Emerging models for fruits and vegetable supply chains in India include cooperatives, exports, integrated farm-to-fork systems, wholesaling, and convenience stores. Setting up these chains requires infrastructure, knowledge inputs, and coordination between farmers, companies, and other players. Key issues include developing farmer linkages and training, meeting infrastructure needs, and navigating APMC regulations. Government and donor interventions could help create an enabling policy environment, develop small farmer linkages, invest in infrastructure, and facilitate public-private partnerships along supply chains.

1. Fruits and Vegetables (F&V) Supply Chains inFruits and Vegetables (F&V) Supply Chains in
India: Emerging Models and IssuesIndia: Emerging Models and Issues
Meeta PunjabiMeeta Punjabi
Vijay SardanaVijay Sardana
FAO & MoAFAO & MoA
New Delhi, IndiaNew Delhi, India

2. OutlineOutline
 Background of the StudyBackground of the Study
 Literature Review: Situation in other Developing CountriesLiterature Review: Situation in other Developing Countries
 Emerging ModelsEmerging Models
 Requirements for setting up Supply ChainsRequirements for setting up Supply Chains
 Issues in Setting up the ChainIssues in Setting up the Chain
 Areas of Intervention by Govt. agencies/donor groupsAreas of Intervention by Govt. agencies/donor groups
 Examples: Co-ordination between different players in settingExamples: Co-ordination between different players in setting
up the chain (Role of Govt, NGO, Credit, supermarket chains)up the chain (Role of Govt, NGO, Credit, supermarket chains)

3. Background of the StudyBackground of the Study
 The marketing of F&V in India is changing dramaticallyThe marketing of F&V in India is changing dramatically
 Change from the traditional markets to modern formatsChange from the traditional markets to modern formats
 Entry of big retail names – Reliance, ITC, Aditya Birla Group,Entry of big retail names – Reliance, ITC, Aditya Birla Group,
Godrej, Bharti Airtel, Adani GroupGodrej, Bharti Airtel, Adani Group
 Initiation of organized retailing and wholesaling of F&V:Initiation of organized retailing and wholesaling of F&V:
 Reliance Fresh, Chopal Fresh, Namdhari’s FreshReliance Fresh, Chopal Fresh, Namdhari’s Fresh
 FAO and MoA undertook the current study to understand theFAO and MoA undertook the current study to understand the
ground situationground situation
 Emerging models for backward and forward linkagesEmerging models for backward and forward linkages
 Issues in setting up the chainsIssues in setting up the chains

4. Literature ReviewLiterature Review
 The perception of retail chains being a phenomena of theThe perception of retail chains being a phenomena of the
developed countries has changed significantlydeveloped countries has changed significantly
 Significant presence in developing countries – Latin America,Significant presence in developing countries – Latin America,
Asia, AfricaAsia, Africa
 What does retail chains have to do with development?What does retail chains have to do with development?
 Development perspective: farmers involved in modern value chainsDevelopment perspective: farmers involved in modern value chains
earn much higher by bypassing the tradersearn much higher by bypassing the traders
 Large and medium farmers have the resources to meet the requirementsLarge and medium farmers have the resources to meet the requirements
of the chains, easier to co-ordinateof the chains, easier to co-ordinate
 Development efforts: linking small farmers to these chainsDevelopment efforts: linking small farmers to these chains

5. Emerging ModelsEmerging Models
 Co-operative (HOPCOMS, Karnataka; Mother Dairy, Delhi)Co-operative (HOPCOMS, Karnataka; Mother Dairy, Delhi)
 Exports with EUREPGAP Certification (Namdhari Fresh,Exports with EUREPGAP Certification (Namdhari Fresh,
Bharti Airtel)Bharti Airtel)
 Farm to Fork -- Complete Chain (Godrej, Reliance, ITC)Farm to Fork -- Complete Chain (Godrej, Reliance, ITC)
 Wholesaling – (Adani Fresh, Metro)Wholesaling – (Adani Fresh, Metro)
 Front end – Convenience Stores (Food Bazaar, 3Cs)Front end – Convenience Stores (Food Bazaar, 3Cs)
 Economy Stores (Subhiksha)Economy Stores (Subhiksha)

6. Requirements for Setting Up the ChainRequirements for Setting Up the Chain
Infrastructure (Back end to front end)Infrastructure (Back end to front end)
 Collection centerCollection center
 Soil-testing LaboratorySoil-testing Laboratory
 Packing House/Distribution CenterPacking House/Distribution Center
 Packing infrastructure -- tablesPacking infrastructure -- tables
 Cold-StoragesCold-Storages
 Transportation –Transportation – Refer trucksRefer trucks
 Retail outletsRetail outlets
 Real estateReal estate
 Investment in refrigeration facilities at the storesInvestment in refrigeration facilities at the stores

7. Requirements for Setting Up the ChainRequirements for Setting Up the Chain
Knowledge InputsKnowledge Inputs
 Extension advice to farmers:Extension advice to farmers:
 use of different varietiesuse of different varieties
 production techniquesproduction techniques
 harvesting (time of harvesting, harvesting techniques)harvesting (time of harvesting, harvesting techniques)
 grading/sorting, packaginggrading/sorting, packaging
 Setting up Grades and Standards for purchase by the companySetting up Grades and Standards for purchase by the company
 Training staff at packing centers (grading, sorting, packing)Training staff at packing centers (grading, sorting, packing)
 Post-harvest experts (handling and storing needs of differentPost-harvest experts (handling and storing needs of different
F&V)F&V)
 Cold Storage Technology (?)Cold Storage Technology (?)
 Packaging Technology for FreshPackaging Technology for Fresh

8. Requirements for Setting Up the ChainRequirements for Setting Up the Chain
Co-ordinationCo-ordination
 Developing linkages with farmersDeveloping linkages with farmers
 Inputs for farmers (Credit, seed, fertilizers, pesticides,Inputs for farmers (Credit, seed, fertilizers, pesticides,
harvesting tools, packaging materials)harvesting tools, packaging materials)
Information flowInformation flow
 Communication regarding the quantity and quality needs inCommunication regarding the quantity and quality needs in
the companythe company
 Communicating the requirements to the farmersCommunicating the requirements to the farmers

9. Issues in setting up the chainsIssues in setting up the chains
 Developing linkages with farmersDeveloping linkages with farmers
 Post-harvest manpowerPost-harvest manpower
 Commitment from farmersCommitment from farmers
 Infrastructure (level of operation, not everyone needs to investInfrastructure (level of operation, not everyone needs to invest
or can invest in packing house)or can invest in packing house)
 APMC Act (paper work, operational hindrance, time involved,APMC Act (paper work, operational hindrance, time involved,
grading, sorting, packaging)grading, sorting, packaging)
 Farmer’s training in pre-cooling, storing, grading, sorting,Farmer’s training in pre-cooling, storing, grading, sorting,
packagingpackaging
 Packaging technology for freshPackaging technology for fresh

10. Areas of Intervention by Govt/Donor GroupsAreas of Intervention by Govt/Donor Groups
 Create an enabling policy environment that promotes mutually beneficialCreate an enabling policy environment that promotes mutually beneficial
partnerships between farmers and organized sectorpartnerships between farmers and organized sector
 To give credibility to the project (low faith/fear) in dealing withTo give credibility to the project (low faith/fear) in dealing with
corporations,corporations,
 Develop linkages with small farmersDevelop linkages with small farmers
 Training to farmers regarding post-harvest issuesTraining to farmers regarding post-harvest issues
 Investment in Infrastructure: Not all firms dealing in fresh fruits andInvestment in Infrastructure: Not all firms dealing in fresh fruits and
vegetables have the level of operations to set up cold stores and packingvegetables have the level of operations to set up cold stores and packing
houses. To give a level playing field to the smaller firms, govt. investmenthouses. To give a level playing field to the smaller firms, govt. investment
in cold storages and packing houses will be useful.in cold storages and packing houses will be useful.
 Investment in transportation infrastructure – refer trucks, (import taxes?Investment in transportation infrastructure – refer trucks, (import taxes?
subsidy?)subsidy?)
 Air-port infrastructure for shipping, cold-storages,Air-port infrastructure for shipping, cold-storages,

11. Example (USAID)Example (USAID)
USAID/Michigan State University Partnerships in Food IndustryUSAID/Michigan State University Partnerships in Food Industry
Development in Nicaragua,Development in Nicaragua, (Weatherspoon and Membreño, 2004).(Weatherspoon and Membreño, 2004).
 US university facilitates the market connections for smallUS university facilitates the market connections for small
farmer organisations with the local supermarket chains,farmer organisations with the local supermarket chains,
 NGOs (Technoserve) provide technical assistanceNGOs (Technoserve) provide technical assistance
 Supermarket chains -- CSU and La Colonia provide theSupermarket chains -- CSU and La Colonia provide the
guaranteed marketguaranteed market
 Donor funds from USAID provide the financing.Donor funds from USAID provide the financing.
 The project has a graduation policy whereby the small farmerThe project has a graduation policy whereby the small farmer
organisations progressively take over the needed investmentsorganisations progressively take over the needed investments
and then maintain the market link themselvesand then maintain the market link themselves

12. ExampleExample
Governments, NGOs, and donors can facilitate tri- or quadri-Governments, NGOs, and donors can facilitate tri- or quadri-
partite relationships that facilitate smaller farmerpartite relationships that facilitate smaller farmer
participation.participation.
 Example, melons in Indonesia, Reardon (2004)Example, melons in Indonesia, Reardon (2004)
 Small farmer organisation (Makar Buah),Small farmer organisation (Makar Buah),
 Supermarket chain (Carrefour),Supermarket chain (Carrefour),
 Seed/chemical company (Syngenta),Seed/chemical company (Syngenta),
 Government extension programme,Government extension programme,
 Specialised/dedicated wholesaler (Bimandiri)Specialised/dedicated wholesaler (Bimandiri)
 Carrefour provided guaranteed market, Syngenta theCarrefour provided guaranteed market, Syngenta the
financing, and the wholesaler the intermediation andfinancing, and the wholesaler the intermediation and
coordinationcoordination