Friday, July 20, 2012

Off Limit for Over 600 Million?

India, as a Unique case in The World, ranks 2nd in Farm output and also ranks on top in terms of Child Deaths due to Malnutrition. There are huge Flaws in The Delivery Mechanism. Who will solve them?

Wherever he goes, whatever he does, Sharad Pawar & controversy are inseparable. Their bonhomie has only grown since he became the Minister of Agriculture & Food Processing. This is not only because the Indian media is biased against him. His policies & statements are equally at fault. More recently, for added effect, he repeated this on February 22, 2011 as he commented, “The government can not purchase and manage vegetables and fruits.” He further added that any possibilities of purchasing and managing perishable produce directly from farmers in line with other commodities like wheat and rice was simply not possible. To any person, these remarks would sound quite unbelievable, especially when the person giving these remarks is heading the responsible ministry. Especially when Sharad Pawar himself had accepted last year in May that “the country wastes Rs.580 billion worth of food items every year due to lack of poor storage facilities.” Shouldn’t it have been his ministry’s responsibility to proactively find out how to resolve the issue?

While the perishable products market accounts for around $3 billion of the $28 billion organised retail industry, wastage is 3-3.5% of sales – significantly higher as compared to the global rate of less than 1%. Wastage takes place due to inadequate post-harvest infrastructure such as storage facilities, transportation and proper cold chain facilities. While 15% wastage takes place at the farm level, 25% happens during transportation. This is a huge loss for India, which takes pride at being the world’s 2nd largest farm output country with above 228 million tonnes of output.

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Source : IIPM Editorial, 2012.

An Initiative of IIPMMalay Chaudhuri 
and Arindam Chaudhuri (Renowned Management Guru and Economist).

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