The latest budget places a strong emphasis on reducing post-harvest losses by directing significant funds toward improving infrastructure for crop growers. This focus is crucial in India, where a large portion of food is lost before it even reaches the market. In developing countries, including India, a considerable amount of agricultural production is lost after harvesting but before it can be sold. The Food and Agriculture Organization (FAO) estimates that 30-40% of total food production in these countries is lost due to inadequate storage, transportation, and marketing infrastructure. A 2022 study in India found that 5-13% of fruits and vegetables are lost between harvesting and consumption, while losses for crops like oilseeds and spices range from 3-7%.
These losses have a significant economic impact, particularly in a country where agriculture is a vital source of income for millions. When such a large portion of the produce is lost, the potential benefits from India's agricultural output are drastically reduced. This not only affects farmers' incomes but also contributes to food insecurity and inflation, as the supply chain struggles to meet demand.
To address this issue, the government’s budget has allocated substantial funds to improve infrastructure related to production, storage, and marketing. By enhancing storage facilities, transportation networks, and marketing platforms, the government aims to create a more efficient agricultural supply chain that better supports farmers and boosts the economy. This includes plans for modern storage facilities in rural areas to help preserve crops and better transportation networks to reduce the risk of damage during transit. Additionally, the budget focuses on improving market access for farmers, including the development of online marketplaces and better access to urban markets, helping farmers sell their produce at competitive prices and reducing their dependence on middlemen.