UPSC Mains 2015 · GS III · Q6 · 12.5 marks · 200 words

What are the impediments in marketing and supply chain management in developing the food processing industry in India ? Can e-commerce help in overcoming these bottlenecks ?

हिन्दी में

भारत में खाद्य प्रसंस्करण उद्योग का विकास करने की राह में विपणन और पूर्ति शृंखला प्रबंधन में क्या बाधाएँ हैं ? क्या इन बाधाओं पर काबू पाने में ई-वाणिज्य सहायक हो सकता है ?

How a topper answered the closest question

Toppers wrote this one in a test series: “Food processing industry provides a vital link between the two pillars of the economy, i.e. agriculture and industry. In view of this, examine the constraints faced by the agri-food supply chain system in India. Suggest suitable solutions as well.”

Surabhi YadavAIR 14 · CSE 2025 · 268 wordsTheir whole copy

Opening · a definition

Ans. food processing Industry refers to value addition provided by industrial sector to food products provided by the agriculture, thus serving as a link. eg:- Pasteurisation of milk or making bread from wheat.

Body · points

But this industry faces certain constraints such as:

1- Perishable goods:- Raw material has low shelf life, Industry needs to be located nearby to fully utilise agricultural goods, which otherwise get rotten. eg: Fruits, vegetables fresh for only 3-4 days.

2- Transportation - Costly for small scale farmers, high fuel costs discourage farmers.

3- Storage - Most farmers do not have appropiate storage system.

4- low produce - Most farmers have less than 1 ha of holdings, with very low produce, not ideal for industry supply.

5- Contracted Issues - Many farmers illetrate, no idea of legality of contracts with industry, get exploited.

6- Quality control - Industry demands certain quality standards, if farmer fail due to unavoidable reasons, farmers left in distress

Thus, agri-food supply chain system faces certain issues. However, there are certain suggestions to overcome these hurdles

1- eNAM portal needs to be strengthened, so that farmers could trade their produce at live prices. It becomes legal and enforceable, protecting farmers.

2- MANDI system should be revamped to remove middle man and farmers get direct benefit.

3- SHGs like Farmers Producers Organisations to be strengthened so that group of farmers could collectively deal with their produce.

4- Storage system needs to be improved. Increase private participation to provide end-to-end storage and transport facilities.

Close · a way forward

Agricultural sector is backbone of Indian economy. Its strengthening could help us achieve 5 trillion economy envisioned by government.

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Source: UPSC, Civil Services (Main) Examination 2015, General Studies Paper III, Q6. The paper on upsc.gov.in. Themes and links to toppers’ answers are by UPSC Grade, not by UPSC.