Need to educate farmers on alternative and sustainable supply chains

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As an agrarian economy, about half of the Indian population is involved in agricultural activities. However, over the past few years, the sector has experienced many challenges. From the production of food grains to storage, distribution and income collection, the agricultural sector faces multiple obstacles. Among many others, one of them is the lack of resources to facilitate an efficient supply chain. The multiplicity of intermediaries and the absence of a national platform often lead to gaps in the supply, distribution and generation of income from agricultural products.

How alternative supply chains are shaping the agricultural sector

Reports claim that a large portion of postharvest produce is wasted each year. From an agricultural perspective, the way forward is to adopt an alternative supply chain that supports the production and distribution of agricultural products. With technological advances, we have new-age solutions that bring together all agricultural players on a single platform. As a result, farmers, wholesalers, warehouse managers, distributors and investors in agricultural products can connect from across the country.

Emerging agricultural commodity and trade finance platforms create a transparent ecosystem with disintermediation and price discovery. While providing transparency, some digital platforms also offer a physical infrastructure for the storage of products. In addition, they provide well-equipped agricultural supply centers that help farmers, investors, retailers and other stakeholders to monetize the products on time. With next-generation technologies, digital payments facilitate the instant transfer from buyer to seller.

Unlike the traditional setup, the modern agricultural supply chain also allows for transparent transactions. Stakeholders from any part of the country can log in at any time to get price insight and conduct fair trade in agricultural products. It creates a sustainable and efficient supply chain that benefits all stakeholders involved while adding value to the economy.

Strengthening the position of Indian farmers in achieving food security

As new technology gradually improves agricultural production, there is a great need for efficient postharvest practices. It’s time to instill supply chain practices that benefit stakeholders while ensuring global food security. A report of IBEF claims India is the second largest food producer with cereal production of around 303.34 million tonnes in FY21 and is expected to reach 307.31 million tonnes by FY22. Moving in tandem with large-scale agricultural products, new technologies can alleviate financial needs by streamlining all levels of the supply chain.

All elements of the supply chain must be equipped with the right technology for a smooth functioning of the agricultural system at local and national levels. Agricultural commodity and trade finance platforms give farmers direct access to a wide range of services ranging from price discovery, warehouse, trade contracts, direct digital payments, and more.

Alternative and modern agricultural supply chain platforms give farmers full control over their agricultural products, sales and income. It excludes any traditional middleman while facilitating frictionless management of the supply chain.

Final remark

With its intuitive advantages, the alternative supply chain solves fundamental problems of the post-harvest phase with transparent sourcing and distribution. The digital agricultural commodity and trade finance platform has the potential to build a transparent supply chain that benefits all agricultural stakeholders. In the future, there is a greater need for farmers to move towards sustainable and technological solutions that improve the efficiency of the supply chain and add value to the agricultural economy.



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Disclaimer

The opinions expressed above are those of the author.



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