1.
Major players in Agriculture
Supply Chain
1
• Farmers
2
• Traders
3
• Commission agents
4
• Wholesalers
5
• Retailers
6
• Consumers
BITS Pilani, Pilani Campus

2.
Agriculture Supply Chain
Configurations Agriculture
Supply Chain
Cooperative supply
chain model
Collaborative
supply chain model
Contract farming
BITS Pilani, Pilani Campus

3.
1. Cooperative supply chain
model
BITS Pilani, Pilani Campus

4.
1. Cooperative supply chain
model
Example:
In some parts of India milk is collected and sold by cooperatives. The
cooperative movement for milk was initiated by the National Dairy
Development Board (NDDB) (Chakravarty, 2000).
Outcomes of milk cooperatives:
• The efficiency, transparency and fairness of the system have
improved ( www.digitaldividend.org/pdf/akashganga).
• The government’s attitude towards the cooperative system is
positive, especially after the success of the milk sector.
BITS Pilani, Pilani Campus

5.
2. Collaborative supply chain
model
Example: Consumer durables and FMCG supply Chain
BITS Pilani, Pilani Campus

6.
3. Contract farming
commitment from
The purchaser
commitment from
The farmers
BITS Pilani, Pilani Campus

7.
3. Contract farming
Advantages:
• This is helpful for farmers, since they get access to the
inputs and the market at a fair price.
• Also, the processor gets an assured supply of raw material.
BITS Pilani, Pilani Campus

8.
Total Supply Chain Cost
BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956

9.
Estimated cost escalation
in the Indian grain chain
Figure clearly reflects the end consumer on average pays more than
three times the farm gate price for grain.
BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956

10.
Intermediaries in the grain supply chain
and their margins and value additions
BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956

11.
Reasons for the existence of
intermediaries
• Age-old historical loyalty of farmers to their agents, because these
agents provide debt to the farmer;
• Local understanding and relationships with transporters
• Lack of guidelines and rules in the development
• Organised cartels between commission agents, wholesalers and
transporters;
• Lack of scale in terms of what each farmer produces, sheer
numbers of small farmers drive down bargaining power
• Lack of effort in development from front-end players (retailers)
BITS Pilani, Pilani Campus