Doubling of Farmers' Income

In day-to-day conversation, a number of terms sometimes lead to confusion, especially when the words involved are in disconnect from colloquial and professional context. Revenue and profit are often used interchangeably by the average person, but these terms have separate meanings, albeit profit being an outcome of revenue. Contextual clarity on terminology is important to avoid confusion of intent or action. 

Value Realisation is directly linked to market connectivity, waste occurs when connections fail.

Revenue is a synonym for income, whereas profit mean net income. Profit, in simple terms, means the income or revenue that remains after all expenses.

Increase in Farm Yields is not always Revenue Generating

Frequently Asked Questions on AICIC Study

“All India Cold-chain Infrastructure Capacity” (AICIC)[1]
(Assessment of Status & Gap)

Q1 - The NCCD-NABCONS Study (AICIC) has covered cold storage needs for horticulture produce only and not for processed food products. Therefore, the findings are grossly underestimated?

Table 2.2 of the report provides a list of food items which were selected for primary study in the AICIC. In this selection, meat products (livestock, poultry, fish), processed products (including frozen peas, ice-cream, butter) are listed besides fresh produce. The topic is also expanded upon in other parts of the report.

In addition, to offset any lack of relevant data and information (consumption or production) of specific products, the holding periods in cold stores in the chain of various temperature categories, especially frozen products, was used to buffer the assessment of capacity required on the on a higher side. In relation, it is prudent to note that various reports suggest only 2%-4% of processing occurs in India. As such, even if none of the processed foods had been studied, the resulting underestimation would have been minimal.

Logistics Connectivity is Key to Reduce Food Loss

Food has one end-use, to be consumed...food loss or waste occurs when food left unconsumed - or, when food perishes before it could reach the market within its normal saleable life cycle.

Food loss can be reduced... only by ensuring that all the harvested produce reaches its logical end use. This means that food delivery mechanisms must also aim to counter the perishable nature of food, to extend its saleable life cycle.

Perspective on India's Cold-chain

India has developed an enviable capacity in the cold storage format across the country. As per the 2014 report of IARW (International Association of Refrigerated Warehouses), India had 131 million cubic metres in cold storage capacity, overtaking USA which has 115 million cubic metres. China has the third largest capacity globally with about 76 million cubic metres in cold storage space. The worldwide capacity in refrigerated warehouses was reported as 552 million cubic metres in this report by IARW. Between May 2014 and July of 2015, India added another 200 units or a little more than one million tons to its cold storage space. Though about 5% of the facilities may have become obsolete over the years, India can now lay claim to having created almost 7200 cold stores equivalent to about 33 million tons in holding size, most of these over the past decade.

Meeting the Global Food Crisis

There is a Food Crisis in our world - can it truly be met by sowing more crops, increasing farm level yields, to store that food in banks? These are among some topics I mooted when speaking on the subject at UK's House of Lords.

There ought to be no doubt that there exists a global food crisis! Across the world, 795 million people suffer from hunger - Hunger is defined as a painful sensation from want of food! This pain afflicts 525 million people in Asia, 215 million in Africa, 37 million in Latin America & Caribbean and others. Women form 60% of these numbers and a child dies every 10 seconds from hunger related inflictions.

What is notable, is that this food crisis is most prevalent in producing regions, areas that have a food surplus, not food shortage. The question is why? Why is it, the producing areas face more hunger?

Shelf life is not storage life

Holding period in a warehouse is opportunity lost.

Keeping food secure for long is not always a worthwhile achievement... making sure it arrives for gainful end-use is the real target. Aim to make sure you reach the consumer - get on the shelf!