High-value food commodities (HVCs), such as milk, fruits and vegetables, and meat, fish and eggs, account for 56% of the total value of output from agriculture and allied sectors (CSO 2018). Supply chain issues for these perishable products will be more challenging.
Load carrying workers are crucial to the smooth functioning of India’s overall food system. Be it mandis, processing units or ports, their backbreaking effort is needed everywhere. In the current situation, they have moved back to their villages due to a variety of factors that came with the lockdown. Even if the flow of goods is restored, the absence of workers in the markets, factories, warehouses and ports will create a huge gap between demand and supply. Special incentives for these workers could help in mitigating the situation to some extent.
While there are special provisions in place to permit warehouses and cold stores for essential commodities to remain open in the lockdown. the situation on the ground has been different. Many warehouses are closed either due to issues with local authorities or the absence of labour. Such issues need the proper attention from the policymakers.
Local issues require attention
Being on the essential commodities list, food has been exempt from movement restrictions but most of the times local factors play an important role in smooth functioning of food supply chain. For example, it been reported from many places that local police and administration prohibit the movement of trucks and carts carrying essential food items. This leads to scarcity of many items and also resulting in hoarding by unscrupulous traders.
The perishable items that are not able to reach mandis or processing units on time, never make it to households. This leads to loss of income not only by the producers but genuine traders, processors, transporters, and even consumers who have to pay more. Another example is of sudden drop in the demand for chicken and eggs due to rumors that poultry products can be vectors for COVID-19. This has led to huge economic losses to small poultry farmers who ere left with no option but cull their mature broilers.
In many state, the trucks bringing new stocks of essential food items from central India are stuck for days at the state border. This leads to temporary scarcity but has long term adverse effects such as price increase due to illegal hoarding. Despite the rice controls to address this problem, consumers end up paying more. Such challenges can be addressed only be allowing smooth transportation by local officers who should be sensitized on these issues.
Way Forward
India can’t afford to bear the collapse of its food system as it will have spiraling effect on both the economy as well as the vast population, especially the vulnerable sections. It will be next to impossible for authorities to implement the lockdown if people don’t have access to enough food and money for addressing basic needs. This calls for the thrust on the need for restoring food supplies and increasing the purchasing power of poor households.
A bigger stimulus package and better coordination between the states and the central government is a must for any move forward. Careful planning and implementation at local level will be required for smooth functioning of supply chains. At the heart of India’s existence lies its belief in social justice system and that would never let us betray our migrant workers, farmers and poor.
14 Nov 2024