See discussions, stats, and author profiles for this publication at: https://www.researchgate.

net/publication/298891316

Factors Leading to Losses and Wastage in the Supply Chain of Fruits and
Vegetables Sector in India

Chapter · February 2016

DOI: 10.13140/RG.2.1.2395.5607

CITATIONS READS
2 3,252

2 authors:

Saurav Negi Neeraj Anand

Modern College of Business and Science University of Petroleum & Energy Studies
18 PUBLICATIONS   60 CITATIONS    32 PUBLICATIONS   174 CITATIONS   

SEE PROFILE SEE PROFILE

Some of the authors of this publication are also working on these related projects:

Calls for Papers (Special issue: Sustainable Procurement): International Journal of Social Ecology and Sustainable Development (IJSESD) View project

Developing Conceptual framework for establishment of Natural Gas Storage of City Gas Distribution in India View project

All content following this page was uploaded by Saurav Negi on 19 March 2016.

The user has requested enhancement of the downloaded file.

 Energy, Infrastructure and Transportation
Challenges and Way Forward

Factors Leading to Losses and Wastage in the Supply Chain of Fruits and
Vegetables Sector in India

Saurav Negi*, Neeraj Anand**

*Doctoral Research Fellow, CoMES, UPES, Dehradun

**
Professor and Head-LSCM & Operation, CoMES, UPES, Dehradun

Abstract

The entire supply chain of perishable food produce is Introduction

fraught with the issue of post-harvest losses and
Supply chain management (SCM) may be
wastages. Around 30-40 % of total production gets
waste at various levels of the supply chain which defined as a set of approaches utilized to
amounts to a loss of Rs. 2 Lakh crore per annum. efficiently integrate suppliers,
Apart from the loss of revenue to the farmers, it leads manufacturers, warehouses, and stores, so
to increased additional costs in the supply chain
that merchandise is produced and distributed
which ultimately enforces the final consumers to pay
at the right quantities, to the right locations,
high charges from his pocket. The present study
undertakes a detailed and extensive review of basic and at the right time, in order to minimize
and contemporary literature available and tries to system-wide costs while satisfying service
explain the present situation as well as the post- level requirements (Simchi-Levi et al.,
harvest losses and wastage problems encountered in
2008).
the supply chain of agricultural products, especially
fruits and vegetables and also identifies the major Over the years, the definitions have changed
factors leading to losses and wastages in the logistics
and broadened the scope of supply chain
and supply chain of Fruits and Vegetables sector ,
management, but in Indian context, these
classified into categories namely Infrastructure,
Intermediaries, Harvesting, Transportation, definitions are still limited to manufactured
Information, Knowledge of Farmer’s, Storage and products and services with very little
Handling. attention being paid to agriculture and allied

Keywords: Wastage and losses, Cold Chain, sector. Agricultural produce constitutes a
Infrastructure, Supply Chain Management, Fruits major part of the world economy and is the
and Vegetables. raw material for many foods processing

I 89
 Energy, Infrastructure and Transportation
Challenges and Way Forward

industry. Among the agricultural produce, facilities in order to reach in fresh state to a
fresh perishable produce like Fruits and customer. Here, supply chain plays a very
Vegetables have got the least attention. This vital role in fulfilling the demand of the
area becomes even more important in customer.
agriculture sector because of perishability
The entire supply chain of Fruits and
nature and very short shelf life of goods.
Vegetables is laden with the issue of
Supply Chain Management not only helps to
inefficiency resulting to huge amount of
cut costs, but also adds to maintain and
post-harvest losses and wastages and is one
improve the quality of fresh produce
of the major impediments in the path of
delivered, which are perishable in nature.
speedy growth of Fruits and Vegetables
The Supply chain management of Fruits and sector. Apart from the loss of revenue to the
Vegetables constitutes the processes from farmers, it also leads to increased additional
production of agri-fresh produce to delivery costs in the supply chain which ultimately
of the produce, i.e. from the farm gate to the enforces the final consumers to
customer. It plays a very vital role in unnecessarily pay high charges from their
reaching these produce to the ultimate pocket.
consumer and manages the relationship
Fruits and Vegetables Sector Scenerio
between businesses responsible for the
efficient production and supply of fresh India is the second largest producer of fresh
produce, to reliably meet the requirements agro food i.e. Fruits and Vegetables in the
of the customer in terms of quality, quantity, world after China with the total production
and price. To meet the requirements and of 88.97 million metric tonnes of fruits and
needs of the customers, several players are 162.89 million metric tonnes of vegetables
involved in the supply chain management of till the year end 2014 (NHB,2015). The total
Fruits and Vegetables like farmers, local production of Fruits and Vegetables has
traders and intermediaries, transporters, been shown in Figure 1 from the year 2001-
processors, wholesalers and retailers. 2014. The share has increased from 43.00
million metric tonnes to 88.97 million
Owing to the very short shelf life and
metric tonnes in fruits and 88.62 million
perishable in nature, these items require
metric tonnes to 162.89 million metric
proper transportation, handling and storage

I 90
 Energy, Infrastructure and Transportation
Challenges and Way Forward

tonnes in vegetables from the year 2001- revenue to the farmers, it leads to increased
2014. additional costs in the supply chain which
ultimately enforces the final consumers to
pay high charges from his pocket.

From various studies on post-harvest losses

in India, it is evident that the amount of food
wasted in a year in India is equivalent to
annual food consumption in the UK
(Rathore et al.,2010). As per the recent
survey by ASSOCHAM (2013) India, the
producers have to forgo every year Rs. 2.13
lakh crore due to losses in the supply chain
of Fruits and Vegetables. The losses among
major producing states in India have been
Figure1. Fruits and Vegetables Production in
shown in Table 1.
India

Source: National Horticulture Board, Govt. of India Table1. Fruits and Vegetables Losses among the
major producing state
Inspite of being the world’s second largest
Rank State Total Loss
producer of Fruits and Vegetables, the (Rs. Crore)
1 Maharashtra 10100
customers are not getting proper quality, at a 2 Andhra Pradesh 5633
right time and at a right cost due to losses 3 Tamil Nadu 8170
4 Gujarat 11398
and wastage in the supply chain of Fruits 5 Karnataka 7415
6 Uttar Pradesh 10312
and Vegetables sector. A huge share of 7 Bihar 10744
8 Madhya Pradesh 5332
production turns into waste which made
9 West Bengal 13657
India as one of the biggest wasters in the All India 212552
Source: ASSOCHAM Report, May 2013
world (ASSOCHAM, 2013). Negi & Anand
The present paper is an attempt to provide a
(2014) also discusses that supply chain of
snapshot of factors which are contributing to
Fruits and Vegetables in India is highly
losses and wastage in the supply chain of
inefficient which is leading to huge losses
Fruits and Vegetables sector in India
and wastages and less income to the
through detailed and extensive review of
stakeholders in return. Apart from the loss of

I 91
 Energy, Infrastructure and Transportation
Challenges and Way Forward

basic and contemporary literature available, agricultural products, especially Fruits and
including trends, research avenues and Vegetables.
measures to improve the supply chain
The literature has been divided into various
effectiveness.
themes according to the wastage at different
Objectives stages of supply chain for Fruits as well as

Supply chain of Fruits and Vegetables sector Vegetables. Further an investigation has

in India is at a very nascent stage and facing been attempted to identify various factors

a major issue of losses and wastage. Hence leading to the wastages at the different

the present study has been conducted with stages such as harvesting, storage, handling,

the following objectives: transportation and at trade level of

perishable food supply chain.
 To identify the factors leading to losses
Authors have collected Literature, including
and wastage in the supply chain of Fruits
research papers from peer-reviewed
and Vegetables sector in India.
journals, conference proceedings, white
 To suggest measures for improving
papers and presentations from the industry.
Supply Chain and its effectiveness with
Research databases such as Emerald
context to Fruits and Vegetables sector.
(www.emeraldinsight.com), EBSCO
Research Methodology (Search.ebscohost.com), Wiley
(www.wiley.com), Springer
Descriptive research has been used for this
(www.springerlink.com) and Elsevier
study. The problem of post-harvest losses &
(www.sciencedirect.com) were searched for
wastage in the supply chain of fresh food
related papers.
produce has been investigated and attempt
has been made towards the identifying Result and Discussion
factors leading to this phenomenon. The
The study identifies the major factors
present study undertakes a thorough review
leading to losses and wastages in the
of basic and contemporary literature
logistics and supply chain management of
available and tries to explain the post-
Fruits and Vegetables sector classified into
harvest losses and wastage problems
categories namely Poor Infrastructure,
encountered in the supply chain of
Intermediaries, Harvesting, Transportation,

I 92
 Energy, Infrastructure and Transportation
Challenges and Way Forward

Information, Knowledge of Farmer’s, infrastructure, etc. The losses and wastages

Storage and Handling. The main causes of in the food produce decreases the returns of
losses in these particular factor’s categories fruits and vegetables and occur mainly
and their impact on the supply chain have because of lack of infrastructure.
been discussed in detail on the basis of Viswanadham (2007) mentioned in his study
literature. Some of the major findings or the that the reason for the waste is the lack of
main causes of losses under the classified adequate infrastructure for processing, cold
factor’s categories have been clubbed into storage and transportation in developing
the diagram (Figure 2). countries such as India. In developing
countries the poor infrastructure and lack of
Poor Infrastructure
marketing facilities resulted in losses of
Infrastructure plays a very vital role and is fresh vegetables ranged from 20 to 50 %
the backbone for the supply chain of any (Verma & Singh, 2004).
industry. In perishable fresh produce supply
Supply chain of perishable food requires
chain it constitute cold chain, transportation
proper temperature to maintain and sustain
infrastructure, road connectivity and
the quality and increase the shelf life of the
network, port infrastructure, marketing
produce but there have been staggering
facilities, processing facilities etc. In India,
losses in the food sector due to the weak and
the Infrastructure for perishable food supply
ill equipped cold chain infrastructure
chain is very weak and is one of the main
(Rathore et al., 2010) and improper
reasons for losses and wastage of food.
marketing systems and facilities (Gauraha &
Singh, et al. (2009) found in his study that
Thakur, 2008; Singh et al., 2008) of the
inadequate infrastructural support to
country ensuing losses and wastages in the
government regulated supply chain leading
supply chain of perishable food produce.
to high losses as high as 40 percent of fruits
Kader (2005) found inadequate storage
and vegetables. The post-harvest losses at
facilities as a cause therefore produce
various stages of the supply chain are
exposed to direct heat of sun that may
incurred due to gaps in cold chain such as
accelerates metabolism leading to higher
poor infrastructure, insufficient cold storage
levels of damage and decrease the shelf life
capacity, unavailability of cold storages in
of the produce. Around 95 % of the cold
close proximity to farms, poor transportation
storages are in private hands and because of

I 93
 Energy, Infrastructure and Transportation
Challenges and Way Forward

high charges, an average Indian farmer is long time to take the fresh fruits and
not able to avail the facilities of cold storage vegetables product to the market and
(Dharni & Sharma, 2008). Negi & Anand deteriorate the quality and condition of the
(2015) in his study on cold chain also produce which results in wastage. Modi et
showed that the cold chain in India has al. (2009) also highlighted in his study that
emerged as one of the weakest link in the the villages, farms and the markets in the
supply chain of fruits and vegetables sector Uttarakhand state (Hilly region) are not well
in India resulting to losses. connected and the farmers had to somehow
bring their harvests to the nearby road for
According to Maheshwar & Chanakwa
transportation, which increased the wastage
(2006) about 30 % of the fruits and
of their produce. On its way to market, a
vegetables grown in India which is 40
lack of proper infrastructural facilities
million tones amounting to $13 billion get
results in greater wastage of the fresh
wasted annually due to gaps in cold chain
produce. Negi and Anand (2015) also
such as poor infrastructure, unavailability of
discusses the issues and challenges
cold storage in close proximity to farms,
pertaining to supply chain of fruits and
insufficient cold storage capacity, poor
vegetables agribusiness in Uttarakhand,
transportation infrastructure etc. There is a
India and highlighted losses and wastage as
lack of ownership within the chain. All the
one of the major problem in Uttarakhand
players are concerned with their own
agro fresh produce sector.
revenue maximization with limited attention
towards the overall profit of the chain. This Transportation
lack of a holistic view of a supply chain is
This section discusses the transportation
leading to the post-harvest waste (Shukla &
related causes of the losses and wastage in
Jharkharia, 2013). The magnitude of losses
the logistics and supply chain of perishable
is also depends on the road connectivity and
fresh food produce. It has been observed
network (Kader & Rolle, 2004). In India
that, losses in transportation are one of the
most of the northern and eastern region is
highest and major operational causes of
covered with hilly terrain areas and are the
wastage in Perishable food supply chain
major sources of fruits and vegetables. The
(Murthy et al., 2009) followed by inventory
road connectivity and network infrastructure
management (Shukla & Jharkharia, 2013).
in such areas are very poor which takes a

I 94
 Energy, Infrastructure and Transportation
Challenges and Way Forward

Rehman et al. (2007) found in his study that mainly due to the transportation practices
the losses mainly occurred during the followed in marketing channels (Verma &
transportation of the fresh produce to the Singh, 2004). Mathi (2007) studied the
market. Poor and inadequate transportation Supply chain management of Guava in
facilities contribute more to this problem Allahabad Uttar Pradesh and found ordinary
(Gauraha & Thakur, 2008; Sharma & Singh, transportation, irresponsible driving and
2011; Kader, 2005). Singh et al. (2008) rough roads as one of the reasons for post-
attempts to assess the extent and magnitude harvest losses. Some crops required special
of post-harvest losses in Uttar Pradesh and facilities like controlled temperature
found transportation and distribution of transportation and unavailability of such is
agricultural commodities as the factor the reason for the marketing loss (Ozcan,
responsible for such losses. Author found 2007). Produce are handled roughly and
transit loss contributing around 24 % of the transported in open trucks. It takes twenty
total loss. In transportation, time being a four hours or more to the fresh produce to
critical factor to deliver the fresh produce in arrives at the retailer, typically an open-
a timely manner and in a proper quality. At market vendor or a pushcart after harvesting.
farm level also there are various losses due As it is piled into large cane baskets or on to
to the ignorance of time factor. truck beds without cushioning or packaging,
that leaves it exposed to the sun in
Verma & Singh (2004) found delays in
temperature and deteriorates the quality of
moving the harvested fresh produce to the
the fresh produce (Jain, 2007).
market as the reason of losses at the farm
level. There are inherent difficulty of Faulty system of transport and delayed
collecting and transporting small quantities delivery of fresh produce causes wastage in
of fresh produce from the numerous small the retail market (CEAGESP, 2002). It
farms results to high post-harvest losses. reaches the store shelf too late and with a
Rehman et al. (2007) observed during the short remaining shelf life which causes
survey that most of the farmer picked their wastage in the perishable food supply chain
crops in the morning, packed in wooden at the retailer level (Mena et al., 2011) and
crates and using pickup/truck as a mode of additionally results to the penalty (Shukla &
transportation to transport their produce to Jharkharia, 2013). The bulkiness in the
the outside market. Loss at Market level is transportation of the fresh produce makes

I 95
 Energy, Infrastructure and Transportation
Challenges and Way Forward

the handling and transportation a difficult Wholesaler, Commission Agents at whole

task, leading to huge wastage of around Rs. sale level, Auctioneers, Retailers and the
23,000 crore or nearly 35 percent of the total customers. From a farm gate to a consumer,
production (CII, 1997). Transportation a horticulture product passed through six-
related challenges are very high in the India seven different distribution channels. A
because of unavailability of well large number of intermediaries adds to the
transportation mode, high cost of waste and increase the per unit consumption
transportation, lack of temperature price (Boer & Pandey, 1997). Several losses
controlled vehicle for the movement of occur because of market intermediaries
goods etc. (Negi & Anand, 2015). (Gauraha & Thakur, 2008). Verma & Singh
(2004) analyzes the losses in fresh
Adoption of improved transportation
vegetables and found that the losses at
method, which strengthen the need for
wholesale level depend on the number of
specialized transportation vehicles like
participants in the marketing channel and
reefer trucks for perishable commodities
length of the channel.
which can maintain the quality of fresh
produce and enhance the shelf life and will The horticulture supply chain of India is
also results in reducing the transit losses fragmented because a majority of the
(Murthy et al., 2007) . farmers are small and marginal with very
limited landholdings. Because of the limited
Large number of Intermediaries
landholdings the produce from these farmers
The supply chain of perishable fresh is very low that poses problems in
produce is highly inefficient with large transportation so resulting in greater reliance
number of intermediaries and fragmented of the farmers in intermediaries to market
chain. Traditional supply chain in India for their produce. The intermediaries generally
perishable fresh produce is very long and do not care about the losses which the
fragmented where they collect a sizeable farmer incurs and not willing to spend on
share from the price paid by the customers better facilities of cold storage and other
for the produce (Singh et al., 2009). There facilities. This results in losses in the quality
are large number of intermediaries in the and quantity of the produce, giving rise to
supply chain of fresh produce i.e. Farmers, 40 percent value loss in the Supply Chain of
Agents, Pre harvest Contractors, fruits and vegetables (Narula, 2011).

I 96
 Energy, Infrastructure and Transportation
Challenges and Way Forward

Companies are coming with various models al., 2011). With the timely information of
in which they are procuring the fresh the market demand farmers also need to plan
produce directly from the grower. Contract and take care of the planting and harvesting
farming is also a new concept which has activities as lack of proper planning and
eliminated the layer of intermediaries and management practices is one of the reason
reduces the dependency of farmers on the for losses in fresh produce supply chain
intermediaries. (Shukla & Jharkharia, 2013).

Information of Market Demand The next section covers the farmer’s

knowledge and experience as the cause of
Flow of Information is very vital in the
post-harvest losses in fresh produce supply
supply chain to run the smooth flow of
chain.
functions. It becomes even more important
in case of fresh produce supply chain due to Farmers Knowledge and Experience
short shelf life and perishable nature. This
Knowledge of farmers regarding
section classifies the causes of loss due to
technology, market information plays a very
poor information regarding demand in
important role in the supply chain of
supply chain. Lack of information regarding
perishable fresh food produce because they
demand was considered as a major reason of
are the main source and supplier of all the
waste by the researcher (Viswanadham,
fresh produce and his education, experience
2007). Buyukbay et al. (2011) also attributed
and knowledge regarding the technology,
lack of demand information as one of the
market information and new equipments are
main reason for waste. Kader (2005) also
the factors responsible for losses in the
found Lack of information as one of the
supply chain of perishable fresh produce.
socioeconomic factor causing post-harvest
Majority of the farmers are small land
losses. Most of the time fresh food remains
holder and share croppers and they have
unsold at retail stores and the expiry dates of
very little knowledge regarding the
that product have been passed which is the
technology, demand in the market, and
most common reason of waste at the retail
financial incentives (Shukla & Jharkharia,
level. This occurs when there is no
2013). Babalola et al. (2010) found in his
information regarding demand and retailer
study that most of the farmers around 82.95
orders more than the real demand (Mena et
% were illiterate which could be a

I 97
 Energy, Infrastructure and Transportation
Challenges and Way Forward

contributory factor to high losses in harvesting as one of the reasons for post-
production of tomato because they cannot harvest losses. Rehman et al. (2007) found
appreciate and use most post-harvest that losses mainly occurred during picking
technology available and only farmers with of the crop. Author found harvesting at
post primary education can appreciate and improper stage and improper care at harvest,
use it. Author also found that majority of the post-harvest problems as the primary factor
farmer 68.17 % had below the experience of responsible for post-harvest losses in tomato
16 years in tomato production in Imeko- crop. Babalola et al. (2010) analyzed the
Afon local government area of Ogun state determinants of post-harvest losses among
and this could have an effect on losses in the tomato producers in Imeko -Afon local
tomato production. Ozcan (2007) also listed government area of Ogun state and revealed
lack of training and experience for workers through regression analysis that the age of
as one of the reasons for post-harvest losses. fruits at harvest and the number of baskets
Sharma & Singh (2011) also found in his harvested as the major determinants of post-
study on Economic analysis of post-harvest harvest losses because harvesting more than
losses in vegetable in Uttarakhand that the the actual demand at a wrong time may
losses at grower level results from lack of causes loss and wastage. Sharma & Singh
farmer’s knowledge about the post-harvest (2011) also found harvesting at
management. They also have the very less inappropriate maturity, results in erratic
knowledge about appropriate maturity of ripening and poor quality as one of the most
fresh produce and proper time of harvesting important causes of Post-harvest losses.
which results in losses. Buyukbay et al. (2011) determined 5-
12.97% and 18.44 % of losses due to early
The next section covers the Poor harvesting
and late harvest in tomato and fresh bean
as the factors for losses in supply chain of
production in Tokat province of Turkey.
perishable fresh produce.
Ozcan (2007) also listed Early or late
Improper and Poor Harvesting harvest, Unsuitable method of harvest for
specific product, and Use of improper tools
Harvesting of the fresh produce at a wrong
and machines by the farmers in harvesting
time or before their maturity age can leads to
their farm fresh produce as the reasons for
the wastages in the perishable fresh produce
the marketing losses.
supply chain. Many researchers found poor

I 98
 Energy, Infrastructure and Transportation
Challenges and Way Forward

Verma & Singh (2004) estimated post- vegetable production is spoiled due to
harvest losses in fresh vegetables at farm improper handling and storage (Veena et al.,
level and found that losses are mainly 2011). Farmers do not take proper care of
caused by inadequate means of harvesting. fresh produce. They handle, grade and pack
Singh et al. (2008) identified faulty method these produce in a poor manner which
of harvesting as the factor responsible for subjected fresh produce too extreme of
losses. Harvesting is the first stage from temperatures, atmospheric modification or
where the wastage occurs in the supply contamination and attack by
chain of perishable fresh produce. So it is parasites/diseases. Gajanana et al. (2006)
very necessary to use of proper tools and found Pest and diseases at the field level,
machines and harvest the produce at their pressing and crushing of fruits at the market
proper time period to avoid the wastage. level and injury to fruits due to pressing at
the retail level as the major causal factor of
Storage and Handling
loss due to improper handling and storage.
Perishable fresh produce has a constraint of Ozcan (2007) listed lack of specific
very short shelf life so they require proper conditions during the storage as one of the
storage and handling after post-harvest. reasons for marketing losses in the fresh
Proper storage helps to maintain the quality produce.
of the fresh produce and safeguard them to
Poor packaging is also the reason causing
deteriorate from rough handling, bacteria,
losses in fresh produce supply chain.
fungus, mildew, insects etc. Farmers piled
Farmers use wooden crates and improper
their produce into large cane baskets or onto
method of packaging which causes loss.
trucks without proper measures and exposed
Rehman et al. (2007) found Packaging in
to the sun in temperature causing losses. Jain
bulk without sorting and grading of produce
(2007) discussed rough handling of produce
are the factors responsible for the losses.
as the main reason for post-harvest losses.
Adeoye et al. (2009) also found such reasons
There are several inefficiencies in storage
as the causes of economic losses to tomato.
and poor handling process which are the
Author also found that careless handling of
operational cause of waste in the supply
fresh produces causes bruising, thereby
chain (Murthy et al., 2009; Prigojin et al.,
resulting in splitting and skin breaks in the
2004). Over 25 percent of fruits and
fresh produce. Rough handling causes

I 99
 Energy, Infrastructure and Transportation
Challenges and Way Forward

damage during off-loading of the produces handling of the fresh produce makes
resulting in high percentage of losses in the handling a very difficult task during the
fruits and vegetables. Baskets are staked transportation. Most of the farmers use
over the other in a poor manner while faulty method of cleaning, drying and
transporting the produce from the farm gate storage (Verma & Singh, 2004).
to the market place. The bulkiness in the

-Inadequate infrastructural support

-Insufficient cold storage capacity
-Unavailability of cold storages
-Road connectivity & Network
-Inadequate processing facilities
-Mandi facilities
-Improper marketing facilities

-Large number of -Inadequate transportation

intermediaries facilities
Infrastructure -Timely delivery
-Fragmented marketing
channel -Delay in Shipment
-Carelessness by -Difficulty in Collection
Intermediaries Transportation -Transportation practices
Intermediaries
-Irresponsible driving
-Open Transport vehicles
POST
HARVEST
LOSSES AND
WASTAGE

-Rough handling
-Technological knowledge Farmer’s Storage and -Improper storage
-Lack of market Knowledge Handling -Injuries due to pressing
information
-Poor packaging
-Equipment’s knowledge Harvesting -Faulty method of
-Awareness level
cleaning, drying and
-Lack of training and
storage etc.
experience

-Harvesting at improper stage

-Improper care at harvesting
-Unsuitable method
-Improper tools and machines

Figure2. Factors leading to Losses and Wastage in the Supply Chain of Fruits and Vegetables

I 100
 Energy, Infrastructure and Transportation
Challenges and Way Forward

Measures for Improving Supply Chain of demand. Due to poor forecasting and
Fruits and Vegetables and its knowledge regarding market demand,
Effectiveness
there is imbalance between the actual
 Developing efficient and effective demand and the surplus supply. Proper
supply chain has to be the concerted mechanism needs to be developed to
effort of the entire stakeholder present forecast the demand.
in the supply chain of Fruits and  Proper coordination of farmers with
Vegetables sector. There has to be cooperatives, food processing industries
structural changes at different levels of and retail chain would facilitate better
the supply chain-Farmers, Local delivery of good, reduce market risk,
Intermediaries, Wholesale, Retailers provide better opportunities and
and consumers. The government, infrastructure, attract public investment,
private, public-private partnership, acquire better services and would help to
cooperative societies, technology create awareness regarding market
providers, educational institutions information as well as new technologies
dealing in agricultural studies and emerging in the sector.
NGOs can play a very important role in  Infrastructure for effective supply chain
improving the supply chain situations. from farm to the consumer end requires
 Infrastructure pertaining to agriculture well running cold chain facilities and all
sector like cold chain, sorting grading season roads to cater the needs of the
and packaging facilities, collection market This infrastructure development
centres, road connectivity from farm to requires huge amount of investment and
collection centres; Information and government intervention as well as
Communication Technology (ICT); participation.
Well established Transportation system;  Well Information system for better
Agricultural fairs and Training coordination among all the stake holders
Programs are basic requirements for from farmers to end consumers is the
success. need of the hour. In the emerging era of
 Proper demand forecasting is one of the technology, Internet and mobile
important requirements that enable communications can be used to enable
effective supply chain to meet future

I 101
 Energy, Infrastructure and Transportation
Challenges and Way Forward

information and financial transfer the use of fork-lift trucks, in order to

between the stakeholders. minimize produce mishandling.
 Private Player participation needs to be  On farm storage is required in remote
encouraged to develop facilities and and inaccessible areas of India, to reduce
provide services like washing, waxing, losses in highly perishable fresh
sorting, grading, packing, pre cooling horticultural produce. The high cost and
and processing facilities to add value in high energy requirements of
the supply chain of fruits and Vegetables refrigeration, and the difficulty of
sector. installing and running refrigerated
 There is an absolute lack of the concept facilities in remote areas of India,
of packing house establishments in precludes the use of refrigerated storage
India. Fruits and vegetables are generally in many parts of India. Low-cost, low-
packed in the field without any energy, environmentally friendly cool
pretreatment. Some are even transported chambers made from locally available
without any packaging. Farmer’s materials, and which utilize the
cooperatives and other agencies should principles of evaporative cooling, can be
be encouraged to establish packing developed in response to this problem.
stations at nodal points to augment the  Considerable volumes of unmarketable
marketing of Fruits and Vegetables. and physically damaged fruits and
 Loading and unloading are very vegetables that are without infection can
important steps in the logistical handling be converted into value added products
of Fruits and Vegetables but are often by processing.
neglected. The individual handling of
Conclusion
packaged produce in India leads to
mishandling and to high postharvest The Fruits and Vegetables sector is seen as
losses in India. With the introduction of an emerging and fast growing business
CFB boxes, serious consideration should sector in India. With the present food
be given to the introduction of wastage, food shortage, food security and
palletization and mechanical loading and safety are issues taking on growing
unloading of produce particularly with prominence in India. Considering the current
levels of Fruits and Vegetables wasted, well

I 102
 Energy, Infrastructure and Transportation
Challenges and Way Forward

designed supply chain will play an important and Vegetables supply chain and the
role in feeding the country populations and measures that have been adopted in various
help to improve the revenues and livelihood instances to minimize the losses and
of the farmers. The study and research wastage. The study will be helpful to the
conducted on the supply chain of fruits and various stakeholders involved in the supply
vegetables in India shows that that the chain of Fruits and Vegetables like Farmers,
supply chain of fresh agri produce is at its Transporters, Local traders, Commission
nascent stage and huge amount of losses and Agents, Cold storage providers etc. to
wastage has increased the problem of India identify and map the factors leading to
to serve the increasing populations. losses and wastage, and to also adopt
appropriate suggested measures to offset the
Poor Infrastructure, Large number of
risk of losses and wastage.
Intermediaries, Improper and poor
Harvesting, Poor Transportation, Lack of References
market Information, Lack of Knowledge and
Adeoye, IB, Odeleye, OMO, Babalola, SO and
Awareness of farmers and Poor Storage and Afolayan, SO (2009). Economic Analysis of tomato
Handling are some of the major factors losses in Ibadan metropolis, Oyo State, Nigeria. Afr.
contributing to losses and wastage in the J. of Basic & Appl. Sci. 1, 87-92.

supply chain of Fruits and Vegetables sector ASSOCHAM. (2013). Horticulture Sector in India-
in India. State level experience. New Delhi: The Associated
Chambes of Commerce and Industry of India.

Proper measures to improve the supply Babalola, D. A., T., O. B., Oyekanmi, M. O., & O, M.
Y. (2010). Determinants of post harvest losses in
chain efficiency, development of cold chain tomato production: a case study of Imeko – Afon
infrastructure and food processing units will local government area of Ogun state. acta SATECH-
Journal of Life and Physical Sciences, 3(2), 14-18.
help to improve the scenario of agricultural
Boer, K. D., & Pandey, A. (1997). India’s sleeping
sector and will give better returns to the giant: food. Mckinsey Quarterly.
farmers and also help to enhance and
Buyukbay, E., Uzunoz, M., & Bal, H. (2011). Post-
improve the food economy of India. harvest losses in tomato and fresh bean production in
Tokat province of Turkey. Scientific Research and
Essays, 6(7), 1656-1666.
Implication
CEAGESP. (2002). Diganao ao desperdicio.
The study has identified the major factors Disponivelem. Retrieved Juily 28, 2013, from
http://www.ceagesp.com.br>
leading to losses and wastage in the Fruits

I 103
 Energy, Infrastructure and Transportation
Challenges and Way Forward

CII. (1997). The Fruit and Vegetable Mena, C., Adenso-Diaz, B., & Yurt, O. (2011).
Opportunity:Food and Agriculture Integrated Thecauses of food waste in the supplier-retailer
Development (FAID) Action Report. Mckinsey interface: Evidences from the UK and Spain.
Report. Resources, Conservation and Recycling, 55(6), 648-
658.
Dharni, K., & Sharma, S. (2008). Food Processing in
India: Opportunities and Constraints. The Icfai Modi, P., Mishra, D., Gulati, H., & Murugesan, K.
University Journal of Agricultural Economics, V(3), (2009, April-June). UTTARAKHAND STATE
30-38. COOPERATIVE FEDERATION: CAN IT HELP THE
HORTICULTURE FARMERS? VISION—The
Gauraha, A., & Thakur, B. (2008). Comparative Journal of Business Perspective, 13(2), 53-61.
economic analysis of post-harvest losses in
vegetables and foodgrains crops in Chhattisgarh. Murthy, D. S., Gajanana, T. .., Sudha, M., &
Indian Journal of Agricultural Economics, 63(3), Dakshinamoorthy, V. .. (2007). Marketing Losses and
376. Their Impact on Marketing Margins: A Case Study of
Banana in Karnataka. Agricultural Economics
Jain, N. (2007). International Conference on Research Review, 20, 47-60.
Agribusiness and Food Industry in Developing
Countries : Opportunities and Challenges. Retrieved Murthy, D. S., Gajanana, T. M., Sudha, M., &
February 19, 2013, from IIM Lucknow: Dakshinamoorthy, V. (2009). Marketing and Post
http://www.iiml.ac.in/events/Program.html harvest losses in fruits: Its implications on
Availability and economy. Indian Journal of
Kader, A. (2005). Increasing food availability by Agricultural economics, 64(2), 259-275.
reducing postharvest losses of fresh produce. V
International Post-harvest Symposium, International Narula, S. A. (2011). Reinventing cold chain industry
Society for Horticulutral Science. Italy: Verona.
in India: need of the hour.Interview with Mr Sanjay
Kader, A., & Rolle, R. (2004). In the role of post Aggarwal. Journal of Agribusiness in Developing
harvest management in assuring the quality and and Emerging Economies, 1(2).
safety of horticultural produce, FAO Food and
Negi, S., & Anand, N. (2014, December). Supply
Agricultural Organizations of the United Nations,
Chain Efficiency: An Insight from Fruits and
Rome.
Vegetables Sector in India. Journal of Operations
Maheshwar, C., & Chanakwa, T. S. (2006). and Supply Chain Management, 7(2), 154-167.
POSTHARVEST LOSSES DUE TO GAPS IN COLD
Negi, S., & Anand, N. (2015). Supply Chain of Fruits
CHAIN IN INDIA-A SOLUTION, ISHS Acta
& Vegetables’ Agribusiness in Uttarakhand (India):
Horticulturae 712: IV International Conference on
Major Issues and Challenges. Journal of Supply
Managing Quality in Chains - The Integrated View
Chain Management Systems, 4(1 & 2), 43-57.
on Fruits and Vegetables Quality. Retrieved January
26, 2014, from Acta Horticulturae: Negi, S., & Anand, N. (2015). Cold Chain: A Weak
http://www.actahort.org/books/712/712_100.htm Link in the Fruits and Vegetables Supply Chain in
India. The IUP Journal of Supply Chain
Mathi, K. M. (2007). A Study on the Supply Chain
Management, 48-62.
Management of Guava in Allahabad District of Uttar
Pradesh. Retrieved February 19, 2013, from Negi, S., & Anand, N. (2015). Issues and challenges
International Conference on Agribusiness and Food in the supply chain of fruits & vegetables sector in
Industry in Developing Countries : Opportunities and India: A Review. International Journal of Managing
Challenges: Value and Supply Chains, 6(2), 47-62.
http://www.iiml.ac.in/events/Program.html
NHB. (2015). Area and Production Status- Final
Area & Production Estimates for Horticulture Crops

I 104
 Energy, Infrastructure and Transportation
Challenges and Way Forward

for 2013-2014. Retrieved January 26, 2015, from International Food & Agribusiness Management
National Horticulture Board: Association, 19th Annual World Symposium.
http://nhb.gov.in/area%20_production.html
T.M.Gajanana, Murthy, D. S., Sudha, M., &
Ozcan, M. (2007). Affects on Quality and Durability Dakshinamoorty, V. (2006). Marketing and
of Harvest and Post-Harvest Practices in estimation of post-harvest losses of tomato crop in
Horticultural Products. Retrieved September 18, Karnataka. Indian Journal of Agricultural
2013,from Marketing, 20(1), 1-7.
http://www.carsambaziraatodasi.com/ab1_1.asp,
Veena, Babu, K. N., & Venkatesha, H. R. (2011).
Prigojin, I. Fallik, E., Qat, Y., Ajalin, I, Allam, H., Supply Chain: A Differentiator in Marketing Fresh
Ezzat, M., Almasri, M. and Bader, M. 2005. Middle Produce. The IUP Journal of Supply Chain
East regional agricultural program - survey on Management, VIII(I), 23-36.
postharvest losses of tomato fruit (Lycopersicon
esculentum) and table grapes (Vitis vinifera), Acta Verma, A., & Singh, K. (2004). An economic analysis
Hort. 682:1049-1056
of Post harvest losses in Fresh Vegetables. Indian
Rathore, J., Sharma, A., & Saxena, K. (2010). Cold Journal of Agriculturakl Marketing, 18(1), 134-139.
Chain Infrastructure for Frozen Food:A Weak Link
Viswanadham, N. (2007). Can India be the food
in Indian Retail Sector. The IUP Journal of Supply
basket for the world?, Working Paper series, IBS,
Chain Management, VII(1 & 2), 90-103.
Hyderabad. Retrieved from
Rehman, M. u., Khan, N., & Jan, I. (2007). POST http://www.cccindia.co/corecentre/Database/Docs/D
HARVEST LOSSES IN TOMATO CROP (A Case of ocFiles/Can_India_be.pdf
Peshawar Valley) . Sarhad Journal of Agriculture,
1279-1284.

Sharma, G., & Singh, S. (2011). Economic Analysis

of Post-harvest Losses in Marketing of Vegetables in
Uttarakhand. Agricultural Economics Research
Review, 24, 309-315.

Shukla, M., & Jharkharia, S. (2013). Agri-fresh

produce supply chain management: a state-of-the-
artliterature review. International Journal of
Operations & Production Management, 33(2), 114-
158.

Simchi-Levi, D., Kaminsky, P., Simchi-Levi, E., &

Shankar, R. (2008). Designing and Managing the
Supply Chains – Concepts, Strategies and Case
Studies. New Delhi: Tata McGraw-Hill.

Singh, R., Kushwaha, R., & Verma, S. K. (2008). An

economic appraisal of post-harvest losses in
vegetable in Uttar Pradesh. Indian Journal of
Agricultural Economics, 63(3), 378.

Singh, S. P., Sikka, B. K., & Singh, A. (2009). Supply

Chain Management and Indian Fresh Produce
Supply Chain: Opportunities and Challenges.

I 105

View publication stats