To encourage setting up of cold chain facilities and backward linkages in the country, Ministry of Food Processing Industries (MoFPI) has introduced a Scheme for Cold Chain, Value Addition and Preservation Infrastructure during the 11th Plan to provide financial assistance to project proposals received from public / private organizations for cold chain infrastructure development.
The scheme envisages financial assistance in the form of grant-in-aid @ 50% of the total cost of plant and machinery and technical civil works in general areas and 75% for North Eastern Region and difficult areas subject to a maximum of Rs. 10.00 Crore. The initiatives are aimed at filling the gaps in the supply chain, strengthening of cold chain infrastructure, establishing value addition with infrastructural facilities like sorting, grading, packaging and processing for horticulture including organic produce, marine, dairy, poultry, etc.
Industry Scenario:
Fruits and vegetables are seasonal, perishable and often wasted prior to reaching the market. The primary infrastructure impediment comes from lack of adequate cold chain facilities. A combination of adequate cold storage facilities, as well as better means of packing and transport will reduce this wastage.
India is the 2nd largest producer of vegetables in the world, accounting for 15 percent of the world’s production of vegetables. The current production level is over 70 million metric tons and the total area under vegetable cultivation is around 6 million hectares, which is about 3 percent of the total area under cultivation in the country. It is estimated that around 20-25 percent of the total production of vegetables is lost due to poor post-harvesting practices like processing packaging, transportation and storage. However, the availability of Cold-Storage facilities is only for about 2 % of production.
As per existing reports, over 3,500 existing cold storage warehouses have only around 13 mn ton storage capacity. Users utilize services of these cold stores with old storage technology.
Present Market Scenario
Consumer price much higher than farmer realization
Tremendous wastage and inefficiency along the supply chain. Estimated waste around 20-25%.
Non-availability of credit to the farmers
- Results in farmers borrowing at usurious rates
- Losses increase due to incremental handling
- Increases dependence on middlemen (Adathias)
Producers and customers lose
- Low realization for producers, make quality a non-issue Results in low export potential
- Customers lose as the Fruits available only in season – High prices in off-season
To minimize the colossal wastage of perishable farm produce worth Rs 58,000 crore annually, make a dent on primary product-push inflation, reduce the government’s Rs. 25,000 crore food subsidy bill, ensure quality produce to the consumers, boost rural employment and drive agriculture growth to the targeted 4%, Ministry of Food Processing Industries, Govt. of India has called for efforts on a war footing to develop cold chain infrastructure of world class standards.