Introduction

The food supply chain in India, a critical backbone of its economy, sustains the livelihoods of millions and ensures food security for the nation’s populace. This intricate network, which spans from the diligent farmers in the rural hinterlands to urban supermarkets, has metamorphosed significantly over the years. Its evolution has mirrored India’s economic journey, embracing technology and innovation to enhance efficiency and reduce waste.

In the early days, the food supply chain in India was rudimentary, with many intermediaries between the producers and the consumers, leading to inefficiencies and higher costs. However, with the advent of digital technologies and improved infrastructure, there has been a paradigm shift. The Indian government’s initiative to digitize agriculture markets under the e-NAM (Electronic National Agriculture Market) platform is one such example, linking over 1000 mandis across India by 2024.

Real-world examples of such transformations abound. The ‘Farm to Plate’ model is a testament to this, as startups streamline the supply chain, directly connecting farmers to retailers and online markets, thus removing layers that formerly separated them. Statistics show that these advances have propelled significant economic growth, with the agriculture sector contributing to nearly 18% of India’s GDP and employing 50% of the workforce.

The strategic application of cold storage facilities and improved logistics networks has curbed post-harvest losses, which stood at approximately 16% before these implementations. Consequently, the food supply chain’s efficiency gains have not only stimulated growth but have also been pivotal in ensuring that the nation’s over 1.3 billion people have better access to nutritious food, thereby enhancing overall well-being.

The continual evolution of India’s food supply chain is imperative not only for the agrarian economy but also for maintaining the socio-economic fabric that sustains the second-most populous country in the world.

Historical Perspective of India’s Food Supply Chain

India’s food supply chain has a rich and complex history that has evolved over centuries. The agricultural practices and food distribution systems in India have undergone significant changes, shaping the current scenario in 2024.

One key milestone in the historical development of India’s food supply chain was the Green Revolution in the 1960s. This period saw the introduction of high-yielding varieties of seeds, modern irrigation techniques, and chemical fertilizers. The Green Revolution aimed to increase agricultural productivity and ensure food security for the growing population.

Another important change came with the implementation of the Public Distribution System (PDS) in the 1960s. The PDS aimed to provide subsidized food grains to the poor and vulnerable sections of society. It played a crucial role in stabilizing food prices and ensuring access to essential food items.

In recent years, there has been a shift towards modernizing the food supply chain through technological advancements and infrastructure development. The introduction of e-commerce platforms and online grocery delivery services has revolutionized the way people access food.

Current State of the Food Supply Chain in India

• Major players in the food supply chain in India in 2024 include farmers, wholesalers, distributors, retailers, and consumers.
• Distribution channels include traditional markets, supermarkets, online platforms, and direct-to-consumer models.
• Key challenges faced by the industry include inadequate infrastructure, lack of cold storage facilities, inefficient logistics, and high post-harvest losses.
• Government initiatives such as the National Food Security Mission and the Pradhan Mantri Kisan Sampada Yojana are aimed at addressing these challenges and improving the food supply chain.
• The industry is also witnessing the emergence of technology-driven solutions such as Farm To Plate traceability systems and online marketplaces, which are streamlining the supply chain and improving transparency.

Challenges Faced by the Food Supply Chain in India

The food supply chain in India faces several challenges that could impact its operations and efficiency in 2024.

Perishability:

• Perishable goods, such as fresh produce and dairy products, have a limited shelf life and need to be transported and stored under specific conditions to maintain their quality.
• Perishable items are more susceptible to spoilage, which can lead to financial losses for producers, distributors, and retailers.
• The perishability of goods also adds complexity to the logistics and supply chain management, as they require faster transportation and specialized storage facilities.

Lack of infrastructure:

• Inadequate transportation and storage infrastructure can hinder the efficient movement of goods, especially perishable ones.
• Lack of proper refrigeration facilities and cold chain logistics can result in spoilage and damage to perishable items.
• Limited access to reliable roads, ports, and airports can impede the timely delivery of goods, leading to increased costs and decreased product quality.

Regulatory hurdles:

• Compliance with regulations and standards related to food safety and quality can pose challenges for perishable goods.
• Regulatory requirements for labeling, packaging, and transportation add complexity to the process and may require additional resources and expertise.
• Different countries may have varying regulations and import/export restrictions, which can further complicate the distribution of perishable goods across borders.

Blockchain Technology in Transforming India’s Food Supply Chain

Blockchain technology has the potential to greatly enhance transparency in the food supply chain. By using a decentralized and immutable ledger, blockchain can provide a secure and transparent record of every step in the supply chain, from farm to consumer. This means that consumers can easily trace the origins of their food and verify its authenticity.

Blockchain can also improve food safety by enabling real-time tracking of products, allowing for quick identification and recall of contaminated or unsafe items. Additionally, blockchain can help reduce fraud and counterfeiting by ensuring that all transactions are recorded and cannot be altered.

Using blockchain for traceability in the food industry offers several benefits. Here are some of the key advantages:

1. Increased transparency: Blockchain technology enables a transparent and immutable record of every transaction and process in the supply chain. This means that consumers can easily trace the journey of their food from the farm to their plate, ensuring that it is sourced ethically and safely.

2. Enhanced food safety: By utilizing blockchain, it becomes easier to identify and address any issues related to food safety. In case of a foodborne illness outbreak, for example, the exact origin and distribution of the contaminated product can be quickly identified, minimizing the risk to consumers.

3. Improved quality control: Blockchain allows for real-time monitoring and data collection throughout the supply chain. This enables producers to track factors such as temperature, humidity, and storage conditions, ensuring that food products are maintained at optimal quality levels.

4. Preventing fraud and counterfeit products: With blockchain, each product can have a unique digital identifier, making it harder for counterfeiters to pass off fake products as genuine. This helps protect consumers and maintain the integrity of the supply chain.

5. Efficient recalls: In the event of a product recall, blockchain technology allows for quick and accurate identification of affected products. This reduces the time and costs associated with recalls, as well as minimizing potential harm to consumers.
6. Building consumer trust: By providing transparent and verifiable information about the origin, production methods, and quality of food products, blockchain helps build trust between consumers and producers. This can have a positive impact on brand reputation and consumer loyalty.

F2P Track and Trace Solution in the Food Supply Chain

Farm to Plate (F2P) is an innovative platform that aims to revolutionize the food industry by providing a transparent and traceable supply chain from farm to consumer. F2P connects farmers, suppliers, distributors, and consumers, ensuring that everyone involved in the food chain has access to accurate and up-to-date information.

One of the key challenges in the food industry is ensuring food safety and authenticity. With F2P’s track and trace feature, consumers can easily trace the origin of their food and verify its authenticity. This helps address concerns about food fraud and allows consumers to make informed choices about the products they purchase.

Furthermore, F2P’s track and trace feature also plays a crucial role in ensuring food safety. By tracking the entire journey of a product, from the farm to the plate, F2P can quickly identify and address any potential issues or contamination. This not only helps protect consumers from consuming unsafe food but also allows for more efficient and targeted recalls if necessary.

Overall, F2P’s track and trace feature is instrumental in addressing specific challenges like food safety and authenticity in the food industry. By providing transparency and accountability throughout the supply chain, F2P is revolutionizing the way we think about our food and ensuring a safer and more trustworthy food system for all.

Future Outlook

The future of India’s food supply chain with blockchain technology looks promising. It could unlock substantial benefits, not only in terms of operational efficiencies but also by opening up new economic opportunities. Advancements in blockchain, like smart contracts, and integration with IoT devices could further propel the supply chain toward unprecedented effectiveness and trust.

Conclusion

Blockchain technology could be a game-changer for India’s food supply chain, addressing persistent challenges and fostering a more reliable and transparent system. By learning more about and investing in F2P and blockchain-based solutions, stakeholders can make significant strides towards a more secure and efficient future.

FAQ’s

1. How can we improve the food supply chain in India?

Improving the food supply chain in India can be done by investing in infrastructure, implementing better storage and distribution systems, promoting sustainable farming practices, and supporting small farmers.

2. How can we improve the food supply chain?

To improve the food supply chain, we can focus on reducing food waste, implementing efficient transportation and logistics systems, promoting sustainable farming practices, and supporting local food producers.

3. How can we solve the food problem in India?

Solving the food problem in India requires investing in agricultural infrastructure, implementing effective storage and distribution systems, promoting sustainable farming practices, supporting small farmers, and addressing issues of poverty and inequality.

4. What are the five main steps in the food production chain?

The five main steps in the food production chain are sourcing raw materials, processing and manufacturing, packaging and labeling, distribution and transportation, and retail and consumption.

Sravya Priya, Content Marketing Specialist at farmtoplate.io