What are the main constraints in transport and marketing of agricultural produce in India?
What are the main constraints in transport and marketing of agricultural produce in India?
Subject: Economy
A robust agricultural transport and marketing system is vital for India's food security and farmers' income. However, multiple infrastructural and institutional bottlenecks continue to plague the sector, leading to an estimated 40% post-harvest losses in fruits and vegetables.
Physical Infrastructure Constraints
- Poor Road Connectivity: About 40% of rural habitations lack all-weather road connectivity, hampering timely transportation of perishable agricultural produce.
- Limited Cold Storage: Despite being the world's largest producer of fruits and vegetables, India has cold storage capacity for only 11% of total production.
- Inadequate Market Yards: The average distance between two agricultural markets is approximately 12 km, much higher than the recommended 5 km, increasing transportation costs.
- Railways Infrastructure: Limited availability of refrigerated rail coaches despite initiatives like Kisan Rail affects long-distance transportation of perishables.
Marketing Infrastructure Constraints
- Fragmented Supply Chain: Multiple intermediaries between farmers and consumers lead to price spread and reduced farmer income.
- Limited Market Information: Lack of real-time price information despite initiatives like e-NAM (Electronic National Agriculture Market).
- Quality Standards: Absence of uniform grading and standardization systems affects price realization and export potential.
- Storage Infrastructure: Inadequate warehousing facilities lead to distress sales, particularly during peak harvest seasons.
Institutional Constraints
- Credit Access: Limited financial resources restrict small farmers from accessing modern transport and storage facilities.
- Market Regulations: Complex APMC regulations and licensing requirements create entry barriers for private players.
- Technology Adoption: Low penetration of modern logistics technology and tracking systems affects supply chain efficiency.
- Skill Gap: Insufficient trained personnel in agricultural logistics and cold chain management.
The government's initiatives like Integrated Scheme on Agricultural Marketing (ISAM) and Krishi Udan are steps in the right direction, but a more comprehensive approach involving public-private partnerships and technological integration is needed to overcome these constraints and create an efficient farm-to-fork supply chain.
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