Fruits & Vegetables Logistics India

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A presentation by:

Rohan Shah – PG12018
Samiksha Kothari – PG12019
Tanuj Dodal – PG12026
Saurabh Medda – PG12051
Hiba Sayed – PG12055
Ramya Balkrishnan – PG12059

India can become the food supplier of the world. It has the cultivable land, all the seasons for production of all varieties of fruits and vegetables, an agribusiness system that works although it needs to be vastly improved. The single most important problem facing the Indian agricultural industry is the highly inefficient supply chain. Because of lack of cold chain infrastructure and also a food processing industry about 20 per cent of all foods produced in India (Rs. 500 b) are wasted. In India about 60% of food quality is lost in the supply chain from the farm to the final consumer. By building an efficient and effective supply chain using state of the art techniques it is possible to serve the population with value added food while simultaneously ensuring remunerative prices to the farmers. Investments in cold chain infrastructure, applied research in post harvest technologies, installation of food processing plants in various sectors and development of food retailing sector are mandatory for achieving gains in this sector. Strategic growth plans for achieving both national and international competitiveness of the food industry are essential.

The food supply chain is complex with perishable goods and numerous small stakeholders. In India, the infrastructure connecting these partners is very weak. Each stakeholder: farmers, wholesalers, food manufacturers, retailers all work in silos. Also, demand forecasting is totally absent and the farmers try to push what they produce in to the market. Data integration, financial flow management, supply-demand matching, collaborative forecasting, information sharing, goods movement synchronization through efficient transport scheduling, are very well practiced in high technology industries with immense benefits. These best practices should find their way in to the food supply chains.

In this report we identify emerging opportunities in the food sector in India and present ways in which existing market challenges in India can be overcome using technology and experience. India has a huge opportunity to become a leading global food supplier if only it has the right marketing strategies and of course agile, adaptive and efficient supply chain. The report tries to find out what efforts are being taken by the big retailers in India like Future Group with retail stores like Big Bazaar, Reliance Fresh and other retailers to improve the efficiency and effectiveness of supply chain and logistics. This report also tries to find out the difference between the traditional supply chain and retail chain in India of fresh fruits and vegetables.

If we see the Indian market, mainly two different kind of supply chain exist in the Fresh Fruits & Vegetables market. One is Traditional supply chain and the other one is retail market or organized market supply chain. The main difference between the two supply chains is that the number of intermediaries in the traditional supply chain is high and thus the amount of wastage is high and transaction cost is also high in the traditional supply chain. In the following paragraphs all the different kind of supply chain which exists in this sector in India has been explained.

TRADITIONAL FRUITS AND VEGETABLE SUPPLY CHAIN (UNORGANIZED SECTOR)

Following is a simple schematic diagram of the fresh fruit supply chain in India. It shows the minimum no of intermediaries who are involved in the traditional supply chain of fresh fruit and vegetables in India.

In India majority of the trade happens through traditional path. Generally the grower sells fruits to the local middlemen who collect fruits from different adjacent areas and sells to the commission agent or trader. The commission agents are the middle men who find out buyers for the local...
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