Fixing India’s Broken Agri Supply Chains: From Farm to Fork

India’s agricultural supply chain forms the lifeline of its rural economy, connecting more than 150 million small and marginal farmers to markets across the country and abroad. Yet, this complex system remains riddled with inefficiencies that erode farmers’ incomes and inflate consumer prices. Despite policy initiatives, technological innovations, and private investments, the gap between farm and market persists. To make agriculture more rewarding and resilient, India must rethink its supply chains through integration, digitisation, and climate-smart infrastructure.

The core challenge lies in fragmentation. India’s agri supply chains are dominated by layers of intermediaries who capture a disproportionate share of value. Smallholders, constrained by limited storage and immediate cash needs, are often forced to sell their produce at throwaway prices soon after harvest. Poor logistics and the absence of real-time price discovery leave farmers disempowered. Studies by FAO and ICAR estimate that India loses up to one-fourth of its perishable produce post-harvest, amounting to more than ₹90,000 crore annually that directly affect farmer livelihoods.

The inefficiencies are structural and span every link in the farm-to-fork journey. Input markets are fragmented, forcing farmers to rely on informal sources for seeds and fertilisers. Aggregation remains weak due to limited capacity of Farmer Producer Organisations (FPOs), while small processors struggle with compliance and access to working capital. On the marketing front, dependence on regulated mandis limits competition and innovation. In the absence of integrated logistics and storage, food often travels through costly and inefficient routes, raising consumer prices even when farmers earn less.

Examples from across India highlight these gaps vividly. The onion market collapse in Maharashtra, where prices crashed despite bumper production, revealed the pitfalls of delayed procurement and lack of storage. Conversely, in eastern states like Bihar, farmers producing makhana, fruits, and vegetables remain at the mercy of local traders because of poor cold chain facilities. The result is a paradox. Abundance coexists with scarcity, and inefficiency thrives where opportunity should.

The most effective lever to fix this broken chain lies in building integrated market linkages anchored by FPOs. These collectives can consolidate aggregation, enable processing, and negotiate directly with institutional buyers. Sahyadri Farmers Producer Company in Maharashtra exemplifies this model. By establishing end-to-end control, from production planning to export, Sahyadri ensures its 18,000 members capture up to 70% of the consumer price, nearly double the national average. Such models demonstrate that value creation is possible when farmers operate as entrepreneurs rather than suppliers.

Digital ecosystems are accelerating this transformation. Platforms like DeHaat, Arya.ag, and AgNext are integrating services across input supply, advisory, finance, and market linkage. By leveraging IoT, data analytics, and blockchain for traceability, these platforms enhance transparency and trust between producers and buyers. DeHaat’s network now spans more than two million farmers across 150 districts, helping them access better prices and advisory support. However, the challenge remains in achieving profitability at scale while keeping costs manageable.

Finance and infrastructure form the backbone of resilient supply chains. Schemes such as the Agriculture Infrastructure Fund (AIF) and PM-FME have unlocked capital for warehouses, pack-houses, and processing units, yet awareness and uptake among FPOs remain limited. Complex procedures, collateral requirements, and fragmented credit linkages deter many rural enterprises. India now needs a “Green Agri Infra Accelerator” — a blended finance mechanism to promote climate-smart, renewable-powered cold chains and waste-to-value enterprises that reduce emissions while improving efficiency.

Policy coherence is equally critical. Reforms like e-NAM and the Model APMC Act have created enabling frameworks, but their implementation remains uneven across states. Real transformation requires convergence between ministries and alignment with rural livelihood missions such as NRLM. Empowering women-led producer groups and collectives to participate in value chains can make the system more inclusive. Odisha’s millet and pulse value chain convergence under OLM shows how local procurement hubs can stabilize prices and strengthen community enterprises.

Climate resilience is now an unavoidable dimension of supply chain reform. Erratic rainfall, rising temperatures, and floods frequently disrupt logistics and degrade perishable produce. Integrating climate forecasting, solar-powered cold storage, and regenerative farming practices into supply chains will be vital. In Madhya Pradesh’s Mandla district, solar-powered warehouses under the World Bank’s SMART Project have cut energy costs by 40% and extended grain storage duration, providing a template for green logistics.

The road ahead for India’s agricultural supply chain is not about incremental fixes but systemic redesign. Strengthening FPOs as anchor enterprises, scaling traceability technologies, financing green infrastructure, and integrating women and youth in logistics and retail can redefine India’s agri-economy. A resilient, transparent, and inclusive farm-to-fork system will ensure that farmers — not intermediaries — are the true beneficiaries of India’s growing food economy. By aligning markets with sustainability, India can turn its vast agricultural base into a driver of prosperity and climate resilience.