Understanding supply chain and marketing of perishable goods in India

Abstract

India today stand’s as the 2nd largest producer of fruits and vegetables after china and has a global share of more than 15% but why India’s share in global exports only around 1% and losses exceeding INR 50,000 Cr annually. This paper tries to study the current Indian scenario in supply chain and marketing of perishable goods – mainly fruits and vegetables. Firstly the paper looks at the overview of the supply chain, its origin, emerging changes and challenges, followed by the description of the horticulture industry in India, role of government and its new initiatives and problems being faced. Next characteristics and description of the goods falling in the perishable category have been elaborated. To understand the market of perishable goods we first need to understand the supply and production patterns, seasonality factor and the reasons behind the same. At the other end we try to estimate the demand of the perishable goods and other food grains and the main parameters considered by buyer before making purchase. Final goods delivered and their quality is a direct result of the post harvest technology available and adopted by farmers and intermediaries. Here we try to focus what are the losses that incur during post harvest and what are the different technologies that can be employed in the Indian context to an advantage of various parties. Subsequent section covers the current distribution chain, looks at various inventory handling techniques and then analyzes how new inventory management tools can be used to reduce wastage and improve efficiency by looking at the example of a European manufacturer. Cold chain storage is a critical point in the supply chain and the section elaborates on the various growth drivers, hindrances, and recent changes. Marketing of perishable goods consist of all the activities from the post harvest till the consumer’s purchase. The portion looks at the level of processing of foods, prices at various points in the supply chain. Then we have a closer look at the various agencies involved in the supply chain and what are the current constraints in marketing. The last section consists of the modern innovative marketing models in India farmer’s bazaar, co – operative societies, contract farming and impact of information sharing in perishable goods. Later effects of sensor technology to reduce carbon emissions have been studied. Lastly observations on the perishable supply chain based on findings of this paper and other studies have been elaborated followed recommendations for improvements in supply chain and marketing of perishable goods.