OVERVIEW OF INDIA’S AGRICULTURAL PRODUCTION AND EXPORT CHALLENGES

• Global Standing:
  • India ranks second in global agriculture production.
  • India’s share in global agricultural exports is only 2.4%, placing it eighth worldwide.
• Contributing Factors to Export Challenges:
  • Low productivity.
  • Inability to meet quality standards.
  • Inefficiencies in the supply chain, including inadequate transportation infrastructure.
  • Significant post-harvest losses.

EXTENT OF POST-HARVEST LOSSES IN INDIA

• Annual Losses:
  • Approximately ₹1,52,790 crore annually (Ministry of Food Processing Industries, 2022).
• Importance of Reducing Losses:
  • Essential to meet the growing food and nutrition demands of India’s increasing population.
  • Preventing post-harvest losses is crucial alongside increasing food production.

ANALYZING INDIA’S POST-HARVEST LOSSES

Major Contributors to Losses

• Perishable Commodities:
  • Livestock produce: 22%
  • Fruits: 19%
  • Vegetables: 18%
• Stages of Loss:
  • Approximately 19% of perishables lost during export, particularly at the import-country stage.
• Critical Roles in Supply Chain:
  • Storage, transportation, and marketing are essential for timely delivery to consumers.

Supply Chain and Logistics Challenges

• Components of Agri-Logistics:
  • First mile transport from farmgate to mandi (wholesale/retail).
  • Long haul transportation (rail, road, water, air).
  • Last mile transportation to the consumer.
• Challenges for Small and Marginal Farmers (SMF):
  • 86% of farmers are small and marginal (SMF) with small production scales.
  • Lack of assured market connectivity leads to post-harvest and income losses.
• Impact on Food Price Volatility:
  • Supply constraints affecting perishable produce contribute to price volatility.

ROLE OF THE INDIAN RAILWAYS IN REDUCING POST-HARVEST LOSSES

Railways and Freight Transport

• Revenue Contribution:
  • Freight transport drives 75% of Indian Railways’ total earnings.
• Dependency:
  • Food Corporation of India relies on railways for moving 90% of its food grains.
  • About 97% of fruits and vegetables are transported by road.

Initiatives by the Indian Railways

• Truck-on-Train Service:
  • Carries loaded trucks on railway wagons.
  • Expanding service post successful trial runs with commodities like milk and cattle feed.
• Parcel Special Trains:
  • Introduced during COVID-19 for transporting perishables and seeds.
• Kisan Rail:
  • Connects production surplus regions to consumption regions more efficiently.
  • Example: Grape growers in Nashik profited significantly using Kisan Rail.

ENHANCING AGRICULTURAL TRANSPORTATION

Challenges and Recommendations

• Challenges identified by Friends of Champions 12.3 India.
• Investment Needs:
  • Specialized wagons for temperature-controlled transport.
  • Rail-side facilities for safe cargo handling.
• Streamlining Processes:
  • Recommendations from DFI committee to minimize transit times and address staffing shortages.

Untapped Opportunities

• Environmental Impact:
  • Indian Railways generates up to 80% less CO2 for freight traffic compared to road transport.
• Systems-Based Approach:
  • Private sector role in enhancing operational efficiency through public-private partnerships.
  • Budgetary allocation for agriculture 2024 supports modern infrastructure and value-addition.

CONCLUSION

• Impact on Livelihoods and Environment:
  • Efficient transportation of perishable goods reduces post-harvest losses and benefits both livelihoods and the environment.
• Complementing Government Efforts:
  • Railway initiatives align with government efforts to bridge the farm-to-market gap and support efficient transportation.