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Day 48 – Q 4. What are the challenges of supply chain management of food products in India? Analyse.

4. What are the challenges of supply chain management of food products in India? Analyse.    

भारत में खाद्य उत्पादों की आपूर्ति श्रृंखला प्रबंधन की चुनौतियाँ क्या हैं? विश्लेषण करें।


An agriculture supply chain system comprises organizations/cooperatives that are responsible for the production and distribution of vegetable/Fruits/Cereals/Pulses or animal-based products.


Challenges of Supply Chain Management

  • Connectivity:  There is lack of connectivity from villages to markets
  • Sorting and Grading technology: Farmers lack the knowledge about the process
  • Numerous stake holders working in isolation: The food supply chain is complex with perishable goods and numerous small stake holders. In India, the infrastructure connecting these partners is very weak.
  • Lack of demand estimation: Demand forecasting is totally absent and the farmers try to push whatever they produce into the market.
  • Lack of technology applications: Cold chain logistic supply chains should take advantage of technology improvements in data capture and processing, product tracking and tracing, synchronized freight transport transmit times for time compression along the supply chain and supply-demand matching.
  • Lack of system integration: The supply chain needs to be designed and built as a whole in an integrated manner. The process of new product development, procurement and order to delivery processes should be well designed and well supported with the help of IT tools and software.
  • Presence of large number of unorganized retailers: At present the unorganized retailers are linked with farmers through wholesalers or commission agents. The commission agents and wholesalers redundant supply chain practices make unorganized further inefficient.

Ways through which Supply chain management can be improved

  1. Improving infrastructure  through schemes like Ajeevika Grameen Express  yojana, SAMPADA yojana (building warehouses)
  2. Vertical coordination of farmers through cooperatives, contract farming and retail chains would facilitate better delivery of output, reduce market risks, provide better infrastructure, attract more public interest, acquire better extension services, and create awareness regarding the prevailing and new technologies.
  3. Customized logistics is another important immediate requirement to make logistic effective. This reduces the cost, facilitates the maintenance of quality of the produce and fulfills the requirements of targeted customers.
  4. Information system for better coordination among different stakeholders from farmers to consumers is the need of the hour. The internet and mobile communication can also be used to enable information and financial transfer between the stakeholders.
  5. Public private partnership is another strategic solution. Supply chain like washing, waxing, grading, sorting, packing, pre-cooling, handling facilities, insurance, finance, transport and processing facilities would add value to supply chain functioning.
  6. Establishment of Mega Food parks :  These parks will also provide the required infrastructural and common facilities which are essential for sustenance of the industries. Quality assurance laboratories, Ware housing including cold storages, common effluent treatment plants etc.


The supply chain management has to be improved in all the stages of the supply by adopting global best practices in storage, packaging, handling, transportation, value added service etc. And also by disintermediation and participation of organized players i.e., modern supply chain with a view to benefit both farmers as well as ultimate consumers. 

Best  Answer: Aniket Sachan

Suraj  Sharma

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