Challenges in Agri- Logistics in India's Agriculture Sector

India is on target to become the largest food basket around the globe. While the primary focus has revolved around augmenting agricultural production and income, equal attention must be paid to the logistics and supply chains within the sector. Specifically, it is crucial to ensure that farmers have prompt access to inputs and can swiftly transport their produce to markets or buyers. This necessitates effective logistics management. Over time, concerted efforts have been made to facilitate the delivery of essential items like seeds, fertilizers, insecticides, farm tools, and machinery to smallholder farmers, including those residing in remote areas. Conversely, the efficient and timely extraction of their output, particularly perishable goods, is imperative. However, persistent challenges persist, impeding these processes, undermining productivity, and resulting in significant losses. From inadequate infrastructure to a lack of knowledge and capacity, comprehensive measures are required to address and rectify the logistical issues confronting the agricultural sector.

According to reports India's agriculture sector supports 70% population and contributes 17% of GDP while employing and engaging more than 60% of people in the agriculture sector. However, concerning signs suggest that a considerable portion of agricultural produce is wasted due to supply chain issues. The journey from farm to consumer involves intricate logistics, yet India experiences a loss of at least 20% of its output due to various challenges throughout this chain. Addressing these issues is crucial to minimize wastage and optimize the efficiency of the agricultural supply chain, ensuring sustainable growth and improved livelihoods for farmers.

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Therefore there is a need to address these issues and the complexity of agri logistics. Farmers who lack access to machines can connect with FPOs and engage in logistics sharing to reduce wastage. This will also retain and double their income. By adopting these methods, farmers can get easy access to agri inputs which include fertilizers, seeds, herbicides, and many more. Government can play a vital role to improve agri-logistics challenges effectively. Incentives and several schemes can be released to support farmers concerning agri supply chains.

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Efforts should be made to provide support to stakeholders involved in the supply value chain to ensure they possess the necessary resources for the swift and secure transportation of agricultural products.

The government must explore Public-Private Partnership (PPP) arrangements for the establishment of additional storage facilities. Moreover, there should be a concerted push to encourage more private entities to capitalize on the immense potential of the commercial agro-storage sector. This approach would enhance storage capacity and efficiency, allowing for better preservation of agricultural produce and reducing post-harvest losses. By fostering collaboration between the public and private sectors, India can effectively address storage challenges and optimize the agricultural supply chain.

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