Food supply channel in india
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Answer:
1. SUPPLY CHAIN REDESIGN High performance supply chains: efforts of stakeholders for last two decades are highly risk prone. Tension between week and strong ties among supply chain partners New technologies are creating disruptive innovation Globalization has created long supply chain which are fragile and need monitoring. Governance which involves partner selection, coordination and execution takes centre stage
2. Our agenda • Now we study the Food Supply Chain in India, model it using SES framework, conduct the GRIP analysis and finally present the design of Food Security Network
3. SES framework can help to study •GOVERNANCE •RISK •INNOVATION •PERFORMANCE
4. FOOD SUPPLY CHAINS ARE COMPLEX SYSTEMS Food supply chains are highly complex interacting networks linking millions of small players such as farmers, kirana’s shops, hawkers, industries, government and other organizations affecting the political and economic climate. We should recognize The complexity of social, political and operational issues The domain knowledge to be acquired The analytics needed to build excellence in strategy and execution and mitigate the risks The appropriate governance structure needed to fulfil the promised deliveries
5. A food supply chain consists of processes and activities, that take food from its raw material form and prepare it for our plate ( from farm to fork)
6. AGRICULTURAL PRODUCE MARKETING COMMITTEE (APMC) Act The APMC Act in each state of India requires all agricultural products to be sold only in government regulated markets called minds. These markets impose substantial taxes on buyers, in addition to Commission and fees taken by middlemen Under the present Act, the processing industry cannot buy directly from farmers and the farmer is also restricted from entering into direct contract with any manufacturer Result: disinterested supply chains
7. FOOD MANUFACTURING Only small percentage of fresh produce or meat are processes post harvest research and food products testing are at a very nascent stage Negative on food manufacturing in India food packaging is expensive High import duties on processing and packaging machinery High sales tax on packaged foods High protein good not available PROCESSED FOOD MORE EXPENSIVE THAN FRESHLY COOKED FOOD
8. Government Intervention Policies The minimum support price offered by the Government for 25 crops acts an and provides inputs to the PDS The essential commodities act empowers the Govt. to control production, distribution and pricing, etc to secure equitable distribution and fair pricing. This restricts interstate movement of goods These regulations may have lost their utility and are hampering the growth and modernization of organized retail
9. Resource shortage Talent for governance of dispersed (rural and urban) & independently (small stakeholders) controlled agriculture, manufacturing & service chains to make them globally competitive. There are no well designed hub-and -spoke distribution network in India and partly the taxation barriers between states act as barriers to efficient regional distribution.
10. Distribution logistics in India Fragmented ,individual company based ,technology sophistication minimal, not integrated into the supply chain. Current attempts are to build hard infrastructure and no attention to soft infrastructure such as trade facilitation, ERP, WMS, sensor networks Losses due to theft, spoilage, goods damage due to manual handling ,long lead-time and resultant supply chain inefficiencies. India ranks35 on the 2016 logistics performance index.