Post Harvest Handling & Value Addition 28th September 2017 Amit Mundawala | Executive Director

Collateral Management About StarAgri Warehousing Collateral Management Star Labs Procurement Logistics Private Mandi AgriBazaar Founded in 2006, StarAgri is one of Asia’s leading post harvest solutions company with global ambitions. With an integrated agri-solutions strategy across the post harvest needs of both producers and buyers, we leverage tie-ups with some of India’s leading financial institutions to hold commodities worth INR 250 billion across over 250 collateral management locations. Our unrivalled farmer reach, in-depth understanding of the agribusiness and appreciation of the challenges facing the country’s rural sector have enabled us to grow into one of India’s most preferred agribusiness service provider. With a pan-India network of 1,300+ warehouses across 16 states and over 1.5 million tonnes of warehousing capacity, StarAgri caters to customers ranging from banks to international bulk commodity buyers, food, health & FMCG companies and commodity exchanges. We deliver integrated post harvest solutions including warehousing, collateral financing, procurement and value-added services to enhance efficiency across the entire food supply chain.

Food Security & Post Harvest Management “Food security exists when all people, at all times, have PHYSICAL and ECONOMIC access to sufficient, safe and nutritious food to meet their dietary needs and food preferences for an active and healthy life” - FAO Post harvest management can contribute in 3 ways Reduce prices Enhance availability Reduce losses

Challenges in distribution “The crux of India's food problem today pertains not so much on increasing food availability or production but with the distribution of food” Challenges with food distribution (grains & pulses) Lack of market infrastructure – price disparity Lack of assaying & quality certification resources Lack Bulk handling & storage infrastructure – adds handling cost & losses

Marketing infrastructure Issues related to Marketing Infrastructure Limited number of mandis, lack of facilities within mandis, lack of transparency & information sharing, limited number of buyers, non-standard mandi rules across states (and even within states) Recommendations to address the issues E-Mandis Online virtual mandis Large number of entry points (delivery centers) with integrated infrastructure for assaying, trading, storage, financing, etc. Warehouse as e-mandi PPP in Mandis Integrating public and private resources for wide reach Partnership with private service providers for successful implementation of eNAM

Quality assaying for standardization Issues related to Quality assaying Diversified cropping pattern, diversified farming practices, large number of varieties and grades within varieties, Small land holdings – small lot sizes Recommendations to address the issues Lab infrastructure Creating awareness about need for quality assaying QC labs infrastructure to reach out to every market place Standardization of sampling and assaying practices Skilled manpower integrating public and private resources for wide reach (the main reason why eNAM has not been able to succeed despite efforts from Government)

Bulk handling & storage Issues related to Bulk handling & storage Traditional bags storage leads to low space utilization, higher handling cost, high cost of storage infrastructure, losses, low shelf life | Bulk storage limited to wheat and rice only Recommendations to address the issues Silos at farmgate Low capacity storage Mechanized handling

Post harvest management for perishables Primary processing at production centers Sorting, grading, packaging processing infrastructure at production centers to reduce post harvest losses Temperature controlled storage Existing cold storage infrastructure capital intensive and high on operational cost due to low capacity utilization Temperature controlled storage to reduce capital cost and enhance capacity utilization Reefer transportation Lack of reefer trucks due to high capital cost Subsidy from Government to enhance logistics infrastructure

Thank you