High-value agriculture in India is witnessing a transformation, specifically in fresh fruits and vegetables (FFV). Supply chain stakeholders, mainly small and marginal farmers, receive a very minimal share in consumer rupee due to market uncertainty, high post-harvest losses, information asymmetry, lack of processing facilities and the erratic demand-supply situation. The current study draws from an extensive review to propose a competitive, inclusive, sustainable and scalable supply chain model of primary processing centers connecting farmers directly and efficiently with consumers. The proposed model will connect producers with the rest of the supply chain and streamline the supply chain process to reduce post-harvest losses as much as possible. The integration of a market information system will ensure transparency to help in better decision-making, reduced intermediaries and information asymmetry for producers, as well as the systematic disposal of the produce. The model will increase the efficiency of the FFV supply chain and has practical implications for agribusiness management and policymakers in relation to FFV supply chain development in India.
Purpose
The purpose of this paper is to estimate the market demand and compare the average market margins for six broad categories of fresh produce in different retail formats across five select cities of the country. It also tries to qualitatively understand the supply chain management practices of these retailers across cities.
Design/methodology/approach
Registered retail outlets were selected randomly from online sources. Market potential was estimated as the average sales of each category of fresh produce. Personal interviews were conducted with the market players in order to collect qualitative data about their supply chain management practices.
Findings
Potatoes, onions and tomatoes are the largest consumed category of fresh produce across cities. Consumers in Tier 1 and Tier 2 cities exhibit different buying behavior and preferences. Large retailers and small retailers coexist in the cities. Marketing margins of retail formats are not uniform across cities.
Research limitations/implications
The study did not capture the reasons for the differences observed in consumer preferences and buying behavior across cities. The study has taken into consideration only registered neighborhood stores in the study locations.
Originality/value
To the best of the authors’ knowledge, the paper is first of its kind which has attempted to estimate the categorywise market potential of fresh produce across study cities.
The present investigation was conducted in Bikaner district of Rajasthan. Block Bikaner was selected purposively due to its maximum and KCC scheme was prevelant therein. 10 villages were selected purposively from the selected block as KCC scheme was operating therein. 75 KCC holders and 75 KCC non-holders were selected on the basis of probability proporsinate procedure. Thus, total number of respondents were 150. Most of the KCC holders (38.67%) were under middle age group whereas 37.33 per cent KCC holders were under young age group. Most of the holders 58.67 per cent belonged to OBC caste. 45.33 per cent holders were educated from primary to middle school. Majority of KCC holder were big farmers. Annual income of 41.33 per cent KCC holders was 3-6 lakhs. There was highly significant between KCC holder and KCC Non-holders in context of their productivity of (moth, groundnut, cluster bean, wheat, mustard and gram).
J. Swinnen, K. Deconinck, T. Vandemoortele and A. Vandeplas. 2015. Quality Standards, Value Chains and International Development: Economic and Political Theory. Cambridge: Cambridge University Press, 328 pp., US$39.99, ISBN: 9781139198912.
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