India, as a Unique case in The World, ranks 2nd in Farm output and also ranks on top in terms of Child Deaths due to Malnutrition. There are huge Flaws in The Delivery Mechanism. Who will solve them?
Ironically, India is also home to over 230 malnourished people. It is a country where malnourishment is the primary cause for around 50% of child deaths. Given this, India can’t afford to waste any food products irresponsibly. And it’s not rocket science to find out the solution. All that the agriculture ministry should do, hand in hand with the Ministry of Consumer Affairs, Food and Public Distribution is that investment into developing food stock capacity infrastructure should be increased massively. India, with only 60 million tonnes in food storage capacity, lacks far behind when compared with China’s 150 million tonnes. At the same time, godowns of Food Corporation of India (FCI) are 93% full.
Yes, the government is inviting private players to build new storage facilities and rent them to the government for seven years. But even if it materialises, that is never going to be sufficient, with growing farm output and productivity. The government has to make substantial investments to increase public storage capacity.
The food processing industry is still indigenous and unorganised. Only around 2% of perishable goods are processed every year – very low compared to Thailand’s 30%, Brazil’s 70% or 78% in the Philippines. Private players’ participation can play an important role, as the lack of an organised and integrated approach to a cold chain infrastructure leads to losses estimated at around Rs.1 trillion every year. As per various researches, allowing organised retail to directly buy food grains from farmers can increase efficiency in the supply chain. Farmers’ earnings can also go up by some 40-50%. But this needs strong political commitment from Pawar.
Yes, the government is inviting private players to build new storage facilities and rent them to the government for seven years. But even if it materialises, that is never going to be sufficient, with growing farm output and productivity. The government has to make substantial investments to increase public storage capacity.
The food processing industry is still indigenous and unorganised. Only around 2% of perishable goods are processed every year – very low compared to Thailand’s 30%, Brazil’s 70% or 78% in the Philippines. Private players’ participation can play an important role, as the lack of an organised and integrated approach to a cold chain infrastructure leads to losses estimated at around Rs.1 trillion every year. As per various researches, allowing organised retail to directly buy food grains from farmers can increase efficiency in the supply chain. Farmers’ earnings can also go up by some 40-50%. But this needs strong political commitment from Pawar.
Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles.
IIPM Best B School India
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM's Management Consulting Arm-Planman Consulting
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles.
IIPM Best B School India
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM's Management Consulting Arm-Planman Consulting
