ANALYSIS OF INDIAN CARGO AGRI PRODUCT

SUPPLY CHAIN
AND

OPPORTUNITIES FOR AIR CARGO CARRIERS IN

INDIA

Authors:
1. Jagruti Mahapatra
(MBA-AVM, Sem-1)
2. Dr. DP Singh
Distinguished Professor (AVM)
INTRODUCTION
WORLD CARGO MARKET
 World cargo industry is known for its speed and time saving

 10% to 20% of the cargo constitute physical perishables

 The total air cargo market is 3% in terms of weight but 40% in terms of value

 Light weight – high value products are suitable for transportation by air
 RESEARCH OBJECTIVES
 Analysis of Indian Agri product air cargo supply chain operation.

 To study and analyze the growth scenario and understand the various risk factors in the market.
RESEARCH METHODOLOGY
 Literature research

 Interviews
LITERATURE REVIEW
 COOL CHAIN
 AIR TRANSPORT FOR DISTRIBUTION OF TEMPERATURE SENSITIVE
PRODUCTS
 FREIGHT FORWARDING AND INTEGRATOR APPROACH
AGRI CARGO SUPPY CHAIN
 AGRICULTURE INDUSTRY IN
INDIA
 58% of total India’s population depend on agriculture as primary source of livelihood.

 Indian food and Grocery market rank as the 6th largest market in the world.

 In terms of fruit production India ranks as the second largest fruit producing country. With a

growth rate of CAGR of 16.46% over FY10-18

VOLUME OF PRODUCTION OF
AGRICULTURAL PRODUCTS
Agricultural Products Production Quantity

Food Grain Production 284.83 million tonnes

Milk Production 165.4 million tonnes

Meat Production 7.4 million tonnes

Horticulture crops 314 million tonnes

 AIRPORTS HANDLING COLD SUPPLY CHAIN

Production Area Gateway Airport

Hyderabad Hyderabad
Mumbai Mumbai
Goa Mumbai-500km
Mumbai-500km
Ahmedabad
Delhi-800km
Mumbai-250km
Nasik/Pune
Hyderabad-750km
Mumbai-660km
Indore/Bhopal
Delhi-560km
Bangalore Bangalore
Chennai Chennai
Delhi-200km
Chandigarh/Baddi
Mumbai-1400km
 INDIAN AGRI-SUPPLY CHAIN & RISK
FACTORS
 Risk management is defined as “the systematic application of quality management policies,
procedures and practices to the tasks of assessing, controlling, communicating and reviewing
risk”.

 It involves risk assessment, risk analysis, risk mitigation as in Indian GDP Guidelines.

 The quality Systems needs to be implemented with procedure for risk management handling.
 Following constraints plays a vital role in
performing an end to end risk assessment:

 Knowledge about the product: Robustness and

stability of the product should be understood.

 Better understanding of transport route and

transport mode: There should be mapping of
the entire process of transport or end to end
process of transport which helps to ensure better
risk management,

 Understanding partner capabilities: Partners

that are involved in the transportation process
should be defined.
 CHALLENGES AND OPPORTUNITIES FOR GROWTH

 The important obstacle that needs to be taken care of to improve the efficiency of the cold chain is to focus on
waste reduction.
 Due to improper storage conditions and improper trucking, the waste generated by the perishables is much
more.

 Major challenges that the Agri cargo is facing today

• High dwelling time
• Congestion of trucks
• Cargo terminals
• High processing time
• Unskilled manpower
• Issues in infrastructure
• Lack of adequate technologies
 RECOMMENDATIONS
 The Cargo industry in India requires improvement in 3 major areas with respect to Air Cargo Supply
Chain, which are-
• Infrastructure

• Bureaucracy

• Digitalization

 The cold facilities need to be improved in order for waste minimization and greater efficiency and
effective supply chain management.

 Following steps can be taken for the proper implementation of Air Cargo supply chains:

 Paperless Cargo Processing: Various methods can be implemented. For e.g. the cargo processing could
be done in a paper less way, simplified custom procedures, transparent and e- payment methods.
 Temperature Controlled Cargo: Proper knowledge must be given to the respective personnel, handling
sensitive cargo and also learn to handle these goods by providing advanced techniques like data
monitoring devices and GPRS tracking for unbroken supply chain.
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BIBLIOGRAPHY
 Montanari. (2008). cold chain tracking: a managerial perspective.
 MORREL. (n.d.). The Air Cargo Industry. 2011b.
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THANKYOU