This is produce spoilt through improper storage, improper handling, excessive transportation time and “no sell” stocks, which subsequently go into animal feeding. A big portion of this wastage is a direct result of inefficient logistics and additionally pushes up the retail price levels. 

Chain retailing:  Will the multinationals  bring the solution?

The country’s hopes rest on the multinationals to solve the food supply chain problem. What is certain is that organised retail will bring more efficient logistics and processing, making many of the small traders obsolescent. However, nobody yet knows exactly how this will impact on consumers and farmers. A look at other countries e.g. in Latin America tells us which developments can be expected for the future of India:

Large production units. In the agricultural sector, industrial and mechanised farming will become the norm sooner or later. Small farming will become less profitable, and many independent smallholders will have to give up their land and their livelihood, migrating to cities, or will at least have to opt for contract farming, and restricted independence and autonomy, in the long run.