Introduction

Agriculture contributes nearly 18% to India’s GDP and sustains over half the population. Yet, post-harvest losses worth around ₹1.5 lakh crore annually (MoFPI) underscore the need for robust Supply Chain Management (SCM) to enhance efficiency, profitability, and food security.

Body

Scope in India

• Cold chain and value addition: Government support is expanding cold storages, pack houses, and reefer trucks so fruits and vegetables last longer and travel farther.
• Digital trading across mandis: Online platforms connect many mandis so farmers can see prices, sell online, and get faster payments.
• Infrastructure for the first and last mile: New warehouses, grading and sorting units, and collection centers help bulk, store, and send produce on time.
• Food processing networks: Food parks and clusters link farmers to processing units for tomato puree, fruit pulp, dairy, and ready-to-eat foods.
• Farm-to-Market Integration: Covers production, storage, processing, transportation, and retailing of farm produce.
• Finance and aggregation: Use AIF credit (Agriculture Infrastructure Fund) and the 10,000 FPOs scheme so that FPOs and MSMEs invest in trucks, cold rooms, and packing lines.

Significance in India 

• Reduce post-harvest loss: Cold rooms and pack houses reduce spoilage in perishables like tomatoes, onions, grapes, and mangoes.
• Better and fairer prices: Online auctions, grading, and quick e-payments cut middle delays and improve price discovery for farmers.
• Higher incomes and rural jobs: Processing units and logistics hubs create local jobs and add value near farms.
• Stable supplies and food security: Efficient storage and transport smooth out shortages and price spikes, especially for onions, pulses, and dairy.
• More private and FPO investment: Warehouse and cold chain support encourages companies, startups, and Farmer-Producer Organizations to invest in trucks, storage, and sorting lines.

Conclusion

A modern agriculture supply chain turns harvests into steady incomes and reliable food. Scaling first‑mile pack houses, cold chains, processing clusters, e‑NAM features, and FPO finance will cut waste, lift farmer earnings, and keep prices more stable nationwide.

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