FORWARD AND BACKWARD LINKAGE

The cold chain infrastructure is a crucial part of agriculture and allied sectors.
The produce, particularly fresh produce like fruits and vegetables, is perishable
and requires a temperature-controlled supply chain involving efficient storage,
transportation, and distribution to increase the shelf life of the food grains,
fruits, vegetables, livestock products, etc.
Currently, the agriculture and allied sectors contribute 18.3% of the GDP and
employ 45.5% of the population. As per the estimates by the Market Research
Firm IMARC, the Indian cold chain market size grew to INR 1,81,490 Cr in
2022, and it is expected that it will reach INR 3,79,870 Cr by 2028, exhibiting a
growth rate (CAGR) of 12.3% during 2023-2028.
Backward Linkage
 Producers / Farmers are the first one to get benefited from Cold Store as it
reduces the loss due to wastage and increases shelf life, which in turn will
increase their income.
 Manufacturers / Traders of Gunny Bag are the second one to get
benefitted as packing is inevitable. Jute Bag or nylon Bag of 25 Kg. , 40
Kg, 50 Kg. and 60 Kg. are always available in the market. Among these
50 Kg. bags are mostly used in case of Potato.
 Local transporters are the third direct beneficiary as they are required at
the time of both loading and unloading. Field to Store and then Store to
market, Railway Station or Bus depot local transportation is the only way.
 Scope of employment in cold store are limited but still something is
always better than nothing.
Forward Linkage
 Food Security: Improving the cold chains and post-harvest
infrastructure will significantly reduce waste, create a surplus for exports,
and enhance the income of farmers. This will also go a long way in
achieving the Sustainable Development Goal of zero hunger, which
aims to end all forms of hunger and malnutrition and double the
agricultural productivity and incomes of small-scale food producers. This
requires ensuring food security by increasing production and eliminating
wastage of food and livestock in the entire supply chain.
 Export of Potatoes: Indian potatoes have immense export potential. It
has a price advantage over its European counterpart because of lower
production cost and due to short crop duration and cheap labour. The king
of vegetables, Indian potato has the quality for its savoury taste with
exuberant varieties. The country is also blessed with natural abode of
some of the best varieties of potatoes in the world. Besides, it has the
potential to emerge as one of the largest suppliers of seed potato. The
potatoes from India are mainly exported to Nepal, Sri Lanka, Oman,
Mauritius, Indonesia, Malaysia etc. The annual quantities and values of
potatoes exported from the country are given here.

Year Quantity Value (Rs. in

(000’ tonnes) crores)

2011-12 193.09 133.45

2012-13 163.19 148.72
2013-14 220.93 251.14
2014-15 373.93 835.06
2015-16 279.65 361.55
2016-17 396.34 661.48
2017-18 395.75 411.82
2018-19 367.39 440.78
2019-20 427.08 580.09
2020-21 323.69 549.46
Source: APEDA

 Entrepreneurs: Priority Sector Lending norms of the Reserve Bank of

India cover loans for the construction of storage facilities (warehouse,
market yards, god owns, and silos), including cold storage units/cold
storage chains designed to store agricultural produce/products,
irrespective of their location.
A special fund of INR 2000 Cr has been set up in the National Bank for
Agriculture and Rural Development (NABARD) to provide credit at
affordable rates to boost the food processing sector. Under this fund, the
loan is extended for setting up, modernization, expansion of food
processing units, and development of infrastructure in designated food
parks.