Gopal NAIK, Suresh D N
Agri-food supply chains and networks play an important role in providing producers access to markets. They affect the economic, social and environmental sustainability of rural communities.
Supply chains of horticultural produce such as fresh fruits and vegetables are important as horticulture crops contribute significantly to the total agricultural produce in the country. While India is the second largest producer of fruits and vegetables in the world, the export competitiveness of the Indian producers remains low. There are opportunities to increase exports to the developed markets, especially with a demand driven strategy. While technology is available, it is devising a strategy, and investing and organising the essential partnerships in the chain, that play a crucial role. The Government of India recognises the need to integrate farm production with national and international markets to enable farmers to undertake market driven production, and has initiated a number of policy measures.
Food distribution systems are changing due to increasing urbanisation, changing consumer preferences and eating habits, increased infrastructure development, as well as low margins and high competition. Integrated supply chains and networks, as distinct from loosely related firms in the channel, provide opportunities to create added value. Developing a supply chain that works towards the evolution of the system from a production-push to a market-pull orientation requires considerable reorientation and competencies.
There is a growing concern about the social and environmental sustainability of the food industry. The increasingly resource intensive consumption patterns are determining the unsustainable trajectory of our global food production system. India’s National Agricultural Policy (2000) emphasised the importance of management and conservation of resources. The key to sustainable agriculture in India is the management of the small farm to achieve sustainable resource use, improved productivity and profitability.
Besides the involvement of corporates which play a critical role in agri-food chains, collective global efforts are needed to establish climate-resilient agricultural production systems which make efficient use of resources, reduce greenhouse gas emissions, develop low-waste supply chains, ensure adequate nutrition and encourage healthy eating choices, and take special care of the needs of the poor and the vulnerable.
The article includes a discussion by a panel of stakeholders on the challenges of creating a sustainable agricultural and retail supply chain.
