An Assessment of Logistics in Agricultural Sector

with Special Reference to Rajasthan.

A
THESIS
Submitted to
In the partial fulfillment for the award of the degree of

Doctor of Philosophy
(FACULTY OF COMMERCE AND MANAGEMENT)

Supervised by:

Submitted by:

Dr.R A GUPTA

OM PRAKASH PATHAK

Principal

Ph.D. Research Scholar

Government College Sikrai , Dausa

Regd.No. RS/UOK/227/10

UNIVERSITY OF KOTA
RAJASTHAN
1

SUPERVISORS CERTIFICATE

It is certified that the thesis entiltled An assessment of Logistic in Agriculture sector with
special reference to Rajasthanis record of research work done by Mr Om Prakash
Pathak,under my supervision. The thesis has not formed the basis for the award of any degree,
diploma, associateship,fellowship or similar title to the candidate and it represents independent
work on the part of candidate.

Place: Sikrai (Dausa)

( Dr R A Gupta)

Date:

Principal
Government College Sikrai , Dausa

Declaration
I declare that the conceptual framework of the thesis has been developed on the basis of
Literature Review as shown in the bibliography section. I have quoted several statistics, notes,
opinions, and other information directly from the various books, journals, periodicals, and other
reference materials with clear mention of the source of the information in the references.
Apart from these, all other opinions, hypothesis, remarks, inferences, analysis and
interpretations in this thesis are my own and original creation.
Moreover, I also declare that for the work done on the topic, entitled An Assessment of
Logistics in Agricultural sector with special reference to Rajasthan is a record of independent
research work carried out by me under the supervision of Dr R A Gupta , Principal , Sikrai
College, Bandikue (Dausa)
This work has not been submitted for the award of any diploma, degree, associate ship or
other similar title.

Place:

Om Prakash Pathak

Date

Acknowledgements
I owe a deep gratitude and heartfelt thanks to Dr R A Gupta, Principal Sikrai College who has
encouraged and guided me throughout my research work. I would never been able to write this
doctoral thesis without the help, moral support, consistent encouragement and scholarly inputs of
him.
I wish to express my sincere gratitude to Prof. Sandeep Dilon ,Prof Rishi Sharma for inspiring
and providing valuable guidance, support and suggestions. Without them it would have been not
possible to complete the research work.
During these two and half years of long hours of work and ups & downs, my family and friends
stood by me. My father Late S K Pathak needs special mention for inspiring and encouraging me
throughout his life.
My mother, brother and wife are always there to support through tough times and encouraged me
constantly, always.
I express my deep sense of gratitude to all the respondents who participated in the survey of the
study and spared their valuable time to provide the requested responses.

Date:

Om Prakash Pathak

Place:

Preface

Logistics management for agriculture production priorities across the globe have evolved
considerably over the past four decades, from being exclusively technical in their outlook, to
being more precise for post harvest losses of foodgrains in logistics. The need for precise
Estimation of Post Harvest Losses of Foodgrains was being felt in the context of planning for
the agricultural development, proper distribution of government programmes, pricing policies
for agricultural commodities and to increase the availability of food. For accumulating the figure
of foodgrains losses in different stages of logistics, for knowing the losses data a survey
conducted by the researcher. This study was conducted in Rajasthan which have high yield
production of some crops in India, but due to lack of proper logistics system farmers of this area
suffer heavy losses and difficulty in procuring their agriculture production. Estimation of
Logistics Losses of some of the important cereals, namely, Oil Seeds, Wheat, Jowar, Bajra, Jo
and Maize. To make it more realistic, as the survey throws up information not only on logistics
losses of foodgrains but also on variety of other crucial items like farm retention for family
consumption, seed, feed and wastages etc. In view of this, the researcher initiated a sample area
(Matsya region) survey for Estimation of Post Harvest Losses of selected foodgrains stretching
over a period of the study. The research study has been conducted of three distiricts namely
Jaipur, Alwar and Bhartpur from these districts 300 cultivator households and 50 intermediaries
were selected through multistage stratified random sampling design.
The first chapter provides an introduction in line with the problem formulation and identification
of the research topic together with theoretical framework and background of the Indian
agriculture and logistics management of foodgrains.
In chapter two, research methodology has been elaborated in the required sequential steps.
Chapter three includes the profile of the sample area under study.

Chapter four covers logistics management of agriculture products with some important measures
such as moisture management and grading system which help in reduction of PHL of foodgarins.
Chapter five covers Role of storage facilities in PHL with the introduction and present position
of some public sector organization that plays an important role in foodgrains storage and
procurement.
Chapter six covers analysis of the data collected from farmers and intermediaries with its
statistical analysis with the help of econometric tools, along with their interpretations.
Chapter seven comprises of findings with overall conclusions and important suggestion to reduce
theses foodgrians losses, limitations and further scope of the study.
Appendix contains a response sheet of farmers and intermediaries with the two set of
questionnaire which contains the information about profile of both the respondents separately
and the crops grown in this area along with the mode, problems and expectation from present
logistics system, copy of estimated agriculture marketing plan for twelfth plan period (2012-17)
and at the end, a bibliography of various books, journals and websites has been provided as the
references of the study. Apart from these, at the end of each chapter, a brief summary of the
analysis and references have also been given to facilitate quick identification.
This study is based on the recent practices and researches so that it will help in understanding the
logistics management of foodgrains. And provide a clear picture of current logistics system with
the problems faced by the farmers and intermediaries and the amount PHL of foodgrains losses
due to lack of proper logistics system and less focused, unaware government support for logistics
management. This study also provides some suggestion of further improvement of logistics
management.

List of Figures
Figure No

Figure Title

Page

3.1

Rabi production

No.
93

3.2

Kharif Production

95

3.3

Area and production of Kharif & Rabi

98

4.1

Material, capital and information flow between producers

103

(farmers) and consumers

4.2

foodgrains flow channels

104

5.1

Warehouse in supply chain

128

5.2

Warehouse supply chain management

128

5.3

CAP Storage

135

6.1

conceptual framework for estimating post-harvest food losses

177

6.2

Food grain handled

179

6.3.

Exp. Of intermediaries

180

6.4

Purchasing Pattern of intermediaries

180

6.5

Grading System

182

6.6

Losses of foodgrains in logistics

184

6.7

Sale of production

186

6.8

Retention of foodgrains

187

6.9

Problems faced while storing the production

188

List of Tables
Table No.
3.1

Table Title
Summary of state agri statistics

Page No.
80

3.2

Major Crops grown in the Rajasthan

91

3.3

Rabi Productions

93

3.4

Kharif Productions

94

3.5

Area and Production of Kharif and Rabi crops in the State

96

4.1

Indian

standards

for

storage

structures

and

storage

management

118

4.2

Grading standards

121

4.3

Grading system

122

4.4

Categorization of Raw

122

5.1

Standard specifications of 5000 m.t. godown

134

5.2

Comparative costs for silo and godown storage.

139

5.3

FCI storage status

151

5.4

FCI Lab status

152

5.5

Storage capacity for central pool stocks

159

5.6

Cold storage status

159

5.7

Procurement of wheat during last seven Rabi Marketing

Seasons (RMS)

5.8

169

Procurement of Rice during the last eight Kharif Marketing

Seasons (KMS)

169

5.9

Commodity Arrival of Jaipur

172

5.10

Commodity Arrival of Alwar

173

5.11

Commodity Arrival of Bhartpur

174

6.1

Facilities provided by intermediaries

181

6.2

Physical losses of foodgrians in logistics

183

6.3

Retention of foodgrains for personal consumption

186

6.4

Losses during logistics of agricultural production

189

6.5

Regression Model 1

199

6.6

Regression diagnostic for Model 1

201

6.7

Growth in area, production and productivity of oil seeds and

wheat

6.8
7.1

203

Estimated post-harvest losses at different stages in oil seeds

and wheat

205

Safe moisture of foodgrains for storage

225

List of Acronyms
S. No.
1

Abbreviation
APL

Meaning

AEZ

AGPLM

Adolescen Girls Pregnant & Lactating Mothers

APHLIS

African postharvest losses information system

BPL

Below Poverty Line

BOO

Build own & operate

BIS

Bureau of Indian Standards

BIDI

Board of infrastructure development & investment promotion

CF

Conversion factor

10

C&W

Count & Weight

11

CGIAR

Consortium of international agriculture research

12

CWC

Central Warehouse corporation

13

CAP

Cover and Plinth

14

CLM

Council of logistics management

15

CIAE

Central institute of agriculture engineering

16

DMIC

Delhi Mumbai industrial corridor

17

FSC

Food Supply Chain

18

GDP

Gross Domestic product

19

GIC

Gramin Information Centers

20

GOI

Government Of India

21

HYV

High Yield varieties

22

IBA

Indian Bankers Association

23

ICAR

24

ITC

Indian Tabacco company

25

IARI

Indian Agriculture research institute

26

KMS

Kharif Marketing seasons

27

LDPE

Low density polythylene

Above Poverty Line

Agri export zones

Indian council of agriculture research

10

28

MDM

Mid-Day-Meal-Scheme

29

MSP

Minimum Support Price

30

NCR

National capital region

31

NRHM

National rural health mission

32

NOAPS

National old age system

33

PDS

Public distribution System

34

PHL

Post harvest losses

35

RIIPP

Rajasthan industrial & investment promotion policy

36

RMS

Rabi Marketing Seasons

37

SEZ

Special economic Zone

38

SVW

Standard volume weight

39

SWC

State Warehouse Corportaion

40

SGRY

Sampoorna Gramin Rozgar Yojna

41

TGM

Thousands grain mass

42

WBNP

Wheat Based Nutrition Programme

43

WDRA

Warehouse Development regularity authority

44

WFP

World food Programme

Supervisor Certificate .. II
Declaration........III
Acknowledgements....IV
11

Preface.........V
List of Figures ..VII
List of Tables .....VIII
List of Acronyms ...............X
Table of Content...XII
Table of contents
Sr. No.
Chapter 1

Content

Page No.

Introduction

1-32

Chapter 2
Chapter 3

Research Methodology
Profile of Rajasthan

33-76
77-100

Chapter 4
Chapter 5
Chapter 6

Logistic Management of Agriculture Production

Role of Storage Facility in Logistic Management
Analysis of Logistic management in Food Grains

101-125
126-174
175-207

Chapter 7
Findings & Conclusion
Bibliography
Appendix
Questionnaire for Farmers
Questionnaire for Intermediaries

Estimated
for

Budgetary

Agricultural

Requirement

Marketing

Twelfth Plan
Estimated Budgetary

208-227
228-235
235-248

for

Requirement

for Strengthens Supply Chain during

the Twelfth Plan period (2012- 17)

Research Paper

12