Improvement of supply chain of organic farming in Sikkim

Submitted by Archana kumari

14MBA004

Introduction

Organic farming has been a traditional way of farming in Sikkim adopted by farmers since ages. Due to unavailability of assured irrigation farmers practice rained farming system with an integrated approach and integrated farming system is predominated in the state with agriculture, horticulture animal husbandry in perfect coordination. Sikkim is rich in biodiversity with abundant plant species because of which the soil is rich in organic matter content and makes the conversion easier. The fragile ecosystem in Sikkim hills demand sustainability farming practices without depletion of natural resources. It is therefore advantageous for Sikkim to go into organic system of farming keeping in view of protection of the soil from degradation, protection of environment & ecology and healthily leaving of the people for generations.

Objective The objective of my study is to improve the organic farming in sikkim To make the supply chain of product strong by management information system. To train the farmers by the new technology system.To make the export system by the technology development.

Problems 1. Before planning to go organic, it is imperative that the state performs an in-depth assessment of its agriculture policies, programs and plans, to understand how it affects the competitiveness and the conditions of the organic sector.2. Sikkim organic Brand label should be established and heavily promoted.3. Domestic market development should consider both the supply and

demand side.4. Regulation for local market shall be based on local condition and not in

the conditions in export market.5. It is important to give attention to consumer awareness and it be actively

promoted.

Feasibility study• Establishing a produce supply chain between community growers and

community retailers and caterers could have several benefits.• growers identified opportunities for additional income generation and

networking opportunities Cost savings• Cost is a key consideration for retailers and caterers and the ability to

access cheaper produce through a supply chain would be a major benefit for them. This, however, depends on the ability of growers to provide produce at a cheaper price than their current suppliers.

• community growers that are not concerned with covering costs they may be able to produce fruit and vegetables more cheaply than commercial growers. As they are in contract with the retailer and caterer.

• The cost can be reduced because the middle man will be omitted the amount they charge is higher then the direct marketing.

Networking • Establishing a supply chain would create links between the growers and

retailer, caterers. Networking could potentially lead to closer collaboration on issues like marketing, training and infrastructure issues such as ordering and delivery processes. supply chain would allow retailers and caterers to source food to meet this demand for local food, and would increase demand for community growers.

• This study of supply chain would appeal to some retailers and caterers on the grounds of promoting local, fresh, and healthy produce to reach new customers. By doing the adversitment.

BarriersManagement and logistics • invoicing(commercial document) – will individual growers invoice

retailers/caterers individually or will there be a joint approach to this? Some retailers and caterers might need an invoicing system that meets the requirements of their funders and, as one retailer/caterer said, “different invoicing systems could get complicated”.

• delivery – it is crucial that retailers/caterers can rely on growers to deliver produce on time and in sufficient quantities. This is an issue that needs careful planning: how will delivery be co-ordinated ? Will individual growers deliver to each of their customers or will there be a shared approach?

Resources and costs • delivery transport. • premises for storage.• computer or internet-based ordering systems.• an organization to co-ordinate and support the supply chain.

Co-ordination Given the level of organization, resources and expertise required to establish a

supply chain and support its participants, a significant amount of co-ordination is required between growers and retailers and caterers. This role is important to co-ordinate aspects of the supply chain like ordering, invoicing, delivery and storage.

Description of case 1 (Fresh product)

Farmers Organic processor

Processor

marketer

Retail chain

1

Wholesaler

Super market

Retail chain 2

Customer

Cereal product

Farmer farmer

Main supplier

Organic process

or

Other suppliers

Super marktRet

ail Retail

chain 1

Wholesaler

supermrkt

wholesale

Retail chain2

Supply chain

It includes movement Of goods from supplier it includes orders and updating includes credit To customer the status of delivery terms and

payment

Supply chain management system flow

Product flow Information

flow Finance flow

Purchase order

Context level DFD

Three stage function

DFD- 0 level

DFD

ER DIAGRAM

Conclusion I made the choice for this topic because there is a scope for the market more border for the organic farming and let the cultivator earn for themselves and make profit. this research may fail due the communication cap or due to the new ideas and innovation. There is even possibility for the organic farming to be effected by the climate change. Due to which it would not reach to the suppliers.

In order to understand the needs and possibilities for system improvements or changes, research at the chain level is necessary the performance of the organic food chain could be improved with the involvement of the stakeholders outside the chain. The role outside the chain would be to support the organic chain by managing and delivering information concerning the ethical, ecological value of organic food