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LATEST NEWS UPDATES | Are We Ready For The Bumper Harvests? -Sandeep Sabharwal

Are We Ready For The Bumper Harvests? -Sandeep Sabharwal

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published Published on Jul 16, 2016   modified Modified on Jul 16, 2016
-Business World

It is time for mainstream approach to change so that warehousing industry is perceived as a services sector. Warehouses can become the distribution centres pan India

India is the world's second-largest fruit producer, with an annual production of 46.8 million tons, accounting for 10 per cent of global fruit production. It is also the world's second-largest vegetable producer, with an output of 90.85 million tons, accounting for 14 per cent of global production.

Over 58 percent of rural population depends on agriculture as their primary means of livelihood. Even then, our farmers and ranchers are facing a lot of problems with two consecutive droughts and an ever tightening budget on agriculture subsidies. But this year, the country has promising prospects of bumper harvest with adequate rainfall in all parts of the country. Although, this is good news, a word of caution is nevertheless given that storage and warehousing facilities in the country are not matching to the expected levels. It questions our preparedness for the expected bumper crop. Do we have ample storage facilities? Will the precious produce be saved after the harvest? Will farmers make distress selling in the need of finance?

The data shows that warehousing shortfall are said to result in 7 per cent loss of food grains and 30% loss of fruits and vegetable while 10 per cent of valuable spices are lost during the storage period2. But, the actual figures are much higher. The post harvest losses of agricultural commodities have been estimated between Rs. 70,000 - Rs. 80,000 crore (Only for dry goods). In a nation, where it is estimated that at least 200 million people go to bed empty stomach each night such post-harvest losses are bothersome.

According to India's erstwhile Planning Commission, an estimated gap of 35 million metric tonnes exists between agri - warehousing supply and demand. To make matters worse, the country's current cold storage capacity is only sufficient for ten per cent of fruits and vegetables produced domestically.

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Business World, 14 July, 2016, http://businessworld.in/article/Are-We-Ready-For-The-Bumper-Harvests-/14-07-2016-100432/


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