In an effort to understand the problem of post harvest losses and the resulting plight of small and marginal farmers, I took a closer look at the existing post harvest agricultural value chain, starting from the farm to the end consumer. The various components of this agri value-chain included Farmer > Mandi/ marketplace > Warehousing > Distribution network, and ultimately End-consumer. After listing the problems witnessed within each of the value chain components, I realized that “lack of grain storage facilities” was the fundamental problem that created a ripple effect across the subsequent components of the post harvest value chain.
Lack of modern grain storage facilities, coupled with the impending monsoon rains and the urgent need to settle debts and obligations, force farmers to; either participate in distress sale of crops or accept imperfect procurement practices prevailing in mandis. Most often, the farmer does not get the full price for his full crops and is therefore unable to break-even with his input costs. As a result, he is unable to rise out of poverty and provide a better lifestyle for his family.
A narrow procurement window before the monsoon rains, results in tardy procurement practices at the mandis/ market yards. While procurement agents and government agencies work against deadlines to meet procurement targets, fleet operators are challenged for availability of trucks and rail rakes to move food grains to various warehouses for proper storage.
A 2013 CAG report revealed that India had 66.79 million metric tons of food grain stocks in central pool of which 33.60 million metric tons was in covered storage facilities. The remaining 33.19 million metric tons of food grains was being stored in the open using a “Cover and Plinth” (CAP) system in which food grains are stacked on elevated wooden plinth and crates, before being properly covered with specifically fabricated low-density black polythene waterproof covers and tied with nylon ropes and nets. Lastly, unavailability of trucks, rail racks and high storage costs at government warehouses further compound the problem.
The Public Distribution System (PDS) of food grains in India is a government program designed to ensure availability of food grains to poor at subsidized rates. The program has its own set of problems and food subsidies bill has galloped from INR 25,181 crores in 2003 to nearly INR 75,000 crores in 2013; a three-fold increase in the last ten years. Inflation of food prices results in households spending more on food and less on other essentials such as education, health and discretionary goods.
In my humble opinion, micro grain storage solutions for small and marginal farmers at the village level would allow farmers to safely store their harvests on a rental basis, facilitate pledge financing and assist in availing improved market prices at a later date. Farmers can be saved from the existing post harvest hassles at mandis and post harvest losses can be stemmed with these micro grain storage solutions. Rural prosperity will ensure better agricultural practices, create new demand for goods and services and gradually integrate rural India with the national mainstream.
When I filed my first RTI application with FCI and CWC, I must admit that I was not sure of the magnitude of post harvest losses incurred at various warehousing facilities in India. Losses totaling 502,389 tons of rice and 136,206 tons of wheat during 1998 – 2012 only reveal the tip of the iceberg. India has nearly 27+ State Warehousing Corporations (SWC) along with Central Warehousing Corporation (CWC) and other quasi-government agencies who administer grain storage facilities. If an honest attempt were made to account for the post harvest losses at these facilities for the same period, post harvest loss figures would be much higher.
"Save Indian Grain.Org (SIGO)...a social enterprise, dedicated to the design, development and delivery of modern grain storage solutions, subsistence marketplaces and agri chain networks for small and marginal farmers in rural India."
Lack of modern grain storage facilities, coupled with the impending monsoon rains and the urgent need to settle debts and obligations, force farmers to; either participate in distress sale of crops or accept imperfect procurement practices prevailing in mandis. Most often, the farmer does not get the full price for his full crops and is therefore unable to break-even with his input costs. As a result, he is unable to rise out of poverty and provide a better lifestyle for his family.
A narrow procurement window before the monsoon rains, results in tardy procurement practices at the mandis/ market yards. While procurement agents and government agencies work against deadlines to meet procurement targets, fleet operators are challenged for availability of trucks and rail rakes to move food grains to various warehouses for proper storage.
A 2013 CAG report revealed that India had 66.79 million metric tons of food grain stocks in central pool of which 33.60 million metric tons was in covered storage facilities. The remaining 33.19 million metric tons of food grains was being stored in the open using a “Cover and Plinth” (CAP) system in which food grains are stacked on elevated wooden plinth and crates, before being properly covered with specifically fabricated low-density black polythene waterproof covers and tied with nylon ropes and nets. Lastly, unavailability of trucks, rail racks and high storage costs at government warehouses further compound the problem.
The Public Distribution System (PDS) of food grains in India is a government program designed to ensure availability of food grains to poor at subsidized rates. The program has its own set of problems and food subsidies bill has galloped from INR 25,181 crores in 2003 to nearly INR 75,000 crores in 2013; a three-fold increase in the last ten years. Inflation of food prices results in households spending more on food and less on other essentials such as education, health and discretionary goods.
In my humble opinion, micro grain storage solutions for small and marginal farmers at the village level would allow farmers to safely store their harvests on a rental basis, facilitate pledge financing and assist in availing improved market prices at a later date. Farmers can be saved from the existing post harvest hassles at mandis and post harvest losses can be stemmed with these micro grain storage solutions. Rural prosperity will ensure better agricultural practices, create new demand for goods and services and gradually integrate rural India with the national mainstream.
When I filed my first RTI application with FCI and CWC, I must admit that I was not sure of the magnitude of post harvest losses incurred at various warehousing facilities in India. Losses totaling 502,389 tons of rice and 136,206 tons of wheat during 1998 – 2012 only reveal the tip of the iceberg. India has nearly 27+ State Warehousing Corporations (SWC) along with Central Warehousing Corporation (CWC) and other quasi-government agencies who administer grain storage facilities. If an honest attempt were made to account for the post harvest losses at these facilities for the same period, post harvest loss figures would be much higher.
"Save Indian Grain.Org (SIGO)...a social enterprise, dedicated to the design, development and delivery of modern grain storage solutions, subsistence marketplaces and agri chain networks for small and marginal farmers in rural India."
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