Unlike developed nation where food gets wasted at the consumption stage, in India it is concentrated at the production, storage, processing, distribution and marketing stages. Apparently, out of every 100 kg of tomato produced in India, only 73 kg reaches the retail market. Rest goes to waste.
Rescuing food from the waste bin is one of the toughest jobs in India. Apparently, out of every 100 kg of tomato produced in India, only 73 kg reaches the retail market. Rest goes to waste. This waste is one of the key reasons why food inflation in recent time has remained sticky at 10 percent despite overflowing granaries.
According to a CRISIL study titled What a Waste!, the value of fruits and vegetable wastage stood at Rs 700 billion in 2010-11 and Rs 630 billion in 2009-10 – or a third of the entire production. For a country where millions go hungry, the wastage is hard to stomach.
Unlike developed nation where food gets wasted at the consumption stage, in India it is concentrated at the production, storage, processing, distribution and marketing stages. The enormous waste has been the main reason behind India's spiraling food inflation which soared in the last decade despite higher farm growth. The CRISIL report blames it on the following:
1) An increase in minimum support price (MSP) that has provided a floor for food grain prices, making them rigid on the downside.
2) Demand-supply mismatch in proteins
3) The APMC legislation set up to help farmers sell their produce in the market, has actually left them vulnerable to price manipulation by traders and agents who are driven by the incentive to maximise the number of transactions rather than getting the highest price for the farmer.
4) Besides wastage, pilferage in the public distribution system also accounts for the loss which is at the stage between the farmer and the retailer.
The report emphasizes that increasing agriculture output is not the solution. It suggests overhauling of the entire system through which food travels from farm to fork. Not surprisingly, it advocates abolishment of APMC Act, raising MSP at moderate pace, offloading excess stock of foodgrain in the market, focus on crop diversification , and focus on better supply chain and improving supply of proteins.
Posted by Jhini Sinha Phira
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