The Hindu Business Line : India needs efficient cold chain soon: Godrej

New Delhi, Dec. 4 India needs to build an efficient cold chain in the next five years and also change several of its tax laws, emphasised Mr Adi Godrej, Chairman of the Godrej group. That is the key to building a robust supply chain in the country.

An efficient supply chain would ensure better connection with the growing rural market. The issue today, he said, is not of distributing finished goods to rural markets, but to transport fresh produce from rural markets to where demand is, said Mr Godrej, addressing a panel discussion on building a supply chain in the country at the India Economic Summit here on Tuesday. A majority of rural India continues to stay out of reach of most supply chains. Mr Vineet Agarwal, Executive Director, Transport Corporation of India, and a panellist, said that bureaucracy also needed to align itself with the aim of improving supply chain standards in the country.

Quoting from a study undertaken by his company, Mr Agarwal said a typical truck driver would need to stop 49 times during his 2,400-km journey from Kolkata to Delhi because of bad roads, innumerable toll gates which operate on different billing systems, and corrupt officials, causing delays and an unproductive journey.

Mr Atul Singh, President and CEO, Coca-Cola India, said a balance had to be struck between the big and small — how the big chains can work with small farmers and how public-private partnerships can move towards the goal of inclusive education. Mr Singh said the government needed to create a broad framework within which everyone could operate.

High wastage cost

Without an efficient supply chain there is a high cost of wastage for companies. Mr James Scott, Regional Operating Officer, Asia, Metro Cash & Carry, Hong Kong, said that Indian markets have to deal with the menace of multiple intermediaries, who add little value to the trade but raise the price of all goods. Quoting Metro’s Vietnam experience, Mr Scott said that goods reached the consumer faster and at a lower price, when they dealt directly with farmers and their representative bodies.

Mr Paul Graham, CEO, DHL Supply Chain, Asia Pacific, said that a well-oiled supply chain contributes to 30 per cent of GDP. He expressed confidence that India could respond to the situation and evolve unique ways of modernising the supply chain.

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