SUPPLY CHAIN
A Conceptual Model for Integration of Indian Food Supply Chains
Abstract: This article is an attempt to explore the problems faced by Indian agriculture for food security in terms of inadequate infrastructure and a highly inefficient supply chain. Due to a lack of efficient infrastructure, supply chain mechanisms, and food processing, around 30–35 percent of all foods produced in India are wasted. This article examines the critical issues in subsystems of the agriculture supply chain, with a view to integrating them in an efficient and effective manner. This article broadly covers some important aspects of agriculture supply chain in India—identification of issues at different levels in the supply chain; transformation in the agriculture due to various supply chain interventions; and the role of information technology in supply chain management. As this article is based on both primary and secondary research methodology, it has led us to finding that there is not much research in this field in India and importance of integration in agricultural development. The article concludes that efficient supply chain plays a very important role for development and is a contemporary issue for agriculture, therefore, the government and the corporates must address the issue of integration, infrastructure development and information management to achieve the objective of a feasible agricultural sector which will lead to food security for all.
Author/s: Sazzad Parwez, Centre for Studies in Economics and Planning, Central University of Gujarat, Gandhinagar. Download/Link:
Agriculture Supply Chain Management : A Scenario In India
Abstract: Agricultural commodities produced have to undergo a series of operations such as harvesting, threshing, winnowing, bagging, transportation, storage, processing, and exchange before they reach the market, and as evident from several studies across the country, there are considerable losses in crop output at all these stages. A recent estimate by the Ministry of Food and Civil Supplies, Government of India, puts the total preventable post-harvest losses of food grains at 10 percent of the total production or about 20 million Mt, which is equivalent to the total food grains produced in Australia annually. In a country where 20 percent of the population is undernourished, post-harvest losses of 20 million Mt annually are a substantial avoidable waste. According to a World Bank study (1999), post-harvest losses of food grains in India are 7-10 percent of the total production from farm to market level and 4-5 percent at market and distribution levels. These losses would be enough to feed about 70-100 million people, i.e. about 1/3rd of India’s poor or the entire population of the states of Bihar and Haryana together for about one year. Thus, it is evident that post-harvest losses have an impact at both the micro and macro levels of the economy. This article critically reviews the scenario of agriculture supply chain management in India by throwing light on the role of agriculture supply chain management, Agri-food supply chain management, Agriculture marketing in India, marketplace for agriculture products, APMC, contract farming, and private sector initiatives.
Author/s: Somashekhar I C, Research scholar, Institute of Management Studies, Davanagere University. Download/Link:
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Analysis of FPO (cluster production) model for Vegetables
Abstract: India is the world's largest producer of many vegetables but there still exists a huge gap between per capita demand and supply due to enormous wastage during postharvest handling & marketing. These losses are a missed opportunity to recover value for the benefit of farmers. The deploying of appropriate strategic and operating models will allow the efficient closure of gaps between demand and supply so as to contribute to doubling farmers’ income.
The gaps between demand and supply are primarily due to ineffective market links and a lack of consolidation on both the demand side and supply sides. On the supply side, the government has agenda to promote modern cultivation practices, lower input costs, and most importantly counter the fragmentation of farmlands by promoting FPOs (Farmer Produce Organisations) for collaborative farming. FPOs are commercial enterprises formed by partnering with a minimum of 1000 farmers.
Author/s: National Center for Cold Chain Development, Govt of India. Download/Link:
Awareness Program on Cold-chain Schemes
Abstract: This booklet is a compilation of various assistance and subsidy schemes made available by the Government of India for the development of cold-chain in the country. This booklet is intended to give an overview of cold-chain and the schemes for developing holistic farm to consumer Cold-chain under the Mission for Integrated Development of Horticulture (Ministry of Agriculture & Farmers Welfare), Ministry of Food Processing Industries, and Agriculture & Processed Food Products Export Development Authority (APEDA – Ministry of Commerce & Industry).
Author/s: Mission for Integrated Development of Horticulture Department of Agriculture, Cooperation & Farmers Welfare, GoI. Download/Link:
Benefit Optimization of Short Food Supply Chains for Organic Products: A Simulation-Based Approach
Abstract: Creating alternative supply chains can help increase economic and social benefits for all beneficiaries of the supply chain. Alternative short supply chains for organic products are considered when seeking optimal scenarios to obtain the highest profit for producers, with maximizing profit being one of the main reasons for taking up business within this type of supply chain strategy. The aim of this study was to clarify the ideas of short food supply chains (SFSCs) and the organic production of food products and to indicate how economic benefits can be achieved in individual markets. The identified research gaps include the lack of a strong theoretical basis, as well as the lack of empirical studies concerning the multi-objective optimization of the economic effects of producers using computer simulation methods. However, the aim of this research was to identify the activities within such structures that can produce economic effects and influence the competences and soft relationships between the organizations participating in the chains. The adopted research methods included a critical analysis of the literature and the use of information technology tools and computer simulation. We found that computer simulation methods can lead to better decisions (to increase manufacturer benefits) regarding how to service selected markets within the SFSC. The most important limitations are the small territorial scope of the research and the consideration of only three of the most frequently purchased and manufactured products in Poland. This study was a pilot study, which will be developed further by the authors, from both a territorial and product point of view.
Author/s : University of Szczecin Download/Link:
Distribution of the added value of the organic food chain
Abstract: Over the last decade the organic market in the EU has grown faster than the organic agricultural area, which raises the question to what extent organic supply chains function effectively. Therefore, this study investigated the creation and distribution of added value in a number of organic supply chains in different EU countries. The results of the case studies suggest that higher added value is created in organic compared to conventional supply chains. However, no evidence was found that the relative share of organic farmers in the total added value differs substantially from that of conventional farmers. Also in organic food supply chains farmers capture a relative small proportion of added value. This can partly be explained by similarities of organic with conventional supply chains. It appears that the distribution of added value strongly depends on the structure and characteristics of the specific supply chain, such as level of chain integration and power relations between market players. No common patterns were identified regarding the impact of different types of retails and markets on the creation and distribution of added value. Investments in quality aspects, increased consumer interest in organic food, differentiation of products as well as efficiency in supply chain management are all relevant factors that contribute to higher added value
Author/s : Directorate-General for Agriculture and Rural Development. Download/Link:
Food Supply Chain Management in Indian Agriculture: Issues, Opportunities and Further Research
Abstract: This paper is an attempt to explore the problems faced by Indian agriculture for food security in terms of inadequate infrastructure and highly inefficient supply chain in context of information technology. Due to lack of efficient infrastructure and food processing industry about 30-35 percent of all foods produced in India are wasted. This paper examines the critical issues at each sub-system of agriculture supply chain, starting from the input to the consumer, with a view to integrating them in efficient and effective manner. Investments in cold chain infrastructure, applied research in post harvest technologies, installation of food processing plants in various sectors and development of food retailing sector are mandatory for achieving gains in this sector. Paper broadly covers some of important aspects of agriculture supply chain in India- identification of issues at different levels in the supply chain; transformation in the agriculture due to various supply chain interventions; the role of ICTs in supply chain management: and this paper also covers the suggestion to improve efficiency at different levels in supply chain. There is wide research gap in this sector, having such potential and prospectus for overall growth there is not much research in this field. The paper concludes that efficient supply chain plays very important role for development and contemporary issue for agriculture therefore; government action must address the issue of infrastructure development to achieve the objective of food security for all.
Author/s : Sazzad Parwez, Centre for Studies in Economics and Planning, Central University of Gujarat, Gandhinagar. Download/Link:
From Harvest to Sale - Maintaining food quality in storage
Abstract: Once the grain is in the bin, it’s all over - time to kick back and relax, right? Well, not really. That’s industrial commodity thinking. Organic grain is purchased and used as food, feed, or seed. Each of these has quality expectations. First and foremost, organic grain is food, and just like the products coming out of the garden, grain requires some management to preserve its integrity. The market demands top quality for top prices. Even if you think that your grain is more likely to be marketed as animal feed, there is still every reason to preserve quality. Livestock, like people, do best on quality feed. Avoiding any sort of spoilage will preserve markets and maintain prices. The third main use of grain is as seed. Here too, quality is essential. Seed quality, including germinability, vigour, and purity, is greatly impacted by storage and handling.
Author/s : Prairie Organic Grain Initiative. Download/Link:
Impact Evaluation Study of Mission Organic Value Chain Development for North Eastern Region (MOVCDNER)in India
Abstract: The Mission on Organic Value Chain Development for North-Eastern Region (MOVCDNER) central scheme, a sub-mission under National Mission for Sustainable Agriculture (NMSA), launched is a by the Ministry of Agriculture and Farmers Welfare for implementation in North-Eastern States. The scheme aims at development of certified organic production in a value chain mode to link farmers with consumers with comprehensive support for the entire value chain. The findings of the study revealed that the project covered more target beneficiaries than actually planned. Majority of the beneficiaries opined that they have been benefited by the scheme. However, findings of the study suggest that still there is a scope for effective implementation of the scheme through capacity building, formation of Farmer Producer Organizations (FPO), insurance coverage, requisite infrastructure development, promotion of value addition and marketing & brand development. Besides, through this scheme, potential production pockets can be identified for promotion of organic agriculture. There exists huge export market which can be leveraged through this scheme for earning foreign exchange. The report assess the impact of the scheme.
Author/s : National Institute of Agricultural Extension Management (MANAGE), Rajendranagar, Hyderabad. Download/Link:
​Indian Agricultural Marketing- A Review
Abstract: Agriculture in India has directly or indirectly continued to be the source of livelihood to majority of the population. Indian agriculture has seen a lot of changes in its structure. India, predominantly an agricultural economy, has healthy signs of transformation in agriculture and allied activities. India has seen agriculture as a precious tool of economic development as other sectors of production depend on it. Efficient backward and forward integration with agriculture has led to globally competitive production system in terms of cost and quality. Cooperatives seem to be well positioned to coordinate product differentiation at the farm level and to integrate forward into value added processing activities.. Indian agriculture can be balanced and made efficient through proper and better management practices. The present study brings out past and present scenario of agricultural marketing prevailing in India, its challenges and future recommendations. Moreover the opportunities provide by agricultural marketing should be tapped effectively by the marketers.
Author/s : Anna University of Technology. Download/Link:
Institutional Innovations and Models in the Development of Agro-Food Industries in India: Strengths, Weaknesses and Lessons
Abstract: Agro-industries are given high priority in India particularly because of their great potential for contributing to development. The emphasis on village-based agro-industries was introduced almost a century ago in India by Mahatma Gandhi as an important ideology and corner-stone of the independence movement. The approach has undergone substantial transformation since then, but major challenges to its success in development remain: how to organize sustained production and procurement from large numbers of small farmers, how to ensure adoption of the right technology and practices to generate quantity and quality output at a reasonable cost, how to obtain capital for ensuring good processing technology and meeting the high working capital requirements in a fluctuating business, how to deliver strong marketing efforts to compete and open nascent markets, and how to ensure effective ownership, management and control to ensure performance for its main stakeholders of producers, consumers and investors. To address these challenges, effective institutional frameworks are a must, and a number of innovations and institutional models have emerged in India. These include the HPMC model, the AMUL model, the Pepsi model, the E-choupal model, the Nestle model, the Heritage model, the Suguna model, the Reliance model and more. The paper uses available literature and data to examine the performance of several of these models with respect to the above mentioned challenges. Many findings and lessons emerge which would be useful for business and for guiding supportive policies and practices in developing countries.
Author/s : Vasant P. Gandhi, Dinesh Jain, IIM Ahmedabad India. Download/Link:
Linking Farmers to Markets for High-Value Agricultural Commodities
Abstract: Growing demand for high-value food commodities is opening up opportunities for farmers, especially smallholders to diversify towards commodities that have strong potential for higher returns to land, labour and capital. But, there is an apprehension about the capability of smallholders to participate in the market-oriented production due to their lack of access to markets, capital, inputs, and technology and extension services. In this paper, possibilities have been explored of linking smallholders to markets through such institutions as cooperatives, growers’ associations and contract farming that reduce marketing and transaction costs and alleviate some production constraints. Evidence has shown that smallholders do participate and make a sizeable contribution to the production of high-value food commodities, but their links to markets are not strong. Though market institutions like cooperatives, contract farming and growers’ associations do not altogether ignore smallholders, some policy support is imperative to strengthen their linkages with the markets.
Author/s : Pratap Birthal Faculty Member, NCAP. Download/Link:
Strengthening backward and forward linkages in horticulture: some successful initiatives
Abstract: Indian horticulture sector is constrained by low productivity, high cost of a production, huge post-harvest losses, inefficient supply chain and poor market intelligence. The present paper has brought forward two case studies of SAFAL Market and Namdhari Fresh which have been successful in over-coming the constraints that horticulture sector is facing in India for fresh fruits and vegetables. Some new marketing initiatives along with the existing supply chain inefficiencies have been highlighted to help formulate strategy and policy to achieve the much-desired second green revolution through horticulture growth.
Author/s : Surabhi Mittal, International Maize and Wheat Improvement Center. Download/Link:
Supply chain dynamics of Indian agriculture: reference to information technology and knowledge management
Abstract: This review explores the supply chain dynamics of agriculture in India; it highlights the current status of the infrastructure with respect to the use of information technology in agriculture and assesses the impact of an inadequate agricultural infrastructure on the supply chain and agriculture itself.
Author/s : Sazzad Parwez, Centre for Studies in Economics and Planning, Central University of Gujarat, Gandhinagar. Download/Link:
Supply Chain Management - For The Indian Agri Food Sector
Abstract: Indian civilization is one of the oldest civilizations, and therefore it has the rich heritage and legacy of the various schools of thoughts. It may really be beneficial to learn from the core principles of the yesteryears so as to extract the standing principles that provided the vitality and the vigour for the Indian civilization to grow and flourish from the time immemorial till today. The present research work reflects the existing supply chain architecture of the Indian Agri-food sector and provides areas where concentration is needed for its improvement. The research work is followed by designing an avant-garde sustainable supply chain model named as “Project Samridh Bharat” for Indian Agri-food sector. The present study also highlights the impact of FDI in Indian scenario and is followed by developing a performance measurement framework for the Agri-food supply chain network by an analytical decision making tool named analytical hierarchy process.
Author/s : Neha Gautam, S.S.Chauhan, .K.Ghosh, MIT Mandsaur. Download/Link:
Supply Chain Management of Indian Agriculture Industry: An Exploratory Study
Abstract: Indian Agriculture/Agro Industry (IAI) is an integral part of Indian society and economy. Approximately half of the total population relies on this industry as a principle source of income and it contributes around 14% of India’s GDP. Indian food business has increased to US$ 250 billion in 2015 as compared to US$ 220 billion in the year 2009 and expected to grow further rapidly in the next ten years. Indian Agriculture is a world leader in terms of production of many product categories As a result, on one hand engagement of huge population, rising demand, farm mechanization, increase in global markets, etc., offer huge potential for this industry. On the other hand, it faces many severe problems. Producers of agro products are getting merely 30–35 per cent of the market price in most of the cases due to lack of supply chain practices. Annual wastages of agricultural output are also very high which in monetary term sums up to around Rs 90,000 Crore. This wastage is mainly due to inadequate supply chain infrastructure. The objective of this paper is to highlight the present scenario of Indian Agricultural Industry in terms of prospects and explores various supply chain related issues of this industry.
Author/s : Nitu Ranjan Agarwal, Rajarshi School of Management and Technology, Uttar Pradesh, India Anurag Saxena, IGNOU, School of Management Studies, New Delhi, India. Download/Link:
Sustainable Food Value Chains Knowledge Platform
Abstract: The purpose of this training package is to improve and build the capacities of small and medium agro-industrial enterprises in order to guarantee the quality and safety of food products. The approach integrates the different factors that affect the capacity of a business to produce foods to meet market expectations and recognized standards, while maintaining and increasing the profitability and life of the business. Management and technical aspects are integrated through a practical and cost-effective approach. The training package is composed of four modules: Module 1: the use of market information for improving quality management; Module 2: systems and tools for improving quality and safety management in agro-industry; Module 3: the application of quality management principles in small and medium agro-industrial enterprises; Module 4: planning as a tool for improving quality and safety management. The package is also provided with a trainers guide, case studies, exercises, PowerPoint presentations (on CD-ROM), appendices with further readings, links of interest and a glossary.
Author/s : FAO. Download/Link: