India can keep farm output growing at about 4% a year for the next decade, a senior policymaker said this week, placing storage and exports at the center of the plan. Ramesh Chand, a member of Niti Aayog, urged faster investment in warehouses to handle rising demand and to serve global buyers. He also challenged common claims about waste in the food chain, arguing that losses are smaller than many think and that avoidable waste makes a strong case for storage upgrades.
Why the Growth Target Matters
Agriculture remains a key employer in India, even as services and manufacturing expand. Stable growth in crops, dairy, and horticulture helps keep food prices in check and supports rural incomes. A 4% pace, if sustained, could cushion the impact of erratic weather and shifting global markets.
Chand framed the goal as achievable with better logistics and market access. He said improved storage can smooth seasonal gluts, reduce distress sales, and help farmers time their sales. This, he argued, supports both domestic supply and export plans.
Warehouses at the Core of the Strategy
India’s storage capacity is uneven across states and commodities. Shortfalls often push fresh produce into markets too quickly, weighing on prices and incomes. Chand called for larger and smarter warehouses, as well as links to cold chains and transport hubs.
“We need to enhance warehouse infrastructure to manage growing demand and tap export markets,” Chand said.
He also pointed to the business case. Lower spoilage, steadier prices, and more consistent volumes can improve returns for private investors. Public efforts to decongest mandis and digitize trade add momentum by widening market reach.
Rethinking Food Losses
Food waste estimates vary widely, and they shape policy debates. Chand argued that the problem is often overstated. He separated unavoidable losses from those that better storage can prevent.
“Food losses in India are not as high as perceived,” he said, adding that “preventable losses offer significant incentives for warehouse investment.”
That framing shifts the focus from sweeping claims to targeted fixes. It puts emphasis on grain handling, cold storage for perishables, grading, and packaging. These steps can keep quality high and lift farmer margins.
Exports: Promise and Exposure
Exports are a key pillar of the vision. With stronger storage, exporters can aggregate quality lots, meet standards, and ship on schedule. This helps India compete in cereals, fruits, and processed foods.
But exports bring risks. Global prices can swing. Import rules can shift with little notice. Logistics costs and port delays can erode gains. A balanced policy would tie storage upgrades to market intelligence, risk cover, and quality control.
What Stakeholders Are Watching
Farm groups want storage closer to villages, transparent fees, and easy access to finance. They fear that high costs or complex contracts could shut out smallholders. Logistics firms seek clear policies on land, permits, and multimodal links.
Economists caution that storage alone cannot lift growth. Crop diversification, water efficiency, and better extension services remain important. Traders say predictable rules on stock limits and exports will help investment decisions.
Signals for Investors and Policymakers
- Demand growth: Rising urban consumption and food processing need steady supply and quality.
- Preventable losses: Targeted storage can reduce waste and improve returns.
- Export readiness: Aggregation, grading, and cold chains support consistent shipments.
- Policy stability: Clear rules on storage, movement, and trade build confidence.
The Road Ahead
The 4% path hinges on practical steps. Warehouses must be built where gaps are largest. Cold storage should match crop patterns. Digital tools can track inventory and quality. Finance must reach small players, not just large firms.
Chand’s remarks sharpen the focus on what can be fixed now. Better storage reduces waste, backs exports, and steadies prices. It gives farmers more choices and improves supply for consumers.
If policymakers align storage expansion with fair access and market clarity, the sector can move closer to the growth goal. Watch for announcements on new facilities, standards, and trade rules. The next harvest seasons will test whether investments arrive on time and deliver the promised gains.
