Managing Farm Wastage

We all are aware of the green revolution that occurred in India and its effect on the agricultural sector is far felt. Technology is the key enabler in establishing this efficient and transparent process. Due to this revolution, India is now self-sufficient in food grain production.

While it is laudable that India has achieved self-sufficiency in food-grain production, it is equally distressing that every year an enormous number of food stocks get wasted due to archaic procurement, storage, and warehousing methods. Typical storage losses for agricultural products in the country account for approximately 10 percent of the entire goods. This results in a huge burden on the economy because first, it leads to inflation as additional supplies have helped cool down prices, and second, this production can go a long way in providing food to millions of poor at highly subsidized rates.

According to FICCI, a study was conducted on SLCM’s systems and processes called “AGRI REACH” (Patent Pending). Using scientific processes for managing storage and Agri-logistics in existing structures can reduce storage losses from 10 percent to a mere 0.5 percent, translating into a saving of $13 billion or roughly ₹80,000 crores every year. The SLCM Group demonstrated it & validated by the detailed study of FICCI – Partnership to Scale New Heights: India-US Collaboration in Agriculture. The study has stressed primarily on few parameters such as ‘Price Escalation’, ‘Price Fluctuation’, and ‘Logistical Scenario in the Agri-sector’ to reduce post-production losses in farmland.

Price escalation:- The demand for food-grains will only increase in the coming years due to a surge in population, rising income levels, and changing dietary preferences. The country can ill-afford such colossal farm wastage. The pressure will only increase as the available farmland will decline due to rapid urbanization and the need to build associated infrastructure. A combination of these factors is bound to push up prices.
It is thus imperative that apart from raising agricultural productivity, improvement in the management of the supply chain would be crucial for maintaining overall economic growth and prevent any sharp escalation in prices. India should start demonstrating and adopting best warehousing practices for robust supply chain management for agriculture and farm products.

Price fluctuations:- For instance, though we are the largest producer of fruits and vegetables in the world, inadequate post-harvest storage, and transportation cause losses of around 30–40 percent, while only 7 percent value-addition occurs. Only about 2 percent of the production is processed commercially.
The current cold storage capacity is barely sufficient for 10 percent of fruits and vegetables produced in the country. Improper warehousing practices result in seasonal fluctuations in product prices. According to NITI Aayog (formerly Planning Commission), the estimated gap between agri-warehousing supply and demand is 35 million tons. Here too, there is a substantial inter-regional imbalance as North India has access to 60 percent of the total storage. Multiple intermediaries dominate the existing marketing channels, thereby adding to the problems of the producers of perishable Agri-goods.

Logistical problems:-By simply adopting best practices, the availability of food-grains will be 9.5 percent more, which is equivalent to ₹76,000 crores. Also, there is an urgent need to spruce up both road and rail connectivity. It will ensure that farm produces can be transported across the length and breadth of the country in a more secure environment and in less time, thereby ensuring minimal impact on the quality of the produce. Technology can be a key enabler and game-changer in establishing efficient and transparent processes in the supply chain system and facilitate the sharp reduction in post-harvest losses. India’s farm output is precious and the efforts should be aimed at ensuring that not even a morsel is wasted. 


There is a need for a sustained campaign to improve existing storage spaces and introduce technology to make the entire supply chain smooth, transparent, and mobile to ensure quality, timely delivery, the right price, and minimal losses.