Understanding Agri Value chain: From Soil to Supermarket

Did you know, your food travels cities and exchanges at least 7 hands before it reaches you?

From fields to cold storage. Well that is one heck of a journey. That humble tomato on your plate? It’s travelled hundreds of kilometres, switched hands half a dozen times, survived price crashes, weather tantrums, and infrastructure hiccups — all so it could land neatly in your grocery bag.

Welcome to India's agricultural value chain, a complicated web of middlemen, mandi marketplaces, logistics, and squandered chances. Every day, 1.4 billion people rely on this invisible roadway to sustain themselves. However, this often leaves the farmer stuck on the side. Today, we trace that route — from farm to fork, field to finance — and look at how India is attempting to address this khaana khaazana. This intricate system is how India, the world's second-largest vegetable producer, delivers farm-fresh food to your kirana store.

However, the journey is not merely long. It's complicated as it involves -

• Input dealers - sell seed, fertilizer, and insecticides. Essentially, the backstage crew.

• Farmers - the main characters, are frequently overworked and underpaid.

• Middlemen - include transporters, aggregators, and commission agents. Think of them as the storyline twisters.

• Warehousing and cold storage operators - keep the vegetables fresh (sometimes).

• Retailers - your neighbourhood sabziwala or that pricey gourmet store.

The Economics of food

So, how does value (and money) get added along this journey?

That’s where value chains come in. Simply put, it’s everything that happens to a crop between sowing and swallowing. But here's the twist: the farmer’s share in the final price often falls below 25%.

According to the Economic Survey 2024–25:

• Agri sector still employs 46% of India’s workforce but contributes just ~16% to GDP.

• There’s a push toward diversification (fruits, livestock, fisheries) to fix this imbalance.

• And the government is finally asking: Why should a farmer earn the least in the chain?

What the Budget Sowed in 2025 The Union Budget 2025–26 threw a lifeline:

• ₹1.5 lakh crore for sustainable agriculture

• ₹63,500 crore under PM-KISAN (direct income support)

• ₹8,500 crore for strengthening agri infrastructure and you guessed it — value chains Cold Chains and Hot Potatoes What’s stopping that tomato from staying fresh?

• Lack of cold storage — 30% of India’s produce is wasted post-harvest!

• Inefficient logistics — bad roads = bruised bananas.

• Market access issues — farmers sell to whoever’s nearby, often at a loss To fix this, schemes like e-NAM (online agri marketplace) and RKVY are trying to streamline the process. Think Amazon, but for onions.

Meanwhile, in the Field… Here’s a juicy bit. An AgriTech startup in Gujarat is using AI + IoT to predict pest attacks. A women’s collective in Karnataka just set up a hydroponic unit on rooftops. And in Uttar Pradesh, e-tractors made by CSIR-CIMAP are making farming cooler (and greener). Innovation is sprouting — finally.

Why This Matters Globally?

India’s produce isn’t just for Indians-

• We dominate the global rice market.

• We’re exporting mangoes, millets, and masalas across continents.

• And with a focus on sustainability, India is eyeing premium organic markets abroad.

So yeah — your tomato has global ambitions. The Indian agri value chain is like a long, bumpy road trip with too many pit stops. But change is brewing — with budget boosts, grassroots campaigns, and tech innovation. If done right, we could go from farm to fork without turning every veggie into a story of loss and waste.

So, now that you know, the actual producers receive the least...will you be bargaining for veggies or ask for free dhaniya? Share your thoughts and ideas.

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