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World's food supplies in peril, Ukraine war leads to food crisis

In the last 40 years, India’s agricultural productivity has increased by 40 per cent to 500 per cent.&nbsp;

Availability of food, however, still remains a major concern because of poor packaging, inefficient traders, absence of sheltered storage and many more factors.&nbsp;

Among the many frequently faced challenges in the Indian food supply chain, the high volatility in the wholesale market ranks number one.&nbsp;

Owing to the massive size of the supply chain, quality control is another big hurdle. Seasonality and availability are also handicaps, although relatively smaller.&nbsp;

There are limited consolidators available who work with contractual rates; this poses another threat to the fluency of the chain.

There is no differentiation between the product cost and logistics cost, which results in an increase in the total cost of the produces. There are other major issues that impact the supply chain and food quality.

The fragmented nature of the food industry is a major obstacle in the entire supply chain as it consists of organised players like hotel chains and catering businesses, and unorganised players such as small food joints and restaurants. This results in an uneven volume demand and supply pattern.&nbsp;

Also, the involvement of third-party vendors in the supply chain creates a disruption in the flow, resulting in a price increase.

Sharp fluctuations in food price inflation have raised questions about the functioning of the Indian food supply chain itself. There is no standard tool or method to assess the fluctuation rate and predict future patterns. Hence the practice of forward-buying is not popular in India.

The supply chain’s lead time in India is impacted to a large extent by the absence of technology. The manual labour system in the country increases the cost of importing goods, e.g., the cost of importing a container in India is $500 as opposed to the $300 in foreign ports.

Only 6 per cent of the entire logistics network falls under the organised category in India. The lack of organised logistics acts as a barrier in the transportation of produce from the farms to the consumers.&nbsp;

Though the government has introduced 100 per cent FDI in the logistics sector and many organised players like DHL and TNT, among others, are coming in the market, the reach is limited only to the commercial areas. This is due to the poor infrastructure in the remote areas of the country. In India, the cold chain has not matured enough to procure products directly from the farmers; it is instead supplied by the wholesalers.&nbsp;

This results in many perishable products like exotic vegetables/fruits or dairy products losing their quality because of the time it takes to reach the consumers.&nbsp;

In turn, it impacts the farmers and the pricing of the product. The absence of private players has become one of the root causes of this poor structure.

One of the ways to curb the problem is to introduce supply chain partners into the system to address end-to-end delivery. The concept of having a single vendor is at a nascent stage and the government must encourage this concept and make way for the players by easing norms.

In India, some compliance is lost in the traditional route of buying from traders and wholesalers. Besides, there are many big players such as Big Basket, HyperPure by Zomato etc, who are present in the retail industry and are gradually foraying into the B2B space.&nbsp;

Here’s how they help solve some of the challenges. The sustainability of their business model is hinged on direct national sourcing capability and Farm to Fork models for fruit and vegetable chains and backward integration to mills and manufacturers for staples, therefore, eliminating middlemen and distributors.&nbsp;

The best infrastructure for storage, sorting and grading is needed. It is important to leverage technology-enabled end-to-end supply chain capabilities to optimise logistics, track fulfilment rates and share live dashboards.

The ability to forecast market fluctuations is a must. All these challenges result in higher cost and poor quality. Incorporating the aforementioned solutions can help smoothen the process and make things beneficial for both the stakeholders and the customers.&nbsp;

 
(This article was originally published on The DNA. Read the <a href="https://www.dnaindia.com/analysis/column-challenges-of-streamlining-food-supply-chain-management-2764954">original article</a>)

(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL.)&nbsp; 
&nbsp;

In the last 40 years, India’s agricultural productivity has increased by 40 per cent to 500 per cent. Availability of food, however, still remains a major concern because of poor packaging, inefficient traders, absence of sheltered storage and many more factors.

In the last 40 years, India’s agricultural productivity has increased by 40 per cent to 500 per cent. Availability of food, however, still remains a major concern because of poor packaging, inefficient traders, absence of sheltered storage and many more factors. Among the many frequently faced challenges in the Indian food supply chain, the high volatility in the wholesale market ranks number one. Owing to the massive size of the supply chain, quality control is another big hurdle. Seasonality and availability are also handicaps, although relatively smaller. There are limited consolidators available who work with contractual rates; this poses another threat to the fluency of the chain. There is no differentiation between the product cost and logistics cost, which results in an increase in the total cost of the produces. There are other major issues that impact the supply chain and food quality. The fragmented nature of the food industry is a major obstacle in the entire supply chain as it consists of organised players like hotel chains and catering businesses, and unorganised players such as small food joints and restaurants. This results in an uneven volume demand and supply pattern. Also, the involvement of third-party vendors in the supply chain creates a disruption in the flow, resulting in a price increase. Sharp fluctuations in food price inflation have raised questions about the functioning of the Indian food supply chain itself. There is no standard tool or method to assess the fluctuation rate and predict future patterns. Hence the practice of forward-buying is not popular in India. The supply chain’s lead time in India is impacted to a large extent by the absence of technology. The manual labour system in the country increases the cost of importing goods, e.g., the cost of importing a container in India is $500 as opposed to the $300 in foreign ports. Only 6 per cent of the entire logistics network falls under the organised category in India. The lack of organised logistics acts as a barrier in the transportation of produce from the farms to the consumers. Though the government has introduced 100 per cent FDI in the logistics sector and many organised players like DHL and TNT, among others, are coming in the market, the reach is limited only to the commercial areas. This is due to the poor infrastructure in the remote areas of the country. In India, the cold chain has not matured enough to procure products directly from the farmers; it is instead supplied by the wholesalers. This results in many perishable products like exotic vegetables/fruits or dairy products losing their quality because of the time it takes to reach the consumers. In turn, it impacts the farmers and the pricing of the product. The absence of private players has become one of the root causes of this poor structure. One of the ways to curb the problem is to introduce supply chain partners into the system to address end-to-end delivery. The concept of having a single vendor is at a nascent stage and the government must encourage this concept and make way for the players by easing norms. In India, some compliance is lost in the traditional route of buying from traders and wholesalers. Besides, there are many big players such as Big Basket, HyperPure by Zomato etc, who are present in the retail industry and are gradually foraying into the B2B space. Here’s how they help solve some of the challenges. The sustainability of their business model is hinged on direct national sourcing capability and Farm to Fork models for fruit and vegetable chains and backward integration to mills and manufacturers for staples, therefore, eliminating middlemen and distributors. The best infrastructure for storage, sorting and grading is needed. It is important to leverage technology-enabled end-to-end supply chain capabilities to optimise logistics, track fulfilment rates and share live dashboards. The ability to forecast market fluctuations is a must. All these challenges result in higher cost and poor quality. Incorporating the aforementioned solutions can help smoothen the process and make things beneficial for both the stakeholders and the customers. (This article was originally published on The DNA. Read the original article) (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL.)

Availability of food remains a major concern

Weather extremes caused by climate change could raise the risk of food shortage globally, a study that looked at data from 122 countries suggests.

Researchers led by the University of Exeter in the UK examined how climate change could affect the vulnerability of different countries to food insecurity - when people lack access to a sufficient quantity of affordable, nutritious food.

The study, published in the journal Philosophical Transactions of the Royal Society A, looked at 122 developing and least-developed countries, mostly in Asia, Africa and South America.

"Climate change is expected to lead to more extremes of both heavy rainfall and drought, with different effects in different parts of the world," said Richard Betts, a professor at the University of Exeter.

"Such weather extremes can increase vulnerability to food insecurity," said Betts.

"Some change is already unavoidable, but if global warming is limited to 1.5 degrees Celsius, this vulnerability is projected to remain smaller than at 2 degrees Celsius in approximately 76 per cent of developing countries," he said.

Warming is expected to lead to wetter conditions on average - with floods putting food production at risk - but agriculture could also be harmed by more frequent and prolonged droughts in some areas, researchers said.

Wetter conditions are expected to have the biggest impact in South and East Asia, with the most extreme projections suggesting the flow of the River Ganges could more than double at 2 degrees Celsius global warming, they said.

The areas worst affected by droughts are expected to be southern Africa and South America - where flows in the Amazon are projected to decline by up to 25 per cent, according to the researchers.

They examined projected changes in weather extremes and their implications for freshwater availability and vulnerability to food insecurity.

The study, published in the journal Philosophical Transactions of the Royal Society A, looked at 122 developing and least-developed countries, mostly in Asia, Africa and South America

Weather extremes caused by climate change could raise the risk of food shortage globally, a study that looked at data from 122 countries suggests. Researchers led by the University of Exeter in the UK examined how climate change could affect the vulnerability of different countries to food insecurity - when people lack access to a sufficient quantity of affordable, nutritious food. The study, published in the journal Philosophical Transactions of the Royal Society A, looked at 122 developing and least-developed countries, mostly in Asia, Africa and South America. "Climate change is expected to lead to more extremes of both heavy rainfall and drought, with different effects in different parts of the world," said Richard Betts, a professor at the University of Exeter. "Such weather extremes can increase vulnerability to food insecurity," said Betts. "Some change is already unavoidable, but if global warming is limited to 1.5 degrees Celsius, this vulnerability is projected to remain smaller than at 2 degrees Celsius in approximately 76 per cent of developing countries," he said. Warming is expected to lead to wetter conditions on average - with floods putting food production at risk - but agriculture could also be harmed by more frequent and prolonged droughts in some areas, researchers said. Wetter conditions are expected to have the biggest impact in South and East Asia, with the most extreme projections suggesting the flow of the River Ganges could more than double at 2 degrees Celsius global warming, they said. The areas worst affected by droughts are expected to be southern Africa and South America - where flows in the Amazon are projected to decline by up to 25 per cent, according to the researchers. They examined projected changes in weather extremes and their implications for freshwater availability and vulnerability to food insecurity.

Climate change could raise food shortage globally: Study

Indian external affairs minister Sushma Swaraj rushed to the rescue of 10,000 unemployed Indians who were stranded in Saudi Arabia without food at a camp. She ensured that the&nbsp;Indian Embassy in Jeddah supplied them immediately with food on Saturday.
<div class="twitter-block">
<blockquote class="twitter-tweet" data-lang="en">
The number of Indian workers facing food crisis in Saudi Arabia is over Ten Thousand. It is not 800 as is being reported. <a href="https://twitter.com/JagranNews">@JagranNews</a>
&mdash; Sushma Swaraj (@SushmaSwaraj) <a href="https://twitter.com/SushmaSwaraj/status/759424598114873344">July 30, 2016</a></blockquote>
<script async src="~/platform.twitter.com/widgets.js" charset="utf-8" type="text/javascript"></script></div>
 
Swaraj reacted to a tweet by an Indian national who brought the plight of his fellow citizens to the notice of the Indian government.&nbsp; 
She assured that no Indian worker rendered jobless in Saudi Arabia will go without food. She also said that she was personally monitoring the situation on an hourly basis. 
 
&quot;Large number of Indians have lost their jobs in Saudi Arabia and Kuwait. The employers have not paid wages closed down their factories&quot;, Swaraj tweeted 
 
&quot;While situation in Kuwait is manageable, matters are much worse in Saudi Arabia&quot;, she said. 
 
A man named Imran Khokhar had tweeted that 800 Indians were starving for past three days in Jeddah.
<blockquote class="twitter-tweet" data-lang="en">
<a href="https://twitter.com/SushmaSwaraj">@SushmaSwaraj</a> after your quick reaction some camps got foods today <a href="https://t.co/BXpwLDCrEx">pic.twitter.com/BXpwLDCrEx</a>
&mdash; Imran Khokhar (@Imran_khokhar84) <a href="https://twitter.com/Imran_khokhar84/status/759382994876502016">July 30, 2016</a></blockquote>
<script async src="~/platform.twitter.com/widgets.js" charset="utf-8" type="text/javascript"></script> 
 
Thousands of Indians have lost their jobs in Saudi Arabia and Kuwait. The factory workers have not been paid wages by their employers and factories were also shut down.
<blockquote class="twitter-tweet" data-lang="en">
There is nothing mightier than the collective will of Indian nation.
&mdash; Sushma Swaraj (@SushmaSwaraj) <a href="https://twitter.com/SushmaSwaraj/status/759427375809503232">July 30, 2016</a></blockquote>
<script async src="~/platform.twitter.com/widgets.js" charset="utf-8" type="text/javascript"></script>Swaraj also appealed to the three million Indians living in Saudi Arabia to help their &quot;fellow brothers and sisters&quot;. 
 
(WION)

Swaraj's response came after an Indian, Imran Khokhar, had tweeted that 800 unemployed nationals were starving in Saudi Arabia

Indian external affairs minister Sushma Swaraj rushed to the rescue of 10,000 unemployed Indians who were stranded in Saudi Arabia without food at a camp. She ensured that the Indian Embassy in Jeddah supplied them immediately with food on Saturday. The number of Indian workers facing food crisis in Saudi Arabia is over Ten Thousand. It is not 800 as is being reported. @JagranNews — Sushma Swaraj (@SushmaSwaraj) July 30, 2016 Swaraj reacted to a tweet by an Indian national who brought the plight of his fellow citizens to the notice of the Indian government. She assured that no Indian worker rendered jobless in Saudi Arabia will go without food. She also said that she was personally monitoring the situation on an hourly basis. "Large number of Indians have lost their jobs in Saudi Arabia and Kuwait. The employers have not paid wages closed down their factories", Swaraj tweeted "While situation in Kuwait is manageable, matters are much worse in Saudi Arabia", she said. A man named Imran Khokhar had tweeted that 800 Indians were starving for past three days in Jeddah. @SushmaSwaraj after your quick reaction some camps got foods today pic.twitter.com/BXpwLDCrEx — Imran Khokhar (@Imran_khokhar84) July 30, 2016 Thousands of Indians have lost their jobs in Saudi Arabia and Kuwait. The factory workers have not been paid wages by their employers and factories were also shut down. There is nothing mightier than the collective will of Indian nation. — Sushma Swaraj (@SushmaSwaraj) July 30, 2016 Swaraj also appealed to the three million Indians living in Saudi Arabia to help their "fellow brothers and sisters". (WION)

Indian foreign minister reaches out to help 10,000 stranded in Jeddah

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