This document discusses the status and future prospects of cold chain management in India's agriculture industry. It notes that India is a top global producer of milk, fruits, and fish but suffers significant post-harvest losses of 25-30% due to lack of cold storage and supply chain infrastructure. The government has initiated policies to promote private investment in cold storage facilities and provide subsidies. However, cold chain capacity remains short by 10 million tons and unevenly distributed. The industry is expected to grow significantly with further government support and private sector involvement to reduce food wastage and improve quality and supply.

1. AGRI-BUSINESS MANAGEMENT
SYSTEMS
SUBMITTED TO,
Dr.K.C.PRAKASH
Assistant professor
IIPM
Bangalore
SUBMITTED BY,
U.A.SOMANNA
PGDM ABPM-86
IIPM Bangalore
1

2. AGRI-COLD CHAIN MANAGEMENT IN
INDIA:STATUS & FUTURE PROSPECT 2

3. F & V in India
• India is worlds number one in milk, second in fruits
and third in fish production.
• Postharvest losses account for about 25% to 30% of
production.
• Quality of produce deteriorates by the time it reaches
the consumer.
• There is more wastage of fruits and vegetables in the
southern and western regions of India due to the
tropical and humid climate.
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4. Perishable Agri-Horti Produce –
India vs. World
Produce India (MT) World (MT) India’s
percentage share
Fruits
89 654
13.6 (next to
China)
Vegetables
163 1,160
14 (second to
China)
Milk 136 770 17.7 (1st rank)
Fish 9.58 196 4.9 (3rd rank)
Meat (including
poultry)
6.2 310 2 (6th rank)
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5. GROWTH OF SCM IN AGRICULTURE
• No concrete idea of of scientific supply chain.
• Just few players such as the farmer and the
trader.
• Emergence of regulated markets.
• Emergence of corporate into fruits and
vegetables sector.
• Contract farming with the farmers.
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6. Growth of Cold-Storage in India 6

7. Segment-wise Segregation of Cold
Storages 7

8. 8

9. STAGES IN COLD CHAIN
• F & V should be frozen quickly after harvesting
to maintain high quality.
• Transported to refrigerated warehouses, through
reefer vehicles where they are stored at – 20 to –
23°C, from few days to months.
• Later moves to markets through reefer vans.
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10. • Kept in refrigerated display cases held in the
market at 3 to 5°C for unfrozen fruits and
vegetables.
• In the case of bananas, there is no storage
period. Instead, there is a period of ripening.
The best temperature for slow ripening is
14.5°C.
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11. PRESENT SCENARIO OF COLD
CHAIN IN INDIA
• Short by 10 million tons of cold storage capacity.
• 6,300 cold storage facilities unevenly spread across
the country, with an installed capacity of 30.11 MT.
• Growth has averaged 3 to 4% over the past 10 years.
• Ownership is mainly in the private sector, with the
public and cooperative sectors only comprising 10% of
capacity.
• However, some 75-80 per cent of these refrigerated
warehouses are used only to store potatoes.
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12. • 36% of these cold storages in India have capacity
below 1,000 MT.
• 65% of India’s cold chain storage capacity is
contributed by the states of Uttar Pradesh and
West Bengal
• At the current capacity only less than 11% of what
is produced can be stored.
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13. EXISTING INFRASTRUCTURE 13

14. EXISTING GAP 14

15. KEY CHALLENGES
• Lack of quality cold warehousing infrastructure.
• Lack of standards and protocols in construction
and operation of facilities.
• Low awareness of labor in handling temperature-
sensitive products.
• High fuel cost and power cuts.
• Lack of low cost & environment friendly
technology.
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16. GOVERNMENT INITIATIVES:
• 100% FDI
• 5% concession on import duty, service tax
exemption, excise duty exemption on several
items.
• Subsidy of over 25 to 33.3% on the cold storage
project cost
• Establishment of National Centre for Cold Chain
Development
• Over 50 to 70% capital grant on projects.
• Proposed financial outplay for cold chain
infrastructure of US $650 million.
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17. GROWTH EXPECTED
• Setting up cold chains with PPP model.
• Then government is also promoting the food
safety and security bill that would further cold
chain facilities in order to reduce the amount of
food wastage.
• Cold chain industry is expected to grow at a
CAGR of 28% over the next three years and reach
a market size of $13 billion in 2017.
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18. OTHER RETAIL OPERATORS 18