One issue, other than corruption, that has troubled the UPA government since its first term, is inflation, especially food price inflation.
But most analysts believe that though India needs to improve its productivity, there are enough food grains in the country to feed the teeming millions. The real worry is about the supply chain or the lack of it, to be precise.
Estimates suggest that India wastes almost 20 percent to 25 percent of its food grains due to improper or inadequate storage. That is roughly 60 million tonnes of food grains each year, almost as much as what India actually stores in its official godowns. The degree of wastage is nearly double in the case of easily perishable commodities like fruits and vegetables.
(This story appears in the 12 August, 2011 issue of Forbes India. To visit our Archives, click here.)
Who is going to Build these warehouses & How much he will charge for storing???? How he estimates Quality. This is like Corporatisation of normal things like MFI's like SKS had replaced local lenders but at same interest rates
on Aug 11, 2011This is used in current situation also but no use or benefit to farmer practically. Only trader or big farmer ( land > 25 ha) storing the commodity in warehouse. In case of loan farmer not getting directly through bank, also farmer afraid to take loan from bank due to corruption on his any loan for agriculture.
on Aug 2, 2011Bad Idea....if consider i am a Middle man i invite farmers to bring in their produce to sell it to me of what ever quantity....when i purchase his produce i pay him on the spot it is a Win Win situation for both and farmer has a extra win on his side...i as a 'Stock Entrepreneur' i have to sell this to retailers with my own idea....simple.... Private players should be allowed as middlemans
on Aug 1, 2011One can learn from the Indian expriment, I wish them all the success. Very good article
on Jul 31, 2011No doubt its really good idea .. But need to be implemented properly... Loan on warehouse Receipt is key to sucess of this programme...just needed to be corruption free.
on Jul 31, 2011The idea is brilliant and all, but, it will also result in unemployment of the middlemen. This can, ofcourse be tackled by instituting then as the WDRA workers.
on Jul 31, 2011