International Journal of Management and Commerce Innovations ISSN 2348-7585 (Online) Vol. 7, Issue 2, pp: (1021-1030), Month: October 2019 - March 2020, Available at: www.researchpublish.com
Supply Chain Efficiency: An Insight from Fruits and Vegetables Sector 1
Abhishek M.P, 2Sushant Raj MBA (IB)
School Of Business Studies and Social Sciences Christ (Deemed to be University)
Abstract: This paper intends to address the status of supply chain quality in the Bangalore city fruit & vegetables sector and addresses the need and value of an effective supply chain in this industry. The inefficiency of the fruit and vegetables supply chain industry is described by this paper as one of the major business problems in India's agricultural sector. Usually the literatures focuses on the Fruits and Vegetables general supply chain and ignores the supply chain efficiency perspective. Keywords: Fruits and Vegetables, Supply Chain Efficiency, Logistics, Retail Sector.
1. INTRODUCTION As the population increases, the demand for such food also increases. In order to meet this demand and provide food in good quality and nutrition, supply chain plays a very vital role in this sector and becomes even more important due to perishability and very short shelf life. India is the world's known basket of fruits and vegetables. It is the world's secondlargest producer of fruit and vegetables, behind China. India is the main vegetable manufacturer of ginger and okra, and ranks second in tomato, onion, cauliflowers, brinjal, cabbage, etc. Amongst the fruits, the nation ranks first in banana production (25.7%), papaya (43.6%) and mangoes (including guavas) (40.4%). In India, the fruit and vegetable processing industry is likely to expand at a compound annual growth rate of 7.62 per cent between FY 2018 and FY 2023 to cross an INR 256.4 billion in FY 2023. Commercial fruit and vegetable manufacturing in India is currently extremely small, with around 2.2% of total production compared to countries such as the Philippines at 78%, China at 23% and the United States at 65%. Due to the presence of a large number of players vying for limited shares in the overall market, the unorganized sector is facing a stiff competition. Due to the increasing penetration of organized retail in the world, demand for processed fruits and vegetables is expected to rise considerably. Also increasing demand for processed food is increasing in the number of nuclear families. Such families ' busy lifestyles have increased their reliance on food items which require less time to prepare. India's diverse climate ensures all fresh fruit & vegetable varieties are available. It ranks second in world production of fruits and vegetables, after China. Although India's share of the global market remains close to 1 percent only, the country's acceptance of horticultural products is increasing. This was attributed to rapid improvements in the areas of state-of - the-art cold chain systems and quality assurance initiatives. In addition to large investments poured in by the private sector, the public sector also took initiatives and several Centres for Perishable Cargoes and integrated post-harvest handling facilities were built in the country with APEDA's assistance. Capacity-building initiatives at the level of farmers, processors, and exporters also contributed to this effort.
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