparatively higher than traditional agricultural methods, the reduced costs of price premiums, biodegradable fertilisers, etc. make up for the increased costs of labour and bring in greater amounts of profit. 

2. High Return on Investment

Since bio-degradable fertilisers are comparatively cheaper than synthetic ones and are easier to find in adequate quantities and quality, farmers partaking in organic cultivation can hope to make a high return on investment.

3. Eco-Friendly

Organic farming and its advantages include a strict usage of non-toxic fertilisers and pesticides which are free of harmful chemical composition. The primary objective of such an agricultural process is to not add to the increasing pollutants in the environment.

Organic farming not only leads to less water and soil pollution but also has an indirect contribution in reducing emission of greenhouse gases. This indicates how much eco-friendly organic farming is compared to traditional agricultural methods.

4. Quality Produce

Another advantage of implementing organic cultivation of crops is that the produce is always of the top quality. Since this agricultural method only involves use of natural resources for making fertilisers, the crops produced contain several health benefits for its multiple nutritional values.

Check your Progress 

1. Is this an advantage of implementing organic farming?

1. Eco-friendly farming

2. High quality yield

3. High quantity yield

4. Both i & ii

The various disadvantages of organic farming are explained with these points mentioned below –

One of the most important organic farming disadvantages is production of relatively lesser outputs. Even though such farming offers top quality crops, they are produced in comparatively lesser quantities than conventional cultivation methods.

• Requires Proper Infrastructure

Organic farming and its disadvantages include requirement of proper infrastructure and adept knowledge of this kind of cultivation. So, several farmers who are not financially able or are unable to grasp the working principle often fail to master this kind of agriculture process.

• Shorter Longevity of Farming Inputs

The biodegradable fertilisers used for organic farming, which are obtained from natural resources, have limited longevity.

This means that if these farming inputs are not used within a limited period, they will not be usable and will eventually rot away. In contrast, synthetic fertilisers used in conventional farming methods have a longer expiry date.

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Natural Development of Blended Vegetables

“Natural agribusiness is a creation framework that supports the wellbeing of soils, environments and individuals. It depends on biological cycles, biodiversity and cycles adjusted to nearby conditions, rather than the utilisation of contributions with antagonistic impacts. Natural horticulture consolidates custom, advancement and science to help the common climate and advance reasonable connections and a decent personal satisfaction for all involved.”

Global Federation of Organic Agriculture Movements

Natural cultivating techniques consolidate logical information on biology and some cutting edge innovation with conventional cultivating rehearses dependent on normally happening organic cycles. Natural cultivating techniques are considered in the area of agroecology. While ordinary agribusiness utilises manufactured pesticides and water-dissolvable artificially cleansed composts, natural ranchers are limited by guidelines to utilising normal pesticides and manures. An illustration of a characteristic pesticide is pyrethrin, which is found normally in the Chrysanthemum bloom. The main techniques for natural cultivating incorporate harvest pivot, green excrements and fertiliser, organic nuisance control, and mechanical development. These actions utilise the indigenous habitat to improve farming efficiency: vegetables are planted to fix nitrogen into the dirt, normal bug hunters are empowered, crops are turned to confound bothers and recharge soil, and regular materials like potassium bicarbonate and mulches are utilised to control illness and weeds. Hereditarily changed seeds and creatures are avoided.

While natural is on a very basic level unique in relation to traditional in view of the utilisation of carbon-based composts contrasted and exceptionally dissolvable manufactured based manures and natural bug control rather than engineered pesticides, natural cultivating and enormous scope regular cultivating are not altogether totally unrelated. A considerable lot of the techniques produced for natural agribusiness have been acquired by more regular horticulture. For instance, Integrated Pest Management is a complex procedure that utilises different natural techniques for bug control sooner rather than later, however in ordinary cultivating could incorporate engineered pesticides just if all else fails.

Crop Variety

Natural cultivating empowers crop variety. The study of agroecology has uncovered the advantages of polyculture (various yields in a similar space), which is frequently utilised in natural cultivating. Establishing an assortment of vegetable harvests upholds a more extensive scope of gainful creepy crawlies, soil microorganisms, and different elements that amount to by and large cultivate wellbeing. Crop variety assists conditions with flourishing and shields species from going extinct.

Soil the Board

Notice pushing natural food rather than an unnatural weather change

Natural cultivating depends all the more vigorously on the normal breakdown of natural matter than the normal customary ranch, utilising procedures like green excrement and treating the soil, to supplant supplements taken from the dirt by past crops. This organic cycle, driven by microorganisms, for example, mycorrhiza and worms, discharges supplements accessible to plants all through the developing season. Ranchers utilise an assortment of strategies to further develop soil fruitfulness, including crop revolution, cover editing, decreased culturing, and use of fertiliser. By lessening fuel-escalated culturing, less soil natural matter is lost to the environment. This has an additional advantage of carbon sequestration, which decreases ozone harming substances and helps turn around environmental change. Decreasing culturing may likewise further develop soil structure and diminish the potential for soil disintegration.

Plants need countless supplements in different amounts to thrive. Providing sufficient nitrogen and especially synchronisation, so that plants get sufficient nitrogen when they need it most, is a test for natural ranchers. Crop pivot and green compost (“cover crops”) help to give nitrogen through vegetables (all the more exactly, the family Fabaceae), which fix nitrogen from the air through beneficial interaction with rhizobial microorganisms. Intercropping, which is now and then utilised for creepy crawly and infectious prevention, can likewise build soil supplements, however the opposition between the vegetable and the yield can be tricky and more extensive separating between crop lines is required. Crop buildups can be furrowed once more into the dirt, and various plants leave various measures of nitrogen, possibly helping synchronisation. Natural ranchers additionally utilise animal compost, certain handled manures, for example, seed feast and different mineral powders, for example, rock phosphate and green sand, a normally happening type of potash that gives potassium. Now and again pH might need to be revised. Normal pH changes incorporate lime and sulphur, yet in the U.S. a few mixtures, for example, iron sulphate, aluminium sulphate, magnesium sulphate, and dissolvable boron items are permitted in natural cultivating.

Blended homesteads with both animals and harvests can work as ley ranches, by which the land accumulates richness through developing nitrogen-fixing scrounge grasses like white clover or horse feed and develops cash yields or oats when ripeness is set up. Ranches without domesticated animals (“stockless”) may think that it is harder to keep up with soil ripeness, and may depend more on outside information sources like imported fertiliser just as grain vegetables and green composts, despite the fact that grain vegetables might fix restricted nitrogen since they are gathered. Green homesteads that develop products of the soil in secured conditions frequently depend much more on outer information sources. Fertiliser is exceptionally cumbersome and is regularly not practical to ship in excess of close to the source. Excrement for natural ranches’ might turn out to be scant assuming a sizable number of homesteads become naturally made due.

Weed Administration

Natural weed administration advances weed concealment, rather than weed disposal, by improving yield contest and phytotoxic consequences for weeds. Natural ranchers incorporate social, organic, mechanical, physical and substance strategies to oversee weeds without manufactured herbicides.

Natural principles require pivot of yearly harvests, implying that a solitary yield can’t be filled in a similar area without an alternate, interceding crop. Natural harvest revolutions much of the time incorporate weed-suppressive cover yields and harvests with disparate life cycles to deter weeds related with a specific yield. Research is progressing to foster natural techniques to advance the development of normal microorganisms that stifle the development or germination of normal weeds.

Other social practises used to upgrade crop intensity and decrease weed pressure incorporate choice of cutthroat yield assortments, high-thickness planting, tight column separating, and late planting into warm soil to energise fast harvest germination.

Mechanical and actual weed control rehearses utilised on natural ranches can be comprehensively assembled as:

Culturing – Turning the dirt between yields to join crop buildups and soil corrections; eliminate existing weed development and set up a seedbed for planting; turning soil subsequent to cultivating to kill weeds, including development of column crops.

Cutting and cutting – Removing top development of weeds.

Fire weeding and warm weeding – Using hotness to kill weeds.

Mulching – Blocking weed development with natural materials, plastic movies, or scene texture.

Some normally obtained synthetic compounds are considered herbicidal use. These incorporate specific plans of acidic corrosive (concentrated vinegar), corn gluten dinner, and natural balms. A couple particular bioherbicides dependent on parasitic microbes have additionally been created. Right now, nonetheless, natural herbicides and bioherbicides assume a minor part in the natural weed control tool compartment.

Weeds can be constrained by brushing. For instance, geese have been utilised effectively to weed a scope of natural harvests including cotton, strawberries, tobacco, and corn, restoring the act of keeping cotton fix geese. Essentially, some rice ranchers acquaint ducks and fish with wet paddy fields to eat the two weeds and bugs.

Controlling different Organic Entities

Chloroxylon is used to bug the executives in natural rice development in Chhattisgarh, India.

See moreover: Biological irritation control and Integrated Pest Management

Creatures beside weeds that cause issues on ranches incorporate arthropods (e.g., creepy crawlies, parasites), nematodes, growths and microbes. Rehearses incorporate, yet are not restricted to:

empowering savage valuable bugs to control bothers by serving them nursery plants and additionally an elective natural surroundings, ordinarily in a type of a shelterbelt, hedgerow, or creepy crawly bank;

empowering advantageous microorganisms;

pivoting harvests to various areas from one year to another to intrude on brother proliferation cycles;

establishing friend harvests and nuisance repulsing plants that deter or redirect bothers;

utilising line covers to secure yields during bug movement periods;

utilising biologic pesticides and herbicides;

utilising old seed beds to develop and annihilate weeds prior to planting;

utilising sterilisation to eliminate bug living space;

utilising creepy crawly traps to screen and control bug populaces; and

utilising actual boundaries, for example, line covers.

Instances of savage gainful creepy crawlies incorporate moment privateer bugs, large peered toward bugs, and less significantly ladybugs (which will more often than not fly away), all of which eat a wide scope of bugs. Lacewings are likewise successful, yet will more often than not fly away. Asking mantis will more often than not move all the more leisurely and eat less intensely. Parasitoid wasps will generally be viable for their chosen prey, however like everything little bugs can be less compelling outside on the grounds that the breeze controls their development. Savage bugs are powerful for controlling different bugs.

Normally inferred insect sprays took into consideration use on natural ranches use incorporate Bacillus thuringiensis (a bacterial poison), pyrethrum (a chrysanthemum remove), spinosad (a bacterial metabolite), neem (a tree concentrate) and rotenone (a vegetable root extricate). Less than 10% of natural ranchers utilise these pesticides routinely; one review saw that just 5.3% of vegetable producers in California use rotenone while 1.7% use pyrethrum.  These pesticides are not in every case more protected or harmless to the ecosystem than engineered pesticides and can cause harm.  The primary standard for natural pesticides is that they are normally determined, and some normally inferred substances have been dubious. Dubious normal pesticides incorporate rotenone, copper, nicotine sulphate, and pyrethrins Rotenone and pyrethrum are especially disputable in light of the fact that they work by assaulting the sensory system, as most ordinary insect sprays. Rotenone is amazingly harmful to fish and can instigate indications after Parkinson’s infection in well evolved creatures. Despite the fact that pyrethrum (regular pyrethrins) is more successful against bugs when utilised with piperonyl butoxide (which hinders debasement of the pyrethrins), natural principles for the most part don’t allow utilisation of the last substance.

Normally determined fungicides considered use on natural homesteads incorporate the microscopic organisms Bacillus subtilis and Bacillus pumilus; and the parasite Trichoderma harzianum. These are fundamentally successful for illnesses influencing roots. Manure tea contains a blend of advantageous microorganisms, which might assault or out-contend specific plant microbes, however fluctuation among details and arrangement strategies might add to conflicting outcomes or even hazardous development of harmful organisms in fertiliser teas.

Some normally determined pesticides are not taken into consideration on natural homesteads. These incorporate nicotine sulphate, arsenic, and strychnine.

Engineered pesticides considered use on natural ranches incorporate insecticidal cleansers and green oils for bug the executives; and Bordeaux combination, copper hydroxide and sodium bicarbonate for overseeing parasites. Copper sulphate and Bordeaux blend (copper sulphate in addition to lime), endorsed for natural use in different purviews, can be more earth hazardous than some manufactured fungicides refused in natural cultivating. Comparative worries apply to copper hydroxide.

Fertilising the Soil

Involving excrement as a compost hazards sullying food with creature stomach microorganisms, including pathogenic strains of E. coli that have caused deadly harm from eating natural food. To battle this danger, USDA natural principles necessitate that excrement should be cleaned through high temperature thermophilic treating the soil. Assuming crude creature compost is utilised, 120 days should pass before the yield is collected in the event that the end result comes into direct contact with the dirt. For items that don’t straightforwardly contact soil, 90 days should pass before reap.

In the US, the Organic Food Production Act of 1990 (OFPA,) as corrected, indicates that a ranch can not be guaranteed as natural assuming the fertiliser being utilised contains any manufactured fixings. The OFPA singles out industrially mixed manures composts denying the utilisation of any compost that contains disallowed materials.

Financial Matters

The financial matters of natural cultivating, a subfield of agrarian financial matters, incorporates the whole interaction and impacts of natural cultivating as far as human culture, including social expenses, opportunity costs, unseen side-effects, data deviations, and economies of scale.

Work information, carbon and methane outflows, energy use, eutrophication, fermentation, soil quality, impact on biodiversity, and by and large land use fluctuate significantly between individual ranches and between crops, making general correlations between the financial aspects of natural and traditional agribusiness troublesome.

In the European Union “natural ranchers get more appropriations under agri-climate and animal government assistance endowments than traditional producers”.

Geographic maker Appropriation

The business sectors for natural items are most grounded in North America and Europe, which starting in 2001 are assessed to have $6 and $8 billion individually of the $20 billion worldwide market.  As of 2007 Australasia has 39% of the all out natural farmland, including Australia’s 11,800,000 hectares (29,000,000 sections of land) however 97% of this land is rambling rangeland (2007:35). US deals are 20x as much.(53): 7  Europe ranches 23%of worldwide natural farmland (6,900,000 ha (17,000,000 sections of land)), trailed by Latin America and the Caribbean with 20% (6,400,000 ha (16,000,000 sections of land)). Asia has 9.5% while North America has 7.2%. Africa has 3%.

Other than Australia, the nations with the most natural farmland are Argentina (3.1 million hectares – 7.7 million sections of land), China (2.3 million hectares – 5.7 million sections of land), and the United States (1.6 million hectares – 4 million sections of land). A lot of Argentina’s natural farmland is in the field, similar to that of Australia (2007:42). Spain, Germany, Brazil (the world’s biggest rural exporter), Uruguay, and England follow the United States in how much natural land (2007:26).

In the European Union (EU25) 3.9% of the absolute used farming region was utilised for natural creation in 2005. The nations with the most noteworthy extent of natural land were Austria (11%) and Italy (8.4%), followed by the Czech Republic and Greece (both 7.2%). The most minimal figures were displayed for Malta (0.2%), Poland (0.6%) and Ireland (0.8%).(88)(89) In 2009, the extent of natural land in the EU developed to 4.7%. The nations with the most noteworthy portion of horticultural land were Liechtenstein (26.9%), Austria (18.5%) and Sweden (12.6%). 16% of all ranchers in Austria delivered naturally in 2010. By that very year the extent of natural land expanded to 20%. In 2005, 168,000 ha (415,000 ac) of land in Poland was under natural administration. In 2012, 288,261 hectares (712,308 sections of land) were under natural creation, and there were around 15,500 natural ranchers; retail deals of natural items were EUR 80 million out of 2011. Starting in 2012 natural products were important for the public authority’s monetary advancement methodology.

After the breakdown of the Soviet Union in 1991, agrarian sources of info that had recently been bought from Eastern coalition nations were presently not accessible in Cuba, and numerous Cuban ranches changed over to natural techniques due to legitimate need. Thus, natural agribusiness is a standard practice in Cuba, while it stays an elective practice in most other countries.(95)(96) Cuba’s natural system incorporates the advancement of hereditarily adjusted yields; explicitly corn that is impervious to the palomilla moth.

Development

Natural farmland by world district (2000–2008)

In 2001, the worldwide market worth of ensured natural items was assessed at USD20 billion. By 2002, this was USD23 billion and by 2015 a larger number of than USD43 billion. By 2014, retail deals of natural items arrived at USD80 billion worldwide. (98) North America and Europe represented over 90% of all natural item deals. In 2018 Australia represented 54% of the world’s confirmed natural land with the nation recording in excess of 35,000,000 checked natural hectares.

Natural rural land expanded practically fourfold in 15 years, from 11 million hectares in 1999 to 43.7 million hectares in 2014. Somewhere in the range of 2013 and 2014, natural horticultural land developed by 500,000 hectares around the world, expanding in each area aside from Latin America. During this time-frame, Europe’s natural farmland expanded 260,000 hectares to 11.6 million aggregate (+2.3%), Asia’s expanded 159,000 hectares to 3.6 million aggregate (+4.7%), Africa’s expanded 54,000 hectares to 1.3 million aggregate (+4.5%), and North America’s expanded 35,000 hectares to 3.1 million aggregate (+1.1%). Starting in 2014, the country with the most natural land was Australia (17.2 million hectares), followed by Argentina (3.1 million hectares), and the United States (2.2 million hectares). Australia’s natural land region has expanded at a pace of 16.5% per annum for the past eighteen years.

In 2013, the quantity of natural makers increased by very nearly, at least 270,000, more than 13%. By 2014, there were 2.3 million natural makers on the planet. The greater part of the all out worldwide increment occurred in the Philippines, Peru, China, and Thailand.[98] Overall, most of all natural makers are in India (650,000 out of 2013), Uganda (190,552 of every 2014), Mexico (169,703 out of 2013) and the Philippines (165,974 out of 2014).

In 2016, natural cultivating was liable for delivering more than 1 million metric huge loads of bananas, north of 800,000 metric huge loads of soybean, and simply under a large portion of 1,000,000 metric huge loads of espresso.

Efficiency

Concentrates on looking at yields have had blended outcomes. These distinctions among discoveries can regularly be ascribed to varieties between concentrating on plans remembering contrasts for the harvests considered and the procedure by which results were accumulated.

A 2012 meta-investigation discovered that usefulness is ordinarily lower for natural cultivating than customary cultivating, however that the size of the distinction relies upon setting and now and again might be tiny. While natural yields can be lower than regular yields, another meta-examination distributed in Sustainable Agriculture Research in 2015, presumed that specific natural on-ranch practises could assist with restricting this hole. Convenient weed administration and the use of compost related to vegetable searches/cover crops were displayed to have positive outcomes in expanding natural corn and soybean efficiency.

Another meta-examination distributed in the dairy Agricultural Systems in 2011 investigated 362 datasets and observed that natural yields were on normal 80% of ordinary yields. The creator’s found that there are relative contrasts in this yield hole dependent on crop type with crops like soybeans and rice scoring higher than the 80% normal and harvests like wheat and potato scoring lower. Across worldwide districts, Asia and Central Europe were found to have somewhat better returns and Northern Europe generally below the normal.

Long Haul Studies

A review distributed in 2005 looked at traditional editing, natural animal-based trimming, and natural vegetable editing with respect to a test ranch at the Rodale Institute more than 22 years ago. The investigation discovered that “the harvest yields for corn and soybeans were comparable in the natural animal, natural vegetable, and regular cultivating frameworks”. It additionally saw that as “fundamentally less fossil energy was consumed to create corn in the Rodale Institute’s natural creature and natural vegetable frameworks than in the customary creation framework. There was little distinction in energy input between the various medicines for creating soybeans. In the natural frameworks, engineered composts and pesticides were for the most part not utilised”. Starting in 2013 the Rodale study was continuous and a thirty-year commemoration report was distributed by Rodale in 2012.

A drawn out field concentrating on looking at natural/traditional agribusiness did north of 21 years in Switzerland inferred that “Harvest yields of the natural frameworks found the middle value of more than 21 trial years at 80% of the ordinary ones. The compost input, be that as it may, was 34 – 51% lower, demonstrating an effective creation. The natural cultivating frameworks utilised 20 – 56% less energy to deliver a yield unit and per land region this distinction was 36 – 53%. Despite the extensively lower pesticide input the nature of natural items was not really perceptible from customary logically and even fell off better in food inclination preliminaries and picture making techniques.”

Benefit

In the United States, natural cultivating has been demonstrated to be 2.7 to 3.8 occasions more beneficial for the rancher than regular cultivating when winning value charges are considered. Universally, natural cultivating is 22–35% a greater number of productive for ranchers than traditional strategies, as per a 2015 meta-examination of studies directed across five landmasses.

The productivity of natural farming can be credited to various variables. In the first place, natural ranchers don’t depend on engineered manure and pesticide inputs, which can be exorbitant.