Logistical Bottlenecks in India: Government Interventions & Policy Initiatives Dr. Ram Singh Assistant Professor International Trade Operations & Logistics Indian Institute of Foreign Trade New Delhi Email: ramsingh@iift.ac.in Interactions with Stakeholders on Fresh Produce India conclave at Hotel Sangri La; New Delhi as on 3 rd March; 2011
Wastages in Fresh Produce In India o According to IPA; absolute loss from wastage of fresh produce in India is around 13-14 billion $ in 2009-10. India is the second largest producer of Fresh Produce in world and Fresh Produce is growing around 5-8%; far faster then the combined agriculture growth of country.
Logistical Bottlenecks in India
Trading Across Borders Indicator China India Brazil Trading Across Borders Documents to export (no.) Time to export (days) Cost to export (US$ per container) Documents to import (no.) Time to import (days) Cost to import (US $ per container) South Africa Indonesia Pakistan Srilanka 50 100 114 149 47 81 72 7 8 8 8 5 9 8 21 17 13 30 20 21 21 500 1,055 1790 1531 704 611 715 5 9 7 9 6 8 6 24 20 17 35 27 18 19 545 1,025 1730 1807 660 680 745
India s Logistics Performance Index Source: Author Constructions based on LPI 2010
Government Interventions & Policy Initiatives in Logistics Infrastructure in India
Policy Initiatives for Road Sector Sector Deficit Eleventh plan Targets FDI Envisaged Investment Size Road / Highways Roads / highways 65,590 km of existing national highways: 6-lane 6,500 km in GQ 4-lane 6,736 km NS-EW 100 % FDI under automatic route US$ 78.5bn Comprise only 2% of network Carry 40% of traffic Of which 12% is 4-laned; 50% is 2- laned; and 38% is single laned 4-lane 20,000 km 2-lane 20,000 km 1,000 km expressway
Policy Initiatives for Port Sector Sector Deficit Eleventh plan Targets FDI Envisaged Investment Size Ports Inadequacy of Berths Rail / road connectivity New capacity: 485 million MT in major ports 345 million MT in minor ports 100 % FDI under automatic route US$ 22 bn
Policy Initiatives for Air Port Sector Sector Deficit Eleventh plan Targets FDI Envisaged Investment Size Airports Inadequacy of Runways handling capacity Aircraft Parking space and terminal buildings Modernize 4 metro and 35 non-metro airports 3Greenfield in North Eastern Region (NER) 7 other Greenfield airports 100% FDI for existing airports (FIPB approval for FDI beyond 74%) 100% FDI under automatic route for Greenfield airports 49% FDI is permissible in domestic airlines under the automatic route, but not by foreign airline companies US$ 7.74 bn
Policy Initiatives for Railways Sector Deficit Eleventh plan Targets FDI Envisaged Investment Size Railways Old technology Saturated routes Slow speeds (freight: avg 22kmph; passengers: avg 50kmph) Low payload to tare ratio (2.5) 8132 km new rail 7148 km gauge conversion Modernize 22 stations Dedicated freight corridors 100% FDI permitte d in railway infrastru cture under automati c routes US$ 65.45 bn
Policy Initiatives for Warehousing Sector
o Agri Export Zones o Contract Farming o Food Park Scheme o Supply Cold Chain o Modern Auction Centres o Agri Marketing Reforms Irradiation facilities and value added centers
Government Initiatives: Success Story of Fresh Produce (Ginger) Organic ginger of Karbi Anglong; North East India Formation of Gin-Fed with objectives of: To bring all ginger growers of the district under one umbrella; To avoid distress sale of ginger; To link the growers directly to the market ( Rail Wagon to Delhi/ Kolkata) in order to enhance their profitability; To ensure more income by value addition (cleaning, grading, waxing, dehydration and packaging) To find out various avenues for marketing ginger; To uplift the economic condition of ginger growers by linking credit facilities (bank loan) as seed capital through banks by means of the G-Card; and To introduce the participation of national and international markets.
I DID NOT PUT ENOUGH OIL IN MY FLICKERING LAMPS, WHY BLAME THE WIND?
Thank You