Agriculture in India contributes nearly 18% of GDP and sustains over 45% of the workforce. However, the sector suffers from post-harvest losses, market inefficiencies, and low farmer incomes.

An efficient Supply Chain Management (SCM) of agricultural commodities can bridge farm to fork, ensuring both farmer prosperity and consumer welfare.

Scope of Supply Chain Management of Agricultural Commodities

Infrastructure Development:

• Cold storage facilities - Agriculture Infrastructure Fund (AIF) sanctioned ₹8,258 crore for 2,454 projects
• Warehousing capacity - Central Warehousing Corporation operates 435 warehouses with 10.9 million MT capacity
• Transportation networks - Dedicated freight corridors and rural connectivity under PMGSY
• Processing units - Mega Food Parks (42 approved) and Integrated Cold Chain projects

Technology Integration:

• e-NAM platform - 1,361 mandis integrated across 23 states enabling transparent price discovery
• Blockchain implementation - Maharashtra's soybean traceability project ensuring quality assurance
• IoT sensors - Real-time monitoring of storage conditions and inventory management
• Mobile applications - Kisan Suvidha app providing market information to 2.5 crore farmers

Market Linkages:

• Direct marketing channels - FPOs connecting 63 lakh farmers to organized markets
• Contract farming - Punjab's PepsiCo potato procurement model covering 24,000 farmers
• Export facilitation - APEDA's quality certification for international markets

Significance of Agricultural Supply Chain Management

Economic Transformation:

• Post-harvest loss reduction - Annual losses of ₹92,651 crore (2022 NABCONS study) being minimized
• Value addition - Food processing sector growing at 9.99% CAGR, reaching ₹35 lakh crore by 2024
• Employment generation - Cold chain sector employing 3.5 million people directly
• Export enhancement - Agricultural exports reached $50.21 billion in 2021-22

Food Security Enhancement:

• Buffer stock management - FCI maintaining 80.8 million MT capacity across 2,000 depots
• Quality preservation - Controlled atmosphere storage reducing nutritional losses
• Supply stabilization - Price Stabilization Fund (PSF) for onion and potato management
• Rural accessibility - Fair Price Shops network covering 5.38 lakh outlets

Farmer Income Augmentation:

• Price realization - PM-AASHA ensuring MSP for 23 crops benefiting 86% small farmers
• Risk mitigation - PMFBY covering 5.5 crore farmers with ₹1.8 lakh crore sum insured
• Market access - Digital platforms reducing intermediary margins by 15-20%
• Value chain participation - Contract farming in Haryana increasing farmer income by 25%

Strengthening agricultural supply chains through initiatives like AIF (mobilizing ₹1.07 lakh crore investment) and Atmanirbhar Bharat remains crucial for achieving sustainable agricultural growth and doubling farmer incomes.