The Food Supply Chain In India Untapped Comparative Advantage
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Transcript of The Food Supply Chain In India Untapped Comparative Advantage
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The Food Supply Chain In IndiaUntapped Comparative Advantage
N. ViswanadhamIndian Institute of Science
October 5,2013Workshop at IIT Kharagpur on
Sustainable Food Security through Technological Interventions for Production, Processing and Logistics
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eA Revolution in the Making
• Break through Innovations are possible with booming employment opportunities.
• What is needed is out of the box thinking in terms of product offerings made to various customer segments with appropriate business models with Affordability, Availability and Awareness in mind
.N.Viswanadham
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eThe India Advantage
In India, 52% of land is cultivable & World average is 11% All 15 major climates of the World are in India
– Snow bound Himalayas to hot humid southern peninsula, – Thar desert to heavy rain areas
Has 20 agro-climatic regions & 46 out of 60 in soil types Sunshine hours and day length ideally suited for year round
crop cultivation. Mega centre for biodiversity in plants, animals, insects,
microorganism and accounts for 17% animal, 12% plants and 10% fish genetic resources of the globe.
Live stock sector: India has 16% of cattle, 57% of buffalos, 17% of goats and 5 % of sheep population of the world.
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eThe Plough-Plate Food Supply Chain
• The supply chain involves farmers, seed producers, fertilizer factories, financial institutions, millers, government, warehouses, fair price shops, retail shops, railways, truck transport companies, etc.
• The relationship among the actors is adhoc and not planned leading to inefficiencies
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eBenchmarking Food Chain
Institutions
Resources &
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Supply chains
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Resources
Resources Management
Supply ChainProduct Offering
Logistics
Economic Policies
Information Technology
Trade Tariffs
FOOD SUPPLY CHAIN
No Cold Chain
No Supply Chain Visibility
Packaging Duties High Protectionist
Too many intermediariesFew Processed Products/Labs
Abundant
Inefficient and Fragmented
Planning
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State of Indian Food Sector
Consequences1.Surplus food wasted away2.Low incomes to farmers 3.Inefficient supply chain4.Not meeting the young consumer preferences (processed hygienic food)
Opportunities 1.Cold chain infrastructure builders 2.Processed food manufacturers3.Food packaging & logistics providers4.Food retailers and Exporters 5.IT and data analysts6.Research Institutions
Strengths1.Vast natural resources (cultivable land, water, seasons)2.Established farming system3.Growing economy4.Supporting government policies (FDI, APEDA, subsidies)5. Vital outsourcing hub
Weaknesses 1.Small scale conventional farming 2.Primitive post-harvest methods 3.No channel master & many farmers to consumers intermediaries
4. Hardly any Food processing industry 5. Inadequate storage & transport (logistic )infrastructure
Potential to become a
leading food supplier for the
whole world
FOOD SUPPLY CHAIN
ECOSYSTEM
Food Parks, APEDA, Freight Corridors
Sensor networks & supply chain
visibility
Cold Chain Logistics
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INFR
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Sourcing Hubs, Food Courts, Clusters
HR management Dealing with Kirana shops, FinancialsWater, Power , seeds
Infrastructure: Canals, Roads,
Research: University, Seeds, Testing, Dev, Labs
RE
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Quality Control &Environmental Issues
APMC, Min price, Essential Commodities, PDS,VAT
INSTITUTIONS
Social (Kirana shops), Financial & Trade issues
FOOD SUPPLY CHAINS
Retail ChainsMandis, Restaurants
DistributionPackaging
Food Manufacturing
SuppliersFarmers, Fisheries,
Meat, Dairy
LICENCES & PERMITS INDUSTRIAL DISPUTE ACT SHOP & ESTABLISHMENT ACT COSUMER PROTECTION ACT WEIGHT & MEASUREMENT ACT PACKAGING ACT PREVENTION OF FOOD ADULTRATION
ACT
PREVENTION OF BLOCK MARKETING ACT ANTI HOARDING & PROFEELING ACT MONEY LENDING ACT PRODEND FUND ACT MINIMUM WAGES ACT ESI ACT GRATUITY ACT BONUS ACT
INEFFICIENT LABOURS
PRESENT CONDITION OF TRADERS
INSPECTOR RAJ
POLITICIAL INTERFERANCE
ANTI SOCAL ELEMENTS
WATER TAX
POWER PROBLEM
HIGH BANK CHARGES
SALES TAX
OCTROI
SERVICE TAX
WELTH TAX
PROFESSIONAL TAX
INCOME TAX
ENTRY TAX
VAT
STAMP DUTY
POOR MARKET CONDITION
PURCHASE TAX
ESSENTIAL COMMODITIES ACT
CENTRALEXCISE
Presented By Mr. B.C.Bhartia,Nagpur.
FDI in Retail Trade
Fringe Benefit Tax
New Naka Complex
Cash Transaction Tax&
Quarterly ‘C’ Form
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eWhat Is Food Security?
The World Food Summit of 1996 defined food security as existing “when all people at all times have access to sufficient, safe, nutritious food to maintain a healthy and active life”.
Thus food security implies both physical and economic access to food that meets their dietary needs, nutritional requirements and food preferences.
Nutritious food providers have three functions: Making it Available at Affordable prices and creating Awareness to the consumers
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eFood security: India ranks lower
than Rwanda
According to the International Food Policy Research Institute's Global Hunger Index, 2011, India ranks 67 of the 81 countries of the world with the worst food security status.
The GHI is composed of three equally weighted indicators - the proportion of the population that is undernourished, the proportion of children who are underweight and under-five child mortality.
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India needs to Usher the Agri-Service Revolution
A strategic vision for the Agri-service sectorStreamline and upgrade the agri-service chains
using modern technologies: Demand driven agriculture, Processing industry, Visibility
Initiate education, research and entrepreneurial programs in Agri-Service sector innovation
Plan and Build integrated Food -service systems in rural and urban areas
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Food
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eSpecific Five things India
NeedsPost Harvest ResearchFood Manufacturing with Added Vitamins
And MineralsDistribute Nutritious Food not GrainsAttention to supply chain and logistics and
minimize wastage Regulations by the State and Centre
Governments : APMC act, Minimum support price act, etc
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141106N.Viswanadham
New to Market Innovation
Food Product Market Estimation
Estimate your market right How many people will buy orange juice packets if it is as cheap as a coffee or tea on a road side stall and costs only Rs 5
Look at the reduction in the disease burden
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Consumers
Vocational Training
Processed Food Products
Meat & Diary Products
PDS Mid Day Meals
Households
Hawkers
Kitchen
Kitchen
Distribution Center
Distribution Center
Distribution Center
Food Security Solution: To Serve 100M Urban Poor
IT Backbone on Cloud
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eThe IIT Kharagpur Initiative
This initiative fills in the much needed research efforts in the supply chain, logistics and food security areas
The involvement of the IIT faculty and research students would make a much needed contribution to the food security in India and the world.
N.Viswanadham