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      National Logistics Policy: Boosting Supply-Chain in Food System

      Pawan LohaniBy Pawan LohaniMay 15, 20256 Mins Read
      National Logistics Policy, 2022, was launched by the government of India to boost the supply chain management in the country.
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      National Logistics Policy, 2022, was launched by the government of India to boost the supply chain management in the country. It was to complement the PM GatiShakti National Master Plan (NMP) to accelerate economic activities and infrastructure development across the country. National Master Plan (PM GatiShakti) addresses the integrated development of the fixed infrastructure and network planning. The NLP addresses the soft infrastructure and logistics sector development aspect. It also includes process reforms, improvement in logistics services, digitization, human resource development, and skilling.  Logistics is the jugular vein of the food processing industry. Hence, it becomes evident to take a deep look into the policy framework.

      National Logistics Policy (NLP): Assessing Vision, Targets, And Components

      The Government of India drafted NLP to streamline the pre-existing discrepancies in the logistics sector in India.

      Vision of NLP

      The NLP strives to drive economic growth and business competitiveness in India. It aims to develop an integrated, seamless, efficient, reliable, green, sustainable, and cost-effective logistics network. The policy leverages best-in-class technology, processes, and skilled manpower. If adopted fully, the policy will reduce logistics costs and improve performance.

      Targets of NLP

      National logistics policy aims to induct India among the top 25 countries by 2030 by creating data data-driven decision support mechanism for an efficient logistics ecosystem.

      Targets of NLP
      Fig: Targets of NLP

      Comprehensive Logistics Action Plan (CLAP)

      It is a part of the National Logistics Policy, 2022. The plan aims to achieve the above-mentioned targets. The Comprehensive Logistics Action Plan (CLAP) strives to cover eight action areas. It includes

      1. Integrated Digital Logistics Systems
      2. Standardization of Physical Assets and Benchmarking of Service Quality Standards;
      3. Logistics, Human Resource Development, and Capacity Building;
      4. State engagement;
      5. EXIM Logistics;
      6. Services Improvement Framework;
      7. Sectoral Plans for Efficient Logistics (SPEL); and
      8. Facilitation of the Development of Logistics Parks.

      Integrated Digital Logistics Systems

      It is one of the key components of the National Logistics Policy. Integrated Digital Logistics Systems aims to foster seamless coordination and management of all aspects of the supply chain. To fulfill its objectives, it uses digital tools and technologies. This component aims to optimize processes, enhance visibility, and improve efficiency across the entire logistics system. It starts from the point of origin to the final destination. It has features such as Supply Chain Integration, Digital Tools and Technologies, Real-time Data Sharing, and automated sharing of data.

      Standardization of Physical Assets and Benchmarking of Service Quality Standards

      This component of the National Logistics Policy aims to enhance interoperability, minimize handling risks, undertake process optimization, and improve ease of doing business. These objectives will be fulfilled through the standardization of physical assets and benchmarking of service quality standards in logistics systems. It includes transportation infrastructure (fixed and rolling), terminal handling, warehousing, temperature-controlled logistics, packaging, etc.

      Logistics, Human Resource Development, and Capacity Building

      This component of the NLP aims to develop an overarching logistics human resource strategy. Under its guiding principles, this component aims to guide ministries to develop action plans to address skill development-related and internal capacity-building challenges in the respective sector.

      State Engagement

      This component of NLP aims to provide support for the development of state/city-level logistics plans. It also aims to set up an institutional framework to act at the city/state level and measure and monitor action by states and rank them.

      EXIM Logistics

      This component of NLP aims to address infrastructure and procedural gaps in India’s EXIM connectivity. It also strives to create an efficient and reliable logistics network, with transparent and streamlined cross-border trade facilitation. The overall aim is to provide a streamlined logistics infrastructure for improved trade competitiveness and greater integration of India with regional and global value chains.

      Services Improvement Framework

      This component of the National Logistics Policy aims to improve the regulatory interface. It will enable seamlessness between sectors, promote standardization, formalization, and interoperability. It will also eliminate fragmentation in documentation, formats, processes, and liability regimes; reduce gaps in regulatory architecture.

      Sectoral Plans for Efficient Logistics (SPEL)

      The component ‘Sectoral Plans for Efficient Logistics (SPEL)’ is aligned with PM GatiShakti. The NLP plans to develop it for each sector with underlying philosophies of interoperability, resiliency, sustainability, and innovation. Specifically. The main objectives of the SPEL are:

      • Address logistics issues about infrastructure, processes, digital improvements, policies, and regulatory reforms, and
      • Capacity building for a better workforce, and
      • Prioritize cross-sectoral cooperation to complement and not duplicate efforts
      • Focus on optimization of modal mix.

      Facilitation of the Development of Logistics Parks

      This component of the National Logistics Policy aims to foster the development of Logistics parks. These include Multi Modal Logistics Parks, Air Freight Stations, Inland Container Depots, Container Freight Stations, cargo terminals, etc. These parks are hubs for intermediary activities such as storage, handling, value addition, inter-modal transfers, etc., in the supply chain connected by a transportation network.

      National Logistics Policy: Implementation and Associated Events

      The government of India has made significant progress concerning the implementation of the Policy. It has conducted regional conferences, one-on-one interactions, and inter-Ministerial meetings. Department for Promotion of Industry and Internal Trade (DPIIT) is the nodal agency to facilitate the implementation of NLP through different programs such as:

      Inter-Ministerial Meeting

      Such meetings are conducted from time to time to review the progress of its implementation of various components of NLP. During the meeting, various measures taken by different Ministries to improve logistics efficiency in the country were showcased. The meeting saw participation from eleven infrastructure and user Ministries.

      Regional Workshops

      To implement the NLP effectively, DPIIT has organized more than five regional workshops between 20th March and 12th April 2023. These workshops had a dedicated session on NLP, wherein key features and progress of NLP were showcased, and participating States/UTs. It presented the status and key highlights of the respective State Logistics Policy and other interventions.  These workshops saw the participation of over 500 participants, covering officials from all 36 States/UTs and concerned line Ministries/Departments. Representatives from knowledge partners and multilateral organizations also attended these workshops.

      E-LoGs portal

      It is a digital system for registering logistics-related issues by logistics sector associations launched under NLP.  29 logistics sector associations are registered on the E-LoGs portal. The portal provides a platform to register cases and resolve issues.

      Way Forward

      The National Logistics Policy, 2022, is an important policy framework for the food processing industry, owing to the perishable nature of the processed food items. Efficient logistics can help to improve the profitability of the entities involved in the food processing sector. The logistics policy frameworks of India have eased the logistics sector in the country and aim to aid the food as well as other sectors. It also provides an impetus to ‘Ease of Doing Business’ in the country.

      EXIM Logistics Facilitation of the Development of Logistics Parks Integrated Digital Logistics Systems National Logistics Policy NLP Sectoral Plans for Efficient Logistics
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      Pawan Lohani

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