A WRI India report reveals that inefficiencies in onion, soybean, and custard apple supply chains in Madhya Pradesh and Maharashtra cause ₹4,818 crore in annual losses. The study highlights a critical need for better storage and harvesting technology to prevent economic drain and reduce carbon emissions.
India’s agricultural sector faces a significant economic challenge, with post-harvest losses totaling ₹4,818 crore annually. A recent study by WRI India, focused on Madhya Pradesh and Maharashtra, identifies that inefficiency in the supply chains for onions, soybeans, and custard apples is resulting in the waste of approximately 1.7 million tonnes of produce. This economic drain not only impacts farmer income but also highlights a systemic gap in agricultural infrastructure and technology.
The report identifies specific failure points across these crop chains. For onions, poor storage conditions and inadequate ventilation, especially during the rabi season, lead to high rates of rotting and sprouting. The soybean sector faces challenges primarily due to mechanical harvesting issues. Miscalibrated combine harvesters and moisture issues from unseasonal rainfall cause significant damage to the pods. Custard apples, meanwhile, suffer from high discard rates caused by improper handling and heat stress during the aggregation process.
Beyond the immediate financial loss, the environmental impact is substantial. These losses generate over 1 million tonnes of carbon dioxide equivalent in greenhouse gas emissions, with onions contributing the largest share as much of the waste is sent to open dumps. The soybean sector also sees significant nutritional waste, with 1.47 lakh tonnes of protein lost annually, representing a major hurdle for national nutritional goals.
For the Indian market, these findings signal a call for policy action in the agricultural infrastructure space. The report underscores that a lack of access to finance, modern machinery, and specialized extension services prevents farmers from minimizing these losses. The data points toward a need for increased investment in cold chain logistics, climate-controlled storage facilities, and advanced, localized harvesting equipment.
As policy focus shifts toward integrating post-harvest management into farmer support systems, companies operating in the cold storage, farm-tech, and logistics sectors may see more pressure to scale solutions. The ability to deploy capital efficiently into storage and processing technology will be a critical monitorable for stakeholders looking to address these supply chain bottlenecks and stabilize the market for these key crops.