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Transportation in Agriculture
Context: The recent closure of the critical Srinagar-Jammu National Highway for 13 days due to heavy rains and landslides triggered a crisis for Kashmir’s horticulture sector. In response, the Indian Railways announced a daily time-tabled parcel train service from Budgam in Kashmir to Adarsh Nagar in Delhi.
What are the challenges in agricultural downstream linkages?
Agricultural downstream linkages refer to the processes involved in moving produce from the farm gate to the consumer, including transportation, storage, and market access. The challenges are particularly acute for perishable items like fruits and vegetables.
- Perishability: A 13-day highway closure in Jammu and Kashmir led to apples worth an estimated ₹200 crore rotting in trucks and orchards. This is a stark, recent example of how perishability, when combined with other factors, leads to massive losses.
- Dependence on Single Mode/Route: Over 85% of India’s freight moves by road (NITI Aayog), making it the backbone of agricultural logistics. This over-dependence creates bottlenecks.
- Lack of Cold Chain Infrastructure: India has a cold storage capacity of around 40 million metric tonnes, but it is highly fragmented and unevenly distributed. Over 75% of this capacity is located in just four states (UP, West Bengal, Gujarat, and Punjab) and is primarily used for potatoes, not a diverse range of F&V.
- High Logistics Cost: Logistics costs in India account for 14-18% of GDP, compared to 8-10% in developed nations. For agricultural goods, this cost is even more burdensome.
- Market Linkages: While initiatives like e-NAM (National Agricultural Market) aim to create a unified national market, its penetration remains limited.
- Seasonal Glut: Harvest seasons lead to a massive surge in produce that needs to be moved quickly, overwhelming the existing transportation infrastructure.
What measures have been taken for the same?
- Kisan Rail: Launched in 2020, this is a dedicated parcel train service for farmers. It provides a seamless national cold chain transportation network for perishable produce. It offers 50% subsidy in freight under the “Operation Greens – TOP to TOTAL” scheme, making it highly affordable. The Budgam-Adarsh Nagar service is a specific, time-tabled manifestation of the Kisan Rail concept.
- Krishi Udan Scheme: Operated by the Ministry of Civil Aviation, this scheme focuses on air transportation for perishable food products from northeastern and hilly states. It provides a 50% concession on landing, parking, and housing charges for aircraft carrying such cargo, incentivising airlines to participate and helping farmers access international and domestic markets quickly.
- Operation Greens: Run by the Ministry of Food Processing Industries (MoFPI), this scheme aims to stabilise the supply and prices of Tomato, Onion, and Potato (TOP) crops and has been extended to all fruits and vegetables (TOTAL). It provides subsidies for transportation and storage, which directly strengthens downstream linkages.
- Creation of Integrated Pack Houses and Cold Storage: The government promotes the development of cold chain infrastructure, including pack houses, ripening chambers, and reefer trucks, through schemes like the Pradhan Mantri Kisan SAMPADA Yojana (PMKSY). This allows for the pre-cooling and safe storage of produce before and during transit.
- National Logistics Policy: The overarching policy aims to reduce high logistics costs in India and improve the efficiency of supply chains, which will directly benefit the agricultural sector by making transportation faster and cheaper.
