Experts view it as an initiative to make India’s fresh supply chain more efficient and reduce the high wastage of fresh produce that currently ranges between 20%-35%
New Delhi: The government will encourage private companies and start-ups to set up food supply chains in a bid to reduce wastage of fresh produce and boost efficiency, finance minister Nirmala Sitharaman announced in her budget statement on Tuesday.
“Large-scale clusters for vegetable production will be developed closer to major consumption centres. We will promote Farmer-Producer Organizations, cooperatives and start-ups for vegetable supply chains including for collection, storage, and marketing,” Sitharaman said in her budget speech.
Experts view it as an initiative to make India’s fresh supply chain more efficient and reduce the high wastage of fresh produce that currently ranges between 20%-35% in some cases and also to bolster the incomes of farmers.
“The government wants to make sure that the farmers get a fair pricing for their produce and, at the same time, they don’t depend on large corporates to sell their produce. In any case, very few corporates currently buy directly from the farmers,” said Sanjay Sethi, executive director of Chamber for Sustainability in India.
Experts said India has achieved a lot of efficiency in grain production and supply chain. However, a lot is to be desired in other fresh produce like fruits and vegetables.
“Small farmers are dependent on the 7,500 APMCs (Agricultural Produce Market Committee mandis) for price discovery for their produce,” Sethi said. He said the creation of more private-run supply chain and mandis would help farmers realize better prices for their produce.
