11.06.2013

Typically, tomatoes for Bangalore would be grown in an area of up to 150 kilometres from Bangalore city centre, e.g. in the region of Mysore.

The Table below the allocable cost of transport – in an oversimplified calculation and compared to a westernised supply system. As can be seen, it is not the pure cost of transport which makes retail prices soar. However, the whole process of collecting produce from small farms, consolidating loads, transportation and distribution is rather complex, as will be shown further down. Transportation and handling is both a cost and a time issue. Altogether, this process can involve five to six business transactions and load handling turns. Total delivery time can be up to four days, so the miraculous increase in value of at least 70 per cent is something that could be expected under these circumstances.

                                
It is not surprising that the food wastage percentage in the supply chain is said to be up to 30 per cent.