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India's Cold Chain: Beyond Capacity to Capability
11 Sep
Summary
- India faces significant annual post-harvest losses of nearly $18.5 billion.
- The focus must shift from adding capacity to improving cold chain capability.
- Cold chain is vital for preserving value, not just keeping products cold.
India's cold chain development is entering a new phase, moving beyond capacity expansion to a focus on capability enhancement. With annual post-harvest losses nearing $18.5 billion and only a small fraction of perishables using organized cold chains, experts convened at a summit themed "Building Ecosystem for Viksit Bharat." The consensus is that the next steps must prioritize integration, utilization, and seamless end-to-end connectivity.
Speakers highlighted that managing time and temperature is paramount to preserving value in perishable goods like fruits, milk, and fish. This approach ensures food, income, and resources are not lost. The projected growth in cold storage capacity to 43.7 million tonnes by 2031, at a modest 2.2% CAGR, underscores the need to optimize the existing ecosystem's quality and effectiveness rather than solely focusing on new construction.
Financial institutions like the State Bank of India are viewing cold chain infrastructure as a significant opportunity to link agricultural infrastructure, food processing, and export logistics. They offer financial solutions across the entire agri value chain, including construction, plant and machinery, and working capital for cold storage facilities. India's substantial agricultural output, with food grain production around 358 million tonnes and horticulture production at approximately 371 million tonnes in 2024-25, necessitates robust supply chain solutions.
The future of warehousing and cold chains is seen as intimately integrated with supply chains, relying on standardization, quality preservation, and resilience to build trust. Industry stakeholders are urged to leverage developments in industrial townships and logistics parks, ensuring that recommendations from forums like this summit lead to tangible implementation by government bodies.