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Indian government investment in the Indian cold chain market attracting foreign investment

News   •   Dec 03, 2013 11:37 GMT

In 2010, government sources reported that the cold storage capacity for warehouses only accounted for 11% of the total food stuffs produced and requiring this storage type. The majority of cold storage facilities in India are used to store single commodities such as potatoes In 2010, there were a total of 5400 cold storage facilities in India and this total is forecast to increase rapidly with the increased demand for cold storage increasing in line with the increased sales and demand for processed food and packaged food.

The majority of cold storage facilities within India are located in the states of Uttar Pradesh, Uttaranchal, Punjab, Maharashtra and West Bengal. In 2010, approximately 90% of total cold storage warehousing capacity was used to store potatoes.

India’s food industry was estimated to be worth US$100 billion in 2011 and forecast to total US$300 billion by 2015. One of the major trends in the food industry is the increased demand for processed foods which in turn places increased pressure and demand for cold storage. In 2011, there was a lack of refrigerated vehicles for moving perishables and in 2011 this was highlighted by a report estimating that out of a total of 104 million tonnes of perishable produce transported between cities, only 4 million of this produce was actually transported by reefer. In 2011, a total of 25,000 vehicles were estimated to be used for refrigerated transport in India being run by an estimated 250 operators although 80% of these vehicles are dedicated to transporting milk within India. In India the percentage of fruit and vegetables being transported through cold chain is negligible compared to the Thailand where the figure ranges between 30% to 40% of all fruit and vegetables transported.

The Indian government now realises that the development of an integrated cold chain network and warehouse capacity is integral to developing India’s food processing industry. In the government budget of 2011-12, a series of measures were announced to reduce the production and supply chain bottlenecks in the agricultural sector in an attempt to modernise the industry and attract foreign investment.

For more information on the Indian Cold Chain market, see the latest research: Indian Cold Chain Market

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