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Agricultural Supply Chain Logistics – A Complete Guide

Agricultural Supply Chain
Agricultural Supply Chain

Agriculture in India is not only about crop production; the true pain point arises post-harvest when farmers must store, maintain, conserve, and ultimately sell their product to the right buyer, at the right time, and for the right price. This is where agricultural supply chain logistics comes into play. It is an essential link between production and market that takes the burden off farmers for safe storage, minimizes loss, and ultimately allows for food security. We, as an agri logistics company, at Sohan Lal Commodity Management (SLCM), work every day to ensure the supply chain is more efficient, dependable, and profitable for all stakeholders involved.

Why is Agricultural Supply Chain Logistics Important?

Each year, India produces millions of tonnes of crops. If it weren’t for logistics, a significant amount of supply would be wasted either from poor storage facilities, pests and rodents, thefts, or simply lost days in transit. Agricultural supply chain logistics manages this process, so crops are handled appropriately, stored properly, and delivered promptly.

At SLCM, that is ensuring quality with fumigation and pest management, cocoon fumigation for organic produce, and temperature and humidity control. With the patented solution, Agri Reach, we can manage the life cycle of food grains and perishables at every step. With the right systems, farmers can safeguard the value of their hard work, and consumers can enjoy a quality food experience without interruption. The goal for any agri logistics company will always be to minimize post-harvest losses and build trust across the value chain.

What Problems Are Farmers Facing?

Many farmers face challenges like price volatility, post-harvest losses, and storage inefficiencies, often compounded by unpredictable weather patterns. Classic systems aren’t enough to keep out moisture or pest damage. And many farmers have no choice but to sell at harvest for less than they wanted, because they cannot hold onto their crops. 

This is where the benefit is felt in collateral management and crop financing. With SLCM integrated post-harvest management solutions,  farmers and allied agri stakeholders can use stored crops as collateral to draw loans from banks and financial institutions. This helps to avoid distressed sale situations and allows them to wait for market rates to improve. With a combination of scientific storage capabilities and financial solutions, modern agri logistics puts greater power in farmers’ hands.

How do technology and Phygital solutions help?

At SLCM, logistics is conducted by utilizing Phygital Solutions, a perfect integration of physical structure and digital system. With our widespread warehousing and cold storage facilities, we have advanced monitoring, real-time tracking, AI-powered quality checks, and powerful digital platforms, which ensure efficiency, transparency,and reliability in every process.

Through Phygital warehousing, farmers and traders have instant visibility on stock levels, moisture conditions, and/or temperature, and dispatches. Digital storage receipts and traceability add significant transparency. Technology means that we can provide close visibility on quality and reduce risk. This means that for farmers and traders, they can feel confident that their crops are secure. For an agri logistics company, our Phygital solutions strengthen the overall supply chain and create more efficient systems.

About SLCM

SLCM is the leading agri logistics company providing integrated post-harvest management services around India. SLCM operates over 20,000+ warehouses with 350+ million sq. ft. of storage space as well as 90+ cold storages in the country, assuring scientific, secure, effective storage at a significant scale. In addition to warehousing, the company provides collateral management, procurements, quality testing, and solutions in the digital space, thus increasing transparency and operational efficiencies throughout the value chain. SLCM is rooted in ground realities, and its ecosystem promotes reliability, information for crop financing with institutional partners, and decreased post-harvest loss. SLCM emphasizes innovation and sustainable solutions, while being dedicated to strengthening the agriculture sector, improving productivity in value chains, and enhancing the agri infrastructure in India and around the world, in a resilient manner enabled by technology.

How SLCM Adds Value to Farmers and Traders

Our services are designed with the realities of agriculture in India in mind. With collateral management, farmers can use their stored crops as collateral to access credit. Traders are able to benefit from fast, accurate testing of quality, which allows for the rapid and fair closing of deals. Banks and financial institutions are presented with bankable inventories, supported by the visibility of transparent documents.

Through our Phygital warehousing platform, we give farmers and traders the advantages of physical security and digital visibility. It builds income, reduces waste, and builds trust across the agricultural ecosystem.

The Future of Agricultural Supply Chain Logistics

While the supply of food continues to increase both in India and globally, demand for food is also rising. Meeting that demand will require supply chains to get smarter. In the coming years, agri logistics will need to rely more upon data to inform decision-making based on real-time data, as augmented with blockchain-driven traceability, and increase smart warehousing and management systems.

At SLCM, we believe that combining technology with scale will help agriculture become more sustainable and resilient. The world beyond simply storing crops awaits, as we work toward providing systems that support the efforts of farmers and provide consumers with the best quality produce.

At SLCM, we aspire to improve efficiency, transparency, and profitability within the agriculture sector. If you’re in search of a trusted partner in agri logistics, please connect with us today and see for yourself how we can provide value for your business.

Q1. What services are provided by an agri logistics company?

A1. An agri logistics company manages the storage, testing, transportation, and financing of crops with respect to scientific and digital systems.

Q2. In which ways do agricultural supply chains (logistics) assist farm producers?

A2. Logistics would reduce losses, provide access to credit, and the farm producer would be able to sell at a better price.

Q3. What does phygital mean in place of logistics?

A3. Phygital means the logistics include physical warehouses/cold storage along with the technology of digital logistics, for example, tracking and monitoring equipment.

Revolutionizing India’s Agri-warehousing: Trends Shaping 2025

Agriculture Warehouse Surveillance

The agricultural sector in India has historically been the foundation of the economy, providing jobs to millions and guaranteeing food security for an expanding population. Unavoidably, it contains several essential elements in the industry, such as energy, transportation, and water, that receive the most focus, which is somewhat warranted as well.

Nonetheless, another vital aspect of the entire supply chain that is frequently neglected is Post-harvest Agri Logistics Management, which is essential for reducing food grain losses, ensuring market supply stability, and offering financial connections to farmers. 

2024 Recap: Challenges & Learnings 

Over recent years, there has been a swift surge in the construction of commercial and industrial warehouses, which is also beneficial when we consider the bigger picture.  According to India Infrastructure Research, agricultural warehousing capacity needs to expand from 145 million tonnes in June 2023 to 223 million tonnes by 2026-27. This is essential to address the significant losses faced by farmers and agribusinesses due to inadequate infrastructure. A government-backed study from 2022 showed that India wastes 5-13% of its fruits and vegetables and 3-7% of crops such as oilseeds and spices from the time of harvest to consumption. This leads to a yearly financial loss that surpasses ₹1.52 trillion. Main elements leading to these losses comprise insufficient storage options, poor handling practices, and unfavorable weather circumstances.

Digital Transformation

The incorporation of technology is transforming agri-warehousing:

  • Advanced Warehousing: IoT technology and AI-based analytics are becoming commonplace, allowing for real-time oversight of storage conditions to ensure ideal environments for goods.
  • ERP in Supply Chain Transparency: ERPtechnology provides unmatched clarity, enabling accurate monitoring of food grain transport, guaranteeing authenticity, and combating fraud in the warehousing environment.

Growth of Storage Infrastructure

Major advancements are in progress to enhance storage capabilities:

  • Government Programs: Initiatives such as India’s grain storage project seek to greatly enhance storage capacity, with rural regions anticipated to experience a rise in the building of contemporary godowns and silos by 2025.
  • Cold Storage: The need for cold storage facilities for fresh produce is changing agri-warehousing, as integrated cold chain networks become more significant.

Climate-Resilient Designs 

Warehouses are implementing climate-resistant designs to endure severe weather conditions, guaranteeing the secure storage of grains.

Tailored Approaches for diverse foodgrains  

 Warehousing companies are designing specialized storage solutions for perishable items such as fruits and vegetables, as well as bulk storage for grains and pulses. These customized systems help improve the quality and extend the shelf life of stored commodities. 

Emphasize Sustainability and ESG

Sustainable methods are increasingly essential:

  • Solar-powered Surveillance in Warehouses: Utilizing solar powered CCTV cameras lower operational expenses and minimizes ecological footprint.
  • Paperless Processes: Transitioning to digital operations reduces the effects linked to deforestation, enhancing ecological sustainability.

Integration with Agri- Finance

Financial integration is empowering agricultural workers:

Warehouse Receipt Financing: Farmers use warehouse receipts as security for loans, enabling them to keep their crops longer and sell them at higher prices.

Digitizing Warehouse Receipts: Converting traditional paper receipts into digital formats enhances accessibility, transfer, and utilization, increasing efficiency and availability.

Worldwide Embrace of Phygital Innovations

Emerging nations are adopting phygital advancements in agri-logistics, establishing intelligent supply chains that effortlessly link farms with end-consumers.

Shaping Tomorrow’s Post-Harvest Supply Chain Platform: The Future of Agri-Warehousing by 2025

The Agri warehousing industry in India is navigating a dual mandate: tackling immediate challenges while laying the foundation for long-term sustainability. By 2025, key trends such as technology adoption, financial integration, sustainability practices, and strategic collaboration are set to drive the industry’s transformation.


For stakeholders—farmers, traders, and investors alike—adapting to these evolving trends will be essential. Leveraging advanced technologies, fostering strategic partnerships, and aligning with regulatory policies will enable the sector to achieve its dual objectives of operational efficiency and rural empowerment.


Looking ahead to 2025, warehousing is poised to transcend its traditional role as a storage solution, emerging as a cornerstone in reshaping India’s agricultural economy and fostering sustainable growth.