Food Supply Chain Excellence
INTEGRATED SUPPLY CHAIN NETWORKS
The Food Supply Chain In India
Untapped Comparative Advantage
N. Viswanadham
Indian Institute of Science
October 5,2013
Workshop at IIT Kharagpur on
Sustainable Food Security through Technological
Interventions for Production, Processing and Logistics
Food Supply Chain Excellence
A Revolution in the Making
•
•
Break through Innovations are possible with
booming employment opportunities.
What is needed is out of the box thinking in
terms of product offerings made to various
customer segments with appropriate business
models with Affordability, Availability and
Awareness in mind
.
N.Viswanadham
Food Supply Chain Excellence
The India Advantage

In India, 52% of land is cultivable & World average is 11%
 All 15 major climates of the World are in India
– Snow bound Himalayas to hot humid southern peninsula,
– Thar desert to heavy rain areas
 Has 20 agro-climatic regions & 46 out of 60 in soil types
 Sunshine hours and day length ideally suited for year round
crop cultivation.
 Mega centre for biodiversity in plants, animals, insects,
microorganism and accounts for 17% animal, 12% plants
and 10% fish genetic resources of the globe.
 Live stock sector: India has 16% of cattle, 57% of buffalos,
17% of goats and 5 % of sheep population of the world.
Food Supply Chain Excellence
The 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.
• The relationship among the actors is adhoc and
not planned leading to inefficiencies
Institutions
Packaging Duties High
Delivery Services and mechanisms
Trade Tariffs
Protectionist
Economic Policies
Logistics
Resources
No Cold Chain
Abundant
FOOD
SUPPLY
CHAIN
Information
Technology
Resources
Management
No Supply
Chain Visibility
Inefficient and
Fragmented
Planning
Product Offering
Supply Chain
Few Processed Products/Labs
Too many intermediaries
Supply chains
Resources & Management
Food Supply Chain Excellence
Benchmarking Food Chain
Food Supply Chain Excellence
State of Indian Food Sector
Weaknesses
1.Small scale conventional farming
2.Primitive post-harvest methods
3.No channel master & many farmers
to consumers intermediaries
4. Hardly any Food processing industry
5. Inadequate storage & transport
(logistic )infrastructure
Strengths
1.Vast natural resources (cultivable
land, water, seasons)
2.Established farming system
3.Growing economy
4.Supporting government policies
(FDI, APEDA, subsidies)
5. Vital outsourcing hub
Consequences
1.Surplus food wasted away
2.Low incomes to farmers
3.Inefficient supply chain
4.Not meeting the young consumer
preferences (processed hygienic food)
Opportunities
1.Cold chain infrastructure builders
2.Processed food manufacturers
3.Food packaging & logistics providers
4.Food retailers and Exporters
5.IT and data analysts
6.Research Institutions
N.Viswanadham
APMC, Min price, Essential
Commodities, PDS,VAT
Quality Control &
Environmental Issues
INSTITUTIONS
Sensor networks &
supply chain
visibility
FOOD
SUPPLY CHAIN
ECOSYSTEM
RESOURCES
Food Parks,
APEDA, Freight
Corridors
Infrastructure:
Canals, Roads,
Research: University,
Seeds, Testing, Dev, Labs
DELIVERY SERVICE
INFRASTRUCTURE
Cold Chain
Logistics
Social (Kirana shops),
Financial & Trade issues
Sourcing Hubs, Food
Courts, Clusters
HR management
Dealing with Kirana
shops, Financials
Water, Power , seeds
FOOD SUPPLY CHAINS
Retail Chains
Mandis, Restaurants
Distribution
Packaging
Food
Manufacturing
Suppliers
Farmers, Fisheries,
Meat, Dairy
PRESENT CONDITION OF TRADERS
Fringe Benefit Tax
VAT
INEFFICIENT
LABOURS
LICENCES & PERMITS
INDUSTRIAL DISPUTE ACT
SHOP & ESTABLISHMENT ACT
COSUMER PROTECTION ACT
WEIGHT & MEASUREMENT ACT
PACKAGING ACT
PREVENTION OF FOOD ADULTRATION ACT
PREVENTION OF BLOCK MARKETING ACT
ANTI HOARDING & PROFEELING ACT
MONEY LENDING ACT
PRODEND FUND ACT
MINIMUM WAGES ACT
ESI ACT
GRATUITY ACT
BONUS ACT
ENTRY TAX
SERVICE TAX
FDI in Retail Trade
ANTI SOCAL ELEMENTS
OCTROI
WATER TAX
CENTRAL
EXCISE
POLITICIAL INTERFERANCE
PURCHASE TAX
POOR MARKET
CONDITION
INSPECTOR RAJ
INCOME TAX
SALES TAX
POWER PROBLEM
Cash Transaction Tax
&
Quarterly ‘C’ Form
STAMP DUTY
WELTH TAX
HIGH BANK
CHARGES
PROFESSIONAL TAX
New Naka Complex
Presented By Mr. B.C.Bhartia,Nagpur.
ESSENTIAL COMMODITIES ACT
Food Supply Chain Excellence
What Is Food Security?

The World Food Summit of 1996 defined food
security as existing “when all people at all times
have access to sufficient, safe, nutritious food to
maintain a healthy and active life”.
 Thus food security implies both physical and
economic access to food that meets their dietary
needs, nutritional requirements and food
preferences.
 Nutritious food providers have three functions:
Making it Available at Affordable prices and
creating Awareness to the consumers
Food Supply Chain Excellence
Food security: India ranks lower
than Rwanda

According to the International Food Policy
Research Institute's Global Hunger Index, 2011,
India ranks 67 of the 81 countries of the world
with the worst food security status.
 The GHI is composed of three equally weighted
indicators - the proportion of the population that is
undernourished, the proportion of children who are
underweight and under-five child mortality.
N.Viswanadham
Food Supply Chain Excellence
India needs to Usher the AgriService Revolution

A strategic vision for the Agri-service sector
 Streamline and upgrade the agri-service
chains using modern technologies: Demand
driven agriculture, Processing industry,
Visibility
 Initiate education, research and
entrepreneurial programs in Agri-Service
sector innovation
 Plan and Build integrated Food -service
systems in rural and urban areas
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N.Viswanadham
Food Supply Chain Excellence
Specific Five things India Needs

Post Harvest Research
 Food Manufacturing with Added Vitamins
And Minerals
 Distribute Nutritious Food not Grains
 Attention to supply chain and logistics and
minimize wastage
 Regulations by the State and Centre
Governments : APMC act, Minimum support
price act, etc
N.Viswanadham
Food Supply Chain Excellence
New to Market Innovation
Food Product Market Estimation
 Estimate
your market right
How many people will buy orange
juice packets if it is as cheap as a coffee
or tea on a road side stall and costs only
Rs 5
Look at the reduction in the disease
burden
141106
N.Viswanadham
Food Supply Chain Excellence
Food Security Solution: To Serve 100M Urban Poor
Vocational Training
Processed Food
Products
Distribution
Center
Households
PDS
Distribution
Center
Mid Day Meals
Meat & Diary
Products
Distribution
Center
Kitchen
Hawkers
Kitchen
IT Backbone on Cloud
C
o
n
s
u
m
e
r
s
Food Supply Chain Excellence
The IIT Kharagpur Initiative

This initiative fills in the much needed
research efforts in the supply chain, logistics
and food security areas
 The involvement of the IIT faculty and
research students would make a much
needed contribution to the food security in
India and the world.
N.Viswanadham