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GS Paper: GS3-06.Storage, transport and marketing of Agricultural produce and issues and related constraints

  • Matcha Tea: India’s First Commercially Produced Matcha

    Why in News?

    An Assam tea estate, Chota Tingrai Tea Estate in Tinsukia district, has produced and sold India’s first commercially produced matcha tea at the Guwahati Tea Auction Centre, marking India’s entry into the premium global matcha market.

    What is Matcha?

    • Matcha is a finely powdered green tea made from specially cultivated shade-grown leaves of Camellia sinensis.
    • Unlike conventional green tea, where leaves are steeped and discarded, the entire powdered leaf is consumed, providing higher nutritional benefits.

    How is Matcha Produced?

    • Tea plants are shaded for 3 to 4 weeks before harvest.
    • Around 90% of sunlight is blocked, resulting in:
      • Increased chlorophyll content (bright green colour).
      • Higher L-theanine (amino acid) levels.
      • Enhanced antioxidants and natural caffeine.
    • Young leaves are Steamed to prevent oxidation, Dried, De-stemmed and de-veined, Stone-ground into a fine green powder.

    How is Matcha Different from Green Tea?

    • Matcha uses shade-grown tea leaves, whereas ordinary green tea is generally grown under normal sunlight.
    • In matcha, the entire powdered leaf is consumed, while in green tea the leaves are steeped in water and then discarded.
    • Matcha contains higher levels of chlorophyll, antioxidants, L-theanine, and natural caffeine.
    • It has a rich umami flavour and vibrant green colour.

    [2022] With reference to the “Tea Board” in India, consider the following statements:
    1. The Tea Board is a statutory body.
    2. It is a regulatory body attached to the Ministry of Agriculture and Farmers Welfare.
    3. The Tea Board’s Head Office is situated in Bengaluru.
    4. The Board has overseas office at Dubai and Moscow.
    Which of the statements given above are correct?

    [A] 1 and 3

    [B] 2 and 4

    [C] 3 and 4

    [D] 1 and 4

  • Kisan Sarathi Platform

    Why in News?

    The Government highlighted Kisan Sarathi, India’s integrated digital agro-advisory platform, for strengthening agricultural extension services through technology, multilingual support, and expert-based advisories.

    What is Kisan Sarathi?

    • Launched in July 2021.
    • India’s largest integrated digital agro-advisory platform.
    • Joint initiative of Ministry of Electronics & Information Technology (MeitY) and Ministry of Agriculture & Farmers Welfare
    • Implemented by Indian Agricultural Statistics Research Institute (IASRI) and Digital India Corporation

    Key Features

    • Provides real-time, multilingual, location-specific advisories.
    • Two-way communication through Interactive Information Dissemination System (IIDS).
    • Offers: Weather forecasts, Mandi prices, Crop advisories, Government scheme information, and Expert consultations
    • Covers: Crops, Livestock, Poultry, Fisheries, and Allied sectors

    [2020] In India, which of the following can be considered as public investment agriculture?

    1. Fixing Minimum Support Price for agricultural produce of all corps
    2. Computerisation of Primary Agricultural Credit Societies
    3. Social Capital development
    4. Free electricity supply to farmers
    5. Waiver of agricultural loans by the banking system
    6. Setting up of cold storage facilities by the government

    Select the correct answer using the code given below :
    a) 1, 2 and 5 only
    b) 1, 3, 4 and 5 only
    c) 2, 3 and 6 only
    d) 1, 2, 3, 4, 5 and 6

  • There is also a point of view that Agricultural Produce Market Committees [APMCs] set up under the State Acts have not only impeded the development of agriculture but also have been the cause of food inflation in India. Critically examine

  • Examine the role of supermarkets in supply chain management of fruits, vegetables and food items. How do they eliminate number of intermediaries?

    Supermarkets are organised retail chains that procure, store and distribute fruits, vegetables and other food items through integrated, modern supply chains.

    Role of Supermarkets in supply chain management

    Direct Procurement from Farmers – Eg- Big Basket & Reliance Retail procure directly from FPOs.

    Standardisation, Grading & Sorting improves quality consistency. Eg- Walmart trains farmers on GAP (Good Agricultural Practices).

    Efficient Logistics & Inventory Management – Eg- use of real-time inventory tracking, forecasting tools, barcoding/RFID

    Cold Chain infrastructure reduces losses of perishable goods like fruits

    Contract Farming, buy-back arrangements ensure stable demand and price security for farmers. Eg- PepsiCo in Punjab (Potato farming)

    Value Addition – Supermarkets invest in cut vegetables, ready-to-cook items etc – increases shelf-life of products.

    Diverse products– Gives greater choice for consumers and promotes crop diversification.

    Challenges faced by supermarkets

    Lack of infrastructure – Eg- cold storage can only accommodate about 11% of the country’s total produce.

    Poor forward and backward linkages – Eg- Only 13% mandis digital.

    Fragmented landholdings – 86% farmers are small and marginal – prevents economy of scale

    Regulatory Hurdles – APMC monopoly and interstate movement regulations complicate direct buying from farmers.

    Organised retail remains concentrated in metro and Tier-1 cities, with limited rural coverage

    Low investment – Private investment <1% Agri-GDP.

    Supermarkets eliminating intermediaries

    Enhancing efficiency of supply chain and doubling farmers income requires FPO strengthening, cold-chain expansion and adoption of Model contract Farming Act.

  • What are the main constraints in transport and marketing of agricultural produce in India?

    Efficient transport and marketing are critical components of the agriculture value chain. However, gaps in logistics and markets hinder farmers’ ability to access markets, realise fair prices, and reduce post-harvest losses.

    Main Constraints in Transport of Agricultural Produce

    FCI transit loss stands at Rs 300 crore/annum

    Poor Rural Road Connectivity– About 25% rural habitations lack pucca road connectivity .

    Lack of Multi-Model connectivity – heavy dependence on roads for transport

    Inadequate First-Mile Logistics – Scarcity of tractors, mini-trucks, and affordable transport

    High Post-Harvest Losses in Transit due to improper packaging, rough handling, and delays. 6-18% losses in fruits & vegetables (NABARD/FAO).

    Cold storage capacity in India can only accommodate about 11% of the country’s total produce.

    Fragmented Landholdings – 86% farmers are small/marginal – increase per-unit transport cost

    High Logistics Cost of 14% of GDP – raise farm-to-market cost.

    Main Constraints in Marketing of Agricultural Produce

    63% of agricultural households sold their crops to local markets and only 7.2% sold to APMCs.

    Dominance of Intermediaries leads to low price realisation. Eg- Farmers get only 25-30% of final price in perishables.

    Inadequate Market Infrastructure – Mandis lack grading, sorting, storage, and drying yards. Only 10% of mandis meet required norms (Dalwai Committee).

    APMC operating in monopolised silos limit free inter-state movement and competition.

    Poor Access to real-time price and demand Information – weakens bargaining power of farmers

    Low Digital Integration – Only about 1500 mandis integrated with e-NAM (2024).

    Quality & SPS Compliance Gaps – Inadequate testing infrastructure impacts domestic sales and exports. Eg- EU rejecting Mango consignment

    Way Forward

    Strengthening FPOs to enhance collective bargaining and direct market access for farmers. Eg- Sahyadri FPO in Maharashtra – increased incomes by 30%

    Cold-Chain-as-a-Service (CCaaS) – IoT-based cold storage + logistics integration reduces post-harvest losses

    MSP 2.0 based on 3 D’s – Decentralisation, Diversification and Digital Procurement. Eg- instant payments through e-RUPI.

    Rural Agri-Logistics Nodes under Gati Shakti Framework to develop cold chains, aggregation centers, and packhouses near farm gates.

    Strengthening supply chain management is key to ‘Doubling Farmers Income’.

  • What are the main bottlenecks in upstream and downstream process of marketing of agricultural products in India ?

    Agricultural marketing refers to the entire process involved in moving farm produce from the farmer to the final consumer. In India, this system faces bottlenecks at both upstream (farm-level) and downstream (market-to-consumer) stages.

    Fragmented Landholdings – 86% small and marginal farmers with low production volumes make aggregation difficult.

    Poor First-Mile Connectivity – About 25% rural habitations lack pucca road connectivity – increases spoilage of perishables.

    Lack of On-Farm Storage leads to distress sales. Eg- 166 MMT storage capacity gap (FAO)

    Inadequate Primary Processing – Minimal grading, sorting, cleaning, and drying at the farm level

    High Post-Harvest Losses – Losses of 6-18% in fruits & vegetables due to poor handling.

    Weak Farmer Institutions – FPO/cooperatives have limited capacity for aggregation and marketing

    Limited Access to Information – Farmers lack real-time data on prices, demand and arrivals.

    High Input & Transport Costs makes farm-to-mandi movement expensive. Eg- logistics cost is 14% of GDP

    Demand and supply gap due to Cobweb Phenomenon (Economic Survey) – Crop production depends on prices in previous periods rather than present demand

    63% of agricultural households sold their crops to local markets and only 7.2% sold to APMCs.

    APMC operating in monopolised silos limit free inter-state movement and competition. Eg- Licensing barriers and cartelisation

    Dominance of Intermediaries leads to low price realisation. Eg- Farmers get only 25-30% of final price in perishables.

    Inadequate Market Infrastructure – Mandis lack grading, sorting, storage, and drying yards. Only 10% of mandis meet required norms (Dalwai Committee).

    Low Digital Integration – Only about 1500 mandis integrated with e-NAM (2024).

    Quality & SPS Compliance Gaps – Inadequate testing infrastructure impacts domestic sales and exports. Eg- EU rejecting Mango consignment

    Organised retail remains concentrated in metro and Tier-1 cities, with limited rural coverage

    Low investment – Private investment <1% Agri-GDP.

    Way Forward

    Strengthening FPOs to enhance collective bargaining and direct market access for farmers. Eg- Sahyadri FPO in Maharashtra – increased incomes by 30%

    Cold-Chain-as-a-Service (CCaaS) – IoT-based cold storage + logistics integration to reduce post-harvest losses

    MSP 2.0 based on 3 D’s – Decentralisation, Diversification and Digital Procurement.

    Rural Agri-Logistics Nodes under Gati Shakti Framework to develop cold chains, aggregation centers near farm gates.

    Legal Reforms – Eg- adoption Model contract farming Act by states

    Strengthening supply chain management is key to ‘Doubling Farmers Income’.

    Agriculture Inputs

  • Elaborate the scope and significance of supply chain management of agricultural commodities in India.

    The agricultural supply chain refers to activities involved in moving agricultural produce from farm to consumers.

    Scope of Supply Chain Management of Agricultural Commodities

    Post-Harvest Management- Handling, cleaning, grading, drying to reduce losses.

    Storage & Warehousing – Scientific storage, packhouses, warehouses, silos.

    Cold Chain for Perishables – Pre-cooling, refrigerated transport, cold storages.

    Transportation & Logistics – Efficient transport, aggregation, multimodal connectivity. Eg- Kisan Rail.

    Organised Retail & Export Integration: Connecting farmers with supermarkets, processors, exporters, and e-commerce channels. Eg- e-NAM

    Value Addition & Processing – packaging, branding, food processing.

    Export & Quality Compliance – Eg- SPS standards, AGMARK, FSSAI certification

    Significance of Supply Chain Management

    Reduces Post-Harvest Losses: India loses nearly (FAO).

    Enhances Farmer Income due to reduced intermediaries. Eg- FPOs increase farmer income by 20-25% (SFAC).

    Price Stability: Better logistics reduce volatility and transaction costs.

    Boosts Agri-Exports due to better quality products & cold chain infrastructure. Eg- $53 billion in 2022-23.

    Promotes Crop Diversification: Encourages high-value crops like horticulture, dairy, spices, and fisheries.

    Strengthens Food & Nutritional Security: Efficient supply chains ensure timely availability and safe, hygienic food across regions.

    Supports Rural Employment & Agri-Processing: Creates jobs in storage, logistics, milling, packaging, and retail.

    Challenges to Agricultural Supply Chain Management

    High Post-Harvest Losses: 6-18% losses due to poor handling, storage gaps, and weak cold chain.

    Inadequate Infrastructure: Limited cold storages, packhouses, rural warehouses, and multimodal logistics.

    Fragmented Supply Chains: Small landholdings (0.74 Hectare) and inefficient APMCs

    Low Digital Adoption: Eg- only around 1500 APMCs integrated with APMCs

    Strengthening supply chain management is key to ‘Doubling Farmers Income’. This can be done through

    Expand modern storage

    Promote FPO-led aggregation

    Reform APMC laws

    Promote value addition and FPIs.

    Develop export-oriented supply chains with SPS labs and certification.

    Enhance multimodal logistics

  • [pib] National Programme for Organic Production (NPOP)

    Why in the News?

    The Ministry of Commerce & Industry has inaugurated the 8th edition of the National Programme for Organic Production (NPOP) emphasizing India’s goal to enhance organic farming and achieve ₹20,000 crore in organic exports within the next 3 years.

    About the National Programme for Organic Production (NPOP):

    Details
    About
    • Launched in 2001.
    • Implemented by the Agricultural and Processed Food Products Export Development Authority (APEDA) under the Ministry of Commerce & Industries.
    • Focuses on accreditation, organic production standards, and promoting organic farming.
    • Enhances India’s global competitiveness in organic farming and supports eco-friendly and viable practices.
    Features of the 8th Edition
    • Recognition for Organic Grower Groups: Simplified certification requirements for grower groups, granting them legal status and replacing the Internal Control System (ICS), a previous quality assurance system for group certification.
    • NPOP Portal: Provides visibility and streamlines operations for organic stakeholders.
    • Organic Promotion Portal: Connects farmers, Farmer Producer Organisations (FPOs), and exporters with global buyers, offering trade leads, training, and events.
    • TraceNet 2.0: Upgraded system ensuring farm-to-market transparency, traceability, and compliance with global standards.
    • AgriXchange Portal: Facilitates data analysis and connects international buyers and sellers to strengthen India’s position in the global organic market.
    • 6. Technological Advancements: Boosts organic farming operations through innovative systems and tools, enhancing India’s organic production ecosystem.
    Significance
    • Sets standards for organic production and accreditation, recognized by the European Commission and Switzerland, enabling acceptance of Indian organic products internationally.
    • Facilitates India’s integration into the global organic market.

     

    Do you know?

    • India ranks 2nd globally in terms of organic agricultural land.
    • Sikkim is the world’s first fully organic state, and North East India has a tradition of organic farming with minimal chemical use.
    • India has the highest number of organic producers worldwide, with 2.3 million farmers.
    • By 2023-24, approximately 4.5 million hectares (2.5% of total agricultural land) were under organic certification.
    • Madhya Pradesh (26%), Maharashtra (22%), Gujarat (15%), and Rajasthan (13%) together contribute 76% of India’s total organic farming area.

     

    PYQ:

    [2021] How is permaculture farming different from conventional chemical farming?

    1. Permaculture farming discourages mono-cultural practices but in conventional chemical farming, monoculture practices are predominant.
    2. Conventional chemical farming can cause an increase in soil salinity but the occurrence of such phenomenon is not observed in permaculture farming.
    3. Conventional chemical farming is easily possible in semi-arid regions but permaculture farming is not so easily possible in such regions.
    4. Practice of mulching is very important in permaculture farming but not necessarily so in conventional chemical farming.

    Select the correct answer using the code given below.

    (a) 1 and 3
    (b) 1, 2 and 4
    (c) 4 only
    (d) 2 and 3

  • India-UAE Food Security Partnership Stands to Benefit From Multiple Points of Convergence

    Food Security

    Central Idea

    • The UAE, heavily dependent on food imports, has set the goal of achieving food access and supply chain crisis readiness. India is a key partner in the UAE’s efforts to strengthen food security, given India’s status as the world’s second-largest food producer. The India-UAE food security partnership stands to benefit from multiple points of convergence.

    India’s Capabilities in the Global Agri-Export Market

    • Global agri-export powerhouse: India has become a global agri-export powerhouse thanks to its vast arable land, favourable climate, and growing food production and processing sector
    • India’s role in global food security: India has demonstrated its evolving role in advancing regional and global food security by serving as a humanitarian provider of food to developing countries
    • Global food marketplace: India has invested in massive food parks and placed its food sector to benefit from bilateral trade agreements, reflecting a strong and sustained intent to make the most of its agri-capabilities in the global food marketplace

    India’s Domestic Food Security Measures

    • World’s largest food subsidy programme: India runs the world’s largest food subsidy programme, the Public Distribution System, providing nearly 800 million citizens with subsidised grains for daily, affordable meals
    • POSHAN Abhiyaan: India’s Prime Minister’s Overarching Scheme for Holistic Nutrition (POSHAN) Abhiyaan is the world’s largest nutrition programme for children and women
    • 3 C’s for instance: India promotes the consumption and farming of millets as part of its G-20 presidency, demonstrating its resilience focus to address the three Cs of Covid, Conflict, and Climate issues pernicious to food security in India and across the globe

    Facts for prelims: Food security measures

    Scheme Description Target Beneficiaries
    Public Distribution System (PDS) World’s largest food subsidy program providing subsidized grains to nearly 800 million citizens BPL (Below Poverty Line) and APL (Above Poverty Line) families
    National Food Security Act (NFSA) Provides legal entitlement to subsidized food grains to two-thirds of India’s population Priority households and Antyodaya Anna Yojana (AAY) households
    Mid-Day Meal Scheme (MDMS) Provides cooked meals to children in primary and upper primary schools Children in primary and upper primary schools
    Integrated Child Development Services (ICDS) Scheme Provides supplementary nutrition to children under six years of age, pregnant women, and lactating mothers Children under six years of age, pregnant women, and lactating mothers
    Annapurna Scheme Provides 10 kg of food grains per month free of cost to senior citizens who are not covered under the NFSA or PDS Senior citizens who are not covered under the NFSA or PDS
    Prime Minister’s Overarching Scheme for Holistic Nutrition (POSHAN) Abhiyaan World’s largest nutrition program for children and women Children under six years of age, pregnant women, and lactating mothers
    Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) Provides free food grains to around 80 crore beneficiaries for a period of 8 months to mitigate the impact of COVID-19 Migrant workers, urban and rural poor, and other vulnerable groups
    Antyodaya Anna Yojana (AAY) Provides highly subsidized food grains to the poorest of the poor families identified by the government Poorest of the poor families identified by the government

    Food Security

    The India-UAE Food Security Partnership

    • UAE’s Commitment to Food Security: The UAE is focusing on the twin objectives of food access and readiness to confront supply chain crises
    • Food corridor: The food corridor could potentially commence a route for foods made and processed in India, beginning their outbound journey on the Indian coast of the Arabian Sea, passing through the UAE, and towards major international markets
    • Agri-trade for India: The corridor stands to emerge as a world-class template of successful agri-trade for India, while also unlocking greater productivity, efficiency, and growth for its millions of workers and employees
    • Boost to food processing sector: The UAE’s private sector projects spanning its agricultural and food processing sector will generate lakhs of non-farm agri-jobs while enabling farmers to discover better prices for their products.
    • Diversified pathways to the global marketplace: Bolstered by the UAE’s infrastructural capabilities, India’s agricultural products will have more resilient and diversified pathways to the global marketplace

    Food Security

    Facts for prelims

    Millet production and food security

    • Largest producer: India is the largest producer of millet in the world with a share of 41% in 2020, as per FAO. Nine types are grown as kharif crops in over 20 States in the country.
    • Major millets include: finger millet (ragi or mandua), pearl millet (bajra) and sorghum (jowar) and minor millets include foxtail millet (kangani or kakun), barnyard millet (sawa or sanwa, jhangora), little millet (kutki), kodo millet (kodon), proso millet (cheena) and browntop millet.
    • Leading producers: Rajasthan, Karnataka, Maharashtra and Andhra Pradesh are leading producers.
    • India is also among the top five exporters: India exported millets worth $64.28 million in 2021-22 and $59.75 million in 2020-21, according to the Agricultural and Processed Food Products Export Development Authority.

    In depth: The Benefits of India-UAE food security partnership for India and the UAE

    For India

    • Investment in Food Parks: During the I2U2 summit in July 2020, the UAE committed $2 billion in investment towards constructing food parks in India. This investment will generate lakhs of non-farm agri-jobs, while enabling farmers to discover better prices for their products.
    • Access to Global Markets: The food security corridor established on the sidelines of the Comprehensive Economic Partnership Agreement (CEPA) with logistics partner DP World takes forward India’s envisioned presence on the global food value chain, beyond the UAE. The corridor has the potential to establish a route for foods made and processed in India, beginning their outbound journey on the Indian coast of the Arabian Sea, passing through the UAE, and towards major international markets.
    • Direct Access to UAE’s Food Ecosystem: The Dubai Multi Commodities Centre, the UAE’s largest free trade zone, launched Agriota, an agri-trading and commodity platform to link Indian farmers to food companies in the UAE. This platform will give millions of Indian farmers the opportunity to directly reach out to the entirety of the UAE’s food ecosystem (processing companies, traders, wholesalers) and stock their products in Emirati stores.
    • Infrastructure Development: Several UAE-based companies have expressed interest in constructing a supporting logistics and infrastructure pipeline to accelerate trade and reinforce the food corridor. A consortium of UAE-based entities are investing up to $7 billion in mega food parks, contract farming, and the sourcing of agro-commodities in India. This initiative will include mega food parks, logistics and warehouse hubs, and fruits and vegetable hubs, which will bolster India’s agricultural products’ resilient and diversified pathways to the global marketplace.

    For UAE

    • Diversification of food reserves: UAE heavily relies on food imports to feed its population. The partnership with India will help UAE diversify its food reserves and reduce its dependence on a few countries for its food security.
    • Strategic location: UAE’s strategic location between Asia and Europe can be leveraged to serve as India’s food export gateway to West Asia and Africa region, and beyond. This could enhance the UAE’s position as a hub for food trade in the region.
    • Investment opportunities: The partnership could open up investment opportunities for UAE-based companies to invest in India’s food and agriculture sector, including mega food parks, contract farming, and sourcing of agro-commodities.
    • Better access to Indian products: The partnership could give UAE better access to India’s diversified agri-produce, enabling them to benefit from India’s large and growing food production and processing sector.
    • Infrastructural capabilities: The UAE’s infrastructural capabilities could strengthen India’s agricultural products’ pathways to the global marketplace, providing more resilient and diversified routes to the global food value chain.

    Value addition box

    India’s efforts to promote millet:

    • The Union government promoted millets under the Initiative for Nutritional Security through Intensive Millets Promotion (INSIMP), as a sub-scheme of Rashtriya Krishi Vikas Yojana (RKVY) between 2011 and 2014.
    • In the following years, NITI Aayog worked on a framework to introduce millets under the public distribution system for nutritional support.
    • The government declared 2018 as the ‘national year of millets’ to trigger an increase in demand.
    • The programme under INSIMP was merged with the National Food Security Mission (NFSM) as NFSM-Coarse Cereals and implemented in 14 States. Several States led separate missions to promote millets.
    • In 2021, the Centre approved the Pradhan Mantri Poshan Shakti Nirman (PM POSHAN) and advised State governments to include millets in the midday meal menu to enhance the nutritional outcome.
    • India’s efforts to promote the consumption and production of millet got a boost when the UNGA accepted the country’s proposal and dedicated 2023 to spreading awareness about these grains. It is instrumental for PM’s vision to make IYM 2023 a people’s movement and positioning India as the ‘global hub for millets’.

    Conclusion

    • The India-UAE food security partnership stands to benefit both countries, and the collaboration between the two nations can offer solutions to address food security issues in the Global South. With the UAE’s infrastructural capabilities and India’s agricultural capabilities, the partnership can create diversified pathways to the global marketplace, generate non-farm agri-jobs, and enable farmers to receive better prices for their products.

    Mains Question

    Q. Explain the India-UAE food security partnership and enumerate the mutual benefit of the food security partnership.

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  • What is ‘Storage Gain’ in Wheat?

    Punjab’s state procurement agencies (SPAs) are seeking a waiver of ‘storage gain’.

    What is ‘storage gain’ in wheat?

    • Wheat, considered a ‘living grain’, tends to gain some weight during storage.
    • This is known as ‘storage gain’ and it mostly happens due to absorption of moisture.
    • There are three parts of the grain — bran (outer layer rich in fibre), germ (inner layer rich in nutrients) and endosperm (bulk of the kernel which contains minerals and vitamins).
    • The moisture is mostly absorbed by the endosperm.

    Who compensates whom for ‘storage gain’?

    • State procurement agencies, which purchase and store wheat at their facilities, are required to give one kg wheat extra per quintal to the Food Corporation of India (FCI).
    • While 20% of wheat, procured by the FCI and the SPAs, is moved immediately after procurement.
    • It is usually on the remaining 80%, which is moved out after July 1 every year that storage gain has to be accounted for due to longer storage duration.

     

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