Supply chain management
Definition : Supply chain is a system that links a company with its supplier & customer. It is about getting right things done at right time & place in cost - effective manner.
Input -> production -> procurement -> storage -> primary processing -> secondary processing -> retailing
- Share in GDP: 14% (Service > Industries > Agriculture)
- Share in employment: ~49% (Agri > Services > Industries)
- 1st rank in Milk (17% of world production)
- 1st rank in Mango, banana, coconut, cashew, papaya,peas, cassava and pomegranate
- Largest producer and exporter of spices
- Overall, second largest producer of vegetable, fruits and fishes
- Weather permits multiple crops throughout year.
Challenges in Supply Chain
- Lack of infrastructure like cold storage facilities, last mile linkage, lack of private investment.
- India has small size farms, thus poor are unable to take advantage of forward and backward linkage.
- Agreement between farmer & food processor
- Contracted to plant specific crop on pre-agreed price
- Training , input, technology is provided by food processor
- It increases private investment in agriculture
- It is win-win situation for both parties as it increases production and quality.
- Example - Pepsi has done contract farming for growing tamato in Hoshiarpur. Pepsi has also partnered for growing newer variety of oranges.
- Often in metropolitian cities
- It is assembly and trading place for agriculture commodities.
- It operates on hub and spoke model, where terminal market act as hub.
Issues in Export
- Improper connectivity
- More tax on air cargo
- India has more than 1500 varieties of mangoes , however only 3-4 are exported.
- India has old varieties of Potato - irregular shape and size which are not suitable for industrial processing, Oranges have high bitterness level hence jucie concentrates are imported for making jucie., Apple have cardboard like texture & thus taste odd.
- Japan requires vapour treatment, Australia have banned indian produce due to fruit fly, stone weevil.
- India is not apple to fullfill CODEX and HACCP standards
Initiatives taken by Government
- Encouraging cold storage to reduce spoilage , distress sale, transportation problem in peak season, maintain quality and increase shelf life.
- Introduction of Horticulture train having good ventilation, high speed that can accept small quantity. This will help reduce spoilage and enable small farmers to transport their produce at lower cost.
- Kishan Vision Project - wherein CONCOR (Container corporation of India Ltd ) , CWC (Central warehousing corporation) and CRWC (Central Railside warehousing compnay) have come together for transportation of agriculture produce.
- Six perishable cargo centre - Azadpur, Singur, Nasik, Dankuni, Jalpaigudi (NJP) and Mursidabad have been created for rapid transportation of agriculture commodities.