A New Farm Deal

DIRECT SALE OF FARM PRODUCE, PRICING FREEDOM, DIGITISATION AND TRACEABILITY IN POULTRY, LIVESTOCK AND FISHERIES SEGMENTS WILL GO A LONG WAY IN ACCELERATING THE FARM ECONOMY

A New Farm Deal

One of the problems that agri-business major ITC faced during the initial weeks of the Covid lockdown was labour shortage and limited availability of trucks. Instead of waiting for the situation to improve, the company carried out new supply chain interventions such as multi-point rake movements, loading containers directly from villages and mandis and coastal container movement. Even bag-less supply chain ( loose grains) was tried out, says S. Sivakumar, Group Head, Agri and IT Businesses, ITC.

For the company, such a crisis might have been temporary, but for Indian agriculture, it remains one of the biggest perennial problems. The ability to ensure remunerative prices to farmers, handling of post-harvest produce with minimum losses, maximising value addition and transporting fresh produce and processed food seamlessly within the country and abroad have been the holy grails of India’s agricultural sector reforms. The Covid stimulus announced by Finance Minister Nirmala Sitharaman some days ago recognised most of these concerns. Most of the ideas are not new. Implementation has been the main hurdle throughout.

Rolling The Ball

The need for the changes is critical now. According to the 3rd advance production estimates of major crops for FY20, released by the agriculture ministry on May 15 – the day agriculture stimulus measures were announced – the country saw a record production of foodgrains (295.67 million tonnes) like rice, wheat, coarse cereals and maize. Oilseed and cotton production are also setting new records. It is time to manage the produce efficiently. Individual companies can do their bit, but the country cannot move ahead without a national framework. “Scientific agriculture practices, innovation in organised credit, better post-harvest management, extending shelf life of produce, efficient storage, smart logistics and a plethora of other options are available from smart entrepreneurs. This is the right time to bring that bouquet to farmers,” says Palat Vijayaraghavan, Founder & CEO, Lawrencedale Agro Processing India