Phygital Techbased & Policy-driven Strategy for AGRI SUPPLY CHAIN

Agricultural supply chains and global trade flows have grown substantially, driven by technological progress, trade liberalisation, and rising global demand. Major producing and importing countries dominate these flows, with commodity crops and high-value products such as fruits and nuts leading this growth.

- Dipti Barve [e-mail]

However, geopolitical tensions, protectionist policies, and supply chain disruptions pose significant challenges to stability and market access, particularly for developing countries. Innovations in digital trade facilitation and proactive policies for smallholders offer pathways to enhance sustainability and resilience in global agricultural trade. This dynamic landscape requires ongoing policy attention to balance trade liberalisation, sustainability goals, and social inclusion to ensure global food security and economic development. Let's dig deeper.

The EU is India’s largest trading partner, accounting for €124 billion in goods trade and nearly €60 billion in services trade in 2023. Trade has grown by about 90 per cent in the last decade. Despite growth, EUIndia Free Trade Agreement (FTA) negotiations have stalled mainly due to disagreement on agriculture and regulatory issues, despite strong trade volumes and growth. Higher import duties mean increased import costs for Indian businesses, resulting in higher freight, customs, and warehousing expenses. This leads to reduced import volumes and potentially decreased demand for logistics services. Investing in and upgrading infrastructure, including cold storage, warehousing, and transportation networks, is crucial to reduce post-harvest losses, enhance efficiency, and meet international quality standards, improving overall logistics performance. Adopting technological solutions like IoT, AI, and digital platforms could enhance supply chain transparency, improve tracking, optimise routes, and reduce wastage, ultimately boosting efficiency and competitiveness.

India is balancing trade liberalisation pressures with the protection of domestic agriculture, aiming to enhance productivity and market access while managing import surges and negotiating tariffs.