India, the world’s second largest producer of wheat and rice, feeds about 17% of the world’s population. However, in 2018, Food and Agriculture Organization (FAO) revealed that 5.49% of rice production and 3.35% of wheat production were wasted along the supply chain (from farm gate to processing, warehouse, wholesaler and retailer). Added to this are losses due to reliance on monsoons and climatic hazards, exacerbated by the country’s tropical and subtropical location.
FAO (2019) states, about 14% of global food production is lost before it even reaches the retail stage, leading to a substantial waste of resources. In India, about 74 million tonnes of food are lost each year, accounting for nearly 8% of global food waste. This is equivalent to about 40% of the country’s production. A large portion of this loss occurs during transportation and storage.
Blue, green and grey waters
Behind this food waste lies an often-ignored reality: virtual water. Indeed, wasting food means wasting the “hidden” water used throughout its production. As the United Nations, warns of an imminent global shortage of drinking water, it is crucial to raise awareness among businesses and decision-makers about the water footprint in the food supply chain.
The water footprint measures the total amount of fresh water used to produce goods and services. It is divided into three categories: Blue water: fresh water taken from rivers, lakes and aquifers. Green water: rainwater used for growing crops. Grey water: water needed to dilute pollutants to meet quality standards. This measure is used to assess the environmental impact of companies, particularly in agriculture, a sector that is particularly water intensive.
India’s critical geopolitical challenges related to water
Food waste is not only a question of economic losses; it is also a major environmental and geopolitical issue. Each food item thrown away is equivalent to a significant loss of water. For example, producing a litter of milk requires 1020 litres of water while a kilogram of rice requires about 3400 litres. In India, the two main causes of this waste are non-compliance with the cold chain and poor management of transport and storage.
Moreover, with less than 4% of the world’s water resources and the world’s largest population, India faces critical geopolitical challenges related to water. The management of its water resources affects not only its food security but also its regional stability. Climate change is exacerbating these challenges: for example, rising temperatures are pushing more farmers to grow wheat and potatoes, at the expense of rapeseed, the area of which could shrink by 10%. These challenges could increase the strategic dependence of India to other countries.
Today businesses can’t afford to ignore their water footprint anymore. Poor water management can lead to disruptions in supply chains, affecting production and profitability. The World Economic Forum has even identified water scarcity as the number one global risk for businesses. In addition, inefficient water management can lead to additional costs, regulatory penalties and damage to a company’s reputation among consumers who are increasingly sensitive to environmental issues.
Raising awareness amongst managers
The solution will of course be complex and multidimensional. It first involves raising awareness, not only among the public but also among business leaders and producers. Managers have a key role to play. On the one hand, they must understand that water footprint and food waste are not only environmental concerns, but also strategic issues for the sustainability of their business.
On the other hand, by integrating these issues into their strategy, they can innovate and develop sustainable solutions. For example, according to a study by Mishra et al (2018) crop losses in the state of Odisha, the creation of cooperative platforms reduced food losses of cereals by 45.15%.
A strategy of market differentiation
Companies that adopt sustainable practices also set themselves apart in the market. They meet the growing expectations of consumers and stakeholders, particularly Generation Alpha, which is highly attentive to the environmental impact of the products they consume.
Organising awareness workshops, actively involving employees, customers, and suppliers in concrete initiatives, or adopting the ISO 14046 standard – dedicated to water footprint management – are all valuable strategies. Beyond improving water management, these efforts showcase a company’s commitment to sustainability.
Additionally, implementing traceability technologies such as IoT and RFID can help reduce waste linked to cold chain disruptions. In today’s market, companies that prioritise sustainability aren’t just making an ethical choice, they’re securing their place in the future economy.
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