Value Chains of Agricultural Commodities and their Role in Food Security and Poverty Alleviation- A Synthesis

Agri-food systems are undergoing rapid transformations and the emergence of integrated food supply chains is one of the most visible market phenomena in India. Increasing concentration on processing, trading, marketing and retailing is being observed in all the segments of supply chains. The traditional way of food production is being replaced by practices more akin to manufacturing processes, with greater co-ordination across farmers, processors, retailers and other stakeholders in the value chain. Further, with increase in income, the pattern of food consumption is changing. Demand for high-value commodities like fruits, vegetables, livestock products, fisheries and edible oils is growing and farmers are trying to diversify their production systems accordingly. On the other hand, consumers are becoming more demanding in terms of quality and safety of food commodities. In addition, demographic and income trends are inducing more enlightened consumers to demand convenience foods such as frozen, pre-cut, pre-cooked and ready-to-eat items, together with assurances of product quality and safety. Consequently, production, processing and distribution systems are adapting to such changes.