27-12-2025 Mains Question Answer

Elaborate the scope and significance of supply chain management of agricultural commodities in India.

27-12-2025

Supply chain management (SCM) in agriculture encompasses the entire journey from farm to fork, addressing India’s post-harvest losses of ₹93,000 crore annually while enhancing farmer incomes and food security.

Scope of Agricultural Supply Chain Management

  1. Production to Consumption Integration: Links farming, harvesting, storage, processing, and retail distribution. Example: FPO-led mango supply chains in Maharashtra reduce intermediaries from 5-6 to 2-3 levels.
  2. Multi-Modal Transportation: Combines road, rail, and air logistics for efficient commodity movement. Example: Kisan Rail services launched in 2020 connect 100+ routes, reducing transit time for perishables by 50%.
  3. Cold Chain Infrastructure: Temperature-controlled storage and transport for perishables. Example: Mother Dairy’s cold chain network maintains 2-4°C temperature, extending vegetable shelf life by 7-10 days.
  4. Digital Platforms Integration: Technology-enabled market linkages and price discovery. Example: eNAM platform connects 1,000+ mandis, enabling transparent price discovery for farmers.
  5. Quality Assurance Systems: Standardization and certification throughout the supply chain. Example: FSSAI’s FoSCoS scheme certifies food operators, ensuring quality from farm to retail.

Significance of Agricultural Supply Chain Management

  1. Income Enhancement: Direct market access increases farmer revenues by 15-25%. Example: Walmart’s direct procurement program benefits 1 million farmers, eliminating middleman margins.
  2. Food Security: Reduces waste and ensures availability. Example: Buffer stock management through FCI maintains food grain reserves of 80+ million tonnes for distribution.
  3. Employment Generation: Creates jobs across value chain segments. Example: Food processing sector employs 1.85 crore workers, supporting rural livelihoods beyond farming.
  4. Export Competitiveness: Enhances global market access through quality standards. Example: Basmati rice exports worth $4.5 billion in 2023-24 due to efficient supply chain management.
  5. Nutritional Security: Preserves nutrient content through proper handling. Example: Fortified food distribution through PDS reaches 80 crore beneficiaries, addressing malnutrition.

Modern agricultural SCM integrates technology, infrastructure, and policy support to transform farming from subsistence to marketoriented enterprise, aligning with Doubling Farmers’ Income objectives and sustainable development goals.