To this day, India remains largely an agrarian economy. One in two Indians is still engaged with agriculture in one way or another. In rural India, about 70 percent of people are still engaged in farming. This includes the farmers and the agriculture labourers, overwhelmingly women, who work on small plots of land, usually not more than 2.5 acres.
From the Himalayas to the Thar Desert, India supports a rich tapestry of agro-ecological zones. Agricultural activities span crop production, animal husbandry, fisheries, and forestry, making the country a leader in various agricultural commodities. India leads globally in the production of milk, pulses, and spices and ranks second in the production of fruits, vegetables, tea, farmed fish, cotton, sugarcane, wheat, rice, and sugar. Agriculture and allied sectors contribute significantly to the nation's GDP and remain the biggest source of livelihood, underscoring food’s critical role in India's economy, politics, and society.
Agricultural Seasons in India
In India, the agricultural calendar is marked by three main cropping seasons, influenced by the country's diverse climates and monsoonal rains: Rabi, Kharif, and Zaid.
The Rabi season, spanning from October to March, features crops like wheat, barley, mustard, gram, and peas, which are sown in the cooler winter months and harvested in spring. These crops typically require less water and thrive in the mild cold climate of the winter season. Kharif crops, grown during the monsoon season from July to October, include rice, maize, sorghum, and cotton. These crops depend heavily on the rainfall and are harvested at the end of the monsoon season. The timing and success of Kharif crops are closely tied to the arrival and intensity of the monsoon rains. Finally, Zaid crops are cultivated in the short interval between the Rabi and Kharif seasons, around March to June. This period is characterized by warm and dry weather, conducive to growing crops like cucumber, melons, and other vegetables and fruits.
Agricultural Supply Chains
In India, agricultural trade is predominantly regulated through Agricultural Produce Market Committees (APMCs), which are set up in various states to prevent exploitation of farmers by intermediaries. The traditional trading system sees farmers selling their produce at local marketplaces called mandis, regulated by the APMC Act, ensuring fair pricing through auctions managed by commission agents. These agents handle display, cleaning, sorting, and payment of farmers, and ensure bulk transactions, making the overall trade process efficient for secondary buyers. Recent legislative efforts aim to offer farmers more freedom in selling their produce, potentially bypassing some of the traditional complexities and costs associated with APMC markets. However, it is at the stage of secondary sale, where issues and complexity of the agricultural economy typically arise.
For secondary sales in urban areas, agricultural goods typically move from mandis in rural areas closer to the mandis in cities. The secondary market involves various players, including canvassing agents, traders, wholesalers, and processors. At the tertiary end of the value chain, the agricultural produce often finds its way into traditional retail channels, with over 90% of fresh produce being sold through roadside stands and open markets. While these complex networks of agricultural trade have existed for generations, criticisms of this economy focus on the lower margins farmers ultimately get for their produce.
Infrastructural Issues in the Agricultural Supply Chain
Indian agriculture is still dependent on the monsoon rains for irrigation. The monsoon months account for over 80% of the country’s rainfall, leading to erratic water supply for crops. The lack of mechanization and modern technology further result in low productivity and yield. Land holdings have been getting smaller and smaller, hindering the adoption of modern practices and technologies.
Infrastructure problems in Indian agriculture are multi-faceted. One of the pressing issues is the cold storage crisis, exacerbated by a shortage of fruits and vegetables post-harvest, which contributes to seasonal inflation. Fruits and vegetable account for nearly 75% of the consumer price index in India, and the lack of adequate storage fundamentally contributes to the volatility of the food economy. India's current infrastructure includes about 7,000 odd cold storage facilities and approximately 10,000 refrigerated vehicles. The distribution is uneven both geographically and for certain produce. For instance, Uttar Pradesh, a single state, has one-third of the total capacity, primarily for potatoes.
Women and Agriculture
Even though in the Indian imagination, agriculture is associated with being a male activity, female farmers produce up to 80% of India’s food. In India’s farms, three out of four workers are women. This number has only risen in the last few decades. As Indian cities boom, male workers are usually the first to be pulled by economic opportunities. Millions of women eventually follow their male family members, but many stay back and work on the farms. The agriculture sector employs 80 percent of all economically active women.
Despite handling heavier lifting and participating significantly, women farmers face numerous challenges. Few own land; for instance, in Gujarat, only one in seven farm owners is a woman. The lack of land holdings leads to challenges in availing credit, subsidies, and government programs, inhibiting their ability to improve production. Women's landholdings are also predominantly small and marginal, which restricts their economic leverage and perpetuates their secondary status in the agricultural domain.
RUDI
Inefficiencies plague agricultural marketing in India. It is an issue deeply relevant for the feminized workforce in India’s farms. In pursuit of a more efficient, just, and inclusive agricultural market system, SEWA set up its brainchild, Rural Distributional Network (RUDI) Multi Trading Company in 2004. RUDI serves as a lifeline for small and marginal platform, providing them a platform to sell their produce. Its ultimate aim is to establish a self-reliant agro-producing company that ensures food security for its rural members. At the heart of RUDI's operational model are the Rudibens, a network of women who manage the redistribution of processed and packaged agricultural products in their villages. These products, sourced directly from the farmers, undergo grading, processing, and packaging into affordable units, ensuring that quality is maintained at every stage. The Rudibens earn a sales commission of 10–15%, incentivizing them to reach wider rural markets. This system not only provides multiple employment opportunities but also strengthens the rural economy by keeping the value chain localized. It promotes natural and regenerative farming techniques, supporting organic production and contributing to a sustainable agricultural ecosystem. By focusing on wholesome, nutrient-rich products and streamlining the distribution network, RUDI is not just a trading company but a transformative force in rural India's agricultural landscape, aiming to create a sustainable and self-reliant ecosystem that benefits both producers and consumers.
Kamla
In 2015, SEWA launched the Kamla initiative, a significant venture that provides employment to over 5,000 women in urban and rural areas. Kamla specializes in producing traditional dishes, using nutritious ingredients to create healthy snacks and bakery items. It is named in honor of Professor Kamla Chowdhry, a long-time SEWA ally and the first faculty appointed at the Indian Institute of Management, Ahmedabad. Kamla embodies the production of food in clean air, a green environment, and the use of marginal crops like Bajri, Jowar, and Jav, reflecting the Anubandh (meaning 'interconnectedness' in Gujarati) philosophy of connectedness. Starting as a lunch service, Kamla evolved into a café and training center, expanding its influence beyond Gujarat and symbolizing a model of sustainable development and women's empowerment.
Agriculture Supply Chains During the Pandemic
The COVID-19 pandemic severely disrupted India's agricultural supply chains, affecting food security and market operations. The lockdown coincided with the Rabi season harvest. The wheat producing regions of Punjab, Haryana and Western Uttar Pradesh typically need an additional supply of 1.6 million agricultural workers every season. The lockdown prevented this season employment, leading to massive delays in food procurement across North India. Even though the government waived restrictions on the movement of farmers to agricultural mandis. Despite the ease, harvest arrivals in wholesale markets dropped by 69% in the three weeks following the lockdown and prices rose by 8%. This delay led to the shortage of food supply in cities, leading to a 20% drop in the arrival of fruits and vegetables in urban mandis. Due to limited capacity, numerous mandis across India limited their operations to only perishable commodities, which contributed to the shortage of food.
As the lockdown stretched, food supplies dwindled and 90% of households reporting some form of food insecurity. The government responded with food distribution through its public distribution systems, but mostly distributed grains and pulses, and not other raw materials. Many poor across India reported denials of ration entitlements due to inadequate documentation. Since urban centres have significant populations of people registered for ration shops in their hometowns and elsewhere, many were not able to be entitled.
Kirana stores and street vendors adeptly navigated lockdown challenges, effectively integrating technology with the support of business-to-business supply chain management firms. Predominantly reliant on family labor, these small-scale retailers were less impacted by workforce shortages compared to larger retail entities. Moreover, vendors selling fresh goods played a crucial role in maintaining the continuity of supply chains during this period.
SEWA During Pandemic
During the COVID-19 pandemic, SEWA implemented various initiatives to aid the agricultural sector and enhance food security. They expanded Rudi's operations with new centers in Rajasthan, Madhya Pradesh, and Uttar Pradesh, aiding 15,000 farmers and engaging 4,400 Rudibens. SEWA also launched the SEWA Bazaar Vegetables initiative, connecting customers directly with produce from small farmers through Kamla Café and online platforms. To improve digital and financial skills, a Digital Financial Literacy Programme was initiated. They provided no-interest grants to 350 women street vendors, aiding pandemic recovery. The Swayamshakti Program offered low-interest loans to members for various needs. Training efforts included developing a cadre of master trainers for digital and operational skills enhancement. Health initiatives included camps, improved primary care access, and vaccination drives. Additionally, a Livelihood Recovery Fund was established to support informal sector women workers, fostering sustainable livelihoods and employment opportunities.
LAKSHMI MITTAL SOUTH ASIA INSTITUTE
04–15–24