Supermarkets play a pivotal role in the efficient management of the supply chain for fruits, vegetables, and various food items. As key players in the retail sector, supermarkets wield considerable influence over the entire supply chain process, from sourcing to distribution. One of their primary functions is to streamline and optimize the supply chain by reducing the number of intermediaries involved. By establishing direct relationships with farmers, producers, and manufacturers, supermarkets eliminate unnecessary middlemen, resulting in a more cost-effective and responsive supply chain. This direct sourcing approach allows supermarkets to exert greater control over the quality and freshness of the products they offer to consumers. Additionally, supermarkets leverage advanced technologies and logistics systems to enhance efficiency, minimize waste, and ensure a seamless flow of goods from farm to shelf. Through these strategic measures, supermarkets contribute significantly to the overall effectiveness of supply chain management in the realm of fresh produce and food items.
Tag: Storage, transport and marketing of agriculture produce and issues and related constraints.
Decoding the Question:
- In Intro, try to define horticulture and discuss horticultural production in India.
- In Body,
- Define the concept of a Supermarket.
- Scrutinize the role of supermarkets in supply chain markets in horticulture and food items.
- And discuss how they eliminate the number of intermediaries.
- Try to conclude by writing the significance of supermarkets in many areas.
Answer:
India is one of the leading producers of vegetables, fresh fruits and a number of food items. Marketing of fruits and vegetables especially is more challenging than many industrial products because of their perishability, seasonality and bulkiness. A supermarket is a self-service retail shop offering a wide variety of food and household products. Examples include Reliance Retail, Big Bazaar, ITC-Choupal fresh stores.
A Supermarket is a large retail store operated on a self-service basis, selling groceries, fresh produce, meat, bakery and dairy products, and sometimes an assortment of non-food goods. Therefore, it acts as a crucial link in the supply chain of food products.
Indian Scenario – Need for Supermarkets:
- In 2012-13, total horticulture production at 269 million tonnes, surpassed total food grain production at 257 million tonnes.
- The area under horticulture crops increased to 25.5 million hectares in 2018-19, which is 20% of the total area under food grain.
- India’s food grain production is estimated to rise by 2% in the 2020-21 crop year and it is all-time high at 303.34 million tonnes.
- Thus, total food grain and fruits, vegetables production has been constantly increasing which shows the need to have a better supply chain and its management. Supermarkets are an answer to this challenge.
The roles of supermarkets in supply chain management are as follows:
- Transportation: The perishability of fruits, vegetables and other food items require swift transportation facility so that their freshness remains intact. Supermarkets are equipped with such swift transportation facilities.
- Better Storage Facilities: The better refrigeration facilities provided by supermarkets increase the shelf-life of these products so that consumers can purchase them fresh.
- Price Discovery: Most of the supermarkets purchase these products directly from the farmers, helping in the better discovery of prices for them.
- Direct contract: Big supermarket chains such as Walmart, Reliance etc. can directly contract with farmers or farmers producer organizations on predetermined conditions. If this can be implemented properly it will substantially increase farmers income and reduce transportation cost, mandi tax, middlemen exploitation etc.
Conclusion
Sustainable Development Goal 12 requires countries to half per capita global food waste and reduce post-harvest losses along supply chains, by 2030. Elimination of an excessive number of intermediaries in the agri-market is therefore the need of the hour.Thus, it can be said that though supermarkets are concentrated in urban areas, but their products come from villages it means supermarkets can reduce urban-rural connectivity, reduce gaps between both, and improve conditions of rural and urban areas by benefiting farmers and consumers, respectively.
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