APPROACH
The Introduction: Introduce the importance of agriculture sector in the Indian economy
The Body
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- Highlight the scope of supply chain management of agri-products
- Elaborate upon the various significance of supply chain management of agricultural commodities
- Also mention how it helps in crop diversification
The Conclusion: Give an appropriate conclusion in this regard.
The Introduction:
Indian agriculture supports the livelihood of more than 40% of its workforce and ensures food security for more than 140 crore population. Efficient supply chain management is important for transforming Indian agriculture from a subsistence-based system to a competitive and market-driven one. Timely movement of farm produce, from fields to markets, is of utmost importance given the low remuneration for farmers from agricultural activities.
The Body
Scope of of supply chain management of agricultural commodities (mainly the forward linkages)
1. Procurement: Buying harvested crops via public procurement agencies or through bulk buyers
2. Storage: Storing procured crops, requiring temperature-controlled environments
3. Grading and Sorting: Categorising products by quality and type
4. Packaging: Using appropriate materials and methods to protect products
5. Transportation and Logistics: Moving goods from farms to markets, including the development of cold chains
6. Processing: Transforming raw agricultural products into value-added items
7. Marketing and Distribution: Connecting with wholesalers, retailers, exporters and final consumers
Significance
1. Reducing post-harvest losses: India currently loses about Rs 1.5 lakh crore annually (about 10% of agricultural output) due to poor storage, inadequate cold chains and handling gaps. Efficient supply chains can significantly reduce such losses.
2. Improving farmers’ income: When supply chains link farmers directly with markets, middlemen margins shrink and farmers receive better prices. Initiatives like e-NAM (National Agricultural Market) have connected more than 1400 mandis.
3. Price stability: An efficient supply chain of agricultural commodities ensures predictability in demand and supply. This helps in ensuring the price stability of agricultural produce
4. Strengthening food security: A resilient supply system helps ensure steady availability of staples and perishables across seasons and regions. This helps the policy makers to ride over any production or supply vulnerability.
5. Promoting exports: India’s agricultural exports have exceeded more than 50 billion USD in recent times, with key exports including rice, spices and marine products. Better cold-storage networks and logistic corridors have enhanced export competitiveness.
6. Diversification into high-value crops: Crops like milk, fruits and vegetables require quick and safe movement to markets. Efficient supply chain increases the confidence among farmers about longer time-frame to time the market for larger gain rather than being pushed for distress sale.
The Conclusion
It is a well known fact that India’s agriculture thrives on production, but its success depends equally on how produce reaches consumers efficiently and profitably. Modern supply chains can transform rural livelihoods and integrate Indian agriculture into global value chains. With targeted investments and hands-on public-private collaboration, supply chain modernisation can ensure inclusive and sustainable agrarian development.
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