inflation is much more than on cereals, deserves priority.”
“This requires massive investments in logistics, agro-processing and organised retailing, all of which can be leveraged through the private sector. Viewed from this perspective, a special mission on food processing and FDI in organised retailing are steps in the right direction,” he said.
Some other analysts, including DH Pai Panandikar, president of RPG Foundation, reckon that food processing needs to be promoted to reduce wastages and make farming more remunerative for farmers.
Scientific storage capacity is only 30% of the required capacity and cold storage facility is limited to only 9% of fruits and vegetables produced, according to Global AgriSystem, a noted consultancy firm specialising in agricultural market systems. Consequently, farmers get only 25-40% of the price paid by consumers for a commodity as the mark-up in the supply chain adds up to 60% and can even go up to 75%, while wastages in multiple handling by different intermediaries result in an erosion of value by 15-25%, it said.