2013.2112.4

Sustainable Supply Chain Logistics for Cities

Client
Bundesministerium für wirtschaftliche Zusammenarbeit u. Entwicklung
Country
India
Runtime
Partner
Regierung von Karnataka
Contact
Contact us

Context

In the state of Karnataka, close to 39 percent of the population – that is 25 million people -- lives in cities and procures their fruits and vegetables at the urban markets. The fresh food supply to the cities is, however, characterised by inefficiencies due to opaque market information, inadequate transportation system, restrictive marketing opportunities, and a deficient infrastructure all along the supply chain. This causes a delayed delivery of fresh produce to the final points of sale. High physical losses of fresh produce are reported (estimated to be up to 30 per cent), due to lack of storage and cooling facilities, poor handling, and inadequate packaging. Moreover, fresh produce trade in urban areas is often carried out under unhygienic conditions thereby affecting public health.

These inefficiencies result in high prices to consumers and low prices to the producers, leading to food security issues and farmers’ distress.

Objective

The Sustainable Supply Chains for Perishables into Cities project seeks to provide increased access to both, fresh and regional perishable food items in a hygienic environment for the inhabitants of Bangalore Urban, and cities in the districts of Chikmagalur, Chamarajnagar, Kolar, Hassan, and Bangalore Rural.

Approach

The project works in two main areas:-

- Improving the logistics and supply chains for fresh produce:

In order to increase the rate of perishables that reach the urban market in a saleable and fresh state, the concept of ‘fresh produce value chain’ needs to be introduced into the rural and urban development strategies. This means improving the management of urban freight transport and providing administrative regulations for the urban markets. Moreover, it requires developing of guidelines for investing in warehouses and distribution centres as well as supporting the Farmers-Producers Organisations (FPOs) in their marketing activities. Efficiency in the supply chain can thereby be increased and the food mileage be reduced. Better urban freight transport management would lead to reduced emissions and less traffic congestion, improving the quality of life in urban centres.

- Improving the street markets:

Retail fruit and vegetable street markets are an alternative to the emerging network of supermarkets. Yet, most of them need

refurbishment, especially with regards to the sanitary situation. The project cooperates with city administrators, urban planners, trader associations, and suppliers/farmers to make these markets more appealing, affordable, and convenient to customers. This includes formalising these markets and improving their services and infrastructure to provide well-maintained sanitation facilities, adequate garbage disposal systems, better traffic management system, as well as, constructing concrete pavements and market sheds.

- It is intended to replicate these model solutions in other cities across India. fterefore, the project supports the development of capacities within city administrations, through on-the-job-training and additional training courses (Human Capacity Development). Besides working with public stakeholders, cooperating with the private sector is an essential element of the project’s approach.

Results

The target group of the project is the urban population of Karnataka and in particular, the disadvantaged sections of society. Also small-scale farmers, traders, retailers, and customers will benefit from the intervention. Emphasis is given to gender aspects, inclusion of marginalised groups of society and disabled persons, participation of all stakeholders, and employment opportunities for the poorer sections of the population.

The project aims at achieving the following results:

- Reduction in the wastage and loss of selected perishables (tomatoes, capsicum, banana, papayas).

- Improvement in the freshness and the quality of vegetables and fruits offered at the refurbished street markets.

- Development of gender-sensitive standards for the modernisation of street markets. Five street markets will be refurbished according to these.

- Reduction in fuel consumption for transport due to the more efficient supply chains. This would lead to a reduction in the carbon footprint of the urban markets. 
Further Project Information

CRS code
21010

Policy markers

Significant (secondary) policy objectives:

  • Gender Equality
  • Democratic and inclusive governance

Responsible organisational unit
2B00 Asien II

Financial commitment for the actual implementation phase
3,008,422 €

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