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Corporate Initiatives In Indian Agriculture

P.Karthikeyan Debobrata Mondal Bhanwar Lal

ABSTRACT
Integrated supply chain is one of the most powerful competitive tools in todays globalizing business economy. For agricultural products, successful supply chain development projects reduce not only the transaction costs but also the institutional barriers that decouple individual links in traditional distribution channels. In this case study we discuss the critical issues and actions necessary to stimulate agricultural growth and also the

METHODOLOGY
Secondary Data Qualitative Data
Industry Analysis Through Reports By Economists, Articles Published In Newspapers & Agriculture Ministry Reports Responses Collected From Farmers To Get a Fair Understanding Of The Sector.

KEY FINDINGS
Heterogeneous Inadequate irrigation facilities Expensive credit Increasing labour cost Many intermediaries who increase cost but do not add much value. Influence of industrialization Controlled prices Poor infrastructure Inappropriate taxes & subsidies

CONTRACT FARMING
Is an agreement between farmers and the contractor where various inputs in the form of loans ,seeds, fertilizers , insecticides and pesticides are given to the farmer with an undertaking that they would directly sell their entire produce to the contractor

Contract farming helps farmers get inputs in time and firms involved in contracts earn profit from agricultural produce of assured quality
Contract farming has attained a significant place in today's agriculture and has played a major role in commercialization of agriculture in global context Contract farming can link the Indian farmer to the

ADVANTAGES
FA R M E R S easy access to additional sources of capital / credit better access to quality production inputs (seeds, fertilizers..) free technological inputs and services transportation and marketing facilities Fixed/ assured price for their produce lower risks CONTRACT FIRMS Direct access to production sources Assured product availability Assured product quality Better prices ( no middlemen )

CONTRACT FARMING INITIATIVES BY PRIVATE SECTOR


STATE CROP COMPANY

Madhya Pradesh, Uttar Pradesh


Punjab Maharashtra Punjab Madhya Pradesh Karnataka

Soybean

Itc -Ibd

Basmati,groundnut,potato, Pepsi Co Ind Ltd tomato Safflower,oil Seeds Milk Wheat Ashwagandha Marico Nestle Hul Himalaya Health Care

Punjab

Barley

United Breweries

SUPPLY CHAIN CONCERNS


Field Losses (pest, Diseases, Rodents Etc) Pre-processing (in-efficient Harvesting) Transport (spillage, Leakage) Storage (technical Deficiencies) Processing & Packaging (excessive Peeling & Washing)

OPPURTUNITIES FOR RESEARCH IN FOOD SUPPLY CHAIN


Strategic level: The government can invite processed food manufacturers to set up mass production shops in the country which may be marketed through the fair price shops (these shops currently sell fresh foods). Design of the country wide productiondistribution system for each of the produces taking into account the constraints on power infrastructure and water and identifying the possible MNCs that can play role will be a

Operational level:

Produce to demand rather cropping as a matter of routine is an absolute necessity. This will probably lead to contract farming with ensured quality of the produce. Design of e-procurement and just in time delivery systems for restaurants and hotels in big cities will save money on inventory, wastage and bulk purchase.

SUGGESTIONS
Invest In Infrastructure Modernize Agriculture

Forward & Backward Linkages


Reducing control Building Cold chain

Produce to demand
Lower export transaction cost Training

Thank you all (open for Q & A)