Context: The milk cooperatives under the leadership of Verghese Kurien changed India’s milk landscape from a highly deficit country to the world’s largest producer of milk with 239 million tonnes, followed by the US at 103 million tonnes in 2023-24. 

• More interesting is the fact that brands like AMUL claim that their milk farmers receive between 75 to 80 per cent of the consumer price.
• The big question for policy makers is why India cannot replicate this success story of milk in the F&V sector? 

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Growth of the Fruits & Vegetables (F&V) Sector in India

The growth of F&V sector in India can be owed to the following reasons:

• Sectoral Growth: The F&V sector contributes 30% to the value of crop agriculture, growing faster than cereals. It is highly nutritious and becoming more integral to the economy.
• Increased Demand for Nutrition: As the population becomes more health-conscious, there is greater demand for nutritious food like fruits and vegetables, driving the growth.
• Diversification of Agriculture: Farmers are increasingly shifting towards F&V due to their higher returns compared to traditional cereals, leading to faster sectoral growth.
• Climate Change and Seasonal Adaptation: F&V crops can be grown in diverse climates and are adaptable to changing weather patterns, unlike cereals which are more sensitive to temperature and rainfall variations.
• Economic Opportunities: The F&V sector provides more economic opportunities through exports, processing, and value-added products compared to cereals.

Read the article on the Food Production and Consumption Trends in India!

Challenges Faced by the Fruits and Vegetables (F&V) Sector

Some of the major challenges faced by the F&V sector in india include the following:

• Limited Policy Focus: Despite the sector’s growth, F&V receives far less attention from policymakers compared to cereals, resulting in insufficient support for infrastructure and market linkages.
• Fragmented Value Chains: The F&V sector suffers from disjointed supply chains, making it difficult for farmers to access markets and for consumers to find consistent supply. Farmers typically receive about 30 per cent of what the consumers pay for F&V
• Post-Harvest Losses: A significant portion (8.1% for fruits and 7.3% for vegetables) is lost during post-harvest, which could have been avoided with better infrastructure and processing facilities.
• Price Fluctuations: F&V prices are highly volatile due to seasonal gluts, creating economic instability for farmers who cannot predict or manage the fluctuations effectively.
• Lack of Storage and Processing: Without proper storage or processing facilities, F&V are susceptible to spoilage, reducing potential profits and increasing wastage.

Read the article on the Litchi Cultivation in India!

Factors Contributing to the Success of Sahyadri Farmer Producer Company Ltd (SFPCL)

Some of the major factors that have contributed to the success of the Sahyadri Farmer Producer Company Ltd (SFPCL) in Maharashtra are:

• Farmer Integration: SFPCL successfully integrated over 26,500 farmers, providing them a direct link to markets, and allowing them to earn higher returns from their produce.
• Export Market Access: SFPCL built strong relationships with international buyers, particularly in the EU and UAE, ensuring Indian farmers could access premium markets for their produce.
• Processing Infrastructure: Investment in processing facilities, especially for tomatoes, helped stabilise prices during gluts, ensuring consistent revenue for farmers.
• Revenue Growth: SFPCL's annual turnover grew exponentially, from Rs 13 crore in 2011-12 to Rs 1,549 crore in 2023-24, demonstrating the success of the model.
• Job Creation: The company created over 6,000 jobs, with 32% female employment, contributing to the local economy and improving livelihoods.

Read the article on the Project CHAMAN- Policy for the Horticulture Sector in India!

How can the success model of Sahyadri Farms be scaled up to transform India’s entire F&V sector?

The success model of the Sahyadri farms can be scaled up and the F&V sector of India can be transformed by adopting the following methods:

• Scaling FPOs: Sahyadri’s model can be replicated across India by supporting the formation of more Farmer Producer Organizations (FPOs) and providing them with the infrastructure, capital, and digital tools to manage operations.
• Enhancing Market Linkages: By linking FPOs to both domestic and export markets, India can create stable supply chains for F&V, similar to how milk cooperatives like AMUL operate.
• Revitalizing Operation Greens: Expanding the scope and funding for initiatives like Operation Greens can stabilise prices for perishable goods, as demonstrated by SFPCL’s success in the grape and tomato sectors.
• Government Policy: A stronger policy framework that supports FPOs, coupled with funding for infrastructure and technology, will help scale the model across India’s diverse agricultural landscape.
• Commodities-Based Approach: India should focus on commodity-specific value chains, similar to how Sahyadri focuses on grapes and tomatoes, to stabilise prices and ensure better income for farmers.

Read the article on the National Horticulture Mission!

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UPSC Practice Question

What steps should the Indian government take to ensure the long-term sustainability and profitability of the fruits and vegetables sector, taking lessons from the dairy sector? (Ink in 250 words)