The cold chain and warehousing sector in India is at a pivotal moment, with a projected capacity growth to 43.7 million tonnes by 2031. However, the focus must shift from merely increasing capacity to enhancing integration and efficiency within the current systems to prevent significant post-harvest losses, which stand at nearly $18.5 billion annually.
The Current State of Cold Chain in India
India’s cold storage infrastructure, while substantial, is underutilized. Currently, only 4% of perishables are transported through organized cold chains, indicating a vast opportunity for improvement. This landscape was the focus of the recent cold chain and warehousing summit organized by ASSOCHAM, themed “Building Ecosystem for Viksit Bharat.” According to experts, addressing the inefficiencies is crucial for leveraging India’s agricultural output effectively.
Sukanta Kumar Panigrahi, a member of the Parliamentary Standing Committee on Agriculture, highlighted the importance of managing time and temperature in preserving food products. “Cold chain is not about keeping products cold. It is about keeping value alive,” he stated, emphasizing the economic impacts of poor cold chain practices.
Connecting Infrastructure and Financial Solutions
Investment in cold chain infrastructure presents a significant opportunity to improve connectivity between agriculture, food processing, and logistics. Mata Prasad, DGM at State Bank of India, addressed the summit, pointing out that financial solutions tailored to various stakeholders could enhance the agri-food value chain. This includes financing for cold storage construction, machinery, and operational working capital.
In tandem, Devendra Kumar Dhodawat, a former chief secretary in Kerala, noted India’s robust agricultural output, with food grain production reaching approximately 358 million tonnes in the 2024-25 period. This presents an ideal backdrop to integrate more advanced cold chain solutions that can reduce waste and maximize production value.
Strategic Recommendations for the Future
With the cold chain sector poised for expansion, industry leaders suggested strategic recommendations. Amrit Lal Meena, former Chief Secretary of Bihar, called for industry associations and state governments to collaborate on developing warehousing and logistics parks strategically positioned near major infrastructure. This includes planning for multimodal logistics hubs that can facilitate smoother supply chain operations.
Saurabh Sanyal, Secretary General of ASSOCHAM, also called for actionable recommendations to make supply chains more competitive and resilient. Attendees were urged to propose practical solutions during the summit to address these challenges.
What This Means
The discussion surrounding India’s cold chain and warehousing sector underscores a critical need for improved infrastructure and integrated systems. By optimizing current capacities rather than merely expanding them, stakeholders can significantly reduce post-harvest losses and enhance food security. This is essential for India’s growing population and evolving consumer demands, where fresher produce is increasingly valued. With strategic investments and policy support, the sector can contribute not only to economic growth but also to sustainability in food distribution.
Frequently Asked Questions
What are the current challenges facing India’s cold chain sector?
The sector struggles with low utilization rates, inefficient logistics, and high post-harvest losses, estimated at nearly $18.5 billion annually.
How much is India’s cold storage capacity expected to grow?
India’s cold storage capacity is projected to grow to 43.7 million tonnes by 2031, with a compound annual growth rate (CAGR) of only 2.2%.
What role does the State Bank of India play in this sector?
The State Bank of India is focused on providing financial solutions tailored to cold chain infrastructure, supporting activities such as cold storage construction and working capital requirements.
Why is efficient cold chain management important for agriculture?
Efficient cold chain management helps preserve food quality, reduces waste, and enhances economic returns for farmers, ultimately contributing to food security and market stability.
