Q. Elaborate the scope and significance of supply chain management of agricultural commodities in India.

Model Answer:

Supply Chain Management of Agricultural Commodities in India

Agricultural supply chain management encompasses the entire network from farm inputs to consumer plates, integrating production, post-harvest management, processing, and distribution networks to ensure efficient commodity flow.

Scope:

The scope spans multiple interconnected stages:
• Input Management: Timely supply of seeds, fertilizers, credit, and machinery determines yield quality
• Post-harvest Operations: Storage infrastructure including cold chains (for fruits/vegetables) and modern silos reduce the current 15-20% perishable losses
• Processing & Value Addition: Converting raw produce into processed goods (tomatoes to puree) enhances shelf-life and market value
• Marketing Channels: Integration of traditional mandis, e-NAM platform, and retail chains ensures wider market access

Significance:

Efficient SCM directly impacts farmer incomes by reducing intermediaries and ensuring better price realization, crucial for doubling farmers’ income goal. It addresses India’s ₹90,000 crore annual post-harvest losses through improved infrastructure. The system ensures food security by facilitating surplus-to-deficit region movement, stabilizing prices of essentials (like onions).

SCM catalyzes the food processing sector while generating substantial rural non-farm employment in logistics and warehousing. Government initiatives like Agriculture Infrastructure Fund, PM Kisan SAMPADA Yojana, and 10,000 FPO formation strengthen this ecosystem.

Conclusion:
Robust agricultural SCM is indispensable for farmer prosperity, food security, and positioning India as global agri-powerhouse.