Worldwide consumers are becoming more conscious about what they eat and what impact the food they eat has on themselves and the environment (Beske, Land & Seuring, 2014). Hence, health conscious consumers, today prefer to consume organic produce, which is pest-free and more eco-friendly. Meaning only a small proportion of consumers today prefers consuming organic food. Producers from the past few decades have also converted from conventional inorganic technics to organic farming. The Indian organic foods supply chain has become more complex than ever and is the area of concern as the industry is growing rapidly at a staggering growth rate of 25% per annum. This industry has transformed into a “demand-driven value chain” with remarkable increases in the demand and market potentials for the organic market (Vatsyayan, n.d.). The current scope of the study aims analyzing barriers to supply chain in the Indian organic food industry.
Farmers around India coordinate and work with a range supply chain channels. Yet their produce often remains unaccepted therefore they remain with complaints and dissatisfaction (Roy, Orikasa, Okadome, Nakamura & Shiina, 2009). This is due to reasons of difficulty of grading or high certification costs, low economies of scale and scope due smaller volumes they produce, weakly established payment mechanism, farmers lack of financial resources, lack of access to the market information resulting in tighter control by chain leaders all of the above factors restrains farmers to follow the chain leaders in the absence of local market outlets for the organic producers that is access to guaranteed market (Singh 2009). Organic market in India is still in an elementary stage only concentrated in the hearts of Indian major city.
Farmers are able to roll out only small quantities of produce leading to high costs from production, marketing, and distribution leading to a lack of organic supply chain infrastructure which can be acutely felt in the Indian system (Sakthirama). With the industries revenues growing over US$ 556.01 million the complexity of the supply chain operation increases with the ever-single transaction and so it is essential to establish a stage to build an efficient supply chain model while solving the existing problems. The consumer is gaining awareness and adopting a healthier lifestyle having a positive impact on the demand for the organic produce but it’s important to integrate the smallholder farmers with the organic supply chain which will greatly impact the benefit the development of the domestic and export market (Challenges in Maintaining Organic Food Supply Chains, 2017). To achieve this development both farmer and supply chain should share responsibilities and profits equally. To achieve an Integration of supply chain and farmers major goals like access to a guaranteed market with frequent deliveries, high quality produce, sharing market information and fair trade with good payment mechanism should be satisfied (Nandi, Gowdru and Bokelmann, 2017). Technology today has grown tremendously so it important adoption necessary to improve this existing system operation to work efficiently but adopting concepts like block-chain which is to help generate the flow of information and resources through the supply chain easily (McKendrick, 2018).
The study is aimed at analyzing factors that contribute towards the selection of a supply chain network. The supply chain in organic farming in India includes several middle men. In order to attain the aim of the study, the following research objectives need to be ascertained.
In order to arrive at the above-mentioned objectives, the following questions relative to the study has to be answered.
With increasing need and demand for organic food within India, there is a growing need to address the challenge of supply chain network. Though the domain of organic farming has not been able to take a considerable shape within India, it needs special attention such that it can flourish and become a global industry (Reddy, 2010). Fertile farming land and availability of farming and irrigation techniques makes the country one of the most suitable destinations for the purpose of farming. India being an export hub for various agricultural products can develop into a hub in the Asian region for organic food supplies as well. Therefore, the scope of this study is extremely crucial and vital as it incorporates identifying the key drivers and barriers for the supply chain network. In absence of an agile supply chain framework, the entire concept of producing in an organic manner might go for a waste (Sakthirama). Therefore, all factors which affect supply chain network have to be identified.
The study will follow the following structure;
The study comprises of research objectives and so the purpose of this section is to make evident that there are gaps in the current literature. Thus relevant research areas shall be deliberated upon and critiqued if necessary to demonstrate the need for further investigation. The scope of the literature review incorporates identifying sources from articles and journals that can provide relevant information related to the study. The following are some critical domains that have been identified for the purpose of generating literature concept.
Booming industry for organic requires sustaining the growth of the industry which is great future potentials opportunity lies within the industry. Rising health consciousness amongst consumers in recent decade has led to considerable rise in consumption of organic food products. Consumers in countries that India exports its organic food has also increased its consumption in recent years. But accurate figures cannot be ascertained as some businesses are carried out on private scale with most businesses on government scale. As the growth of the organic food market is not expected to slow down anytime soon, businesses need to optimize food manufacturing supply chains, alter their procurement strategies, and shop around for suppliers to cater to consumers and remain competitive. Trienekens and Zuurbier (2008) states the huge cost incurred makes it mandatory to increase production and reduce the costs, which mean an efficient supply chain system. In order that organic food farmers can reach their products to the market themselves, they need to produce in large quantities. Need to address a set of unique problems as the processing, transporting, and distribution of organic foods also present a unique challenge: keeping it separate from non-organic produce. This is an especially important point for vegan organic products and organic meats. This often means that companies that offer both organic and non-organic food products must use two different machines for each step of production, increasing costs overall. Alternatively, they can choose to clean them thoroughly between organic and non-organic use, which also leads to increased costs and impedes the speed of production (Darnhofer, Lindenthal, Bartel-Kratochvil, Zollitsch, 2010). It is necessary that manufacturers and distributors maintain organic food standards and practices so as to not deceive consumers about the quality and state of the product that is being sold.
The need to maintain transparency in food mileage and food contamination has to be present. Organic food certifiers are from varied private limited companies in India. M/s Bureau Veritas (India) Pvt. Ltd, M/s global Certification Society and other state agencies are present that provides certification for organic food. Evolving sales format – past literature reveals that consumer’s preference on the point of purchases has been changing. The sales of organic food from organic handlers to wholesalers have been reduced while the share of sales to retailers and club store has increased. Organic handlers add value to the produce by processing and packing and distributing the product to retailer organization restaurants and consumers. This is due to the fact that organic handlers enter into an agreement with the farmers and promise to buy the produce at regular intervals. So the spot market sales have reduced to an extent (Dimitri & Oberholtzer, 2009). The popularity of organic food increases, as well as rapid growth in the organic food market and slow growth in production, has created a trade imbalance building pressure on the supply chain. In India there is minimum pressure on the organic farming to create a supply chain. Managing the supply chain also becomes more complex. The pressure built has increased the cost associated with the farming. There is a need to optimize the supply chain by adopting technics, which can optimize the procurement strategies and generate profit. We live in the 21st century where technology is very advanced. Indian supply chain can function more efficiently as they adopt new-sophisticated technology to integrate data from the information available through data capture and proses (Etingoff, 2014). Increased supply shortage in India has 12 % of the world cultivatable land and 70% of the population dependent on agriculture but it only contributes to less than 15% to GDP in the Indian economy. Organic food sector, however, has a great opportunity for growth with the annual growth of 25%. To sustain the growth we need to focus on supply chain model in India.
The role of organic farmers in the supply chain in India has been found to be inconsistent. The members of the supply chain include varied people. The structure of the supply chain network is the relationship between the members of the farmers and the retailers. The main members of the supply chain are those who run business processes. Coley, Howard, Winter (2009) states member support is a person that provides only resources, information, tools or tools to maintain the supply chain. The supply chain has three structural dimensions: the horizontal, vertical and horizontal position of the end-of-supply company. It is an elegant and elegant structure that focuses on the main parts of the supply chain. The supply chain at certain levels can be long or multi-level or short. Raw materials are moved from the ground with other materials for a short distance. The second dimension applies to the vertical structure, suppliers or customers of each class. The company can have a solid vertical structure with a broad vertical structure, more than one company in all companies, or with many suppliers or customers at all levels. The third dimension is the horizontal position of the wholesaler in the supply chain (Ganesan, George, Jap, Palmatier, Weitz, 2009). The wholesaler can ask questions from a real customer, either near the original source of supply or near the end of the supply chain.
Organic sector in India is a booming but just like any other sector in the economy, they have some challenges that are to be addressed in the area of supply chain management. Supply chain management is a tool, which enables coordination and integration with trade partners. Supply chain management in past was used by a larger organization with huge financial resources and other resources for product development, sourcing, production, logistics and information systems all thesis activities were coordinated with good supply chain management (Thakur & Hurburgh, 2009). Now with growing competition, even small business is part of this complex structure. Supply chain management involves an organizational or institutional perspective, a performance perspective, and a process perspective. Some of the challenges are in the area of the supply chain in the organic sector. The variable influencing supply chain is as follow:
Lack of access to marketing information: Multiple kinds of literature can be found out about the importance of market information. Market information is essential while making the decision in business for closing the information gap, scanning the business environment, establishing plans and strategy and control business outcomes (Smith, 2008).
Access to market information has a positive relationship that influences farmers to supply to marketplace. Palmer (1196) explained the key factors like information exchange develops a good relationship for all the members of the supply chain, improving their business linkage. The pork supply chain in China had a significant had seen significant growth in their business model as the stated to integrate and exchange information. They concluded that in order to improve there the quality products and reduce the risk involved every member of the supply chain has to openly share information (Garnett, 2011).
The current supply chain in India is government by producer, wholesaler, distributor and retailer to reach to the final consumer. This prolonged steps in supply chain enhances costs of organic food products while reaching consumers. Indian organic food markets are unorganized which limits the flow of marketing information due to non-existing infrastructure. India is a large nation with farms spread all over the country, and there is no existing platform, which integrates farmers, distributors, retailer, and consumers. Demand forecasted is through farmers’ intuition and “the farmers try to push what they produce into the market. A good supply chain management should have the following activities like data integration, financial flow management, supply-demand matching, collaborative forecasting, information sharing, goods movement synchronization through efficient transport scheduling practices should find their way into the food supply chains.”
Evolving consumer buying behavior – the consumer’s preference for organic food has always remained high but the range of the options has been constantly evolving and widening from fruits and vegetables to dairy products, beverages, packaged and prepared foods and bread and grains (Ghosh & Shah, 2012). Organic food consumers are present mostly within cities hence consumers purchases organic food products mostly from supermarket, retail stores present in cities and suburbs. Which makes it essential for farmers to have good coordination with the supply chain channel members to get market information regularly. Indian organic industry is growing but is still unorganized and small organic farmers can’t anticipate the changing consumer’s preferences, which make it a major setback for further growth.
Challenges to attain certification: Indian organic produce has multiple certification bodies based on the type of the product and process companies apply for APEDA, NPOP, NCOF and FASSA (FIGURE 1). Through these certification farmers can easily sell their products in the market. Farmers today face multiple challenges while obtaining certification of their farm products. Fayet & Vermeulen (2014) provides firstly difficulty in the conversion from conventional farming to organic farming, the rapid growth of the demand has built immense pressure on the existing supply chain network to meet the ever-growing demand of organic produce but farmers prefer conventional method over the organic because of the time involved in converting into an organic farmer. Some certification approval plan process can take up to three years to be received resulting in reduced farm yield and inability to meet the demand. The slow responses of farmers disorient the supply chain’s producer, distributor, and retailers unable to meet the market requirement on regular bases. Second lack of standard certification for different commodities, as consumers in India are gaining awareness of the health and environmental benefits of organic farming and their products, the range of products that they consume are also increasing. But the standard of certification for each product and process vary, like dairy and meat product, have different standards (Lamine, 2011). High transition cost, India has vast cultivatable land but large numbers of these farms are run by small farmers, the certification cost incurred are nominal but it is a huge burden to small farmers and key trading partners in the supply chain in past have demonstrated a lack of willingness to share the cost equally (Fugazza & Nicita, 2008). The cost varies from product to product and is based on weight of the material.
. Inputs cost for organic manure is high compared to the chemical manure that also receives government subsidies and organic farming has a low yield in the initial years. This one of the main reasons farmers are skeptical of organic farming (Thakur & Hurburgh, 2009). There also other issues like Issues lengthy procedures, international validity, inadequate certifying agencies and inadequate supporting infrastructure facilities for verification.
Limited financial funding or resources: organic farming slowly making an inroad into India economy and the role of financial and government institutions and support systems to promote organic farming also is slow growing. But there is a long way to go to meet the adequate required support level. Indian organic is primarily export-oriented but they are slowly gaining momentum in the domestic market as well, producers are required to meet the certification requirement like quality, quantity, frequency, and fair trade and so on (Rani, C, & Reddy, 2013). 70% of the farmer’s operation in India is small scale in nature they lack financial resources and have limited exposure to service. Due to the small quantities, they produce with their limited financial resources they have a low level of bargaining power and middlemen or the distributors generally exploit the small farmers. Through bank and government support small farmers can be empowered by providing them with technical and financial support. Lockie (2009) states an institution helps bridge the gap and builds equality and improves the relationship between the individual and the members of the supply chain who are part of the transaction. “Institution refers to different types of organizations, markets, contracts, cultural norms and informal or formal rules that define rights of access to goods and services, as well as access to the management of a given space or to its natural resources”. Institution comprises organic certifiers and other bodies that aim at stabilizing a direct supply from organic farmers into the market. Indian organic farming needs more support from banking, public investment and government support in the form is good policy at various different stages. Their roles should primarily focus on establishing a good structure by improving the scale of operations, reduce post-harvest losses, provide farmers with adequate infrastructure staring with roads, water, electricity support and provide technical support through research and development finally establish productive marketing infrastructure.
Need for integration of technological, informational and marketing support – It becomes essential to understand the important role an institution can play in promoting the organic farming. Based on a study conducted by Rani and Reddy (2013) in Uttarakhand in India the institutional support for the farming can be provided in the area of technological development, informational integration, marketing support and they had organized an organic producers groups and nonorganic producers groups for this propose. Technological development is a need to develop a technological advanced biopesticides or inputs to increase yield and reduces pest problems because the yield in the initial years of organic farming was low and they were more vulnerable to pesticides and disease infestation especially tomatoes, cabbage, and cauliflower. The government also can provide financial support in the form of subsidies to some extent to reduce the burden of organic farmers in the initial year’s losses, which is caused due to conversion from conventional farming to organic farming (Manning, Boons, von Hagen & Reinecke, 2012).
Smith (2008) provides there is also a need to improve farmer’s access to machines, quality standards, process technology for production, exposure visits, supply inputs, certification process and organizing farmers in to groups etc. (b) Informational integration – there is a need to organize platform that integrates all the organic farmers across the country and also links them with the supply chain for improving the flow of the information. Institutions should be established who can provide information about the new product, specification about the standards and technologies available at hand for production. There are other areas where information service is required are as follow Organic Price reporting services, Directory of Buyers, IEC activities, Organic Processing Facilities, Crop Insurance, Organic Specific Extension etc. (c) Marketing support – institutional support in the area of marketing play an important role as in the essential infrastructure. One of the main service components here is buyers information this should be available to each framer, another service like storage facility transportation facility, grading, packaging and price information is necessary (Nandi, Gowdru & Bokelmann, 2017). All their services will increase the competition in the market but they also will help in the growth of the organic market significantly.
Uncollectable and delayed payments: Interviews conducted with 120 farmers in India revealed that 73.33% agreed that delayed payment for their produce is one of the major problems they faced and they forecasted 80.83% wanted measures to achieve in time payments for the produce. Sharma, Giri, Shankar Rai (2013) states that delayed payment or uncollectable debts in India is a growing problem. Farmers face this issue not only with private buyers but also government institutions, which disturbs the cycle of production for the current period but also the coming future. Indian organic farmers prefer cash payments over cheques and other banking instruments due to the inconvenience of waiting time of two to three days or more and even fear the possibility of cheques bounce. Banking infrastructure in the rural parts of India is inadequate (Dave, 2018). The farmers in India face this problem periodically so it is essential to come up with a suitable solution. Organic farmers in India operations are small scale and they need to be educated about the various schemes, policies of the government and government need to introduce a dedicated payment instrument directed towards the Indian farmers to overcome the existing barriers. Organic farms in India are few and they are generally being set up due to increasing demand of organic produce.
Limited access to guaranteed market: A preferential access to an economy or entities sanctions a bilateral trade flow for either the economies or entities involved. Market access can be provided in two ways first direct market access condition and second relative market access condition. This initiative will subdue the agrarian crisis reduces the income disparity between the rural and urban population. (SAZs) would empower farmers to decide which crop to grow, what price to sell at, whom to sell the product. Farmers must be encouraged to produce more by giving incentives to those that sell their products to the government; such an initiative will reduce the role middlemen involved by making them part of the growth cycle. (SAZs) do exist in India by the real problem is they only help large-scale farmers or organization who would forcefully buy land from small framers by taking advantage of the government policies to make more profit while small farmers can’t do anything but watch the income disparity in the economy grow. Mansa, Jhajjar, Kakinada, Nandagudi, Baikampady, Nandigram, Raigad, just to name a few are places in India where farmers are a victim (SAZs). In Tamil Nadu, the government had planned to launch a special organic zone (SOZs) to promote organic farming. However, the policy has not seen light for almost half a decade due to a power struggle within the government parties (Nithya Vishwanath Gowdru, Wolfgang Bokelmann, 2017). We need to anticipate for the future and see what kind of benefits this (SOZs) policy will have.
Integration of the Indian organic foods supply chain through e-intermediaries – integration of the Indian organic supply chain partners with each other will promote efficiency while reducing the risk level involved. The current state of grocery in India is gradually transforming into internet based grocery stores. Grocery stores physical as well as internet based sells organic as well as regular produce. To achieve that following each partner within the chain should have a long-term relationship with each other, while jointly sharing information, solving problems building and trust with each other. There is a growing need for farmers in India to have access to market information because the middlemen and other members of the supply chain of organic food have exploited them. In rural India where farmers lack access to information have only one option but to sell to the local Mandy where the middlemen fix a price, which hardly meets the cost of production a farmer. ITC E-choupal was an initiative by ITC to address the problem of acute information shortage by virtually linking farmers with processor and manufacture with the help of internet. ITC along with various other corporates are setting up various e-platforms such that farmers can easily sell their products in the market. This linkage helped resolve the middlemen skimming the profits problem while farmers received a better price for the produced. Although E-choupal helps in to solve some problems it is not able to address the fundamental problem of inefficiency of small tiny farmers around India. e-choupal mainly focuses on nonorganic produce like soya bean, coffee, wheat, and aquaculture but this is just the tip of the ice burg. We need a model that is more comprehensive and up-to-date with today’s technology, which connects farmers, processors, manufacturers, distributors and end customers with each other. The model should have its own payment mechanism; all the transactions are transparent & recorded. Another example would be EasyFlower.com a concept similar to e-choupal, which as used in flower supply chain in China, this e-intermediary has developed a mobile application to solve a similar problem.
Need for development and finding a solution to the existing problem in the supply chain – Indian organic food sector is in an embryonic stage of development with fast growth in the market and consumer demand. Achieving the full potential of the market demand and sustaining the growth requires the establishment of good infrastructure in the form of institutions, informational support, technological support, marketing support and finally good e-intermediary. We need to understand the problems at hand and find suitable solutions with the help of institutions like government, banking, and private organizations. Coordination and collaboration with trade partners are important to an organizational success. Supply chain management is a powerful tool, which enables coordination and integration with trade partners. But there are Some of the pressing issues at hand to be addressed relating to supply chain management in the organic food market they are Lack of access to market information, challenges to attain certification, limited financial funding or resources, uncollectable and delayed payments, limited access to guaranteed market, Need for integration of technological, informational and marketing support, Integration of the Indian organic foods supply chain through e-intermediary etc. in this research paper we understand the various problems relating to supply chain management in the organic food market and find suitable solution through in-depth interviews. The academic literatures indicate there is need of regulation and supply chain platforms such that organic produce can easily reach the market.
Defining a research design is the most crucial aspect of undertaking any study. The researcher has established a method for conducting the study and finally to achieve the objectives (Brinkmann, 2014). The research methodology is one of the most important factors in conducting investigations and requires too much attention. In this field of research, researchers used a method of research to improve and ultimately realize the goals. The research methods and designs have been explained below.
The philosophy of research covers the structure of all the research that proves its views. The researcher is free to choose whether the epistemology, positive research, ontology, rhetoric, and axiology. Epistemology studies the theory of knowledge. These are some of the aspects of reality and understand what you know and how you know it (Flick, 2015). Ontology is associated with central topics of social entities that are considered to be objective or subjective. Rhetoric takes into account the main issues and the analysis of all the problems related to the research and understanding of the results. Axiology philosophy, this area of philosophy of aesthetic research, scientists try to explain or predict or comprehend the world. The study has undertaken epistemology study procedure for relating knowledge to application to the study.
A study can progress as a qualitative or quantitative study. In a qualitative study method, descriptive data is used. In quantitative research, numerical data is used. In quantitative research is used to quantify numeric data or data that can be converted into useful statistics. In order to conduct this research only qualitative data and research procedure had been conducted.
Such data can be derived using a method of deductive and inductive strategy (Gomm, 2008). The deductive method is based on the general theory of more concrete theories. The inductive method starts with specific observations and proposals, starting to identify the patterns and regulations and study the formulas on the premises that the researcher.
The research design is a process of operations research which includes a comprehensive strategy that integrates the various parts of the study on the efficiency of research. There are four types of research designs that describe research, defining and planning the forecast of the research (Bergman, 2008). Research design can be case-study based, observation, semi-experimental or experimental in nature. for the purpose of this study observation had been selected. The use of specific research plan will depend on whether the problem is studied. The purpose of the survey is to gather information in advance to identify problems and suggest the hypotheses. The way of interpretation allows an investigation of research at different depths. Description of the research is often used to create plans for quantitative research, and general research provides valuable information (Blessing, & Chakrabarti, 2009). The potential survey uses statistical models and forecasts to understand the future.
The research design is to be considered an operator of research process and background. The process of capturing information and data to perform a successful investigation is the process of research design. The research design can be descriptive, correlational, experimental or semi-experimental in nature. Descriptive type of study is adopted for a case study or in case of natural observation. In correlational study case-control study or observational study is used. In case semi-experimental field experiment or quasi-experiments are used (Lewis, 2015). An experimental study is used in cases of random assignments. Whereas meta-analytic study can also be used. A research design includes a set of methods and procedures that are undertaken for analysis and collecting of variables that are stated in a research problem. It provides a framework that is generated for the purpose of arriving at specific answers to the research question.
While collecting data for the study, there might be several research tools used such as observation, questionnaire, interview and. The scholar, in this case, has made use of interview from various farmers across India in order to collect data relevant to the study (Taylor, Bogdan & DeVault, 2015).
In interviews, the researcher can choose between two types of interviews: a structure that interview and a structure that interview. Structured interviews, respondents replied in an Interviewers code, which is to limit the responsibility. The interview that has been scheduled by the scholar is a highly un-structured interview that allows the scholar to collect varied types of data and information from participants. An interview guide was followed for data collection and analysis. An interview guide included procedure to collect as much possible data from farmers.
The data are usually collected on two main aspects of primary and secondary data collection methods. Primary data includes those data that are a first-hand information source, whereas secondary data is one that is obtained from already published sources (Silverman, 2016). The study has arrived at findings relative to primary data that has been derived for the study purposes only. The data obtained from conducting interviews. Mainly farmers from India, who are involved in organic farming were interviewed. The entire interview was conducted over the phone and through video conferencing.
Prior to conducting the interview, each participant was briefed regarding the goals and objectives of the study. Participants were taken an appointment and then they were given the aims and objectives, with ways the study will progress. This will enable the participant to develop understanding related to the study.
During the telephonic interview, the participants provided a detailed message regarding whatever their understanding was related to the supply chain issue that faced their organic farms.
The Interview guide contains procedures of maximum interaction so that data can be collected from participants. The interview guide also aimed to be lucid such that it is easy to understand. Moreover, the interview aimed at collecting data that is relevant to organic farming.
The data that was collected over the telephone by means of interview and asking specific questions were analyzed in an interpretive manner (Smith, 2015). The scholar had selected sampling procedure sampling procedure, as it was not possible to collect wide array of data. The scholar had collected data by means of 10 interviews to different farmers. The scholar had selected random stratified sampling procedure. The sample was selected by scholar on the basis of varied products from varied region of the country. The interviews was analysed using particular themes of the study. Thematic analysis was conducted for arriving at findings related to the case.
The study has followed stringent ethical consideration in order to avoid any possible conflicts. An ethical form for research as had been obtained from the University was provided to participants for filling up. All other ethical guidelines were followed while undertaking the study. Each participant was provided ethical form provided by the University and filled duly for complying to the study procedure.
Analysis of the interviews and connecting them to studies which earlier provided as literature understanding for the study, some of the following findings have been arrived at. All the interviews revealed something in common while they had some points of distinctions as well. The scholar has picked up relevant areas that can provide in-depth understanding related to the challenges faced in the supply chain frameworks for farmers. Then a subsequent discussion regarding ways to overcome such challenges has been provided.
Some of the key findings that have been analyzed from an interview of all farmers have been taken into consideration. The interviews have been selected for descriptive analysis as they were lucid to understand and the objectives of the farmers were stated in a clear fashion. The thematic analysis is presented from statements as depicted in the diagram can be analysed from the quotes recognized from the interview.
Research Findings 1: The complexity of certification requirements
The certification is required to be considered by many farmers, who are operating in organic farming. The certification body imposes strict requirements for the management of factories to farmers, including the storage of artificial chemicals in agriculture, including the prevention of all contaminated materials, such as irrigation water, equipment, tank and storage facility. These concepts in agriculture are not easy to integrate, since 1960, when the Green Revolution was introduced, they used artificial chemicals. Quotation from an interview includes, “There is tremendous complexities in certifications”. The technology that has died has been launched in the market over the years. Before the farmers serve the organic peasants, they always say that the leaves of the plants are healthier. Only chemical fertilizers can do it. As a result, farmers are careful because they do not use fertilizers in their factories. The foreword of the argument is often, and after eating organic farmers.
In order to meet the above requirements, it is necessary to achieve various types of abuse measures, such as collecting animal waste and using fertilizers (legumes) as compost. But activity detects, sends, confirms, gets, inspects, returns, connects and cleanses. For all steps taken, the time and duration of the activity, the quantities used and the number and origin of the employees should also be indicated. The team has an internal control system (ICS) without an IMO team. Time savings ICS monitors the collection and separation of rice to ensure that rice collected does not interact with conventional organic produce.
Research Findings 2: Certification costs are expensive
In addition to the hard work of peasants, including organic certification it is very expensive. But it is certified that there is an IDR organization with a commission of 2 million per person. Specific costs includes obtaining certification and then the product has to go to retail market. Given that the average harvest of organic produce is twice a year, and farmers who sell all production, the certification rate for IDR is 250 kg. However, if the organic food produce amount is equal to 40% of the total production and the remaining consumption (60%), the certification rate corresponding to the EIF peasant would be at lesser rates. In this case, the certificate must contain a certificate certifying must be valid. When farmers sell the whole product and buy cheaper traditional rice for their consumption, the certification of payments is relatively cheap. The dissemination of international certification bodies of national certification bodies.
Research Findings 3: Missing state aid
State aid for ecological development is rare for members of the supply chain, state aid is primarily marked by farmers. However, the government did not support the development of organic food, yet it has been providing loans and loan waivers to farmers. This is reflected in the reduction of support for farmers and FGA. Surprisingly, access to traditional farmers remains and causes concerns for organic farmers. Due to the different circumstances, some organic farmers change only to common agriculture to get loans. The lack of assistance from farmers can say in their speech that they need an official area for combating poverty, but the official expansion of the camp is usually not expected. Field support has not yet been recognized for other members of other stock chains. In fact, they should gain knowledge, especially for free-traders who buy organic food produce.
Research Findings 4: Missing engagement
The promise is to strengthen relations between members of a conglomerate or a connection between different sectors and sectors according to the objectives of each Member State. A conglomerate is an association of farmers producing organic foods. The promise is attached to unity and basis for emotional connection or engagement. As companies work in collaboration with the company, many “obligations” require, including different organizations and individuals with different roles, to support and meet the different associations required. Otherwise, the lack of engagement may interfere with the connection between the unlimited device because of the lack of commitment from one of the parties involved will respond even to the others. It will last at the end of the sentence.
There are some farmers who, for unknown reasons, did not agree to sell their FGA products. They should sell their products to free retailers at higher prices. In addition, the lack of commitment was reached by retailers who were nominated for the same purpose as farmers.
Research Findings 5: Lack of institutional support
Organic farming was not supported by a strong organization. The smallest agricultural institution is a group of farmers made up of farmers who manage to land in a compact country. The farmers’ cooperative provides increased access to markets through channels and marketing activities.
This institution should empower workers in their agricultural activities, which all members must acquire inefficiency. A group of farmers had no legal personality, it was too small and could not handle other parts. For better performance, some farmers have set up a federal federation (FGA). Although the Alliance is indeed an important institution, it does not even have a legal personality. To enter into transactions with other parties, such as exporters, the institution had to participate in a company that represented it in commercial transactions. This means that the farmer cannot work alone and share the benefits of the business. Partnerships need to be established to increase economic benefits for all stakeholders, in particular, certified organic farmers, who will be members of the cooperative. The creation of cooperatives will use public spaces as low-cost credit. The next challenge for the institution should be professional work.
Research Findings 6: Market uncertainty
The export as the main market addresses the uncertain demand because the volume requested year after year is very unstable. The certified organic exporter’s records in several countries have shown that most of the importing country does not have a stable demand. The field is played only once and ends the following year. This is due to the general development of organic food and consumer products. This is why the development of the internal market is a logical alternative to market management with irregularities. Market protection allows farmers to develop plans that meet market demand
Research Findings 7: Lack of capital
Adequate financial capacity is important for the supply chain as an independent. In reality, there is no capacity in all members of the supply chain. The peasants fled from the capital because they had no income to capitalize on their holdings, whether in agriculture, trade or export. Firms which have certifications offers high costs towards the same. Companies and AGF often encounter big problems where retailers cannot buy large quantities of agricultural products because of lack of money, even if they could get more. Meanwhile, FGA as a representative of an office and a farmer could not take the opportunity to meet foreign consumers.
The FGA cannot buy all the wheat for farmers, even if FGA receives 50% of the company X after signing the contract. Currently a certified biological settlement of 110 hectares with a potential yield of 450 tons. If farmers sell 40% of the organic product harvested, the total amount should be 180 tons. However, the purchase of FGA should not exceed 100 tones. According to the FGA administration, the importers’ request, which doubled in practice, can be exported at that time. As a result, there was a contradiction between the fact that the FGA, on the one hand, encouraged farmers to sell corn as much as possible and, on the other hand, the institution did not have enough money for buyers. This can put pressure on supply chain participants to enhance their efficiency such that organic produce reach the marketplace.
Yields are lower than in conventional agriculture, but many people say that organic farming can increase productivity by improving the soil. In the initial development of organic farming, farmers’ productivity is actually increasing. The Ministry of Agriculture figures shows that productivity increases. However, agricultural production remains far lower than expected.
To a certain extent, the lack of capital and location affects the supply chain creating challenges. Organic products make collections cumbersome and expensive. Drying difficulties of rice biologists. Farmers gathered on the ground because they did not have enough space in the house. I can do this without any problems. However, the risk of the future, which is often unstable, is likely. But it cannot be washed, but when moisture flies in the water, do not wash it and when the moisture flies into the water.
Research Findings 8: Organic produce constitutes the lowest in agriculture
A large part of organic production comes from small-scale farming that does not have economies of scale. Organic agriculture is inefficient. Low rate of production of organic food products establishes that it is inefficient at its current state in India. On the side of producers, such farming does not bring the best profits that prices reach. This prevents the development of organic food. Demand for organic production of rice that can be derived directly from the third series of the channel. The water comes from the third row of channels. The water had first to get into the water tank. Most farmers were not the right owners. Actually, a landowner lived far from his land.
At the same time, it is difficult after processing to harvest the sellers. To shop the museum was very complete. They needed money. This also applies to the highest degree of drying.
Research Findings 9: Lack of consumer demand
Indian consumer does not have much awareness regarding the benefits of organic foods. This has created major gaps in demand for the produce. Otherwise, the growing demand for organic products increased consumer demand for the environment and agriculture. Lower the intake of healthy foods and the environment. In fact, they are sold to a place where most customers reach a medium to high economic level. A similar lack of consumer demand can be caused by product information. Of course, people tend to eat good flavors in the fridge. Looks good. Unfortunately, the change in organic food is not the only way to improve health. The use of organic food and the incredible cleanliness of the product.
Being a farmer, it is easy to observe and respect organic production. An answer to the production planning is an important step in the production market. It is the best being a varied producerproducers in the market are better than many crops. Making different food products can create several benefits. When choosing the production, then the climate is suitable for production has to be analyzed and kept in mind. Choosing the land the quality of the seeds has to be determined. With a production license and there can be a production plan for the year. Production plan, when it contains information that will increase productivity and produce when you start harvesting. Identifying potential markets within India is another critical factor. Current market information is important to complete the production planning process. This is due to the growth of growing plants. The importance of market research is crucial for organic farmers to understand the nature of foods produced. Official market research needs to be participated in, these include radio, TV shows, market tours and trade shows for farmers meeting dealers takes place agricultural programs and days on the ground. Organic products are not available on the local market and are often inadequate. Exploring trends in the market would also considerably benefit. The trend of organic products is similar to that of traditional products. Farmers also have organic production network within various parts of India, making tie-ups or forming conglomerates can help. If selected, the harvest is harvested then there are many ways to sell organic products. It is best to first sell in a neighbor and a local community. Many are a market that does not add up, but it’s very important. Many members of society cannot buy low-fiber organic products. The agricultural market, if they are in a group certification system certification certificate (PGS) should be approved. Farmer programs can be used to support organic production or good experiences. The farmer is also a market requirement in terms of quantity and quality. Another way of organic produce at organic stores sell directly to hotels, restaurants and delivered to the supermarket. This means that the farmer is stable throughout the year.
According to a high-ranking official, the Ministry of Agriculture is analyzing the proposal to help organic producers establish alliances with e-commerce companies through state support. Organically grown crops are expected to help farmers increase their incomes and help companies like Amazon, BigBasket, and Grofers, even though there is no specific marketing system with low product distribution in the country. To guarantee a constant delivery of these goods piece. In 1950, the agricultural sector represented 51.9% of GDP in India. Then it dropped by 13.9%. At the same time, the development of the agricultural sector in the economic sector is inevitable for the development of the sector. Cultivation of plants in fast-growing industries is necessary. Although one of the reasons for urbanization, it is difficult to ignore the fact that agriculture is no longer a sectoral sector. Infrastructure costs are beginning to increase and costs and investments are only at the expense of farmers. Another reason for low productivity within organic farming is a small property. In India, the growth of fertilizer production is good for two-thirds of crops. Corrosion, salinity, and so on. Insufficient irrigation can cause other problems. If commodity prices are rising in the market. Agriculture has become a sectoral sector. Farmers are still uncertain about the results but make the most of their investment and effort. Often the natural disaster comes to drought and flood, which weakens the return. A safe culture that is the main producer of farmers. This budget is EUR 17 600 so the system provides financial support for revenue and losses. The Economic Committee (CCEA) supported the Indian Blue Revolution. This is a set of integrated systems that increase the productivity and benefits of the two countries, fisheries, and aquaculture. The budget reserve of three million French citizens is planned for the next five years. The objective of the R & D program is to maintain the 6-8% growth in agricultural and related industries. The government has invested 221 million people in the development of milk production. India is proud to become one of the world’s largest producers with an annual output of 130 million tonnes. However, the number of animals is very low for animals over 118 million animals. Demand for Milk, the National Development Council Dairy (NSA), has presented 42 manufacturing projects for the design of 221 million rupees. These projects focus primarily on milk production results that produce large amounts of milk such as Uttar Pradesh, Maharashtra, Karnataka, Tamil Nadu, and so on. According to the report, more than two-thirds of Indian agricultural land is not quite irrational. According to the ministry, Minister Piyush Goyal stated that the government will hold 75% of the savings in irrigation equipment for the next three or four years. With this system, the 30 million energy savings are based on electricity savings. This saves more than 46 billion kWh of energy and creates 20 lakh jobs. The government launched a scheme to criticize agricultural land and water. The government supports and improves ecological practices in India. The next group reduced the agricultural conditions, at least 50 hectares of land construction.
Conclusions
Supply chain barriers are significant barriers to organic farming in India. Supply chain barriers in India includes presence of middle-men, absence of direct contact into wholesale and retail markets. An in-depth interview with farmers and various farm landowners revealed various findings related to key challenges that are faced across supply chains in India. While the predominant factors remain presence of middleman in the supply chain, there are other pertinent barriers as well. In order that a smooth flow of food grains and products flows from farmlands into the market and reaches end-consumer, there have to be several initiatives undertaken. The government has to play a pivotal role in determining the success of organic farming and taking it to the international levels. Moreover, there has to be integrated a procedure that allows farmers to directly sell their produce to the market. In the past decades, the organic food industry has grown considerably. Although the industry has exploded, organic food remains a small part of our food system. Although the organic food market is being developed, many Indians are still high prices for organic products. Most organic foods, especially production, are more expensive than normal. The high price of organic food for many reasons. Size is one of the great things. Because the organic products are relatively small, the demand exceeds the availability. However, it is also part of an inefficient distribution network. We grew unexpectedly and came into the digital age when the bulk of the distribution of organic food was declared. This causes many dependencies on food chains. This creates a situation where organic retailers do not know whether their products are being sold. As a result, the sales and purchasing functions are not suitable and the amount of the losses is transferred to the buyer.
There are various strategies and technical techniques that biological distributors can use to improve the efficiency of the supply chain. These strategies are used to buy foods that are normally responsible for additional costs. However, this does not mean that the distribution of organic products shows that there are things that reduce the number of organic products. One of the most important things that organic entrepreneurs think is that foods are not delivered as efficiently as possible. The sensible use of food delivery programs helps retailers become the most effective way to share food. Better communication between buyers and suppliers The lack of communication between consumers and suppliers is the maintenance of the prices of organic food. It can be resolved via a software chain that is able to update bio-business vendors in real-time. At the same time, the system provides immediate information when stocks are low. Natural food markets such as Whole Foods are still leading. Consumers are not very cheap because they do not buy large quantities. When one of these shutters is connected and installed, they can reduce operating costs in the order of magnitude. This is the result of the operation.
The scope of organic farming within India can be expanded and increased in an enormous manner. Farmers along with the local government have to undertake endeavors such that they are able to distribute organic products within various markets of India. A sustainable value chain framework or a supply chain integrated model can act as a solution to this potential challenge.
The study was aimed at encompassing some of the vital and critical findings related to the same. While it becomes easy to study a particular domain of subject within a specific geographic region, there are some challenges as well. The study has encompassed a limited number of interviews. Moreover, the scope of the study is limited in nature as it has undertaken the only qualitative analysis. The study has, however, including all relevant variables in a reliable and verifiable manner by cross-checking. This has allowed the study its transferability characteristics. The scope of this study has drawn mainly from Indian farmers in a qualitative manner. By application of supply chain integration framework, the study can extend its scope to include quantitative models as well. The study can further be extended to studying the various barriers that are being experienced across all food supply networks. This broadening of scope relative to the study will allow enhancing the applicability and scope for further research as well.
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