The existing supply chain in India is highly

inefficeint with so many intermediaries and

lack of profitability for farmers. With a food
park the existing supply chain is reduced
drastically with processing industries directly
Figure 1Traditional supply chain
connected to the farmers and reaching the
end consumers quickly.

The farmer is benefitted with an alternate

market to sell the produce as well as better
price realization due to lower transaction
Figure 2Modified with a food park
costs. During excess supply in the market
instead of doing a distress sale and dumping
the produce farmers can sell the produce to the industries and through a contract can process the
perishables and keep them in the cold storage till the market improves, thus also reducing the
wastage of the perishables.

The industries benefit due to easy availability of raw material and ancialliary services like cold
storages, packaging, warehousing and logistics support. Besdies there are added benefits of tax
exemption for five years, preferential interest rates and an subsidised power rate.

Lots of the end users like air catering, restaurants, and other Small enterprises have to face
susbtantial challenges in maintaining the quality due to a weak processing industry. The users will
benefit through a reduction in labor and a consistent food taste by using intermediaries like pastes,
juices and so on.