Fresh Food Supply Chains in India
Fresh Food Supply Chains in India is unorganised, inefficient, corrupt, and unhygienic
Licensed middlemen, called mandis over the years has grown layer upon layer of intermediaries, farmers cant sell there stocks directly to market
2) The thumb rule of price rise from a farmer to a consumer fruits and vegetables is 1:2:3:4. What farmer sells for 1 is sold at the mandi at 2, which becomes 3 at the mandi at the consumption centre and 4 when it reaches the consumer through a retailer.
3) Infra like refrigeration units, power outages, A reliable supply of safe water
Transport like bullock carts and rusty trucks are currently link producers and customers. The countrys 35 states and territories run separate tax and duty systems is also one of the major irritant in transport.
On average, goods pass through six or seven middlemen before a consumer can buy it, resulting in tortuous journeys, big mark-ups and poor quality. None of these added any value to the fruits and vegetables they traded even as they added on their own margins
Current retail process is focused on high price not on high volume so the retailer focus is on increasing the price and that makes the current market supply lead system where as a organized retail core is volume not price so they need to address these challenges this will make the market demand lead
To provide the best results to the customers and good rates to the farmers it is needed to address the some challenges of the fresh food supply chain
The average stock days needed to be reduced as it attracts more costs
The increased self life of products results in better sales and a cut on wastage