Supply chain of farm commodities refers to integration of activities such as procurement, product development, distribution, information sharing, performance analysis, delivery of farm products to consumers. It constitutes multiple stakeholders like farm input supplier, farm produce supplier, product developer, distributor, wholesaler, retailer, and customer. Thus, farm goods supply chain management is a set of approaches utilised to effectively integrate and manage the stakeholders and activities, so that merchandise is operated and distributed in the right quantity with right quality – at the right location and right time – at the right price, while satisfying service level requirements.
On the other hand, the value chain of farm products is a package of activities and services needed to add and bring value to a product/ service, from conception to sale in the market whether local, national, regional or global. It includes farm input producer, farm producer, aggregator, processor and buyer. In a nutshell, value chain management is the process of intervention that is needed to add and bring value of farm produce/services for the consumers.
Supply chain and value chain network is aimed at providing quality farm products/services to the customers. Most of the time, the supply chain is juxtaposed with the value chain. Nonetheless, supply chain management needs to consider the value chain and supply chain together. The appropriate ambience and endeavour is needed to enable the stakeholders to come and partake together across a shared – table, with a shared vision and shared responsibility, to integrate and manage the needed activities and services, to facilitate operation of merchandise.
Understanding the ground reality and situation in the State will facilitate seeking of interventions that will bridge supply chain and value chain gaps. A general view on the state of natural support system, local conditions and practices, in the State, indicates that deterioration of the natural support system is one of the major areas of development concern, as evident in the form of water scarcity especially during the off-monsoon months, declining farm productivity and production, low production in sedentary farming cause a shift in occupation and migration, community lands are becoming very scarce, fragmentation of landholdings is increasing, private ownership of land is rising, emergence of cultivable wastelands is another challenging area, net sown area and area sown more than once is low, majority of the farming populace do not consider farming to be remunerative, farm production and marketing are unorganised, farm goods are sold independently at an individual level, in most places, stray cattle pose a challenge to farmers who need to cultivate zaid/rabi off-season crops, without protective measures, the required logistics and infrastructures to support farm commodities supply chain management are largely wanting.
It is therefore considered necessary that farm goods supply chain management in the State needs to be directed at integrating and managing the factors of production, productive agents and activities from farmlands to market. The approach, management sector-wise, is highlighted hereunder:
Ecosystem Management: Ecosystem management programme seeks for improved and sustained productivity of ecosystem services namely provisioning services, regulating services, supporting services and cultural services. The ecosystem management programme is designed to: assess the drivers that are at work in a particular ecosystem, for better planning and more successful interventions, while determining the relative value and importance of ecosystem services they provide to the economy and growth and sustainable development, decide on the appropriate measures to influence the drivers to minimise ecosystem impact and, maximise ecosystem services delivery, ensure the effectiveness and efficiency of integrated approach, rather than sectoral and independent development approach, focus on building local capacity and capability on ecosystem management and related domains, empower village communities via the traditional institutions to take charge with a sense of ownership and responsibility while pursuing ecosystem management programme, incentivise on the good practices initiated, to promote ecosystem services delivery, ensure that the intervening measures taken up under ecosystem management programme are monitored and evaluated against the established benchmarks.
Farm Input Management: Farm input includes seeds/ seedlings, farm yard manure/organic compost/bio-fertiliser, bio-control/remedial measure needed to grow agricultural/horticultural/forest crop, host plants for silkworms, organic dye-based plants, aromatic and medicinal plants, etc. It also encompasses seeds/breeds, feeds, etc for animal husbandry, pisciculture, sericulture, apiculture, etc.
Access to farm inputs is one of the major drawbacks that the farmers are experiencing. The farmers are in need of farming inputs that are suitable, reliable, affordable and timely and readily available, as and when required, in the needed quantity. There is a need to have an organised way for production of farm inputs including the related services that could be accessed by the farmers within their vicinity and comfort zone.
One of the considered options is to scout from amongst the existing farmers’ institutions that are willing and capable to undertake production of farm inputs and related services within their area of operation. Such proposals need to be accompanied with a business plan, etc. The choice to produce any of the farm inputs will be determined on the need of the users and other market outlets. These institutions could be supported with technical, business and financial service providers. They would facilitate compliance of the procedures and norms needed by the government certifying agency, to validate and certify the farm inputs. There will be a system in place for reviewing the performance and feedback mechanism. Maintenance of books and records would be necessary for social auditing.
Farm Production Management: This management sector seeks to have a common ground, aimed at enhancing farm productivity and production, in a more sustainable way and to ensure access for transaction of merchandise of farm products.
The existing farmers’ groups/farmers’ production organisations, etc could be leveraged to bring in the farmers across a shared-table in decision making processes. The needed areas for discussion include, inter-alia, sustainable farming, organised farm production, collective marketing. These initiatives would facilitate enhancing farm production, easier access to market and reducing market intermediaries.
These institutions will have designated duties to perform such as (a) assessment of the volume of marketable farm goods production (b) seeking support to remedy and mitigate farming and farm production deficiencies (c) organising field visit and training, as may be arranged by the local farm-practitioners, with proven record of experience, for the farmers to experience and learn by seeing and doing and, to understand the process and endearment that have led them to the level of success (d) conducting field demonstration on proven sustainable farm production system (e) conducting training and capacity development in the field of sustainable farm production, value chain and supply chain management, farm entrepreneurship and entrepreneurial skill development, etc (f) providing hand holding support for the farmers to reach the level as ‘entrepreneurs’ and to endeavour ‘farming as an enterprise’(g) collecting data and information needed by the government certifying agency for certification of farm goods produced as organic products (h) conducting participatory performance assessment and review, against the established baselines (i) maintaining the books and records needed for social auditing.
These institutions may be supported with technical, business, financial service providers. The good practices initiated by the farmers are needed to be recognised and acknowledged.
Water and Energy: Water and Energy are important value chain links, in farm goods supply chain management. They are required in farm input production, farm production, processing, whether in fresh form, partially or fully processed form. Assessment of the availability and required quantity of water and energy is necessary in decision making processes. This will aid in seeking alternative sources for water supply systems and renewable energy, after due diligence and study.
From the viewpoint of management of supply chain of farm goods, sustainable water production for meeting water supply and to generate energy would require intervening measures/ practices such as (a) catchment areas protection of water sources, treatment of drainage lines, etc (b) in-situ conservation of rainwater/surface water (c) rainfall harvesting (d) water recycling (e) use of water and energy only when needed, prevention of water and energy leakage/ loss (f) use of water and energy saving devices (g) incentivising for the good practices initiated, in the area of water and energy conservation and use (h) performance assessment and review on measures adopted for use of water and energy vis-a-vis economic outputs.
Knowledge Management: Knowledge management plays an important role in moulding all the stakeholders to develop and manage actions and interventions productively and sustainably. The important areas that knowledge management can initiate are: bridging farm productivity and production gaps, promoting organised farm production and collective marketing, building up network, for farmers to access to services such as soil analysis, farm clinics, weather forecasting, market prices of farm products, etc, documentation of data/ information for obtaining geographical indication tag/ intellectual property rights/ trademark of selected farm products and engagement with government recognised institution to have the nutritional content, composition, and other contents of identified farm products, to enable branding and better market value, documentation of proven and successful farming initiatives practiced by local practitioners, describing the process that have led them to the level of success, documentation of validated local knowledge related to weather forecasting, plant propagation, livestock breeding, plant/ livestock protection, agro – forestry farming, etc. The system for performance assessment and review is required to be put in place.
This approach is an attempt to empower the farmers, while promoting the ease of doing farm merchandise, keeping sustainable development and sustainability at the heart of decision making processes.
