SCM Lowdown

Record production of Grain in India, in 2007-08

Agriculture secretary of India, PK Mishra while inaugurating two day workshop on supply chain management for agricultural commodities in Coimbatore told that India achieved a record food grain production of 227 million tonne in 2007-08, 10 to 12 million tonne from previous years.

He further stated that agriculture sector registered growth of more than of 4% continuously for previous four years if compared with 2% from 1994 to 2004. He stated this growth is not only registered in food grains, however, the production has gone up for cotton and sugarcane as well during last two years.

He was also positive for double production of horticulture sector by the end of the 11th plan period, at the same time; he was concerned for search of suitable markets for the surplus production and strengthening/development of supply chains to avail tangible benefits out of this development.

As in India farmer gets very low share of the final price paid by consumers because of long value chain. Mr Mishra said,

“We need to shorten those long value chains and encourage their vertical integration and consolidation for ensuring a remunerative price to our farmers,”

So agriculture sector in India for proper growth requires well functioning markets to drive growth, generate employment and economic prosperity in rural areas of the country. Therefore for an effective process, the large investment is required for post harvest and cold chain infrastructure near to the farmer’s field. In present scenario India needs competent supply chain management instead of market driven production for effective delivery of food grains in the market.

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