KPMG Report Highlights Nutrition Affordability Gap and Supply Chain Challenges in India's Food System

A new report released by KPMG India, titled ‘Future of food systems: Preparing for the next frontier’, has outlined key challenges and transformation levers facing India's agricultural and food sectors. The study points to changing consumption patterns, population growth, climate pressures, and resource constraints as primary drivers reshaping the domestic food landscape.

The report identifies six core levers for the transformation of India's food systems: productivity enhancement, food system efficiency, supply chain excellence, transparency and traceability, technology enablement, and sustainability-led growth.

Addressing the affordability and nutrition gap, the findings indicate that approximately 520.1 million people—representing 35.5 percent of India’s population—were unable to afford a healthy diet in 2025. This statistic emphasizes the ongoing challenge of making nutritious food accessible and economically viable for a large portion of the population.

The report also highlights a prominent production-consumption paradox. While national food production stands at approximately 36 percent above normative requirements, actual food consumption remains about 20 percent below prescribed requirements. This disparity underscores a persistent gap between aggregate food availability and actual nutrition security.

Infrastructure bottlenecks remain a critical hurdle for the sector. According to the report, India faces a cold storage capacity deficit of 10 to 15 million tonnes. Additionally, post-harvest losses are estimated between 6 and 15 percent for fruits, and between 4.8 and 11.6 percent for vegetables.

To address these structural issues, the report calls for a concerted policy and operational shift from basic food security to comprehensive nutrition security. This transition is expected to be driven by improved agricultural productivity, broader technology adoption, efficient supply chains, and sustainable resource management.

The study emphasizes the necessity of coordinated action across government bodies, industry players, and the wider food ecosystem to enhance productivity, resilience, and sustainability.

Commenting on the findings, Himanshu Rattan, Partner and Lead - Food, Agri and Allied Services, Government and Public Services at KPMG in India, noted that the country's food system is entering a new phase of transformation. He stated that as focus expands toward nutrition security, improving productivity, strengthening value chains, and building resilience will be critical to meeting future requirements, noting that outcomes will depend on the integration of innovation, infrastructure, and sustainability.

Adding to this perspective, Nikhil Sethi, Partner and Head of Consumer Markets at KPMG in India, stated that while India has made remarkable progress in food security, the next challenge lies in ensuring that nutritious food is accessible, affordable, and convenient for every citizen. He noted that consumer market companies have a critical role to play in shaping healthier choices and building a more nutrition-secure nation.

"The findings from the KPMG India report present a clear operational roadmap for businesses operating in the agritech, supply chain, and consumer food sectors. While India has achieved adequate aggregate food production, the real business and economic opportunity lies in solving downstream inefficiencies like cold storage deficits and post-harvest losses. Startups and enterprises that leverage technology to bridge the nutrition affordability gap and streamline supply chain transparency will unlock massive commercial potential while addressing critical structural needs in the domestic market." — Dr. Shishir Gupta, Founder & CEO, StartupLanes