Distribution strategies of perishables goods to urban food retailers

Abstract

Ahmedabad is the largest city and former capital of the Indian state of Gujarat. With a city population of more than 5.5 million and an extended population of 6.3 million, Ahmedabad has one of the largest consumption of perishable fruits and vegetables. The city also serves as a vital centre of distribution of perishable food commodities across Gujarat and outside the state. Yet, procuring and distributing perishable goods is fraught with difficulties because of several reasons.

• Firstly, the markets are distributed across several areas. There are at least seven

central markets across Ahmedabad controlled by APMC for different commodities. Due to geographic dispersion of these markets, wastages and duplication in distribution efforts are common. • Secondly, these central distribution hubs like APMC have been planed more than 30 years back. Booming economy has resulted in rapid urban growth and increased congestion that increases shipment rates and affects the competitiveness of the local urban economy • Thirdly, packaging material used is non-biodegradable and does not prevent the vegetables from mechanical injury during transportation and unloading. This leads to high wastage and loss of quality during the distribution process. • Fourthly, sampling and grading techniques used are outdated and do not help in judging the true quality of perishable goods. • Fifth, although there is only 3-5% aggregate wastage of food, the problem of reduction in quality during the distribution is much more severe. There are little or no storage facilities available in these markets to preserve the food. • Sixth, majority of the risk is borne by fruit and vegetable vendors who carry these items to final consumers. Vendors generally use to hand or cycle driven rickshaws and are ill-equipped to preserve the quality of items • Seventh, congestion in urban areas has risen, thanks to the disproportionate increase in demand for fruits and vegetables and number of vendors selling these commodities. This report provides a background on the development in distribution of fruits and vegetables in Ahmedabad city, details government initiatives in establishing regulated markets, delves in all the above mentioned issues that are still prevalent in the system and suggests ways in which these problems can be dealt in an effective manner. Emphasis is made on analysing the problems by engaging in discussions with the stakeholders in the distribution channel (APMC officials, wholesalers, semi-wholesalers, retailers, hawkers and farmers