Agricultural Produce Distribution

System
Agricultural Produce Distribution System
• Introduction:
– 70 % people in Rural India - contributing 20 + % GDP
– 50 % employment
– No.1 in Fruits ; No.2 in Vegetables Cultivation

• Hurdles:
– Post harvesting Loss,
– Transportation issues,
– Many Intermediaries.
– Profits are shared by intermediaries
Agricultural Produce Distribution System

• Hurdles (classified based on Survey)

– Transparency in pricing
– Wastages
– Relative Risk Vs Realization
– Operation of Agriculture Market Yard
– Quality,Hygiene & Shelf-Life
Farmer-Many types of intermediaries-Customers-Consumer

“There is never been a chance for a farmer for selling

their produce to their consumer”
 Traditional
market.
Vs
Modern
market.
Agricultural Produce Distribution System

Farmer (High Consolidator Market Semi- Retailer(Fair

Risk) - (Low risk) WholeSaler WholeSaler Risk)
• 11 Months • 1-2 Days (Medium (Fair Risk) • 1-4 Days
• ??? • 6.6 % Gross Risk) • 1-2 Days • 10.5 %
Margin • 1-2 Days • 2%
• 28%
Agricultural Produce Distribution System

Schematic Diagram of Supply Chain

Traditional Supply Chain
 Coordinated Supply Chain
• Sorted, graded and packaged produce from
these associations and centers are received
and then auctioned at the market.
• SAFAL also has forward linkages to a number
of retail outlets (Cash and Carry Stores)..
Agricultural Produce Distribution System
Agricultural Produce Distribution System

• To have organized SCM for Agriculture produce. The followings

should be focus on
– Procurement or sourcing
– Logistic management
• Transportation
• Material management
• On the premise of supplying mostly from production not stock
– Warehousing
– Logistics Network modeling
– Organizational management
• Contracting
• Strategic alliances and partnerships
• Vertical integration
– Long term storage , Packaging technology , Cold chain management ,Energy efficient
transport & Quality and safety
Agricultural Produce Distribution System

• Changes in Agri SCM & Response of Existing Channels

• Wastage would be reduced
• Cold Storage,Warhousing & Logistics Cost
• Consumers will be benefited
• No major changes in immediate future
• No successful model so far(More,FoodWorld,Safal
etc)
• Direct Procurement is in Question(Consolidators)
• Benefits to farmers as planned or proposed??
Agricultural Produce Distribution System

• Changes in Agri SCM & Response of Existing Channels

• Range of products –farm level

• Retailers using low price strategy for pulling
customers

• Differentiation in product –Premium pricing:

– Stretch filming, organic, Non-GMO concepts
etc.
Thank you

– Raghavendra Prasad 14020848016

SathishKumar K 14020848018