India Loses ₹1.5 Lakh Crore In Crops Annually: What’s Causing The Wastage?

India incurs an annual loss of ₹1.5 lakh crore in agricultural produce, attributed to post-harvest inefficiencies, as per the Union Ministry of Food Processing Industries (MoFPI). In a statement presented to the Lok Sabha by Union Minister of State for Food Processing Industries Ravneet Singh, a study by NABARD Consultancy Services (NABCONS) covering 2020-2022 revealed significant losses in perishables during transportation and handling.

Transport by itself is responsible for a loss of perishable products in the range of 5-10%. Cereal losses amount to ₹26,000 crores for rice, wheat, and maize, while pulses and oilseeds are worth ₹18,000 crores. Perishables, especially fruits and vegetables, tend to lose about ₹57,000 crores.

Notably, bananas at ₹5,777 crores, mangoes at ₹10,581 crores, and citrus fruits at ₹4,347 crores are the most vulnerable crops. For the vegetables, the ones responsible for the most significant wastage are tomatoes at ₹5,921 crores, onions at ₹5,156 crores, and potatoes.

Among other causes, insufficient storage facilities, poor transportation infrastructure, inefficient supply chains, and poor post-harvest handling practices are important contributors to losses. To help with this, several initiatives have been rolled out under the Pradhan Mantri Kisan Sampada Yojana (PMKSY).

PMKSY has funded establishment of strong and unaffordable storage and processing facilities such as mega food parks, integrated cold chains and agro-processing clusters. Up to October 31, 1,187 numbered projects were approved under the scheme offering credit-linked financial assistance for the establishment of food processing units and cold storage facilities.

The government has also introduced the Agriculture Infrastructure Fund (AIF) as part of the Atmanirbhar Bharat initiative. This scheme, launched in July 2020, provides financial support for the development of warehouses, cold storage units, and processing facilities. Its primary goal is to minimize post-harvest losses and enhance the value addition of agricultural products.

These measures reflect the government’s commitment to reducing crop wastage and ensuring sustainable growth in the agricultural sector. While these initiatives have shown promise, experts believe consistent implementation and enhanced farmer awareness are critical to achieving long-term impact.

ALSO READ: What Is Nagaland’s Hornbill Festival? Discover The Epic ‘Stone Pulling Ceremony’ That Left Everyone Awestruck