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Business of Businesses in Livelihoods Promotion: Avenues and Options
Fresh Produce Supply Chain in India
Consumer Trends
India is predominantly a vegetarian country. 20% of household expenditure is on F&V Convenience - Cut F&V, Packaged F&V, Home Delivery. Health conscious – Safe food, Zero pesticide, Organic, GAP
certified Innovation – Exotic / New recipes / New Cuisines Quality - Imported , Branded/ Sorted/ Packaged Fruits.
wholesaler
Fresh Produce Industry In India
Fruits Vegetbles 162 MMT US$ 26 Bn 110 Varieties
81 MMT US$ 27 Bn 40 Varieties
243 MMT6% CAGR
APMC laws Small & Fragmented Land HoldingsLack of InfrastructurePrice discovery
Key Challenges
Fresh Produce Supply Chain
Consolidator CA
wholesaler
supplier Retailer Customer
Traditional Village Source Mandi
Farmer
150 Mn 150 Mn11000 Mandis 0.1 Mn 0.65 Mn Retailers0.35 Mn Hawkers
30-35%10%5-8%10%
Wholeseller
Terminal Mandi
CA Wholeseller supplier Retailer
FARM TO FORK
Key Learning from successful model
Producer Owned and controlled Collection centre at Farmer doorstep. Market linkages – commitment to buy 100% Pricing Model – Incentivise quality – assured
weighment and payment. Customer Focus – Value added products
AMUL
MODERN
Farmer CompanyDC
Collection centre
Customer
Retailer
Fresh Produce Supply Chain
Easy access to small farmersDisintermediatesTransparency on weighment & paymentMarket feedback & Quality improvementPotential for input services
Key Benefits
Farmers
Direct Sourcing
Company
Environment
Consumer
Community
• Demand Driven Farming• Higher Yield• Benefits of Association like
Training, Input Cost Reduction, Wastage Reduction
• Market linkages
• Reduce food waste and health hazards
• Reduced logistical footprint • Improve efficiency of fertilizer,
pesticide, water use• Increase soil quality• Sustainability
• Direct and sustainable Sourcing Model• Traceability / Food Safety /Differentiation
• Assured Freshness and Food Safety
• Optimum Value Addition
• Satisfaction about Community Linkage
• Boost to Agriculture Production and poverty alleviation
• Increased Participation of Women in farming
• Formation of Self Help Groups and Community Welfare progs
• Investment in Agriculture and Perishable Supply Chain
Stakeholders Benefit
