Agri Warehousing Industry Targets Operational Efficiency and Rural Empowerment

The agricultural sector in India has long been the backbone of the economy, employing millions and ensuring food security for a growing population.

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Inevitably, it has various critical components within the sector, like energy, transportation, and water that get the most attention, which is somewhat deserved also. However, there is another crucial part of the whole supply chain that often gets overlooked, which is Post-harvest Agri Logistics Management, playing a crucial role in the mitigation of food grain losses, stabilising market supply, and providing financial linkages to farmers.

India has witnessed a rapid boom in the last few years in the development of commercial and industrial warehouses, which is also a positive thing when we look at the broader scheme of things. As per India Infrastructure Research, the agricultural warehousing capacity needs to grow to 223 million tonnes by 2026-27, which stood at 145 million tonnes in June 2023. Another major concern seeded by the lack of proper infrastructure is post-harvest losses that are experienced by farmers and agri-allied businesses. A 2022 government-supported study revealed that India loses 5-13 percent of its fruits and vegetables and 3-7 percent of crops like oilseeds and spices between harvest and consumption. This results in an annual economic loss exceeding Rs 1.52 trillion. Key factors contributing to these losses include inadequate storage facilities, inefficient handling, and adverse weather conditions.

SANDEEP SABHARWAL, Group CEO, Sohan Lal Commodity Management Limited