1) Supply chain management is important for agribusiness in India to allow farmers to access markets and consumers more efficiently.
2) India's agriculture sector needs critical management inputs like collaboration across stakeholders and use of technologies along the supply chain.
3) Contract farming can help overcome weaknesses in the links of the supply chain by providing material and knowledge inputs to farmers.
1) Supply chain management is important for agribusiness in India to allow farmers to access markets and consumers more efficiently.
2) India's agriculture sector needs critical management inputs like collaboration across stakeholders and use of technologies along the supply chain.
3) Contract farming can help overcome weaknesses in the links of the supply chain by providing material and knowledge inputs to farmers.
1) Supply chain management is important for agribusiness in India to allow farmers to access markets and consumers more efficiently.
2) India's agriculture sector needs critical management inputs like collaboration across stakeholders and use of technologies along the supply chain.
3) Contract farming can help overcome weaknesses in the links of the supply chain by providing material and knowledge inputs to farmers.
1) Supply chain management is important for agribusiness in India to allow farmers to access markets and consumers more efficiently.
2) India's agriculture sector needs critical management inputs like collaboration across stakeholders and use of technologies along the supply chain.
3) Contract farming can help overcome weaknesses in the links of the supply chain by providing material and knowledge inputs to farmers.
IMPORTANCE OF SUPPLY CHAIN MANAGEMENT IN AGRIBUSINESS
Dr. RUCHIRA SHUKLA Institute of Agribusiness Management (IABM), Navsari Agricultural University, NAVSARI (GUJARAT) INDIA
Indian agriculture is unique in many ways. With the consumers in India and abroad want cost effectively. abundant arable land, water and bio-diversity and a large Horizontal collaboration among policymakers, researchers, population accustomed to agriculture as a way of life, no extension agencies, technology companies and financial country is better placed than India in bringing about institutions add strength to the chain. The whole chain agriculture-led prosperity. and not just production should be defined as agriculture. But agriculture in India needs some critical Technology inputs form an integral part of SCM. The management inputs, particularly that of supply chain emerging ones are gene revolution, eco-technology, management (SCM). Agri-business can realise its full information network and geographical information system. potential by applying the principles of SCM- collaboration Biotechnology offers options for crop diversification for among various stake-holders, non-exploitative vertical and food, medicine and energy, as also cost effective pest horizontal integration, market reforms, precision farming, management. Traditional innovations need to be contract farming, demand-led diversification and the rediscovered and applied. Organic farming is a traditional extensive and intensive use of information technology for practice with a new appeal and a global market of $30 real-time communication across the chain. billion growing at over 15 per cent per annum. State Significance of SCM for Agribusiness: Agriculture governments, the Planning Commission and the dependent livelihood accounts for about 60 per cent of Commerce Ministry are moving towards SCM in line with employment and 21 per cent of the country’s GDP. The the global trend, even as there is the drag of past practices. inference is that a person dependent on agriculture earns, Several State governments have prepared vision on an average, 18 per cent of what others do. This is due documents incorporating the SCM principles. The private to the fact that agriculture has not been allowed to evolve sector is already looking at contract farming to cater to as a business. the high-end domestic market and the export demand. India is a large market for multinational companies, There is greater awareness among industrialists that but the farmer cannot freely move his produce. Controls agriculture offers attractive values and can no longer be and taxes deny him the opportunity. Subsidies in support ignored. prices and fertilisers do not necessarily serve the long- A nodal agency with market insight and vision is a term interests of farmers. prerequisite for every supply chain. The supermarket Small holdings have their own merits: Equitable chain Wal-Mart takes care of its suppliers’ needs for distribution, emotional involvement, opportunities to finance and logistics even as it encourages continuous introduce appropriate intensity in farming, compulsion to cost cutting to serve the consumer. The supply chain collaborate with neighbours, soil conservation and performs both physical and market functions which means composite farming. They fit into the supply chain concept understanding market requirements, converting raw well. material into finished products and moving them from The WTO has brought in a qualitative change to global production centres to consumption points in a effective trade in agricultural commodities. What is needed is an and efficient manner and fulfil consumer expectations. efficient, value-adding link from the producer to the SCM can be derived from the concept of social capital. consumer. Globalised trade is a unique opportunity where It demands enlightened self-interest where all the links in some risks need to be managed. The nascent market for the network work towards maximising the value for all, processed foods is stifled by high taxation. The limitations including the customer, in a collaborative way. imposed by lack of cold chains and road network also add The key messages of supply chain successes are: to the constraints. Customer rank quality, price, specification, timely delivery Emphasis on building networks: At the international and relationships with suppliers as their priorities. level, there is no longer competition among firms, but Role of Government: The Government of India has among supply chain networks. The network in India is announced a policy for agriculture over the first two primitive and exploitative. The trick is to bring about an decades of the 21st century.A mechanism that educates intensive collaboration among producers, processors, and persuades farmers on market-led diversification of logistics providers, wholesalers and retailers to supply what land use into vegetables and fruits, medicinal and aromatic
RASHTRIYA KRISHI, Vol. 6 (2); Dec., 2011 23 HIND AGRICULTURAL RESEARCH AND TRAINING INSTITUTE plants, forestry and floriculture is necessary. happen because of rising private investment in agriculture A commodity approach to fixing the complete chain today. is the most appropriate strategy whether it is mango in The supply chain concept is still nascent in Indian Gujarat and UP, litchie in Bihar, pineapple in Tripura or agriculture. However the need for the same, at this stage, poultry in Tamil Nadu. Typically, the chain is broken or is is more than ever before because of the challenges weak in several links. Contract farming can help overcome unleashed on the competitiveness of the Indian this. An optimal mix of the area and commodity approach agribusiness by deregulation and globalization. An essential is appropriate. first step in the process is to assess the current supply While basics of agriculture such as land, water, forest chain capability. A beginning has been made and large management and infrastructure would fall under the area number of Indian agri based organizations today are approach, diversification, precision and organic farming, realizing the importance of developing and implementing processing, marketing and inputs could be addressed by a comprehensive supply chain strategy - and then linking the commodity approach. that strategy to deliver bottom line results. Contract farming, unlike corporate farming, brings farmers into the mainstream of the economy. It reduces jk"Vªh; d`f"k the market risk. The farmer is emotionally attached to the land under contract farming. Forward contracts enhance RASHTRIYA KRISHI supply chain efficiencies by providing both knowledge and Rate of Advertisement material inputs. This facilitates hassle-free availability of Page of B/w Colour credit from banks at competitive rates. Contract farming Advertisement Half Full Half Full permits control over standards of production demanded Page Page Page Page by niche markets, both domestic and foreign. Government COVER PAGES needs to play the role of facilitator by developing required Inner Side of Front Page and Back Pages For one issue - - - 10000 policy framework , attracting investment and creating For four issues - - - 30000 infrastructure. Inner Side of Back Cover Page Participation of private sector:Liberalisation has made For one issue - - - 8000 agri-business and partnership with farmers the next logical For four issues - - - 25000 frontiers to conquer economic growth. There are a few REGULAR PAGES exemplary initiatives of the private corporate sector, which First and Last Page For one issue 2000 4000 - - promise sustained increase in farm income. For four issues 6000 12000 - - These include the Rallis Kisan Kendras, the e- General Pages Choupals of ITC and the market centres of Cargill. All of For one issue 1500 3000 - - them place a premium on the use of information For four issues 5000 9000 - -
technology. The key is to understand what the customer Advertisement fee should be send in form of demand wants - where, when, how much and at what price, and draft of Nationalized Bank in favour of the magazine "Rashtriya Krishi" payable at respond to it accurately, speedily and with minimum flow Muzaffarnagar (U.P.) at the following address : of materials. The private investment in agricultural sector is on the Address : rise and several agribusiness companies have developed RASHTRIYA KRISHI new models to reach to farmers.The need is how to make HINDAGRI-HORTICULTURAL SOCIETY, the agricultural sector more attractive for private sector Ashram-418/4, South Civil Lines, (Numaish Camp), MUZAFFARNAGAR - 251001 (U.P.) INDIA to invest. Faster growth in agriculture tomorrow will
