Day 23 – Q. 5. Evaluate the key constraints in the storage and transportation of agricultural produce in India. How do these affect farmers’ income, and what measures have been taken to address them? (250 words, 15 marks)

Q. 5. Evaluate the key constraints in the storage and transportation of agricultural produce in India. How do these affect farmers’ income, and what measures have been taken to address them? (250 words, 15 marks)

Introduction 

As per ICAR, post-harvest losses due to inefficient storage and transport systems account for  nearly 6-7% of total agricultural output. These inefficiencies directly impact farmers’ incomes  and the nation’s food security. 

Body

Key Constraints in Storage and Transportation 

1. Unscientific storage: Around 80% of handling and warehousing facilities are not  mechanized, leading to frequent spoilage and quality degradation. 
2. Limited storage capacity: With food grain production at 311 MMT and available storage  capacity at 145 MMT, India faces a storage deficit of 166 MMT. 
3. Surplus buffer stock: FCI has been maintaining food stocks well beyond the buffer norms,  congesting storage infrastructure and reducing space for fresh procurement.
4. Post-harvest losses: Traditional storage methods fail to prevent losses due to pests,  moisture, or theft, affecting both quantity and marketable quality of produce.
5. Lack of private investment in warehousing: Scarcity of land and regulatory hurdles deter  private sector participation in modern storage infrastructure. 
6. Inadequate cold-chain and transport linkage: Lack of reefer vans and multi-modal  transport affects perishables, with ICRISAT estimating 20-25% loss in horticultural  produce annually. 

Impact on Farmers’ Income 

1. Distress sales: Without access to reliable storage, farmers are forced to sell immediately  after harvest, often at lower prices. 
2. Increased logistics cost: Poor infrastructure increases transport costs, reducing net  earnings, especially for small and marginal farmers. 
3. Quality-based price reduction: Without cold storage or packaging, produce quality  deteriorates, fetching lower prices at mandis or export hubs. 
4. Missed market opportunities: Time-sensitive produce misses optimal market windows,  affecting profitability and bargaining power. 

Measures Taken 

1. Grain Storage Plan in Cooperative Sector: The Prime Minister recently inaugurated a pilot  of the World’s Largest Grain Storage Plan for 11 PACS across 11 states to strengthen  decentralized warehousing. 
2. Operation Greens: Focuses on reducing price volatility of tomato, onion, and potato by  improving cold-chain logistics and value addition. 
3. e-NAM integration with logistics: Promotes inter-market connectivity and quality-based  online trade, with better access to transport and storage service providers. 
4. PM Gati Shakti Scheme: Develops multi-modal infrastructure, including agriculture specific warehousing zones, under a digitally integrated platform. 
5. Rural Infrastructure Development Fund (RIDF): Supports construction of storage  godowns and rural roads in underdeveloped regions. 
6. Warehousing (Development and Regulation) Act, 2007: Promotes scientific warehousing  practices and negotiable warehouse receipts for formal credit access. 

Committee Recommendations 

1. Shanta Kumar Committee: Suggested reducing buffer stock norms and promoting  decentralized procurement to free up storage. 
2. Dalwai Committee: Recommended integrated cold chain development through PPP and  viability gap funding. 
3. NITI Aayog Task Force: Advocated strengthening rural logistics through digital platforms  and aggregation models. 

Conclusion

Adopting a “farm-to-fork” approach, as advocated by the National Commission on  Agriculture, ensures sustainable agri-logistics, reduces post-harvest losses, and enhances  farmer income by integrating production with efficient market access.