This fragmented supply chain is due to the fact that these markets till date do not have a complete supply chain logistics play and hence the required captive consumption inventory is held in nearby states. It translates into an anomaly as this causes a time lag between consumption and supply.
With existing Rural Godown Schemes, the challenge is that the small farmers have not been incentivized appropriately to use the scheme. On the other hand, it is not lucrative enough for investors to invest in the scheme. If a farmer stores its produce in a warehouse, he has to bear the cost of loading, unloading, transportation twice – first, from village to warehouse for storage and second, from warehouse to mandi for sale.

The solution to the dilemma is to change the perception of the farmer and empower him with the tools that will enable him to maximize his returns on his crop. In order to do so it is imperative to attract farmers with negotiable warehouse receipts backed by financing; enhanced scientific warehousing services; raising awareness about grades and standards of the commodities; more options for higher price realization & mandatory ancillary services such as market prices, inputs, etc.
The markets have to be given a comprehensive one window solution rather than giving fragmented fire fighting solutions. The solution has to encompass transportation, storage , availability of finance and finally linkage to commercial markets with a visibility of crop prices prevalent at major consumption destinations

SLCM has been instrumental in changing the dynamics of agriculture industry in the north eastern region. We have managed 31 Warehouses in Uttar Pradesh, 16 Warehouses in Bihar, 7 in West Bengal & 2 in Orissa. With our scientific warehousing practices, SLCM has managed to reduce the post harvest losses pegged at 10% to 0.5%. We are constantly trying to provide sustained revenue stream to the region through our agriculture financing solution named as Kissandhan. With our warehouse receipt financing services, Kissandhan has added a critical dimension to the Group portfolio by providing financing solutions against storage receipts for agriculture commodities and strengthened the entire supply chain of the Group portfolio. As mentioned earlier, it was one of the major challenges faced in the north eastern region.

In terms of warehousing services; SLCM warehouse management is equipped with the world’s latest techniques coupled with well-maintained storage and protection services for the entire range of agri-commodities. SLCM has expertise in handling 157 (approximately) agri commodities across India including chana storage, cotton, barley, bajra, castor seeds, wheat, pulses, maize, spices, aloe vera, etc.

We have been imparting training about best practices to the farmers to enhance agriculture quality & productivity through our Kissan Pragati Mela Initiative. It has not only helped the farmers to understand the grades & standards of their commodities but enabled them to realize that if the quality of the crop will be good, then they will get better returns. To empower the farmer and to incentivize him to start using value added services SLCM also offered free storage provision for one month in the Barabanki district of UP – last year and in Ganj Basoda in MP the year before that, that also at the time of harvest when the farmers have grains but either have no storage area or do not have money to support their storage needs.

SLCM portfolio includes a network of more than 760 warehouses and 13 cold storages across 17 states with a throughput of 240 MMT.