Q4. Elaborate the scope and significance of supply chain management of agricultural commodities in India.
Possible Introductions
Definitional framing:
Supply Chain Management (SCM) in agriculture refers to the coordinated management of inputs, production, storage, processing, transport, and marketing to deliver agricultural produce efficiently from “farm to fork.”
Contextual framing:
In India, where agriculture employs nearly 45% of the population and contributes about 18% to GDP, robust SCM is vital for reducing losses, improving farmer incomes, and ensuring food security.
Current affairs framing:
Recent measures such as the Agriculture Infrastructure Fund, e-NAM, and the PM Gati Shakti logistics plan highlight India’s growing focus on strengthening agricultural supply chains.
Directive Analysis
“Elaborate” → requires explaining both the scope (breadth of activities covered by SCM) and significance (its impact on farmers, consumers, economy, and sustainability).
Body of the Answer
1. Scope of Agricultural Supply Chain Management in India
-
- Input Management: Timely provision of quality seeds, fertilisers, pesticides, and machinery improves productivity.
- Production and Harvest: Optimising farming through IoT, AI, and precision farming boosts yield and quality.
- Post-Harvest Management: Sorting, grading, packaging at farm gate preserve quality and reduce losses.
- Storage and Warehousing: Cold storage and warehousing prevent wastage. India loses produce worth over ₹90,000 crore annually due to poor infrastructure.
- Logistics and Transportation: Integrated transport with refrigerated vehicles ensures safe, timely movement.
- Processing and Value Addition: Turning raw produce into juices, sauces, packaged foods extends shelf life and boosts profitability.
- Marketing and Distribution: APMCs, e-NAM, FPOs, and digital platforms link farmers to wider markets.
- Agri-finance and Policy: Credit, Warehouse Receipt Financing, and schemes like Agriculture Infrastructure Fund strengthen supply chains.
2. Significance of Agricultural Supply Chain Management in India
-
- Reducing Food Wastage: SCM cuts post-harvest losses, ensuring food security and saving billions.
- Improving Farmer Income: Minimises intermediaries, assures better price realisation.
- Ensuring Food Security: Stable supply chains guarantee affordable staples and nutrition.
- Boosting Food Processing: Provides consistent raw materials, encouraging jobs and value addition.
- Enhancing Export Competitiveness: Traceable supply chains meet global norms, boosting exports.
- Promoting Technological Adoption: SCM drives adoption of blockchain, AI, IoT in agriculture.
- Empowering Small Farmers: FPOs and cooperatives aggregate produce, giving smallholders market power.
- Driving Sustainability: Efficient SCM reduces carbon footprint, links eco-conscious consumers with sustainable produce.
Possible Conclusions
Future-oriented:
Strengthening agricultural SCM is key to doubling farmer incomes, boosting food processing, and ensuring food security.
Philosophical:
As Amartya Sen argued, hunger is not only a matter of production but of distribution. SCM bridges this gap.
Policy-oriented:
PPP, digital platforms, and infrastructure investments will make India’s supply chains globally competitive.
Civilisational framing:
From spice routes to modern agri-trade, India’s prosperity rests on supply chains — SCM modernises this legacy.
Diagram Suggestion
Flowchart: Farm-to-Fork chain → Inputs → Production → Harvest → Storage → Transport → Processing → Marketing → Consumers.
