India’s challenges with agricultural exports and post-harvest losses

Source: The post India’s challenges with agricultural exports and post-harvest losses has been created, based on the article “Choosing the right track to cut post-harvest losses” published in “The Hindu” on 18th July 2024

UPSC Syllabus Topic: GS Paper3- Agriculture-transport and marketing of agricultural produce and issues and related constraints.

Context: The article discusses India’s challenges with agricultural exports and post-harvest losses. It highlights initiatives by the Indian Railways to reduce these losses by improving the transportation of perishables, which benefits farmers’ incomes and reduces environmental impact.

For detailed information on Challenges facing agriculture exports from India read this article here

What are India’s Main Challenges in Agricultural Exports?

1. Low Productivity: India ranks second in agricultural production but only eighth in exports, holding a mere 2.4% share in global agricultural exports.
2. Quality Standards: Failure to meet international quality benchmarks impedes the competitiveness of Indian agricultural goods.
3. Supply Chain Inefficiencies: Issues such as inadequate transportation networks and poor infrastructure lead to substantial losses.
4. Post-Harvest Losses: Annually, India incurs approximately ₹1,52,790 crore in losses, with significant percentages lost in perishables commodity.

How Significant are Post-Harvest Losses?

1. Perishable Commodities: Major losses occur in perishables like eggs (22%), fruits (19%), and vegetables (18%).
2. Export Stage Losses: About 19% of food is lost during the export process, particularly at the trade partner stage.
3. Impact on Farmers: Small and marginal farmers, who make up 86% of the farming population, suffer income losses due to these inefficiencies.

What Role Does the Indian Railways Play?

1. Freight Transport: In the fiscal year 2022, 75% of the Indian Railways’ revenue came from freight transport, which includes essential commodities such as agricultural produce.
2. Connecting Regions: It efficiently connects urban centers and rural areas, crucial for the movement of goods.
3. Kisan Rail: This initiative aims to connect regions with surplus perishable production to major consumption areas, significantly reducing post-harvest losses and increasing farmer incomes.

Case Study: Grape growers in Nashik benefited notably from Kisan Rail, achieving a net profit of ₹5,000 per quintal by transporting approximately 22,000 quintals.

4. Environmental Benefits: Rail transport generates up to 80% less carbon dioxide compared to road transport, making it a more sustainable option.

For detailed information on Railway Reforms read this article here

What are the Opportunities for Improvement?

1. Specialized Wagons: Investment in specialized wagons for temperature-controlled transport can enhance the safety and efficiency of perishable goods transport.
2. Rail-Side Facilities: Establishing facilities next to railways for safe cargo handling can minimize spoilage and contamination risks.
3. Systems-Based Approach: Adopting a systems-based approach across various transport modes and geographies can streamline operations.
4. Public-Private Partnerships: The private sector can help strengthen rail infrastructure and operational efficiency through collaborations.
5. Reducing Carbon Emissions: Prioritizing railways over roadways for transporting perishables can significantly lower environmental impact.

Question for practice:

Discuss how the Indian Railways’ initiatives like Kisan Rail contribute to reducing post-harvest losses and improving the sustainability of agricultural exports in India.