Efficient logistics, timely finance key to boost agri exports: Stakeholders

CHENNAI: Improving storage and processing facilities closer to farms, along with timely finance for farmer producer organisations (FPOs), is essential to reduce post-harvest losses and expand agricultural exports, stakeholders said at the consultation on strengthening agri-export logistics, organised by the Confederation of Indian Industry (CII) in association with the Central Warehousing Corporation (CWC).

Delivering the keynote address, Tamil Nadu Agricultural Marketing and Agri Business Director Chandra Sekhar Sakhamuri said access to adequate and affordable capital remained a key challenge for FPOs, particularly when they aggregate farmers' produce during procurement seasons.

He said FPOs were moving beyond supplying agricultural inputs to aggregation, sorting, grading and processing, with some developing their own brands and exporting products. However, gaps in preservation, value addition and access to export markets continued to affect the sector. "Such losses represent not only wasted produce but also the loss of farmers' investment, labour and the resources committed to cultivation," he said.

Southern Railway officials proposed identifying commodity-specific freight corridors and developing rail-linked agri-export hubs with facilities for aggregation, grading, covered storage, cold chains and container handling. A seasonal pilot with committed cargo partners was also proposed, with operating and cost models to be developed for selected routes.

CWC Managing Director Santosh Sinha said the corporation was looking to develop integrated horticultural logistics infrastructure in the Chennai-Bengaluru corridor, including cold storage and related facilities to connect farms to ports.

Customs Commissioner Vishal Pratap Singh highlighted processing, value addition and GI-tagged products as important avenues for expanding agricultural exports.

He also urged exporters to use Direct Port Entry and self-sealing permissions to facilitate faster cargo movement and reduce logistics costs. Priority clearance for perishables and Single Window facilities were among the other trade facilitation measures highlighted.

NABARD officials said the organisation had promoted around 300 FPOs in Tamil Nadu, representing approximately two lakh farmers, and was working to connect them with export markets.

The consultation also discussed the need for closer coordination among government agencies, financial institutions, logistics providers and farmer organisations to strengthen agricultural value chains and improve farmers' access to global markets.