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How Agri logistics is solving the big problems of small farmers

How Agri logistics is solving the big problems of small farmers

The economy of India is expanding at a never-before-seen rate, and the demand for agricultural products is rising quickly. Due to inadequate infrastructure and a lack of knowledge about how agri logistics might assist small farmers to achieve higher pricing for their products, it is difficult for them to sell their produce. This article explores some of the solutions that have been created by companies in India for solving this problem.

Agri logistics is the process of transporting agricultural products from farms to markets and consumers. The supply chain can be as long as from farm to table.

Agri Logistics is a new industry that has emerged to solve the big problems of small farmers by providing them with the necessary infrastructure and services. It has not only increased the income of farmers but also helped in reducing food wastage at a time when there is an ever-increasing demand for food.

Read also – How Apna Godam brings Mandi at the door step of the farmer

Food waste is essential to India’s hunger-fighting and food-security activities. Reducing (Agri logistics) supply chain losses has been a mostly unaddressed issue until recently.

Challenges in Indian Agri Logistics System

  • Faulty pricing signifies
  • Improper Sorting and grading
  • Lack of online mandis
  • Inadequate storage infrastructure
  • Asymmetry in the information and too many intermediaries
  • Expensive transport
  • Skewed capacity distribution
  • Inadequate cold storage facilities
  • Limited choices for managing collateral

Agriculture is a huge industry, and the logistics for this industry are also very complex. The process of manufacturing, distributing, and selling agricultural products is quite involved.

The Indian agriculture industry is largely unorganized, with no formal system of distributing commodities throughout the country. It’s also tough to find a reliable cold storage warehouse that can store your crop at the right temperature. Most large companies use cold storage warehouses for storing various crops and fruits, but they lack proper infrastructure, which means it can take weeks before you get your orders delivered on time.

Solutions in Indian Agri Logistics System

The solutions for the Indian Agri Logistics system that are offered by Indian agritech startups include integrated cold chain solutions, alternative marketplaces, reducing information asymmetry, innovative and real-time monitoring tools for supply chain management, etc.

Read also – [Funding alert] Agri-Fintech startup Apna Godam raises Rs. 2 Cr in seed funding

Solutions for comprehensive agriculture logistics

Agritech startups have joined the market to close these gaps, including Apna Godam, which offers integrated post-harvest management solutions. Along with offering warehouse services, Apna Godam, which recently received seed round funding from angel investors, also offers collateral management and other value-added services to its clients, such as quality testing, agri finance, bulk purchasing, and rural retailing.

Apna Godam is a post-harvest solution company working mainly in the non-perishable category. It is the first notified online Mandi in Rajasthan as well as India. Apart from facilitating spot trading of commodities, it also provides Warehousing, Commodity Finance and Logistic services as value-added services. The farmer can sell the commodity to any buyer in the country without going anywhere. The logistics are managed by Apna Godam with the help of a network of Logistic partners.

Government efforts

The government also has created a number of schemes for improving agri logistics and ensuring that farmers get a good price for their crops and do not have to store them in their homes.

The government has taken several steps with adequate budgetary provisions to develop robust and integrated Agri logistics systems in the country for the transportation of agri-produce. The government of India has launched “Kisan Rath” mobile application to facilitate the Farmers, Farmers Produce Organisations (FPOs) and Traders in hiring vehicles for transportation of agri-produce. This mobile application is also integrated with National Agriculture Market (e-NAM) portal for facilitating load requests of traders registered in e-NAM portal. The mobile application is available in both Android and iOS versions in 10 different languages including Hindi and English.

India has been struggling with rapid urbanization, which has led to a severe shortage of agricultural land. The government has been trying to tackle this problem by promoting sustainable agriculture through programs like “Per Drop More Crop” and “Operation Green” but the problem persists.

Read also: Apna Godam – Super App for Farmers | Online Mandi

Other solutions

There are many technological solutions for Agri logistics created by Indian Agritech startups. Agricultural transport costs vary depending on factors such as distance traveled, volume transported per day or month, etc. so planning your operations well is vital if you want them to be cost-effective at all times. Technology helps these companies improve their service levels while reducing costs through new methods of tracking inventory (including RFID tags), monitoring drivers’ performance through GPS tracking devices placed on vehicles, etc.

Some companies have taken up the task of building infrastructure in rural areas to help farmers get better prices for their crops.

Cold storage warehouses are used by retailers to store food grains, while others are filled with commodities like cotton, grains, paddy, etc.

There’s much room for growth in India’s Agri logistics sector due to high demand and limited supply of perishable items like fruits and vegetables.

Conclusion

Technology is transforming our world and the way we live and work. With the exception of emergencies, technological improvements have made it simple for people to receive the goods they need without leaving their homes or workplaces. One thing hasn’t altered despite all these advancements: agriculture. And because of this, agri logistics is crucial in giving farmers better access to markets so they can sell their goods for more money and reap the financial benefits of their crops like never before.

Frequently asked questions (FAQs)

What is Agri logistics?

Agri logistics is the process of transporting agricultural products from farms to markets and consumers. The supply chain can be as long as from farm to table.

What are the solutions in Indian Agri Logistics System?

The solutions for the Indian Agri Logistics system that are offered by Indian agritech startups include integrated cold chain solutions, alternative marketplaces, reducing information asymmetry, innovative and real-time monitoring tools for supply chain management, etc.

How Apna Godam is helping farmers?

Apna Godam is the first notified online Mandi in Rajasthan. Apart from Spot trading of commodities it also provides Warehousing, Commodity Finance and Logistic services as value-added services. The farmer can sell the commodity to any buyer in the country without going anywhere.

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