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The agri value chain in India seems to be stuck in the cycle of low returns and low investment. Discuss the causative factors and analyse what needs to be done.

Topic:  Food processing and related industries in India- scope’ and significance, location, upstream and downstream requirements, supply chain management. Land reforms in India.

6. The agri value chain in India seems to be stuck in the cycle of low returns and low investment. Discuss the causative factors and analyse what needs to be done.(250 words)

Science Direct

Why this question:

The question is based on the problems that are being recurrently witnessed in the agricultural supply chain management in the country.

Key demand of the question:

Discuss in detail the issues concerning the Agri value chain and reasons for low returns of it and Suggest solutions to overcome such challenges.

Directive:

Discuss – This is an all-encompassing directive – you have to debate on paper by going through the details of the issues concerned by examining each one of them. You have to give reasons for both for and against arguments.

Structure of the answer:

Introduction:

Briefly explain What is supply chain management in agriculture?

Body:

  • Discuss that in Agribusiness, supply chain management (SCM) implies managing the relationships between the businesses responsible for the efficient production and supply of products from the farm level to the consumers to meet consumers’ requirements reliably in terms of quantity, quality and price
  • Explain what the issue with low returns and low investments is.
  • Discuss what needs to be done? Provide for cases where government has made efforts in this direction.

Conclusion:

Conclude with suitable solutions to plug in the loopholes in the system of agri value chain.