1. INTEGRATED SUPPLY CHAIN NETWORKS Food Supply Chain Excellence Untapped Comparative Advantage The Food Supply Chain In India Untapped Comparative Advantage N. Viswanadham Indian Institute of Science October 5,2013 Workshop at IIT Kharagpur on Sustainable Food Security through Technological Interventions for Production, Processing and Logistics

2. Food Supply Chain Excellence A Revolution in the Making Break through Innovations are possible with booming employment opportunities. out of the box thinking business models with What is needed is out of the box thinking in terms of product offerings made to various customer segments with appropriate business models with Affordability, Availability and Awareness in mind. N.Viswanadham

3. Food Supply Chain Excellence The India Advantage In India, 52% of land is cultivable & World average is 11% All 15 major climates of the World are in India – Snow bound Himalayas to hot humid southern peninsula, – Thar desert to heavy rain areas Has 20 agro-climatic regions & 46 out of 60 in soil types Sunshine hours and day length ideally suited for year round crop cultivation. Mega centre for biodiversity in plants, animals, insects, microorganism and accounts for 17% animal, 12% plants and 10% fish genetic resources of the globe. Live stock sector: India has 16% of cattle, 57% of buffalos, 17% of goats and 5 % of sheep population of the world.

4. Food Supply Chain Excellence The Plough-Plate Food Supply Chain The supply chain involves farmers, seed producers, fertilizer factories, financial institutions, millers, government, warehouses, fair price shops, retail shops, railways, truck transport companies, etc. The relationship among the actors is adhoc and not planned leading to inefficiencies

5. Food Supply Chain Excellence Benchmarking Food Chain Institutions Resources & Management Supply chains Delivery Services and mechanisms Resources Resources Management Supply ChainProduct Offering Logistics Economic Policies Information Technology Trade Tariffs FOOD SUPPLY CHAIN No Cold Chain No Supply Chain Visibility Packaging Duties HighProtectionist Too many intermediariesFew Processed Products/Labs Abundant Inefficient and Fragmented Planning

6. Food Supply Chain Excellence N.Viswanadham State of Indian Food Sector Consequences 1.Surplus food wasted away 2.Low incomes to farmers 3.Inefficient supply chain 4.Not meeting the young consumer preferences (processed hygienic food) Opportunities 1.Cold chain infrastructure builders 2.Processed food manufacturers 3.Food packaging & logistics providers 4.Food retailers and Exporters 5.IT and data analysts 6.Research Institutions Strengths 1.Vast natural resources (cultivable land, water, seasons) 2.Established farming system 3.Growing economy 4.Supporting government policies (FDI, APEDA, subsidies) 5. Vital outsourcing hub Weaknesses 1.Small scale conventional farming 2.Primitive post-harvest methods 3.No channel master & many farmers to consumers intermediaries 4. Hardly any Food processing industry 5. Inadequate storage & transport (logistic )infrastructure Potential to become a leading food supplier for the whole world

7. FOOD SUPPLY CHAIN ECOSYSTEM FOOD SUPPLY CHAIN ECOSYSTEM Food Parks, APEDA, Freight Corridors Sensor networks & supply chain visibility Cold Chain Logistics DELIVERY SERVICE INFRASTRUCTURE Sourcing Hubs, Food Courts, Clusters HR management Dealing with Kirana shops, Financials Water, Power, seeds Infrastructure: Canals, Roads, Research: University, Seeds, Testing, Dev, Labs RESOURCES Quality Control & Environmental Issues APMC, Min price, Essential Commodities, PDS,VAT INSTITUTIONS Social (Kirana shops), Financial & Trade issues FOOD SUPPLY CHAINS Retail Chains Mandis, Restaurants Distribution Packaging Food Manufacturing Suppliers Farmers, Fisheries, Meat, Dairy

8.  LICENCES & PERMITS  INDUSTRIAL DISPUTE ACT  SHOP & ESTABLISHMENT ACT  COSUMER PROTECTION ACT  WEIGHT & MEASUREMENT ACT  PACKAGING ACT  PREVENTION OF FOOD ADULTRATION ACT  PREVENTION OF BLOCK MARKETING ACT  ANTI HOARDING & PROFEELING ACT  MONEY LENDING ACT  PRODEND FUND ACT  MINIMUM WAGES ACT  ESI ACT  GRATUITY ACT  BONUS ACT INEFFICIENT LABOURS PRESENT CONDITION OF TRADERS INSPECTOR RAJ POLITICIAL INTERFERANCE ANTI SOCAL ELEMENTS WATER TAX POWER PROBLEM HIGH BANK CHARGES SALES TAX OCTROI SERVICE TAX WELTH TAX PROFESSIONAL TAX INCOME TAX ENTRY TAX VAT STAMP DUTY POOR MARKET CONDITION PURCHASE TAX ESSENTIAL COMMODITIES ACT CENTRAL EXCISE Presented By Mr. B.C.Bhartia,Nagpur. FDI in Retail Trade Fringe Benefit Tax New Naka Complex Cash Transaction Tax & Quarterly ‘C’ Form

9. Food Supply Chain Excellence What Is Food Security? “when all people at all times have access to sufficient, safe, nutritious food to maintain a healthy and active life”. The World Food Summit of 1996 defined food security as existing “when all people at all times have access to sufficient, safe, nutritious food to maintain a healthy and active life”. Thus food security implies both physical and economic access to food that meets their dietary needs, nutritional requirements and food preferences. Nutritious food providers have three functions: Making it Available at Affordable prices and creating Awareness to the consumers

10. Food Supply Chain Excellence Food security: India ranks lower than Rwanda Global Hunger Index, According to the International Food Policy Research Institute's Global Hunger Index, 2011, India ranks 67 of the 81 countries of the world with the worst food security status. The GHI is composed of three equally weighted indicators - the proportion of the population that is undernourished, the proportion of children who are underweight and under-five child mortality. N.Viswanadham

11. Food Supply Chain Excellence India needs to Usher the Agri- Service Revolution A strategic vision for the Agri-service sector Streamline and upgrade the agri-service chains using modern technologies: Demand driven agriculture, Processing industry, Visibility Initiate education, research and entrepreneurial programs in Agri-Service sector innovation Plan and Build integrated Food -service systems in rural and urban areas 11 N.Viswanadham

12. Food Supply Chain Excellence Specific Five things India Needs Post Harvest Research Food Manufacturing with Added Vitamins And Minerals Distribute Nutritious Food not Grains Attention to supply chain and logistics and minimize wastage Regulations by the State and Centre Governments : APMC act, Minimum support price act, etc N.Viswanadham

13. Food Supply Chain Excellence 141106 N.Viswanadham New to Market Innovation Food Product Market Estimation New to Market Innovation Food Product Market Estimation Estimate your market right How many people will buy orange juice packets if it is as cheap as a coffee or tea on a road side stall and costs only Rs 5 Look at the reduction in the disease burden

14. Food Supply Chain Excellence ConsumersConsumers Vocational Training Processed Food Products Meat & Diary Products PDS Mid Day Meals Households Hawkers Kitchen Distribution Center Food Security Solution: To Serve 100M Urban Poor IT Backbone on Cloud

15. Food Supply Chain Excellence The IIT Kharagpur Initiative This initiative fills in the much needed research efforts in the supply chain, logistics and food security areas The involvement of the IIT faculty and research students would make a much needed contribution to the food security in India and the world. N.Viswanadham