Case

Casestudy
studyPresentation
Presentation

Agriculture produce distribution

system in INDIA

Presented by :
Amit Kumar
Shilpa Dhawan
Prakash Tiwari
Sumit Kr. Sharma
 Overview…

 Indian agriculture and farming

 Problems in agriculture
 Problems of distribution system
 Current distribution system
 Comparison with modern distribution system
 Impact of organized retail
 Suggestion for improvement
 Indian agriculture and
farming

 72% in rural areas.

 25% share in GDP.
 2nd largest producer of vegetables next to China. Accounts for
15% of world.
 Largest producer of fruits. India having 52% cultivation land
compared to world average 11%.
 Fresh fruits & vegetable constitute around 10% total agri.
production of the country
 Agriculture and allied sector employs 67% of population.
 Problems…

 Wastage and deterioration in the quality of

F&V. from harvest to consumption up to 20-
40%.
 Several intermediaries
 Lack of transparency in prices
 Poor marketing infrastructure
 CONTD…

 Poor linkage of marketing channel

 Farmer has no choice to decide price.
 More risk and less realization to the farmer.
 Risk to maintain hygiene and high shelf life.
 CONTD…

 Never being the decision maker

 Incomplete info. on rainfall, water table,
& availability of power.
 Several consolidators and dependency of
farmers due to instant need of money.
 CONTD…

 Lack of accessibility of nearby

competitive market.
 Poor facility for
 Grading & Standardization
 Logistics & warehousing
 Current Distribution
System

 Highly fragmented and unorganised.

 Several players.
 Perishability of produce.
 CONTD…

 Intermediary in agriculture.
 Hygiene levels are poor.
 Price is not reasonable to farmers.
 Huge post harvest losses
Change makers…
Modern Value Chain in F & V
 Response of change

 New impetus for rural growth.

 Organized distribution system.
 Effective use of natural resources.
 CONTD…

 Profitability & global recognition.

 Improved grading & standardization.
 Advanced logistics, warehousing,
value addition.
 Education leading to improved P&P.
Comparison of prices In both systems
Comparison of wastage In both
systems
 Organised Retail

 Entry of retail giants in the Agri-

business.
 In urban areas organised retail
growing rapidly. 
 What are the impacts????????
 Impact of modern organized
agri. retails

 Transparency in the pricing.

 Reduction in wastage at various stages
of distribution system.
 Maintenance of quality, hygiene &shelf-
life of agri. Produce.
 Minimization of losses
 Suggestions

 Establishment of Farmer’s co-operatives

 Merger and buy-out of weak retailers by a
stronger one that would give a new
horizon to the small retailer
 Setting up of franchisee organization.
 There must be good network connection
between retail organizations, the suppliers
and other channel members to use
compatible technology.
 CONTD…
 Investment in infrastructure development for post-
harvest facilities such as pack house, ripening
chamber, cold storages, Controlled Atmosphere (CA)
storages, etc., processing units for value addition
and marketing infrastructure.
 Adopt a coordinated approach and promotion of
partnership, convergence and processing and
marketing agencies in public as well as private
sectors, at the national, regional, state and sub-state
levels.
 Promote capacity-building and human resource
development at all levels.
 CONTD…

 Ensure an end-to-end holistic approach

covering production, post-harvest
management, processing and marketing to
assure appropriate returns to
growers/producers.
 Promote R&D technologies for production,
post-harvest management and processing.
 CONTD…

 Enhance acreage, coverage and

productivity through:
 Diversification
 Extension of appropriate technology to the
farmers
 Value addition should be there at all links of
supply chain.
 Farmers should be educated about
calculating margins.
 Proposed model….

Collection Cold
center Order center
storage/DC

Value Addition
Village

Consumers
 Salient Features….

 Model is feasible only in metro cities

 Cold chain enabled supply chain
 Higher & busy class is targeted
 Online & on call order system
 Home delivery
 Supply of FMCG along with F&V
 Scheduled order & delivery time
 Grading & sorting at collection center as well as at DC
 Three types of grade
 Grade A : Main consumers
 Grade B : Luxury hotels & big restaurants
 Grade C : Dhabas & highway hotels
 SWOT Analysis….
Strength Opportunities
• Direct approach to the customers • Unique model
• Only three levels in supply chain • Better suited for busy life segment
• Remunerative price assurance to • Big apartments & Housing in
the producers Metros

Weakness Threats
• High initial set up cost • Mentality of common man
• Continuous order & supply in initial • Longer break even
phase • Price competition
• Price
Thank u… !!!