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Written By: Jagriti Shahi
India, renowned for its vast agricultural diversity and substantial output, grapples with significant post-harvest losses. The lack of adequate cold storage and logistics infrastructure exacerbates these losses, impeding the country's agricultural potential and affecting food security. This article explores the critical role of cold storage and logistics in reducing food waste, enhancing agricultural productivity, and stabilizing prices in India.
Figure: Cold Chain Process
Food Waste
Magnitude of Food Waste
India's food waste problem is monumental. According to various reports, nearly 40% of the country's food production is lost post-harvest. This loss is not just a waste of food but also of the resources—water, labor, energy, and inputs—used in production. Fruits and vegetables, which are highly perishable, contribute significantly to these losses. The value of food wastage in India is estimated at approximately ₹92,000 crore ($12.4 billion) annually.
Figure: Regional Comparison of Food Waste - India
Figure: Food Waste by Type - India
Causes of Food Waste
The primary causes of food waste in India include:
Lack of Cold Storage: According to the National Centre for Cold Chain Development (NCCD), India has a cold storage capacity of about 37 million metric tons, which is significantly lower than the annual production of perishable commodities, estimated at 104 million metric tons.
Inefficient Logistics: Poor road infrastructure and transportation delays result in prolonged transit times, causing significant quality deterioration. The average wastage during transit is about 20%.
Inadequate Post-Harvest Management: Lack of knowledge and resources for proper post-harvest handling leads to further losses.
Impact of Cold Storage
Cold storage facilities are essential for preserving the quality and extending the shelf life of perishable goods. By maintaining an optimal temperature, these facilities prevent spoilage and maintain the nutritional value of the produce. For instance:
Fruits and Vegetables: Items like tomatoes, apples, and leafy greens can last several weeks in cold storage compared to a few days at room temperature.
Dairy and Meat Products: These require specific temperature ranges to prevent microbial growth and spoilage, which cold storage can provide.
Role of Cold Chain Logistics
A robust cold chain logistics system ensures that perishable goods are transported under controlled temperatures from farms to markets. This involves:
Refrigerated Transport: Vehicles equipped with refrigeration units help maintain the quality of produce during transit.
Efficient Distribution Centers: Strategically located centers ensure quick redistribution of goods to various markets, reducing transit times and spoilage.
Enhancing Agricultural Productivity
Benefits to Farmers
Access to cold storage facilities offers numerous benefits to farmers, including:
Reduced Distress Sales: Farmers can store their produce during peak harvest periods and sell it when market prices are more favorable.
Diversification: With reliable storage, farmers can cultivate high-value, perishable crops without the fear of losses due to spoilage.
Increased Income: Proper storage and reduced waste translate into higher returns for farmers.
Encouraging Crop Diversification
Cold storage and efficient logistics encourage farmers to diversify their crops. This not only increases farm income but also contributes to the overall agricultural productivity. For example:
Horticulture: Fruits and vegetables, being perishable, benefit immensely from cold storage, enabling farmers to engage in horticulture with confidence.
Floriculture: Flowers, which require specific storage conditions, can be preserved and transported efficiently, opening new avenues for farmers.
Technological Advancements
Modern technology plays a pivotal role in enhancing cold storage and logistics efficiency. Innovations include:
Internet of Things (IoT): IoT devices help monitor and control storage conditions remotely, ensuring optimal temperature and humidity levels.
Blockchain: Blockchain technology can provide transparency and traceability in the supply chain, ensuring that the product remains uncontaminated and of high quality.
Artificial Intelligence (AI): AI algorithms can predict market demand and optimize supply chain operations, reducing waste and improving efficiency.
Technological Integration
The future of cold storage and logistics in India looks promising with increasing investments and technological advancements. Technologies such as IoT, blockchain, and AI can further enhance the efficiency and transparency of cold chain management, ensuring that produce is stored and transported under optimal conditions. Stabilizing Prices
Price Volatility
In the absence of proper storage facilities, agricultural markets in India experience significant price volatility. During peak harvest seasons, an oversupply of produce leads to a sharp decline in prices, while scarcity during off-seasons drives prices up. This volatility affects both farmers and consumers.
Role of Cold Storage in Price Stabilization
Cold storage facilities help in stabilizing prices by:
Smoothing Supply: Stored produce can be released gradually, ensuring a steady supply throughout the year and preventing market gluts.
Reducing Waste: By minimizing post-harvest losses, more produce reaches the market, contributing to price stability.
Enhancing Market Efficiency: Efficient storage and transportation reduce the time and cost involved in bringing produce to market, further stabilizing prices.
Benefits to Consumers Consumers benefit from price stability through:
Reduced Price Fluctuations: A steady supply ensures that prices remain relatively stable, making essential commodities affordable.
Improved Quality: Proper storage and transport maintain the quality of produce, ensuring that consumers receive fresh and nutritious food.
Government Initiatives and Future Prospects
Government Schemes Recognizing the critical role of cold storage and logistics, the Indian government has launched several initiatives, such as:
Pradhan Mantri Kisan SAMPADA Yojana (PMKSY): This scheme aims to create robust agri-infrastructure, including cold chain development, by providing financial assistance for setting up and modernizing cold storage facilities.
Integrated Cold Chain and Value Addition Infrastructure: This initiative focuses on establishing cold chain infrastructure to reduce post-harvest losses and improve market connectivity.
Public-Private Partnerships (PPPs) To attract investment and expertise, the government encourages public-private partnerships (PPPs). These partnerships can bring in much-needed capital and technical know-how to develop and manage cold storage and logistics facilities. Cold Chain Schemes Integrated Post Harvest Management Projects through National Horticulture Board (NHB) General Areas: Credit linked back-ended subsidy at 35% of project cost, limited to ₹50.75 lakh per project.
Hilly, North East & Scheduled Areas: Credit linked back-ended subsidy at 50% of project cost, limited to ₹72.50 lakh per project.
Applicable for establishment of integrated pack houses, pre-cooling units, cold rooms, mobile pre-cooling units, ripening chambers, and refrigerated transport vehicles.
Assistance Pattern under Integrated Post Harvest Management Projects
Back Ended Subsidy subject to availability from Government of India / NHM / NHB otherwise equivalent loan from NCDC for that particular Cold Chain component. ** State Government may contribute as a share capital or as a loan based on their financial condition.
Additional Subsidy for Small Components
Higher subsidy (50% of total cost) for:
Capital Investment Subsidy Scheme of National Horticulture Board (NHB)
Applicable for construction/expansion/modernization of Cold Storages including Controlled Atmosphere (CA) storage.
Subsidy at 35% of capital cost in general areas and 50% in North East, Hilly States, & Scheduled Areas.
Storage capacity eligibility: above 5000 MT up to 10000 MT (1000 MT for North East states).
Maximum subsidy: ₹7.50 crore per project.
Assistance Pattern under Capital Investment Subsidy Scheme
Agricultural Marketing Infrastructure (AMI) Sub Scheme of Integrated Scheme for Agriculture (ISAM) - for Non–Storage Infrastructure Projects
Through Ministry of Food Processing Industries (MoFPI) Cold Chain scheme follows cost norms of MIDH/NHB/NHM schemes where applicable.
Grant-in-aid at 50% for General Areas and 75% for North-East, Hilly States, & difficult areas.
Maximum grant-in-aid: ₹10 crore per project.
Conclusion Cold storage and logistics are pivotal in addressing the challenges of food waste, agricultural productivity, and price stability in India. By reducing post-harvest losses, enhancing the quality and availability of produce, and ensuring a steady supply throughout the year, these infrastructures play a crucial role in supporting the agricultural sector and improving food security. With continued investment and technological integration, India can significantly reduce food waste, boost agricultural productivity, and stabilize prices, ultimately benefiting farmers, consumers, and the economy as a whole. About Global Launch Base:
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