Government of India to Sanction 100 Cold Chain Projects

To reduce food wastage, the government plans to launch 100 new cold chain projects 

India: The Governement of India will sanction 100 more cold chain projects in next few days in the country to help cut wastage of farm produce and check price volatility, the minister of food processing, Harsimrat Kaur Badal said today.

These facilities will be part of the national cold chain grid being created to transfer perishables from farm areas to consumers seamlessly, the minister said. The government’s aim is to set up 150 cold chain units in the long term. Since 2013-14, a total of 81 cold chain projects have been sanctioned by the Country’s Food Processing Ministry, out of which, a maximum of 19 are in Maharashtra, followed by 13 in Uttarakhand. Food wastage in India has been hovering around 30-40%, which is more than the global average of around 30%. The government is planning to reduce this share in the upcoming years and has plans to allow FDI in the cold chain sector.

TechSci Research depicts that the government’s focus on development of cold chain sector is necessary to reduce the food wastage and to control the price fluctuations in the market. Moreover, this would also benefit the cold storage and cold transport companies in India in coming years.

According to a report published by TechSci Research, “India Cold Chain Market Forecast & Opportunities, 2019”, the Indian cold chain market is projected to grow at a CAGR of around 23.88% during 2014 -19, in value terms. Currently, the market is largely unorganized and fragmented with only handful domestic players offering complete food storage and logistics services in the country. However, over the next five years the Indian cold chain market is expected to witness consolidation due to growing private investments, entry of foreign refrigeration and insulation equipment manufacturers in the country, and growing demand for cold storage facilities and logistics from the pharmaceutical industry. Northern India has the highest number of cold storage facilities due to high yield of food crops in states like Punjab, Haryana and Uttar Pradesh, and fruits in Jammu & Kashmir, Himachal Pradesh and Uttarakhand. The government of India has allowed 100% FDI in cold chain market along with several financial incentives and relaxations. These measures are anticipated to drive the cold chain market in India in the coming five years.