Designing Distribution Channels for

Governmental Schemes(Food Security)

Submitted By
Anish Kumar 110
Ashish Gayakwar 114
Jayant Yadav
Navalpreet Singh 132
Nitesh Kumar Rohilla 134
Vivek Ohri 162
Diskit Yangdol 168
Shrey Kapoor -

Agenda
What is Food Security
Current Efforts by various Stake Holders: Govt., NGOs,

hawkers etc.
Food Security Indices by World Health Organization
Our Approach
Food Security Supply chain design
Conclusion

What 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

Government Programs for Food

Security

Major Programs to Augment Availability of Food

National Agricultural Development Program

Accelerated Irrigation Benefit Program
Fertilizer Subsidy
Bank loans, Free Electricity

Major Programs to Improve Economic Access to Food

Public Distribution System

Mahatma Gandhi National Rural Employment Guarantee Scheme
National Food Security Bill

Major Programs & Partnerships to Improve Nutrition Security

Mid Day Meal Scheme

Integrated Child Development Scheme (ICDS)
Annapurna Scheme (Ministry of Rural Development) for senior citizens
The Nutritional Program for Adolescent Girls
Emergency feeding program ( in eight districts in Orissa)

Performance of Food Security

>The food security programs
as envisioned are too narrow &
Schemes

equate food security with grain security

>These have become classic examples of corruption,
diversion, adulteration .
>Food Adulteration(Milk, Fruits, Fish) with chemicals such as
calcium carbide getting deadlier by the day
>The cost of implementation of the PDS program is high (6
rupees for each rupee of rations delivered and 4 rupees for
each litre of kerosene)
>Suggestions for improvement include
Replacing ration cards with food coupons or UID.
Using IT for monitoring and visibility.
>Neither of them can stop corruption or improve the
performance

Food Security Indices by World

Organizations
Global Hunger Index(GHI)

In 2011, India Ranks at 67 out of 81 countries. The GHI is composed of three

equally weighted indicators Proportion of the population that is undernourished,
proportion of children who are underweight and under five mortality.

Human Development Index(HDI)

India ranks 134 among the 187 countries. HDI is a comparative measure of life
expentancy, literacy, education and standard of living.

Malnutrition: Integrated Child Development Services

47% children below the age of three years are malnourished

Our Diagnosis
Food security need to be properly defined and the delivery processes need to be well designed
and their executions monitored.
Need articulated Changes in Consumption Patterns
In both urban and rural areas % cereals in food is declining & high value products such as
fruits, vegetables, meat, dairy products, and fish is on the rise
Not treated as a supply chain problem. Recent advances in technologies and in the food
vertical: Logistics,
Raise of Supermarkets, Food Processing & Packaging, Wireless, Traceability using RFID are
ignored.

Coordination and Execution are absent

The Business Processes

Creating awareness on Food, nutrition and health relations
Preparation of the menu by crowd sourcing
Procure the food material from suppliers (Government or private parties), the processed food

manufactures and meat and milk vendors and store in the distribution center.
Certification of quality at each stage in the chain
Transfer the materials from the distribution center to the kitchens on a daily basis or as required or
as ordered.
The delivery of the food packets from the kitchens to the hawkers, schools and other outlets using
delivery vans.
Return of unsold food for disposal
Financial supply chain

Execution using Smart

Technologies
Streamlined execution of food security chain for urban poor is

through Smart business network that uses GPS, RFID, UID,

Sensor networks, mobile, call centers etc.
Brainstorming and discussions with stakeholders would
certainly lead to an Executable Food security system to
replace the currently corruption ridden inefficient system

Food Security Solution: To serve

100 Mn poor

The Food Security EcoSystem

Supply Chain Network

Coordination
The network consists of half million stake holders in big cities. Majority of them are

hawkers who are small entrepreneurs.

The asset intensive part of the network are the Kitchens and the Distribution Centers.
The Distribution centers can be a shared service with the big retailers but the Kitchens
have asset specificity.
The Governance model can be an orchestrator type i.e. the governance is managed by
a third party such as an NGO or One of the lead players such as the Kitchen owners can
manage the supply chain.

The Supply Chain Risks

Political/social pressures for permissions
Creating nutrition awareness among consumers
Compromise on quality and hygiene
Misunderstanding by the hawkers
Resistance by other organized restaurant and Kirana
shop owners
IT/ technology adoption barriers
Waste disposal & Recycling