India loses ₹1.5 lakh crore worth of farm produce each year, study reveals
The study by the NABARD consultancy services (NABCONS) estimated a 5-10% loss of perishable food during transportation alone
NEW DELHI: India loses agricultural produce worth ₹1.5 lakh crore each year due to post-harvest inefficiencies, according to data revealed by the Union ministry of food processing industries (MoFPI) on Thursday.
In a written response to a question raised by Lok Sabha MP Vamsi Krishna Gaddam, Union minister of state for food processing industries Ravneet Singh said that a 2020-2022 study by NABARD Consultancy Services (NABCONS) estimated a 5-10% loss of perishable food during transportation alone.
The study further reveals that losses from cereals, including rice, wheat, and maize, amount to nearly ₹26,000 crore. Pulses and oilseeds together suffer losses exceeding ₹18,000 crore. Additionally, fruits and vegetables, which are particularly perishable, account for losses of around ₹57,000 crore.
Among the hardest-hit fruits are bananas, mangoes, and citrus fruits, with losses amounting to ₹5,777 crore, ₹10,581 crore, and ₹4,347 crore, respectively.
Vegetables such as onions, potatoes, and tomatoes also contribute significantly to the total losses, with ₹5,156 crore lost from onions alone and ₹5,921 crore from tomatoes.
The Union Ministry outlined several government initiatives aimed at addressing the issue of crop losses, citing factors such as the lack of proper storage facilities, inadequate transport infrastructure, inefficient supply chains, and improper post-harvest handling.
Among these initiatives is the Pradhan Mantri Kisan Sampada Yojana (PMKSY), which focuses on creating facilities for the processing and storage of agricultural products. This includes the development of mega food parks, integrated cold chains (a supply chain using refrigeration to maintain perishable goods), and agro-processing clusters.
To mitigate losses associated with the transportation and handling of perishable goods, the government provides credit-linked financial assistance to entrepreneurs establishing food processing units, including cold storage facilities. As of October 31, a total of 1,187 projects had been approved under this scheme.
Additionally, the Union Ministry of Agriculture and Farmers’ Welfare has implemented the Agriculture Infrastructure Fund (AIF) scheme, introduced as part of the Atmanirbhar Bharat initiative in July 2020. This scheme provides financing for the creation of cold storage facilities, warehouses, and processing units to reduce crop wastage and enhance value addition.