Roadblocks in procurement across India
August 3, 2018
The most important aspect of agriculture sector in India is the development of modern supply chain, which is currently fragmented and hinges on middlemen. What this means is that there is a huge gap between wholesale and retail prices, and in the whole process farmers don’t profit much. Overall tightening of the supply chain, including direct procurement from farmers, can go a long way in preventing food wastage, bringing down food inflation and preparing the Indian farm sector for more exports.
But there are several stumbling blocks when it comes to sourcing directly from farmers throughout India, some of them include;
1. In a vast country like India, farmer’s individual land holding is very small; so, negotiating individually with thousands of farmers can be quite a task.
2. Onboarding farmers for procurement can be an uphill battle, as building trust takes time. Initially, farmers can be apprehensive about working together.
3. Also, in a diverse country like India, the language could be a hurdle while procuring goods from farmers. Fluency in the local language is a necessity in building trust and cordial relations with farmers.
4. According to the Director of the National Horticulture Board, there is a 90% deficit of cold storage facilities in India. Therefore, sourcing and transportation of perishable foods like fresh fruits and vegetables need to be done swiftly.
5. The movement of goods between Indian cities could be complex in terms of regulations and taxes. Goods must endure long transit times on bad roads, through dense traffic bottlenecks and ruinous delays. Besides the risk of breakdowns and accidents, India grapples with bureaucratic policies that ensure delays.
6. The price of any fresh produce is determined by the demand and supply equation. So, finding a common ground on the price of the product can be a hurdle, as demand and supply vary from state to state.
AgroWave is transforming Indian agriculture supply chain and making it transparent to provide a prosperous future for our food growers.