Strengthening Foodgrain Logistics Through a Cooperative Approach

Efficient agri-logistics is crucial for reducing losses and ensuring smooth movement of food grains from farms to markets. A well-integrated supply chain enhances connectivity, transparency, and traceability, improving farmers' access to better prices.

Indian government initiatives like Kisan Rail, Kisan Rath, and Kisan Udaan have helped bring markets closer to farmers, reducing transportation hurdles. However, with changing consumer preferences and rising demand for a variety of food products, modernizing agricultural logistics has become essential. Expanding these initiatives and improving storage facilities. At the farm level will help prevent wastage and ensure faster movement of produce.

Building Storage at the Farm Gate

The rise of Farmer Producer Organizations (FPOs) and the expansion of Multipurpose Primary Agricultural Credit Societies (MPACS) have created new opportunities for collective storage and better market access. Farmers need proper storage facilities at the farm gate to reduce handling losses and maximize profits.

Currently, most warehouses and storage units are located near major markets, which benefits traders more than farmers. Since perishable goods and food grains often suffer the most losses near the farm, setting up local storage units is critical. The World’s Largest Grain Storage Plan in the Cooperative Sector aims to tackle this issue. By creating decentralized warehouses, processing centers, and fair price shops at the PACS level.

The initiative has already been implemented in states like Uttar Pradesh, Madhya Pradesh, Rajasthan, Gujarat, Maharashtra, Tamil Nadu, Karnataka, Assam, Tripura, Uttarakhand, and Telangana. To support PACS, NABARD provides loans at extremely low rates, with an interest subsidy of 3 percent for projects up to USD 0,22 million, helping them become financially stable.

Digital Transformation in Agri-Logistics

Digitization is playing a key role in improving cooperative storage and logistics management. Technologies like IoT, data analytics, and robotics are transforming supply chains and making agriculture more efficient. By shifting from traditional storage models to integrated multimodal transportation, farmers can reach diverse markets more effectively.

Expanding access to real-time market data, smart warehouses, and automated logistics systems will help farmers reduce storage costs and improve profitability. With the right policy support, cooperative networks, and digital innovations, India can strengthen its foodgrain logistics system. And ensure better income opportunities for farmers in the long run.

Conclusion: A Path Towards Better Storage and Market Access

India’s agriculture sector has made significant progress in foodgrain production. But without an efficient logistics and storage system, farmers continue to face price fluctuations, supply chain inefficiencies, and post-harvest losses. Expanding cooperative-based storage units, integrating technology, and linking farmers directly to markets can help stabilize the sector.

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