India’s major agricultural produce losses estimated at Rs 92,000 crore

Harvest and post-harvest loss of India’s major agricultural produce is estimated at Rs 92,651 crore ($13 billion), according to data published by the Ministry of Food Processing Industries on 9 August, 2016.

IndiaSpend August 11, 2016 11:48:10 IST
India’s major agricultural produce losses estimated at Rs 92,000 crore

By Charlie Moloney

Harvest and post-harvest loss of India’s major agricultural produce is estimated at Rs 92,651 crore ($13 billion), according to data published by the Ministry of Food Processing Industries on 9 August, 2016.

The loss is almost three times as high as the new budget for the agriculture sector, which has seen an increase of 44 percent from Rs 24,909 crore ($4 billion) in 2015-16 to Rs 35,984 crore ($5 billion) in 2016-17.

About 16 percent of fruits of vegetables, valued at Rs 40,811 crore ($6 billion), were lost, according to an analysis of production data between 2012 and 2014, at wholesale prices, by the Central Institute of Post-Harvest Engineering and Technology, Ludhiana (Punjab).

Source: Press Information Bureau

An earlier government study from 2015 estimated that 5 to 12 percent of vegetables were lost.

The food processing ministry also reported that 7 percent of meat, valued at Rs 3,942 crore ($590 million), was lost, about 60 percent during storage.

Almost 7,000 cold stores were created under four central programmes between 2007 and 2014 to curb supply chain losses. These projects cost Rs 2,395 crore ($358 million). An additional 609 projects have been sanctioned and subsidy of Rs 660 crore($99 million) provided between 2014 and 2016.

Indias major agricultural produce losses estimated at Rs 92000 crore

The National Centre for Cold-Chain Development, a government organisation, has suggested that too much money is being spent on cold storages.

Three of five components – pack houses, ripening chambers and reefer vehicles – in the cold chain are almost entirely without funding, the 2015 “All India Cold-chain Infrastructure Capacity (Assessment of Status and Gaps)” report said.

(The author is an intern with IndiaSpend)

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