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#Integrated Agriculture Supply Chain Management # By SN Panigrahi

#Integrated Agriculture Supply Chain Management #
By SN Panigrahi

Indian Agriculture : Introduction
Supply Chain and Value Chain Management
Understanding of Agri supply chain
Drivers of Agri-supply chain
Agri-Logistics:Inventory, Facilities, Transportation and Information
Sourcing and Pricing
Third Party Logistics and FPL in agri-supply chain
Contracts management in supply chain & Contract Management
Food Retailing and Food supply chain

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#Integrated Agriculture Supply Chain Management # By SN Panigrahi

  1. 1. 1
  2. 2. 2 Green Fields Institute of Agriculture
  3. 3. 3 SN Panigrahi is a Versatile Practitioner, Strategist, Energetic Coach, Learning Enabler & Public Speaker. He is an International-Corporate Trainer, Mentor & Author He has diverse experience and expertise in Project Management, Contract Management, Supply Chain Management, Procurement, Strategic Sourcing, Global Sourcing, Logistics, Exports & Imports, Indirect Taxes – GST etc. He had done more than 150 Workshops on above Published more than 500 Articles; More than 60 Youtube Presentations He is an Engineer + MBA +PGD ISO 9000 / TQM with around 29 Yrs of Experience He is a certified PMP® from PMI (USA) and become PMI India Champion Also a Certified Lean Six Sigma Green Belt from Exemplar Global Trained in COD for 31/2 Yrs. on Strategy & Leadership GST Certified – MSME – Tech. Dev. Centre (Govt of India) ZED Consultant – Certified by QCI – MSME (Govt of India) Member Board of Studies, IIMM Co-Chairman, Indirect Tax Committee, FTAPCCI Empanelled Faculty in NI MSME He has shared his domain expertise in various forums as a speaker & presented a number of papers in various national and international public forums and received a number of awards for his writings and contribution to business thoughts. SN Panigrahi 9652571117 Hyderabad
  4. 4. 4 Indian Agriculture : Introduction Drivers of Agri-supply chain Contracts management in supply chain & Contract Management Understanding of Agri supply chain Case studies Third Party Logistics and FPL in agri-supply chain Agri-Logistics:Inventory, Facilities, Transportation and Information Food Retailing and Food supply chain Sourcing and Pricing Warehousing Discussions – Interactions - Feedback Supply Chain and Value Chain Management Cluster Development
  5. 5. SN Panigrahi 5 Agriculture is the primary source of livelihood for about 58 per cent of India’s population. Gross Value Added by agriculture, forestry and fishing is estimated at Rs 18.53 trillion (US$ 271.00 billion) in FY18. The Indian food industry is poised for huge growth, increasing its contribution to world food trade every year due to its immense potential for value addition, particularly within the food processing industry. India has the second largest arable land of 161 million hectares and has the highest acreage under irrigation. Next to China, India ranks second largest food producer in the world and has the potential to immerge the biggest with its food and agricultural sector. India has diverse agro-climatic conditions and has a large and diverse raw material base suitable for food processing companies. Its strategic geographic location (proximity of India to markets in Europe and Far East, South East and West Asia) provides a lot of inherent advantages to the country. The Indian food and grocery market is the world’s sixth largest, with retail contributing 70 per cent of the sales. The Indian food processing industry accounts for 32 per cent of the country’s total food market, one of the largest industries in India and is ranked fifth in terms of production, consumption, export and expected growth. It contributes around 8.80 and 8.39 per cent of Gross Value Added (GVA) in Manufacturing and Agriculture respectively, 13 per cent of India’s exports and six per cent of total industrial investment.
  6. 6. 6 Agriculture is the primary source of livelihood for about 58 per cent of India’s population. Gross Value Added by agriculture, forestry and fishing is estimated at Rs 18.53 trillion (US$ 271.00 billion) in FY18. The Indian food and grocery market is the world’s sixth largest, with retail contributing 70 per cent of the sales. The Indian food processing industry accounts for 32 per cent of the country’s total food market, one of the largest industries in India and is ranked fifth in terms of production, consumption, export and expected growth. It contributes around 8.80 and 8.39 per cent of Gross Value Added (GVA) in Manufacturing and Agriculture respectively, 13 per cent of India’s exports and six per cent of total industrial investment.
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  8. 8. 8 • During 2017-18* crop year, food grain production is estimated at record 284.83 million tonnes. In 2018-19, Government of India is targeting food grain production of 285.2 million tonnes. Food Grain Production • Milk production was estimated at 165.4 million tonnes during FY17, while meat production was 7.4 million tonnes. As of September 2018, total area sown with kharif crops in India reached 105.78 million hectares. Milk Production • India is the second largest fruit producer in the world. Production of horticulture crops is estimated at record 314.7 million tonnes (mt) in 2018-19 as per third advance estimates. Cultivation of Fruit & Horticulture • Total agricultural exports from India grew at a CAGR of 16.45 per cent over FY10-18 to reach US$ 38.21 billion in FY18. In FY2019 agriculture exports were US$ 38.54 billion. India is also the largest producer, consumer and exporter of spices and spice products. Agricultural Exports • Spice exports from India reached US$ 3.1 billion in 2017-18. Tea exports from India reached a 36 year high of 240.68 million kgs in CY 2017 while coffee exports reached record 395,000 tonnes in 2017-18. Spice Exports • Food & Grocery retail market in India was worth US$ 380 billion in 2017. Food & Grocery Retail Market
  9. 9. 9 According to the Department for Promotion of Industry and Internal Trade (DPIIT), the Indian food processing industry has cumulatively attracted Foreign Direct Investment (FDI) equity inflow of about US$ 9.08 billion between April 2000 and March 2019. Some major investments and developments in agriculture are as follows:  Investments worth Rs 8,500 crore (US$ 1.19 billion) have been announced in India for ethanol production.  In early 2019, India will start exporting sugar to China.  The first mega food park in Rajasthan was inaugurated in March 2018.  Agrifood start-ups in India received funding of US$ 1.66 billion between 2013-17 in 558 deals.  In 2017, agriculture sector in India witnessed 18 M&A deals worth US$ 251 million.
  10. 10. 10 Some of the recent major government initiatives in the sector are as follows:  Prime Minister of India, launched the Pradhan Mantri Kisan Samman Nidhi Yojana (PM-Kisan) and transferred Rs 2,021 crore (US$ 284.48 million) to the bank accounts of more than 10 million beneficiaries on February 24, 2019.  The Government of India has come out with the Transport and Marketing Assistance (TMA) scheme to provide financial assistance for transport and marketing of agriculture products in order to boost agriculture exports.  The Agriculture Export Policy, 2018 was approved by Government of India in December 2018. The new policy aims to increase India’s agricultural exports to US$ 60 billion by 2022 and US$ 100 billion in the next few years with a stable trade policy regime.  In September 2018, the Government of India announced Rs 15,053 crore (US$ 2.25 billion) procurement policy named ‘Pradhan Mantri Annadata Aay SanraksHan Abhiyan' (PM-AASHA), under which states can decide the compensation scheme and can also partner with private agencies to ensure fair prices for farmers in the country.  In September 2018, the Cabinet Committee on Economic Affairs (CCEA) approved a Rs 5,500 crore (US$ 820.41 million) assistance package for the sugar industry in India.
  11. 11. 11  The Government of India is going to provide Rs 2,000 crore (US$ 306.29 million) for computerization of Primary Agricultural Credit Society (PACS) to ensure cooperatives are benefitted through digital technology.  With an aim to boost innovation and entrepreneurship in agriculture, the Government of India is introducing a new AGRI-UDAAN program to mentor start-ups and to enable them to connect with potential investors.  The Government of India has launched the Pradhan Mantri Krishi Sinchai Yojana (PMKSY) with an investment of Rs 50,000 crore (US$ 7.7 billion) aimed at development of irrigation sources for providing a permanent solution from drought.  The Government of India plans to triple the capacity of food processing sector in India from the current 10 per cent of agriculture produce and has also committed Rs 6,000 crore (US$ 936.38 billion) as investments for mega food parks in the country, as a part of the Scheme for Agro-Marine Processing and Development of Agro-Processing Clusters (SAMPADA).  The Government of India has allowed 100 per cent FDI in marketing of food products and in food product e-commerce under the automatic route.
  12. 12. 12  Sugar production in India has reached 27.35 million tonnes (MT) in 2018-19 sugar season, as of March 15 2019, according to the Indian Sugar Mills Association (ISMA).  The Electronic National Agriculture Market (eNAM) was launched in April 2016 to create a unified national market for agricultural commodities by networking existing APMCs. Up to May 2018, 9.87 million farmers, 109,725 traders were registered on the e-NAM platform. 585 mandis in India have been linked while 415 additional mandis will be linked in 2018-19 and 2019-20.  Agriculture storage capacity in India increased at 4 per cent CAGR between 2014-17 to reach 131.8 million metric tonnes.  Coffee exports reached record 395,000 tonnes in 2017-18.  Between 2014-18, 10,000 clusters were approved under the Paramparagat Krishi Vikas Yojana (PKVY).  Between 2014-15 and 2017-18 (up to December 2017), capacity of 2.3 million metric tonnes was added in godowns while steel silos with a capacity of 625,000 were also created during the same period.  Around 100 million Soil Health Cards (SHCs) have been distributed in the country during 2015-17 and a soil health mobile app has been launched to help Indian farmers.
  13. 13. 13 India is expected to achieve the ambitious goal of doubling farm income by 2022. The agriculture sector in India is expected to generate better momentum in the next few years due to increased investments in agricultural infrastructure such as irrigation facilities, warehousing and cold storage. Furthermore, the growing use of genetically modified crops will likely improve the yield for Indian farmers. India is expected to be self-sufficient in pulses in the coming few years due to concerted efforts of scientists to get early-maturing varieties of pulses and the increase in minimum support price. The government of India targets to increase the average income of a farmer household at current prices to Rs 219,724 (US$ 3,420.21) by 2022-23 from Rs 96,703 (US$ 1,505.27) in 2015-16. Going forward, the adoption of food safety and quality assurance mechanisms such as Total Quality Management (TQM) including ISO 9000, ISO 22000, Hazard Analysis and Critical Control Points (HACCP), Good Manufacturing Practices (GMP) and Good Hygienic Practices (GHP) by the food processing industry will offer several benefits. References: Agricultural and Processed Food Products Export Development Authority (APEDA), Department of Commerce and Industry, Union Budget 2018–19, Press Information Bureau, Ministry of Statistics and Programme Implementation, Press Releases, Media Reports, Ministry of Agriculture and Farmers Welfare, Crisil
  14. 14. 14 In a land where roughly 70% of the population resides in rural areas and half of the nation’s population farms for a living, the importance of India’s agricultural sector cannot be overstated. Despite these massive numbers, the country’s agricultural output has been unable to keep pace with growing demands and global competition. According to the World Bank, “India’s rice yields are one-third of China’s and about half of those in Vietnam and Indonesia. With the exception of sugarcane, potato and tea, the same is true for most other agricultural commodities. ”There are multiple reasons for this productivity gap, but one significant one is glaring inefficiencies in India’s agricultural supply chains. Logistics play a critical role in any economic sector, but when goods are perishable the supply chain becomes that much more important. Much of the blame for these inefficiencies has been placed on the government. The NY Times reports that critics accuse policymakers of focusing on “more glamorous, urban industries like information technology, financial services and construction” [emphasis added] at the expense of the rural economy. Another factor is the overal lack of consolidation that has occurred in the agricultural sector, with the majority of production still operating at the single farmer level.
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  16. 16. SN Panigrahi 16 Click
  17. 17. SN Panigrahi 17 Supply chains are principally concerned with the Flow of Materials and Information between supply chain member organizations—procurement of materials, transformation of materials into finished products, and distribution of those products to end customers in return for Financial Considerations. Today’s information-driven, integrated supply chains are enabling organizations to reduce inventory and costs, add product value, extend resources, accelerate time to market, and retain customers. The real measure of supply chain success is how well activities coordinate across the supply chain to create Value for Consumers, while increasing the profitability of every link in the supply chain and Minimize Associated Risks. In other words, supply chain management is the integrated process of producing value for the end user or ultimate consumer. Therefore, generally Supply Chain is super-imposed with Value Chain.
  18. 18. 18 Supply Chain Basics Supply Chain Management (SCM) can be defined as management of the supply chain as an integrated process of acquisition and management of flow of supply of from point of origin to point of consumption and delivering further value added output to the next level point of consumption (like from supplier to manufacturer to wholesaler to retailer and to final consumer) by balancing supply and demand with optimal management of resources with the objective of establishing relationships for maximising value for mutual benefits on economically, socially and environmentally sustainable basis.
  19. 19. Supplier Sources: Plants Vendors Ports (Import) Manufacturer Stock Points Distributors Retailers Consumers Manufacturing Assembling Processing Treatment Fabrication Warehousing Storing Stocking Stock Yards Wholesalers Distributors Agents Stockiests Retailers Traders Merchants Shops Dealers Consumers End Users Buyers Clients Transport & Logistics
  20. 20. Customer Enquiry Sourcing Supplier Credential Verification & Inspection Price Negotiations & Sampling Order Placement Pre- Production Sample Approval & Lab Testing Production Pre-Dispatch Inspection Customs & Logistics Goods Delivered Feedback from Customers Improvement
  21. 21. SN Panigrahi 21 SCM Supply Chain Strategy & Planning Demand – Supply & Lead Time Management Logistics Management ProcurementAsset Management Information Management Product Life Cycle Management
  22. 22. 22 LogisticFunctions Order Processing Order Receipt, Verification, Planning & Scheduling for Execution & Order Fulfilment Inventory Control Enough Inventories to meet Customer Requirements, and at the same time Keep the Inventory Holding Cost Low Warehousing Warehousing is the Storing of Finished Goods until they are sold. Transportation Movement of goods from the supplier to the buyer Material Handling & Storage Material handling system should support the storage system for speedy & Safe movement Logistical Packaging For damage protection; Ease of Handling; Storage Space Economy Information Processing & Customer Service Information Sharing is Central to Smooth Operations & Customer Satisfaction
  23. 23. Supply Chain Management is the design and management of processes across organizational boundaries with the goal of matching supply and demand in the most cost effective way. Supply Demand Mission impossible: Matching Supply and Demand
  24. 24. 24 Supply is Wasted unless Linked with Demand Source : Doubling Farmers’ Income – Volume III
  25. 25. SN Panigrahi 25 Uncertainty in Demand and/or Supply Changing Customer Requirements / Buying Behavior's / Changing Tastes Decreasing Product Life Cycles Fragmentation of Supply Chain Ownership Conflicting Objectives in the Supply Chain
  26. 26. • Marketing/Sales wants: more FG inventory, fast delivery, many package types, special Wishes/Promotions • Production wants: bigger batch size, depots at factory, latest ship date, decrease changeovers, stable production plan • Distribution wants: full truckload, low depot costs, low distribution costs, small # of SKUs, stable distribution plan
  27. 27. 27 Integrated supply chain management refers to an enterprise resource planning approach to supply chain management. A business facilitates relationships with all of its suppliers and manages all distribution and logistics activities through a centralized system rather than having multiple systems within the organization. Concentrated professional expertise and cost efficiency are core benefits of the integrated supply chain process, but developing collaboration is an obstacle. • Implementing integrated SCM requires: • Analyzing the whole supply chain • Starting by integrating internal functions first • Integrating external Stakeholders through partnerships • Supply Chain Objectives • Reduce costs, improve quality • Reduce lead time and inventory • Reduce time to market • Increase sales • Improve demand data/forecasting
  28. 28. 28 Planning and control Research, Product Development, Work & Organization structure & Culture Product flow facility structure Information flow structure Managemen t Methods Power and leadership structure Risk and Reward Structure Procurement, Logistics & Warehousing Manufacturing Marketing, sales & Distribution Starting by Integrating Internal Functions First Integrating External Stakeholders through Partnerships Compliance Requirements of Govt. & Other Regulating / Promoting & Influencing Authorities Suppliers Customers Logistic Providers Service Providers Local Community Other Stakeholders Govt. Regulatory Bodies Banks Industry Associations Interested Groups Media Analyzing the whole supply chain
  29. 29. SN Panigrahi 29 What Must a Partner Bring? Reliability Excellence Expertise Problem- solvingskills Continuous improvement Support Value Positive Attitude GlobalReach Strong Leadership
  30. 30. SN Panigrahi 30 Consumer Expectations and Competition – power has shifted to the consumer Globalization – Capitalize on Emerging markets Information Technology – e-commerce, Internet, EDI, scanning data, intranets Government Regulations – like trade barriers Environment Issues – e.g. waste minimization • SCM must consider the following trends, improved capabilities, & realities
  31. 31. 31 Competitive Strategy Supply Chain Strategy Strategy Supply Chain Efficiency and Responsiveness are a Balancing Act Efficiency: Efficient Production means making products without wasting materials, natural resources or man hours. Efficient Supply means manage orders and processing, and meet a stable, predictable demand at a lower cost. Efficient facility management means running your business while reducing your energy and other resource costs and minimizing its carbon footprint. Responsiveness Responsiveness allows businesses to act and react swiftly to change—both internally and in the marketplace. Responsive supply chain works collaboratively among stakeholders to produce enough of a product to satisfy uncertain demand. Efficiency Vs Responsiveness Efficiency and Responsiveness are polar opposites. Supply chain efficiency requires speed, and large, uniform orders. Responsive demands a slower pace, and, sometimes, customized orders. But they both serve the same end goal, and both are equally important.
  32. 32. 32 Efficient Responsiveness An efficient supply chain gets your products to their destinations in the most cost-effective way : Saves Money and Increases Profits & Improves Bottom Line. A responsive supply chain has to do two things: it has to be responsive to your needs, and it has to be responsive to the needs of your customers. Hallmarks of an efficient supply chain: Optimization. This can include optimized shipping routes, warehouse locations, personnel and even your computer network to get the best and fullest use out of your existing infrastructure. Half empty trucks, unused warehouses and redundant computer systems are simply a waste of your assets. High quality partners. Your third party logistics partners need to be the best of class. Your 3PL should have state-of-the-art technologies at their disposal, have a policy of transparency, and have a proven track record. Inventory management. Too much inventory is costly to purchase, handle, store and track. Too little inventory can be costly, as well. It can mean lost production time, expensive last minute orders and even angry customers. An efficient supply chain finds the right balance when it comes to inventory. Customer satisfaction. Supply chain efficiency is directly linked to customer satisfaction. It gets your products into the hands of the people who need them quickly and at the best price. Order-fill accuracy. In today's highly competitive market, a guarantee of quick deliver is a real selling point. If that order arrives quickly but is inaccurate or incomplete, then you've wasted time and money and may have lost a customer as well. Scalable fulfillment. All businesses experience ups and downs. Sales can be affected by the season, the weather and the economy. A responsive supply chain is one that can accommodate changing sales volumes. Communication. When you— or your customers— have questions, problems or concerns, it's vital that there be open lines of communication. Customer satisfaction. People can sometimes throw a monkey wrench into to the best supply chain. They order the wrong thing. They change their minds. They need something sooner, not later. This is when a responsive supply chain really shines. It is flexible enough to handle returns, for instance, and offers high-quality customer service. Customers who feel that their specific needs are being met, and who can reach out for help when there is a problem to be solved, are satisfied customers. Supply Chain Efficiency and Responsiveness
  33. 33. 33 SupplyChain KeyDrivers Logistic Drivers Cross-Functional Drivers Location (Where Best to Do & How Much) – Capacity – Flexibility Factory Sites –Storage Points (Warehouses / Stores)Facilities Raw Materials – Semi-Finished Goods – Finished Goods C Cycle Inventory – Seasonal Inventory – Safety Inventory; . How much to Produce & How much to Stock Inventory Movement from one Place to other. Minimum & Faster is . Advisable. Modes : Road – Rail – Water Ways - Air - Pipeline Transportation Important Link to coordinate with all the Activities. . Required for Accurate Demand & Supply Forecasting and . Planning. Enabling Technologies:ERP/IMS, RFID, Internet Information Functions a Firm Performs & Functions Outsourced; l Single Vs Multiple Sourcing; Competitive Strategy Sourcing Competitive Strategy Matching Demand – Supply & . . Competition; Differential Pricing - Globalization Pricing
  34. 34. 34 SupplyChain KeyDrivers Supply-Side Drivers Demand-Side Drivers Changing Requirements – Delivery Efficiencies - Supply Disruptions – RisksInward Supply What – How – Where & When to Produce Mass Production – Customized; Push Vs Pull Production Suppliers / Vendors Performance, Capabilities; Agility & R Responsiveness Supplier Accurate Demand & Supply Forecasting and . Planning; Forecasting Errors; Abrupt Changes Forecast Demand Fluctuations – Changes in Customer Preferences; Entry of Competition; Competitors Offerings Demand Shifts in Consumer Behavior;Customer
  35. 35. Driver Efficiency Responsiveness Production Optimal Production: - Little Excess Capacity - Narrow Focuss - Few Central Plants Additional Capacity &Variety - Excess Capacity - Flexible Manufacturing - Many Smaller Plants Inventory Cost of Holding : - Low Inventory Levels - Fewer Items Availability : - High Inventory Level - Wide Range of Items Transportation Consolidation : - Few Large Shipments - Slow Cheaper Modes Speed : - Frequent Shipments - Fast & Flexible Modes Facilities Consolidation / Dedicated: - Few Central Locations, - Serve Wide Areas Proximity / Flexibility : - Many Locations Close to Customers Information Low cost/slow/no duplication: - Minimize / Rationalize Cost of Collecting Information - Cost of Information Drops while other Costs Rise High cost/ streamlined/reliable: - Collect & Share Timely & Accurate Data Sourcing Low cost sources: - Assigning Tasks based on Economies of Scale; - Cost Competitiveness Responsive sources - Assigning Tasks based on Agility & Uncertainty Handling Pricing Constant price: - Fixed Pricing Strategy Low-High price: - Differential Pricing Model
  36. 36. 36 Collaboration Optimization Visibility Connectivity Execution Speed
  37. 37. SN Panigrahi 37
  38. 38. SN Panigrahi 38 Supply Chain Management in Agriculture is defined as “The management of movement of agricultural commodities, from the farm through the rural and urban markets to reach the doorsteps of end consumer- both household and industrial consumer; consists of various players, starting from the agricultural producer, through the middle men, commission agents and traders, the bulk purchasers or procurers, millers or intermediary processor, warehousing agents, or cold storage space providers and transporters, through whom material finally reaches either retail distribution system for raw consumption or the food processing industries where it goes through the value addition processes and moves through a distinct and a separate supply chain to reach the targeted consumers”(Ramana & Ajoy, 2005).
  39. 39. SN Panigrahi 39 Agribusiness, supply chain management (SCM) implies managing the relationships between the businesses responsible for the efficient production and supply of products from the farm level to the consumers to meet consumers’ requirements reliably in terms of quantity, quality and price. In practice, this often includes the management of both horizontal and vertical alliances and the relationships and processes between firms .
  40. 40. 40 Input Suppliers Farm Process / Food Producers Consumers Inputs Land Water Seeds Fertilizers Pesticides Farm Implements Tractors / Machineries Farm Production / Harvesting Post Harvesting Irrigation Climate Cultivation Weighing Grading Cleaning Blending Certification Transportation Storage / Warehousing Milling / Food Processing Agri- Industry - Milling Food – Manufacturing Processing Bakeries Packing / Labeling Marketing Haats / Mandies Wholesaler Distributors Retailers Consumer
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  42. 42. SN Panigrahi 42
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  45. 45. 45 Materials Flow Forward Logistics - Materials – Supplier to Customer Reverse Logistics – Sales Returns : Customer to Supplier Information Flow Product Data, Descriptions & Pricing - Bills of Materials, Invoice Customer Order Information, Delivery Scheduling Financial Flow Credit Notes – Quality Claims & Damages Consideration for Materials Supply – Debit Notes – Late Fee for Release of Payments Due Value Flow Value Addition in Supply : Inputs to Production - Distribution Customer Feedbacks – Improvements - Relationships Risk Flow Demand, Supply, Price, Lead Time, etc Cash Flow Constraints, Inventory Financing & Delayed payment
  46. 46. 46 Farmers Agri & Food Industry / Processors Wholesalers/ Distributors Retailors Consumers Material Flow - Information Flow - Financial Flow Value Flow - Risk Flow Upstream Down Stream
  47. 47. 47 Materials Flow Product Flow includes movement of goods from supplier to consumer (internal as well as external), as well as dealing with customer service needs such as input materials or consumables or services like housekeeping. Input Raw Materials, Intermediate Goods flow from Supplier to Manufacturer and Finished Goods move from Manufacturer to Wholesalers / Distributors and then Retailers and ultimately reaches to Consumers. Materials move through Transportation & Stores / Warehouses. Product flow also involves returns / rejections (Reverse Flow). Information Flow Supply chain management involves a great deal of diverse information–bills of materials, product data, descriptions and pricing, inventory levels, customer and order information, delivery scheduling, supplier and distributor information, delivery status, commercial documents, title of goods, current cash flow and financial information etc.–and it can require a lot of communication and coordination with suppliers, transportation vendors, subcontractors and other parties. Information flows in the supply chain are bidirectional. Faster and better information flow enhances Supply Chain effectiveness and Information Technology (IT) greatly transformed the performance.
  48. 48. SN Panigrahi 48 Financial Flow In Supply Chain, Financial / Funds (Revenues) flow from the final consumer to Supplier, back through the other links in the chain (typically retailers, distributors, processors and suppliers). Funds Flow in opposite directions: Receivables (Funds Inflow : Consideration for Materials Supply) and Payables (Funds Outflow). There is also funds flow from Supplier to Customer in the form of Credit Notes for Quality Claims & Damages Value Flow A supply chain has a series of value creating processes spanning over entire chain in order to provide added value to the end consumer. At each stage there are physical flows relating to production, distribution; while at each stage, there is some addition of value to the products or services. Value flows in a series of interconnected activities which are required to bring a product or service from conception, through the different phases of production (involving a combination of physical transformation and the input of various product services), delivery to final customers, and final disposal after use. Individual suppliers, producers and marketers who are associated through a supply chain coordinate their value creating activities with one another and, in the process, create greater value than they can, when they operate independently.
  49. 49. SN Panigrahi 49 FLOW OF RISK : Risks in supply chain are due to various uncertain elements broadly covered under demand, supply, price, lead time, etc. Supply chain risk is a potential occurrence of an incident or failure to seize opportunities of supplying the customer in which its outcomes result in financial loss for the whole supply chain. Risks therefore can appear as any kind of disruptions, price volatility, and poor perceived quality of the product or service, process / internal quality failures, deficiency of physical infrastructure, natural disaster or any event damaging the reputation of the firm. Risk factors also include cash flow constraints, inventory financing and delayed cash payment. Risks can be external or internal and move either way with product or financial or information or value flow.
  50. 50. SN Panigrahi 50
  51. 51. SN Panigrahi 51 Supply Chain Stage Issues with Product & Process Characteristics Impact on Logistic/Flow of goods. Overall Shelf-life constraints for raw materials, intermediates and finished products and changes in product quality level while progressing the supply chain (decay). • Timing constraints (goods have to be supplied quickly to avoid decay). Recycling of Materials Required. • Information requirements (correct information of goods is essential). Growers / Producers • Long Production Times (producing new or additional agro-products takes a lot of time) • Responsiveness • Seasonality in production • Variability of quality and quantity of supply • Flexibility in process and planning
  52. 52. 52 • High volume, low variety (although the variety is increasing) production systems • Importance of production planning and scheduling focusing on high capacity utilization • Highly sophisticated capital-intensive machinery leading to the need to maintain capacity utilization • Flexibility of recipes • Variable process yield in quantity and quality due to biological variations, seasonality, random factors connected with weather, pests, other biological hazards • Timing constraints, ICT possibility to confine products • A possible necessity to wait for the results of quality tests • Flexible production planning that can handle this complexity • Alternative installations, alternative recipes, product-dependent cleaning and processing times, carry over of raw materials between successive product lots, etc. • Need for configurations that facilitate tracking and tracing • Storage buffer capacity is restricted, when material, intermediates or finished products can only be kept in special tanks or containers • Necessity to value all parts because of the complementary nature of agricultural inputs (for example, beef cannot be produced without the co-product hides) • Necessity for lot traceability of work in process due to quality and environmental requirements and product responsibility
  53. 53. SN Panigrahi 53 • Variability of quality and quantity of supply of farm- based inputs • Pricing issues • Seasonal supply of products requires global (year- round) sourcing • Timing constraints • Requirements for conditioned transportation and storage means • Need for conditioning • Pre-information on quality status of products
  54. 54. 54 Issues in Agriculture SCM
  55. 55. 55 Supply Chain Strategy Supply Chain Planning Supply Chain Enterprise Applications Asset Management Procurement Product Lifecycle Management Logistics Supply Chain Management
  56. 56. SN Panigrahi 56 The major constraints in production of fresh fruits and vegetables have been identified in several research studies Non-availability of Quality Seeds Inadequate Irrigation Facilities Lack of Soil Testing Facility and Extension Staff Inefficiency in Pest Management Credit Availability Constraint High Cost of Production Lack of Information Huge Post-Harvest Losses High Transportation Cost Major Constraints in Agriculture Production
  57. 57. SN Panigrahi 57
  58. 58. 58 .  An inter-ministerial panel formed by the Centre on doubling farmers’ income by 2022 will submit its final report next month, its Chairman Ashok Dalwai.  The Dalwai Committee, set up in April 2016, has already written 14 volumes identifying ways to double farmers’ 2015-16 income level, in real terms, in seven years.  The committee has observed that an increase in the Minimum Support Price (MSP) could be one of the instruments for enhancing farmers’ income. However, increasing the MSP may not always have a positive outcome from the macroeconomic point of view.  “A more straightforward, and potentially more beneficial, means of raising farm incomes could be reforming the marketing system of agricultural produce, while also developing new institutions and reviving existing ones to facilitate linking of the farmer to the markets,” it added.  The panel said the average income of an agricultural household during July 2012 to June 2013 was as low as Rs.6,426, as against its average monthly consumption expenditure of Rs.6,223. As many as 22.50% of the farmers live below the official poverty line.
  59. 59. SN Panigrahi 59 Indian farmers incur Rs 92,651 crore per year in post-harvest losses, the primary causes of which are poor storage and transportation facilities. Ironically, according to the high-level Dalwai committee report , an investment of Rs 89,375 crore—a figure marginally lower than the annual post-harvest losses—is all it takes to improve the state of storage and transportation facilities for food crops. If these were prevented, over 5 crore people could be fed, for a year, at the rate of Rs 50 per day. Since a market is the primary medium for farmers to exchange their produce for money, lack of logistics connectivity to ensure that their harvest reaches markets in time results in lowering of the farmers’ ability to monetise their produce. This becomes even more critical in case of perishable fruits and vegetables.
  60. 60. SN Panigrahi 60
  61. 61. 61 Demand Driven Agricultural Logistics System Agricultural Value System (AVS) Farm Linked Activities Marketing Intelligence System Agricultural Risk Assessment and Management Effective Input Management Farmer-centric National Agricultural Marketing System Empowering Farmers Promoting Sustainable Agriculture Enhancing Production through Productivity Structural and Governance Reforms in Agriculture Developing Hub and Spoke System Research & Development and ICT
  62. 62. 62 . Market Expansion & Access Reducing Produce Wastage Upgrading Agri-Logistics Enabling Reforms & Investment Enabling Trade Regime for Exports
  63. 63. 63 In the Hub and Spoke System, components of the logistics chain work to consolidate the fragmented production into larger and more viable handling loads. Inventory so collated, is managed for the purpose of meeting demand, current and future, depending on the longevity of the inventory stored. The subsequent consolidation into inventories is thereafter deconsolidated and distributed to multiple consumers at the front end – the hub-spoke system is reversed at the front end of the supply chain. Therefore, a hub and spoke system works in both the back-end and the front-end.
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  65. 65. SN Panigrahi 65 Logistic Management Click
  66. 66. 66 LogisticFunctions Order Processing Order Receipt, Verification, Planning & Scheduling for Execution & Order Fulfilment Inventory Control Enough Inventories to meet Customer Requirements, and at the same time Keep the Inventory Holding Cost Low Warehousing Warehousing is the Storing of Finished Goods until they are sold. Transportation Movement of goods from the supplier to the buyer Material Handling & Storage Material handling system should support the storage system for speedy & Safe movement Logistical Packaging For damage protection; Ease of Handling; Storage Space Economy Information Processing & Customer Service Information Sharing is Central to Smooth Operations & Customer Satisfaction
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  68. 68. 68 Warehousing Warehousing and all that goes along with it is part of a Logistics Management. Logistics includes inventory management, and distribution. It falls under the supply chain umbrella, which also includes product development, procurement, marketing, sales, and other product-related disciplines.
  69. 69. SN Panigrahi 69 What is Warehousing? Warehousing is the act of storing goods that will be sold or distributed later. While a small, home-based business might be warehousing products in a spare room, basement, or garage, larger businesses typically own or rent space in a building that is specifically designed for storage. Warehouse vs. Distribution Center You might hear “warehouse” and “distribution center” used interchangeably, but technically, a warehouse provides nothing more than storage. A distribution center, on the other hand, stores product but also fulfills orders.
  70. 70. 70 Location of Warehousing Facilities Number of Warehouses Size of the Warehouse Warehouse Layout Design of the Building Ownership of the Warehouse Storage & Movement of Goods Financing Information about Warehousing Protection of Goods / Risk Bearing Processing Grading and Branding
  71. 71. SN Panigrahi 71 Warehousing Elements Whether the purpose is strictly storage or storage plus order fulfillment, warehouses use specific elements that help manufacturers, distributors, and retailers monitor inventory and store it safely. An overview of basic elements includes:  Shelving and rack systems that offer maximum storage capacity and easy product access.  A climate control system for the product being stored. This is particularly important for frozen products or those requiring refrigeration, including certain pharmaceutical or laboratory products, and others that degrade if exposed to too much heat.  Inventory control software that tells the product owner – who isn’t necessarily the building owner – where all individual units are in the system at all times.  Equipment that can move products from point A to point B – forklifts, pallet jacks, bins that hold products for orders, and conveyor belts, for example.  Shipping supplies for order fulfillment.  People who load products into a warehouse and others (“pickers”) who fill orders in a true distribution center, plus those who manage the facility and operation.  Security to protect stored products.  Access to cost-effective transportation to bring products in or move them out as orders are fulfilled. That often means easy access to interstates, rail lines, or airports.
  72. 72. SN Panigrahi 72 Types of Warehouse On the basis of Ownership On the basis of Type of Commodities Stored Public Warehouses Private Warehouses Bonded Warehouses General Warehouses Special Commodity Warehouses Refrigerated Warehouses Storage of mostly food grains, fertilizers etc Storage of specific commodities like cotton, tobacco, wool and petroleum Meant for such perishable commodities as vegetables, fruits, fish, eggs and meat. Owned by the govt. Owned by Private Entities. Customs Bonded
  73. 73. SN Panigrahi 73 Public Warehouses Central Warehousing Corporation (CWC) State Warehousing Corporations (SWCs) Food corporation of India (FCI)
  74. 74. SN Panigrahi 74 This corporation was established as a statutory body in New Delhi on 2nd March 1957. The Central Warehousing Corporation provides safe and reliable storage facilities for about 120 agricultural and industrial commodities. Functions  To acquire and build godowns and warehouses at suitable places in India.  To run warehouses for the storage of agricultural produce, seeds, fertilizers and notified commodities for individuals, co-operatives and other institutions,  To act as an agent of the govt. for the purchase, sale, storage and distribution of the above commodities.  To arrange facilities for the transport of above commodities.  To subscribe to the share capital of state Warehousing corporations and  To carry out such other functions as may be prescribed under the Act.  The Central Warehousing Corporation is running air-conditioned godowns at Calcutta, Bombay and Delhi, and provides cold storage facilities at Hyderabad.  Special storage facilities have been provided by the Central Warehousing Corporation for the preservation of hygroscopic and fragile commodities.  The corporation has also evolved techniques for the storage of spices, coffee, seeds and other commodities.
  75. 75. SN Panigrahi 75 Separate warehousing corporations were also set up in different States of the Indian Union. The areas of operation of the State Warehousing Corporations are centres of district importance. The total share capital of the State Warehousing Corporations is contributed equally by the concerned State Govt. and the Central Warehousing Corporation.
  76. 76. SN Panigrahi 76 Apart from CWC and SWCs, the Food Corporation of India has also created storage facilities. The Food Corporation of India is the single largest agency which has a capacity of 26.62 million tonnes. PROCUREMENT OF FOODGRAINS QUALITY CONTROL AND SCIENTIFIC PRESERVATION TRANSPORT MANAGEMENT DISTRIBUTION OF FOODGRAINS
  77. 77. SN Panigrahi 77 Agricultural warehousing accounts for fifteen percent of the warehousing market in India and is estimated to be worth Rupees 8,500 crore. It is however perceived to be inadequate and unorganised. More than 40 percent of the agricultural warehouses are run by state enterprises such as FCI, CWC and SWCs. 30 percent of the warehousing capacity is held by unorganised small godown players. These unorganised warehouses lack scale and quality. The warehousing capacity gap estimated by the Planning Commission stands to be at 27 million metric tonnes today. Out of the total capacity present in the Indian warehousing today, only 19.44 lakh metric tonne (1.94 million metric tonne) has been registered with Warehousing Development and Regulatory Authority (WDRA) by a total of seven hundred and six warehouses of CWC, SWC, Primary Agriculture Co-operative Society (PACS).1
  78. 78. SN Panigrahi 78 Agricultural Products :Transportation Services Transport is considered to be an important aspect in improving agricultural efficiency. It improves the quality of life of individuals, structures a market for agricultural productions, makes interaction possible among geographical as well as regions and opened up new areas to economic focus.
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  80. 80. 80 • The distance and the accessibility of the destination • Type of goods that are transported; for instance, there are different requirements for transition of perishable crops and packing material • The size or the quantity of goods that need to be transported; determine the optimal mode of transport, as well as the price of delivery • International or national laws and regulations • Available infrastructure and farmer's financial possibilities • Functionality and additional properties of any transport mode, as well as any means of transport When choosing the optimal mode of transport, farmers should consider a few important aspects:
  81. 81. SN Panigrahi 81 The Peculiar Characteristic of Agriculture Produce are:  Bulkiness  Perishability  Wide Varietal Differences  Dispersed Production  Processing need for consumption  Seasonality  Comparative Advantage
  82. 82. 82 What is Inventory • Inventory is the raw materials, component parts, work-in-process, or finished products that are held at a location in the supply chain. Reasons for Inventories Maintain Continuity of Supply Improve Customer Deliveries Encourage Production, Purchase, and Transportation Economies Act as a hedge against price changes Protect against uncertainties in demand and lead times Act as a Hedge (Safety) against Contingencies Cost & Risks of Inventory • consume Capital Resources • Carrying Costs • Procurement costs • Operational costs • Out-of-stock Costs • Risk of Obsolence Agriculture Inventory • Various fertilizers, pesticides, fuel or seeds • Food Grains, Pulses other Farm Produce • Packing / Labeling & other Consumables • Processed Food
  83. 83. 83 Starting Inventory 4 3 2 1 Arrivals 5 6 7 8 Usable Inventory 4 3 2 1 8 7 6 5 4 3 2 1 Inventory Turn Public Distribution System (PDS) Traders / Millers Processing / Feed Exports Ending Inventory 8 7 6 5 Next Procurement Cycle First In First Out Procurement
  84. 84. 84 Managing inventory-turns in Strategic Reserves will mitigate loss of inventory and safeguard value. The predetermined quantity held in reserve should be cycled into consumption, so that aged inventory need not be discarded or disposed at a total loss. A first-in-first-out (FIFO) procedure can be implemented. The available storage capacity (CAP storage, closed Warehouses or Silos) can be optimised by improving inventory distribution and management.
  85. 85. SN Panigrahi 85 Buffer Stock A buffer stock is a system or scheme which buys and stores stocks at times of good harvests to prevent prices falling below a target range (or price level), and releases stocks during bad harvests to prevent prices rising above a target range (or price level).
  86. 86. SN Panigrahi 86 Buffer Stock Policy of the GOI The concept of buffer stock was first introduced during the IV Five Year Plan (1969-74). Buffer stock of food grains in the Central Pool is maintained by the GOI for (i) meeting the prescribed minimum buffer stock norms for food security, (ii) monthly release of food grains for supply through TPDS and Other Welfare Schemes, (iii) meeting emergency situations arising out of unexpected crop failure, natural disasters, etc. and (iv) price stabilisation or market intervention to augment supply so as to help moderate the open market prices. Buffer and Strategic Reserve Norms In order to ensure supply of quality Food Grains to consumers and to minimize storage losses caused due to long period of storage, Government has adopted policies to optimize the level of procurement of wheat and paddy/rice and to liquidate old stock in such a manner, that FCI does not carry any issuable stock of more than 2-years of age at the end of any year.
  87. 87. 87 Government Policy of Procurement of Food Grains Objectives Ensuring MSP to the Farmers Make Availability of Food Grains to the Weaker Sections at Affordable Prices Effective Market Intervention to Keep the Prices under Check Adding to the Overall Food Security of the Country
  88. 88. SN Panigrahi 88 FCI, the nodal central agency of Government of India, along with other State Agencies undertakes procurement of wheat and paddy under price support scheme. Coarse grains are procured by State Government Agencies for Central Pool as per the direction issued by Government of India on time to time. The procurement under Price Support is taken up mainly to ensure remunerative prices to the farmers for their produce which works as an incentive for achieving better production. Before the harvest during each Rabi / Kharif Crop season, the Government of India announces the minimum support prices (MSP) for procurement on the basis of the recommendation of the Commission of Agricultural Costs and Prices (CACP) which along with other factors, takes into consideration the cost of various agricultural inputs and the reasonable margin for the farmers for their produce. Government Policy of Procurement of Food Grains
  89. 89. 89 Government Policy of Procurement of Food Grains Wheat and Paddy/ Rice Coarse Grains jowar, bajra, ragi & maize FCI & State Agencies State Agencies Procurement under Price Support To Ensure Remunerative Prices to the Farmers Minimum Support Prices (MSP) Before the harvest during each Rabi / Kharif Crop season, the Government of India announces MSP Factors for Determination of MSP Cost of various Agricultural Inputs Reasonable Margin for the Farmers
  90. 90. 90 Government Policy of Procurement of Food Grains Procurement Operations are Seasonal Kharif Marketing Season (KMS) Rabi Marketing Season (RMS) kharif cropping season is from July – October during the south-west monsoon Rabi cropping season is from October- March (winter) Starts from 1st October and lasts upto 30 September next year starts from 1 April and lasts upto 31 March next year. Procurement Procurement Paddy/ Rice and coarse grains like jowar, bajra, ragi & maize Wheat and sometimes barley
  91. 91. 91 Government Policy of Procurement of Food Grains Advance Arrangements for Procurement Before the start of every marketing season Department of Food and Public Distribution convenes a meeting of State Food Secretaries Issues like procurement centres to be opened by Food Corporation of India (FCI) /State Agencies, arrangement of storage space, evacuation plan for food grains and arrangement of packaging material are discussed Based on the estimates given by the State Food Secretaries, the targets of total procurement for the Central Pool are worked out in the meeting Procurement by FCI, State Government Agencies (SGAs) and Private Parties Specifications & Quality Govt. of India announces uniform specification for quality of wheat, paddy, rice and coarse grains. Procurement @ MSP If the farmers get prices better than the support price from other buyers such as traders / millers etc., the farmers are free to sell their produce to them.
  92. 92. 92 Allocation, Off-take of Food Grains and Central Issue Prices Allocation & Distribution Carried out by the State Governments through Targeted Public Distribution Scheme (TPDS) Carried out by the State Governments Other Welfare Schemes (OWS) Disposed off by FCI and State Governments Sale under Open Market Sales Scheme (OMSS) For Distribution to Below Poverty Line (BPL), Antyodaya Anna Yojana (AAY) and Above Poverty Line (APL) Food grains from the Central Pool are issued to States at Central Issue Price (CIP) for distribution under TPDS At Predetermined Prices in the Open Market Also allocated to State Governments for retail sale through non-PDS Channels under OMSS
  93. 93. 93 Movement of Food Grains FCI undertakes transportation of food grain (wheat and rice) from surplus States to the deficit States and also within the States. From Procuring Areas to Consuming Areas Modes of Transport By Rail About 90% of all India movement is undertaken by railways By Road By Riverine (Waterways) All India Movement Plan is prepared on monthly basis at FCI headquarters keeping in view the quantity available in surplus States, quantity required by consuming States, likely procurement in procuring States, vacant storage capacity both in consuming and procuring States, and monthly allocation/off-take. An online tracking system for movement of foodgrains and depot management was launched in March 2016.The system would provide various types of data regarding stock position, movement, quality and quantity on line.
  94. 94. SN Panigrahi 94 To facilitate procurement of food grains, FCI and various State Agencies in consultation with the State Government establish a large number of purchase centers at various mandis and key points. The number of centers and their locations are decided by the State Governments, based on various parameters, so as to maximize the MSP operations. For instance for Wheat procurement 15,193 procurement centers were operated during Rabi Marketing Season (RMS) 2019-20 & for Paddy procurement more than 51,000 procurement centers are operating in KMS 2018-19. Such extensive & effective price support operations have resulted in sustaining the income of farmers over a period and in providing the required impetus for higher investment in agriculture sector for improved productivity. Whatever stocks which are brought to the Purchase centers falling within the Government of India’s specifications are purchased at the fixed support price. If the farmers get prices better than the support price from other buyers such as traders / millers etc., the farmers are free to sell their produce to them. FCI and the State Government/its agencies ensure that the farmers are not compelled to sell their produce below support price. Government Policy of Procurement of Food Grains
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  98. 98. SN Panigrahi 98 Primary Activities Primary activities relate directly to the physical creation, sale, maintenance and support of a product or service. They consist of the following: •Inbound logistics – These are all the processes related to receiving, storing, and distributing inputs internally. Your supplier relationships are a key factor in creating value here. •Operations – These are the transformation activities that change inputs into outputs that are sold to customers. Here, your operational systems create value. •Outbound logistics – These activities deliver your product or service to your customer. These are things like collection, storage, and distribution systems, and they may be internal or external to your organization. •Marketing and sales – These are the processes you use to persuade clients to purchase from you instead of your competitors. The benefits you offer, and how well you communicate them, are sources of value here. •Service – These are the activities related to maintaining the value of your product or service to your customers, once it's been purchased.
  99. 99. SN Panigrahi 99 Support Activities These activities support the primary functions above. In our diagram, the dotted lines show that each support, or secondary, activity can play a role in each primary activity. For example, procurement supports operations with certain activities, but it also supports marketing and sales with other activities. •Procurement (purchasing) – This is what the organization does to get the resources it needs to operate. This includes finding vendors and negotiating best prices. •Human resource management – This is how well a company recruits, hires, trains, motivates, rewards, and retains its workers. People are a significant source of value, so businesses can create a clear advantage with good HR practices. •Technological development – These activities relate to managing and processing information, as well as protecting a company's knowledge base. Minimizing information technology costs, staying current with technological advances, and maintaining technical excellence are sources of value creation. •Infrastructure – These are a company's support systems, and the functions that allow it to maintain daily operations. Accounting, legal, administrative, and general management are examples of necessary infrastructure that businesses can use to their advantage. Companies use these primary and support activities as "building blocks" to create a valuable product or service.
  100. 100. 100 Crop Sector (61.31%) (field crops, plantation crops, horticultural crops, drugs and narcotics crops amongst others) Livestock (26.80%) (production of milk, meat, eggs, wool, dung, etc.) Fisheries (4.50%) (Aqua-Culture) Forestry (7.39%) (Value of Production (VoP))
  101. 101. 101 Pre- Production Harvest Production Post- Production Industrial Processing Consumption Agro Inputs Tillage Operations Harvest Physical Transformation Preliminary Processing Grading Cleaning Blending Direct Sales Market Manufacturer Food&Product Preservation Food&Product Packaging Transport & Logistics Value Addition At Each StageValue Value
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  103. 103. SN Panigrahi 104 Marketing Agricultural Products and Services
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  106. 106. The 4 P’s of Marketing explained Product Promotion Place Price 1. Is there a demand for the product or service? 2. How to make the product appeal to consumer 3. Packaging—includes the design, color, size, and brand names 1. Making customers aware of a product 2. Advertising 3. Coupons 4. Rebates 5. Sales 6. Free give aways 7. Publicity 1. Distribution is getting the right product to the right place at the right time in the right amount and in the right condition 2. Storage 3. Warehousing 4. Transporting 1. How much are customers willing to pay? 2. Is the price competitive with other products? 3. Can the company make a profit?
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  108. 108. SN Panigrahi 109 Agro Processing Cluster Development
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  112. 112. 113 Aim of the Scheme The scheme aims at development of modern infrastructure and common facilities to encourage group of entrepreneurs to set up food processing units based on cluster approach by linking groups of producers/ farmers to the processors and markets through well-equipped supply chain with modern infrastructure. Infrastructure Each agro processing clusters under the scheme have two basic components i.e. Basic Enabling Infrastructure (site development, development of industrial plots, boundary wall, roads, drainage, water supply, ETP, Electricity Supply including Power Backup, Parking Bay, Weigh Bridges, Common Office Space etc.), Core Infrastructure / Common Facilities (food testing laboratory, cleaning, grading, sorting and packing facilities, steam generation boilers, dry warehouse, cold storage, pre- cooling chambers, ripening chambers, IQF, specialized packaging, other common processing facilities, etc.) Investment At least 5 food processing units with a minimum investment of Rs. 25 crore. The units are set up simultaneous along with creation of common infrastructure. At least 10 acres of land is required to be arranged either by purchase or on lease for at least 50 years for setting up of Agro Processing Cluster.
  113. 113. 114 PEA Agro processing clusters set up by Project Execution Agency (PEA)/ Organisation such as Govt./ PSUs / Joint Ventures/ NGOs / Cooperatives / SHGs / FPOs / Private Sector / individuals etc. and are eligible for Financial Assistance subject to terms and conditions under the scheme guidelines. Responsibility of PEA The Project Execution Agency (PEA) which is responsible for overall implementation of the projects undertakes various activities including formulation of the Detailed Project Report (DPR), Procurement / Purchase of Land, arranging Finance, Creating Infrastructure, ensuring External Infrastructure Linkages for the Project etc. Selling & Leasing of Plots PEA may sell / lease plots in agro-processing cluster to other food processing units but the common facilities in the cluster cannot be sold or leased out.
  114. 114. 115 Pattern of Assistance The Scheme envisages grants-in-aid @ 35% of eligible project cost in general areas and @50% of eligible project cost in the North East States including Sikkim and difficult areas namely Himalayan States (i.e. Himachal Pradesh, Jammu & Kashmir and Uttarakhand), State notified ITDP areas & Islands subject to max. of Rs. 10.00 crore per project. The grants-in-aid is credit linked but not back- ended. Release of Grant First installment of 35% of the total approved grant is released to the PEA after incurring an expenditure of 35% of the bank term loan and 35% promoters contribution / equity; Second installment of 40% of the total approved grant is released after incurring an expenditure of 75% of the bank term loan and 75% of promoters’ contribution / equity; Third & final installment of 25% of the approved is on completion of the project and submission of requisite documents.
  115. 115. SN Panigrahi 116 In the interest of expeditious implementation of the projects, the Ministry may engage Program Management Agency (PMA) to assist MoFPI for implementation of the scheme. The PMA will be a reputed institution with extensive experience in project development, management, financing and implementation of infrastructure projects of similar nature. The expenses of PMAs, promotional activities, office and travel expenses will be met from the allocation of the grant-in-aid for the scheme.
  116. 116. 117 Expression of Interest Proposals for seeking assistance under the scheme are invited through Expression of Interest from time to time. In response to the notice inviting Expression of Interest (EoI) by Ministry for selection of Projects, a proposal for the proposed agro-processing cluster will be submitted by the applicant in the prescribed application format (Annexure-II) including the information/documents to be covered in the EoIs (Annexure-III) along with Prescribed information / documents Approval of the Project Technical Committee (TC) headed by the Special / Additional / Joint Secretary (MoFPI) would scrutinize the proposals and submit its recommendations to the Inter-Ministerial Approval Committee (IMAC) Time Schedule The time schedule for completion and operationalisation of project will be 20 months from the date of approval for general areas and 24 months for North East States including Sikkim and difficult areas namely Himalayan States (i.e. Himachal Pradesh, Jammu & Kashmir and Uttarakhand), State notified ITDP areas & Islands, unless extended by IMAC for the reasons to be recorded.
  117. 117. SN Panigrahi 118 Revised Operational Guidelines for the Scheme for Creation of Infrastructure for Agro Processing Clusters F. No. Z-14/13/2018-APC; Dated: 05.08.2019 View @ Below Link _guideline_of_apc_scheme_05082019-_0.pdf
  118. 118. SN Panigrahi 119 To view Indicative list of identified Agri-Horti production clusters (fruits & vegetables) (Click Here) agri-horti_production_clusters_fruits_vegetables_0_0.pdf visit Geo-Sampada on Spread & Depth of Agri-Resources (Click Here)
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  121. 121. 122 • Technology Enabled, Faster & Efficient Operations – Visible & Traceable • Continuous Optimization • Specialized Services with Consistency & Reliability • Larger Capacity & Capability – Scalability & Flexibility • Low but Flexible Costing • Time Savings – Faster Deliveries • Strategic & Tactical relationships, Transactional Relationships • Broader Networking Long-Term Relations Cost & Time Efficiency of Services Operational Efficiency Specializati on (Service or Industry Expertize)
  122. 122. SN Panigrahi 123 TCS’ mKRISHI platform offers personalized advisory services to farmers, via mobile phones (SMS and IVR), enabling them to access important information on pesticides, fertilizers, soil and water conservation, and improving access to markets for them.
  123. 123. SN Panigrahi 124 LEAF which raised funding from Aspada recently, is another player which works with small holder vegetable farmers in South India. LEAF provides integrated cold chain logistics comprising post harvest transport, cold storage, processing, and supply through refri-trucks to the distribution center and retail store. Apart from this, LEAF is also involved in contract farming and agro processing, working on improving income realizations for small farmers through yield improvements, productivity increases, and consistent produce pricing.
  124. 124. SN Panigrahi 125 Star Agri provide integrated post harvest management solutions Apart from providing warehousing services, Star Agri, which recently raised funding from IDFC PE, provides collateral management and other value added services (quality testing, agri insurance, bulk procurement and rural retailing) to its clients.
  125. 125. 126 On-Farm Practices Storage, Packaging & Cold Chain Transportation Processing Retail Consumer Six Critical Stages for Reducing the Food Loss and Waste (FLW) In India According to the FAO estimates nearly 40% of the food produced in India is lost or wasted. Food Corporation of India, report a share of losses ranging from 10 to 15 percent of the total production. The Ministry of Food Processing Industries (MFPI) estimate Losses of 23 million tons of grains, 12 million tons of fruits and 21 million tons of vegetables for a total approximate value of about 4.4 billion USD while total value of food loss and waste generated is supposedly 10.6 billion USD. Food Loss and Waste (FLW) In India Report : National Academy of Agricultural Sciences
  126. 126. SN Panigrahi 127 According to the FAO estimates1 nearly 40% of the food produced in India is lost or wasted. Other sources, such as the Food Corporation of India, report a share of losses ranging from 10 to 15 percent of the total production. The Ministry of Food Processing Industries (MFPI) estimate losses of 23 million tons of grains, 12 million tons of fruits and 21 million tons of vegetables for a total approximate value of about 4.4 billion USD while total value of food loss and waste generated is supposedly 10.6 billion USD . Food loss and waste (FLW) is not unique for India, as the FAO studies have shown yearly global FLW is nearly 30% of cereals, 40 to 50 % of horticultural crops, 20 % of oilseeds, meat and dairy products, and 35 % of fish.
  127. 127. SN Panigrahi 128 Having almost 141 million hectares under agriculture (second largest globally), India’s concerns today, are about empowering farmers with greater market connectivity to achieve greater value realisation. Producing food in sufficient quantity is no longer the immediate concern; instead now, apprehensions relate more to minimising post-harvest losses, securing of easy and affordable access to the food and in improving resource use and input management. The general distribution related constraints seen in the supply chain of fresh produce are (i) lack of timely delivery (ii) lack of uniform grading of harvested produce (iii) improper packaging (iv) poor quality of produce (v) poor market infrastructure (vi) improper pricing (vii) lack of standardised weights and measures. Besides these constraints, there is a poor dissemination of market information resulting in lowered productivity (Surendra, 2009).
  128. 128. SN Panigrahi 129 Retail Supply Chain Management Click
  129. 129. SN Panigrahi 130  Food Retailing and Food supply chain Food Distribution Distribution is a critically important part of your business strategy and must be seen as central to success. Distribution covers both the physical movement of goods and the establishing of intermediary relationships to support such product movement. Successful distribution is intrinsically linked to the level of a company’s sales. It must be part of an integrated and well-managed supply chain.
  130. 130. 131 Food Supply Chain Ecosystem
  131. 131. SN Panigrahi 132 Food Supply chains are highly complex interacting networks linking millions of small players such as Farmers, Kirana Shops, Hawkers, Industries, Governments and other organizations affecting the Political and Economic Climate Food Supply Chain Complex Interacting Network Farmers Kirana Shops Hawkers Food Processing & Packaging Industry Regulating & Promoting Institutions Socio-Polical – Economic & Environment 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 fulfill the promised deliveries Food Supply Chains are Complex Systems
  132. 132. SN Panigrahi 133 Plough-Plate Food Supply Chain The supply chain involves farmers, seed producers, fertilizer factories, financial institutions, millers, government, warehouses, fair price shops, retail shops, railways, truck transport companies, etc.
  133. 133. 134 Supply and Demand in Retail Supply Chain Food Processing Industries Retail Chains Kirana Shops Consumers Farmers, Mandi Operators SMEs, And other Rural Industries Inconsistent Policies Poor Governance Improper Transport facilities Too many intermediaries Bridge Inefficiencies Demand Side Supply Side  106 M small farmers  400 M agri workers  12 M Kirana shops  1.5 Million Hawkers  Too many intermediaries  Manual handling  Improper packaging  Standards for Hygiene  Not demand driven: No contract farming  Subsidized pricing  Public distribution inefficient  Reach to customers is difficult Supply Chain Inefficiencies
  134. 134. SN Panigrahi 135 Retail Supply Chain : Example- Reliance Fresh Customers Reliance Fresh Collection Units / Centers Packing Units Processing Units Distribution Centers Other Input Suppliers Farmers Farmers Farmers Supply Side Demand Side
  135. 135. SN Panigrahi 136 Alibaba's "New Retail" Explained Innovation in the retail industry
  136. 136. SN Panigrahi 137 Food Manufacturing  Only a small percentage of fresh produce or meat are processed.  Post harvest research and food product testing are at a very nascent stage  Negatives 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 food not available
  137. 137. SN Panigrahi 138 Improving Agriculture on India’s Rain-fed Lands Click
  138. 138. SN Panigrahi 139 The Future of Farming & Agriculture Amazing Agriculture Machine - Technology Harvesting PADDY PANTHER – 26 is wonderful machine for Paddy Cultivation
  139. 139. SN Panigrahi 140 What is CONTRACT MANAGEMENT? What does CONTRACT MANAGEMENT mean? PMP Exam CONTRACT Types SIMPLIFIED - FP, CR, T&M
  140. 140. SN Panigrahi 141 Contract Farming Linking Small Farmers to Global Markets: Role of Contracting Farming
  142. 142. SN Panigrahi 143 Contract farming can be defined as agricultural production carried out according to an agreement between a buyer and farmers, which establishes conditions for the production and marketing of a farm product or products. Typically, the farmer agrees to provide agreed quantities of a specific agricultural product. These should meet the quality standards of the purchaser and be supplied at the time determined by the purchaser. In turn, the buyer commits to purchase the product and, in some cases, to support production through, for example, the supply of farm inputs, land preparation and the provision of technical advice. What is Contract Farming
  143. 143. SN Panigrahi 144 An Agreement between farmers and processing and/or marketing firms for the production and supply of agricultural products under forward agreements, frequently at predetermined prices FAO; Contract Farming: Partnerships for Growth; 2001 Definition of Contract Farming
  144. 144. SN Panigrahi 145 Market Provision Resource Provision Management Specifications
  145. 145. SN Panigrahi 146 • The Centralized Model. The sponsor purchases crops from farmers for processing, and markets the product. Quotas are distributed at the beginning of each growing season and quality is tightly controlled. • Generally associated with tobacco, cotton, sugar cane, bananas, coffee, tea, cocoa and rubber. Can also cover poultry, pork, dairy, fresh vegetables and fruits. Examples: sugarcane production in Thailand, tomato processing in Punjab, India, vegetable canning in the Philippines. The extent of the sponsor’s involvement varies
  146. 146. SN Panigrahi 147 • Nucleus estate model. The sponsor owns and manages a plantation, usually close to a processing plant, and introduces technology and management techniques to farmers (sometimes called "satellite" growers). • Mainly used for tree crops, but has also been applied to dairy production. Examples: Oil palm (in resettlement areas) and dairy in Indonesia, tea estates in India, Nepal and Sri Lanka.
  147. 147. SN Panigrahi 148 • Multipartite Model. Usually involves statutory bodies and private companies jointly participating with farmers. Usually, contract commitment to provide material and management inputs to farmers. Example: common in China, where government departments, township committees and foreign companies have jointly entered into contracts with villages and individual farmers.
  148. 148. SN Panigrahi 149 • Informal model. Individual entrepreneurs or small companies make simple, informal production contracts with farmers on a seasonal basis, particularly for fresh vegetables and tropical fruits. Supermarkets frequently purchase fresh produce through individual developers. Normally, minimal processing and few inputs to farmers; availability of govt. support services crucial. Examples: Gherkins production in Sri Lanka; bananas, squash and papaya production for export in the South Pacific and chrysanthemums and fresh vegetable production in northern provinces of Thailand.
  149. 149. SN Panigrahi 150 • Intermediary Model. Formal subcontracting of crop production to intermediaries is common in Southeast Asia. Large food processing companies purchase crops from individual "collectors" or farmer committees, who make their own informal arrangements with farmers. The risk is that the sponsor loses control over production and over prices paid to farmers by middlemen. Examples: Soybean, green beans and baby corn production in Northern Thailand; in Indonesia, this practice is widespread and termed plasma.
  150. 150. SN Panigrahi 151 Contract farming is looking towards the benefits both for the farm-producers as well as to the agro-processing firms. Producer/farmer  Makes small scale farming competitive - small farmers can access technology, credit, marketing channels and information while lowering transaction costs  Assured market for their produce at their doorsteps, reducing marketing and transaction costs  It reduces the risk of production, price and marketing costs.  Contract farming can open up new markets which would otherwise be unavailable to small farmers.  It also ensures higher production of better quality, financial support in cash and /or kind and technical guidance to the farmers.  In case of agri-processing level, it ensures consistent supply of agricultural produce with quality, at right time and lesser cost. Agri-based firms  Optimally utilize their installed capacity, infrastructure and manpower, and respond to food safety and quality concerns of the consumers.  Make direct private investment in agricultural activities.  The price fixation is done by the negotiation between the producers and firms.  The farmers enter into contract production with an assured price under term and conditions.
  151. 151. SN Panigrahi 152  Contract farming arrangements are often criticized for being biased in favor of firms or large farmers, while exploiting the poor bargaining power of small farmers.  Problems faced by growers like undue quality cut on produce by firms, delayed deliveries at the factory, delayed payments, low price and pest attack on the contract crop which raised the cost of production.  Contracting agreements are often verbal or informal in nature, and even written contracts often do not provide the legal protection in India that may be observed in other countries . Lack of enforceability of contractual provisions can result in breach of contracts by either party.  Single Buyer – Multiple Sellers (Monopsony) .  Adverse gender effects - Women have less access to contract farming than men.
  152. 152. SN Panigrahi 153 NABARD developed a special refinance package for contract farming arrangements (within and outside AEZs) aimed at promoting increased production of commercial crops and creation of marketing avenues for the farmers. The various initiatives undertaken by NABARD in this direction are:  Financial Interventions  Special Refinance package for financing farmers for contract farming in AEZs  100% refinance to disbursements made by CBs, SCBs, RRBs and select SCARDBs (having net NPA less than 5%)  Term facility for repayments (3 years)  Fixation of higher scale of finance for crops under contract farming.  Extension of refinance scheme for financing farmers for contract farming in AEZs to contract farming outside AEZs besides coverage of medicinal and aromatic plants.  Extension of Refinance scheme for contract farming under Automatic Refinance Facility.
  153. 153. 154 Government of India is giving more priority for welfare of the farmers. In this regard it is implementing several farmers welfare schemes to revitalize agriculture sector and to improve their economic conditions. Therefore, the government has rolled out new initiatives, schemes, programs and plans to benefit all the farmers.
  154. 154. 155 1.Soil Health Card Scheme Launched in 2015, the scheme has been introduced to assist State Governments to issue Soil Health Cards to all farmers in the country. The Soil Health Cards provide information to farmers on nutrient status of their soil along with recommendation on appropriate dosage of nutrients to be applied for improving soil health and its fertility.
  155. 155. 156 2. National Mission for Sustainable Agriculture (NMSA) NMSA is one of the eight Missions under National Action Plan on Climate Change (NAPCC). It aims at promoting Sustainable Agriculture through climate change adaptation measures, enhancing agriculture productivity especially in rainfed areas focusing on integrated farming, soil health management, and synergizing resource conservation. NMSA as a programmatic intervention caters to Mission Deliverables that focuses mainly on conservation agriculture to make farm sector more productive, sustainable, remunerative and climate resilient by promoting location specific integrated/composite farming systems. Schemes under NMSA •Rainfed Area Development (RAD): RAD is being implemented by RFS Division. •Soil Health Management (SHM): SHM is being implemented by INM Division •Sub Mission on Agro Forestry (SMAF): SMAF is being implemented by NRM Division •Paramparagat Krishi Vikas Yojana (PKVY): PKVY is being implemented by INM Division •Soil and Land Use Survey of India (SLUSI): Being implemented by RFS Division •National Rainfed Area Authority (NRAA): Being implemented by RFS Division •Mission Organic Value Chain Development in North Eastern Region (MOVCDNER): Being implemented by INM Division •National Centre of Organic Farming (NCOF): Being implemented by INM Division •Central Fertilizer Quality Control and Training Institute (CFQC&TI): implemented by INM Division
  156. 156. 157 3. Neem Coated Urea (NCU) This scheme is initiated to regulate use of urea, enhance availability of nitrogen to the crop and reduce cost of fertilizer application. NCU slows down the release of fertilizer and makes it available to the crop in an effective manner. The entire quantity of domestically manufactured and imported urea is now neem coated. It reduces the cost of cultivation and improves soil health management.
  157. 157. 158 4. Pradhan Mantri Krishi Sinchai Yojana (PMKSY) It was launched on 1st July, 2015 with the motto of ‘Har Khet Ko Paani’ for providing end-to end solutions in irrigation supply chain, viz. water sources, distribution network and farm level applications. PMKSY not only focuses on creating sources for assured irrigation, but also creating protective irrigation by harnessing rain water at micro level through ‘Jal Sanchay’ and ‘Jal Sinchan’. Micro irrigation is to be popularised to ensure ‘Per drop-More crop’. PMKSY adopts State level planning and projectised execution that allows States to draw up their own irrigation development based on District Irrigation Plans and State Irrigation Plans. Components:  Accelerated Irrigation Benefit Programme(AIBP): implemented by Ministry of Water Resources, RD & GR.  PMKSY (Har Khet ko Pani): implemented by Ministry of Water Resources, RD & GR  PMKSY (Watershed): implemented by Department of Land Resources.  PMKSY(Per Drop More Crop - PDMC)
  158. 158. 159 5. Paramparagat Krishi Vikas Yojana (PKVY) It is implemented with a view to promote organic farming in the country. To improve soil health and organic matter content and increase net income of the farmer so as to realise premium prices. Under this scheme, an area of 5 lakh acre is targeted to be covered though 10,000 clusters of 50 acre each, from the year 2015-16 to 2017-18. 6. National Agriculture Market (e-NAM) It provides e-marketing platform at national level and support creation of infrastructure to enable e-marketing. This innovative market process is revolutionizing agriculture markets by ensuring better price discovery. It brings in transparency and competition to enable farmers to get improved remuneration for their produce moving towards ‘One Nation One Market’.
  159. 159. 160 7. Micro Irrigation Fund (MIF) A dedicated MIF created with NABARD has been approved with an initial corpus of Rs. 5000 crore (Rs. 2000 crore for 2018-19 & Rs. 3000 crore for 2019-20) for encouraging public and private investments in Micro irrigation. The main objective of the fund is to facilitate the States in mobilizing the resources for expanding coverage of Micro Irrigation. MIF would not only facilitate States in incentivizing and mobilizing resources for achieving the target envisaged under PMKSY-PDMC but also in bringing additional coverage through special and innovative initiatives by State Governments. An Advisory Committee has been set up to provide policy direction and ensure effective planning, coordination and monitoring of the Micro Irrigation Fund.
  160. 160. 161 8. Agriculture Contingency Plan Central Research Institute for Dryland Agriculture (CRIDA), ICAR has prepared district level Agriculture Contingency Plans in collaboration with state agricultural universities using a standard template to tackle aberrant monsoon situations leading to drought and floods, extreme events (heat waves, cold waves, frost, hailstorms, cyclone) adversely affecting crops, livestock and fisheries (including horticulture). Total 614 district agriculture contingency plans are placed in the ‘farmer portal’ of the Ministry of Agriculture and Farmers Welfare, Government of India ( and also in the ICAR / CRIDA website ( for downloading the full plan by stakeholders for operational use.
  161. 161. 162 9. Rainfed Area Development Programme (RADP) Rainfed Area Development Programme (RADP) was implemented as a sub-scheme under Rashtriya Krishi Vikas Yojana (RKVY). Aim To improve quality of life of farmers’ especially, small and marginal farmers by offering a complete package of activities to maximize farm returns. Increasing agricultural productivity of rainfed areas in a sustainable manner by adopting appropriate farming system based approaches. To minimise the adverse impact of possible crop failure due to drought, flood or un-even rainfall distribution through diversified and composite farming system. Restoration of confidence in rainfed agriculture by creating sustained employment opportunities through improved on-farm technologies and cultivation practices Enhancement of farmer’s income and livelihood support for reduction of poverty in rainfed areas and
  162. 162. 163 10. National Watershed Development Project for Rainfed Areas (NWDPRA) The scheme of National Watershed Development Project for Rainfed Areas (NWDPRA) was launched in 1990-91 based on twin concepts of integrated watershed management and sustainable farming systems. Aim  Conservation, development and sustainable management of natural resources.  Enhancement of agricultural production and productivity in a sustainable manner.  Restoration of ecological balance in the degraded and fragile rainfed eco- systems by greening these areas through appropriate mix of trees, shrubs and grasses.  Reduction in regional disparity between irrigated and rainfed areas and;  Creation of sustained employment opportunities for the rural community including the landless.
  163. 163. 164 11. Pradhan Mantri Fasal Bima Yojana (PMFBY) PMFBY is an actuarial premium based scheme under which farmer has to pay maximum premium of 2% for Kharif, 1.5% for Rabi food & oilseed crops and 5% for annual commercial/horticultural crops and remaining part of the actuarial/bidded premium is shared equally by the Centre and State Government. One of the objectives of the scheme is to facilitate prompt claims settlement. The claims must be settled within two months of harvest subject to timely provision of both yield data and share of premium subsidy by the State Government.
  164. 164. 165 12. Livestock insurance Scheme It aims to provide protection mechanism to the farmers and cattle rearers against any eventual loss of animals due to death. The scheme also demonstrates the benefit of the insurance of livestock to the people and popularizes it with the ultimate goal of attaining qualitative improvement in livestock and their products. 13. National Scheme on Welfare of Fishermen This scheme was launched to provide financial assistance to fishers for construction of house, community hall for recreation and common working place. It also aims to install tube-wells for drinking water and assistance during lean period through saving cum relief component.
  165. 165. 166 14. Scheme on Fisheries Training and Extension It was launched to provide training for fishery sector so as to assist in undertaking fisheries extension programmes effectively. 15. Gramin Bhandaran Yojna Objective of this Scheme:  Create scientific storage capacity with allied facilities in rural areas.  To meet the requirements of farmers for storing farm produce, processed farm produce and agricultural inputs.  Promotion of grading, standardization and quality control of agricultural produce to improve their marketability.  Prevent distress sale immediately after harvest by providing the facility of pledge financing and marketing credit by strengthening agricultural marketing infrastructure in the country.
  166. 166. 167 Pradhan Mantri Annadata Aay SanraksHan Abhiyan The Government has taken another giant leap towards boosting pro-farmer initiatives. With the recent approval of the umbrella scheme Pradhan Mantri Annadata Aay SanraksHan Abhiyan (PM-AASHA), that is aimed towards ensuring remunerative prices to farmers for their produce, the government has taken an unprecedented step. The recent scheme is expected to complement the increase in MSP which will be translated to farmer's income by way of robust procurement mechanism in coordination with the states. Giving a major boost to the pro-farmer initiatives of the Government and in keeping with Government's commitment and dedication for Annadata. It will help to protect farmers' income which is expected to go long way towards the welfare of farmers. Government has already increased the MSP of Kharif crops by following the principle of 1.5 times the cost of production. It is expected that the increase in MSP will be translated to farmer's income by way of robust procurement mechanism in coordination with the State Governments. COMPONENTS The three components outlined under the scheme is thus aimed towards enhancing agricultural productivity, reducing cost of cultivation which will enable boosting and securing farmer’s income in the long run.  Price Support Scheme (PSS)  Price Deficiency Payment Scheme (PDPS)  Pilot of Private Procurement & Stockist Scheme (PPPS)
  167. 167. 168 Agriculture Export Policy, 2018 The Government has come out with a policy to double farmers’ income by 2022. Exports of agricultural products would play a pivotal role in achieving this goal. In order to provide an impetus to agricultural exports, the Government has come out with a comprehensive “Agriculture Export Policy” aimed at doubling the agricultural exports and integrating Indian farmers and agricultural products with the global value chains. The Agriculture Export Policy has the following vision: “Harness export potential of Indian agriculture, through suitable policy instruments, to make India global power in agriculture and raise farmers’ income.” Objectives: Objectives of the Agriculture Export Policy are as under:  To double agricultural exports from present ~US$ 30+ Billion to ~US$ 60+ Billion by 2022 and reach US$ 100 Billion in the next few years thereafter, with a stable trade policy regime.  To diversify our export basket, destinations and boost high value and value added agricultural exports including focus on perishables.  To promote novel, indigenous, organic, ethnic, traditional and non-traditional Agri products exports.  To provide an institutional mechanism for pursuing market access, tackling barriers and deal with sanitary and phyto-sanitary issues.  To strive to double India’s share in world agri exports by integrating with global value chain at the earliest.  Enable farmers to get benefit of export opportunities in overseas market.
  168. 168. 169 “Modi”-Nomics : Vision to Double Agricultural Exports Agriculture Export Policy, 2018 For More details on Agriculture Export Policy, 2018 Pl. go through my Article in Taxguru with Title @ following Link agricultural-exports.html Also View on YouTube @
  169. 169. 170 Transport and Marketing Assistance (TMA) As a part of implementation action plan of Agriculture Export Policy, 2018, which the Union Cabinet chaired by Prime Minister Shri Narendra Modi has approved in December 2018, with an aim to double the shipments to $60 billion by 2022 and integrating Indian farmers and agricultural products to the global value chain, the government now announced the scheme for providing Financial Assistance for Transport and Marketing of Agriculture Products to boost Exports of such commodities to certain countries in Europe and North America. To Know more about Transport and Marketing Assistance (TMA) View YouTube @
  170. 170. 171 AGRI-UDAAN In order to fuel the growth of innovative ideas in the agriculture sector, the government has launched the AGRI UDAAN – Food and Agribusiness Accelerator 2.0 for agri startups. AGRI UDAAN will mentor startups and help them connect with potential investors. As per an official statement, the AGRI UDAAN- Food and Agribusiness Accelerator 2.0, is run by the Indian Council of Agricultural Research (ICAR). ICAR’s National Academy of Agricultural Research Management (NAARM); Indian Institute of Management Ahmedabad (IIM-A) Incubator’s Center for Innovation, Incubation and Entrepreneurship (CIIE) will look after the programme. Apart from this, the National Science and Technology Entrepreneurship Development Board (NSTEDB) and DST have also come forward to support the accelerator programme. AGRI UDAAN is a six-month-programme in which shortlisted agri startups with innovative business models will be mentored and guided to scale up their operations. shortlisted startups stand a chance to get up to $40K (INR 25 Lakhs)funding assistance. “The idea is to attract the youth from rural India and elsewhere, and train them so they can add value to the farmers’ produce.”
  171. 171. 172 AGRO AND FOOD PROCESSING CLUSTERS Pradhan Mantri KisanSampada Yojana is a flagship programme of the Indian Government for boosting investment in food processing. Rs 1313.08 crore has been allocated in the budget 2018-19. This scheme is expected to benefit two million farmers and generate 530,500 direct and indirect jobs in the country by 2019-20.In 2016, the ministry had introduced an umbrella Scheme Called “Agro-Marine Processing and Development of Agro-Processing Clusters” or SAMPADA, which was proposed to be implemented with an allocation of Rs 6,000 crore for the period of 2016-20. In September 2017, the ministry released a notice on renaming SAMPADA scheme. The schemes that were to be implemented under SAMPADA will now come under “Pradhan Mantri Kisan SAMPADA Yojana”. Under SAMPADA, the general areas would get 50 per cent of the project cost as grant-in-aid and the hilly and remote areas like the north-eastern region would receive 75 per cent of the project cost. For More Details pl. Go through the YouTube @
  172. 172. SN Panigrahi 173 Open Market Sale Scheme (Domestic) The present form of OMSS comprises 3 schemes as under: (i) Sale of wheat to bulk consumers/private traders through e-auction. (ii) Sale of wheat to bulk consumers/private traders through e-auction by dedicated movement. (iii) Sale of Raw Rice Grade ‘A’ to bulk consumers / private traders through e-auction.
  173. 173. SN Panigrahi 174 Govt. Portal – Various Govt. Programs & Schemes for Agriculature Website of Ministry of Agriculture & Farmers Welfare National Horticulture Board (NHB) The Department of Animal Husbandry and Dairying (AH&D) The Directorate of Cashewnut & Cocoa Development (DCCD) Public Enterprises Department (Govt. of AP) Best portal on Agricultural in India
  174. 174. 175
  175. 175. 176 For More on Export – Import & GST & Other Related Topics Pl. Go through My YouTube Presentations @ Below Link a_leR8XbYINEwTFwQ/videos Subscribe the my Youtube Channel for Free Also Don’t Forget to Circulate to your Contacts to Spread Knowledge
  176. 176. 177
  177. 177. Contact Details: SN Panigrahi 9652571117 178
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#Integrated Agriculture Supply Chain Management # By SN Panigrahi Indian Agriculture : Introduction Supply Chain and Value Chain Management Understanding of Agri supply chain Drivers of Agri-supply chain Agri-Logistics:Inventory, Facilities, Transportation and Information Sourcing and Pricing Third Party Logistics and FPL in agri-supply chain Warehousing Contracts management in supply chain & Contract Management Food Retailing and Food supply chain


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