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Agrilogistics in India


Agrilogistics in India forms the backbone of the country’s Agricultural sector which contributes to roughly 18% of the overall national GDP. Approximately 50% of the Indian population is reliant on agriculture as their means of income. India stands at the 102nd position in the Global Hunger Index. As of 2019, the country recorded a food wastage of USD 12.54 Billion in terms of post-harvest. Fruits and Vegetables accounted for approximately 18% of this value generated. Optimization of the cold chain associated with agrilogistics India is one of the key challenges faced by the Indian agricultural sector.

Agrilogistical service paves a passage between the demand and supply margins associated with an industrial segment. The expanding population amongst nations has been one of the factors that have increased the growth in crop production exponentially further paving the way for agrilogistics India. As the production value increases, so does the requirement for a mode of connected logistical services that could potentially cater to consumer demand. The increased crop losses and degradation in terms of product value necessitates the requirement for technologies and connected logistical service that could boost the subsidy driven growth.

Refrigerative containers and eco-freeze systems are now being implemented in the cold chain to reduce consumer-based crop losses. An Eco-freeze is typically a natural ecological refrigeration unit in the cold chain that is used for commercial as well as industrial purposes. The system is a product of green technology that is anticipated to bring agrilogistics India a step closer to a circular economy and prevent crop losses. The cold chain makes use of organic alternatives to chiller chemicals like R22, R502, R404a, etc. The technology has zero ozone depletion potential. Other curative methods like evaporative cooling have also been incorporated into logistical services which could prevent crop losses.

Cold chain infrastructure, optimization in terms of high efficiency and low cost associated with cold-chain solutions have also been explored by logistical services. For instance, in the state of Tamil Nadu, India, lightly damp bricks were used to construct a zero-cost cooling system to prevent crop losses. The porous structure of the bricks would hereby facilitate the flow of air. The system cools the incoming supply of air through the process of evaporative cooling. The addition of water vapor into the air causes a lowering in the temperature of the inbound air. A technological upscale of these simple and effective technical devices can decrease the cost associated with the cold chain and prevent crop losses.

Moreover, India has been introducing agricultural reforms that could modulate the trends associated with agribusinesses. The policy is expected to provide a direct connection between agricultural-based start-ups and the crop producers. This in turn is expected to prevent crop losses, facilitate smooth functioning of the value chain and ensures higher returns for the farmers on the product. The passing of this bill would allow farmers to sell and purchase their farm produce outside of the registered marketplace. One of the key objectives of this bill is to reduce the transportation and cost of logistical services in India by facilitating smooth interstate as well as intrastate trade.

Agrilogistics in India helps attain the sustainable goals associated with agriculture, that is, reduction of hunger and consequent increase in food security. The Indian government has also launched programs like Kisan Rail to facilitate smooth transportation associated with perishable agricultural products to prevent crop losses. The crop-based commodities procured from farmers would be transported at cheaper rates via this policy. Additionally, the farmers can book their consignments on this train without any lower limit on the size of the order.

The incorporation of electronic trading forums is also anticipated to enable enhanced connectivity across the value chain. The introduction of the Kisan Rath Mobile application allows farmers and traders across India to connect directly with logistical services. The application consists of individual transporters and leading transport aggregators. The software would eliminate the adverse roles of the middlemen. This would in turn generate more opportunities for the farmers and increase their returns in terms of income. Therefore, the bargaining power of the farmers would increase within the supply chain.

The growth dynamics associated with the regional agrilogistics can be studied using Global Market Database. It is a cloud based B2B market research platform that studies the shift in line with changing market trends. The market research tool studies market data across 600+ verticals and 12 different industries. Global Market Database acts as a lucrative tool for secondary research which can be used by top management staff. The platform can also be used by logistical service providers to identify potential suppliers and buyers.

Another important aspect of agrilogistics is the transportation model. The mode of transportation for agrilogistics employed over a global scale differs with the region of choice. Containers play an integral role in the road-based transportation segment. Countries like Indian make use of Refer trucks which have high tensile strength as well as density associated with the material. This is primarily because of the type of road traffic encountered by the vehicle. Developed countries like the U.S make use of GRP containers in order to support their logistical services demands. The Multimodel logistical service within India are still being worked upon. The inception of cross over ports through the culmination of programs like Krishi Udaan is expected to drive the growth in agribusiness within this nation to prevent crop losses. Unrecognized models like road ethylene modification are also being incorporated by logistical services.