India Agricultural Cold Storage Market 2022 Industry Outlook, Present

Scenario of Manufacturers, Share, Size, Opportunities and Forecast to

2026.

 The production levels in the Indian agricultural sector have been growing
steadily over the years. This production level has not been met
correspondingly in terms of storage for food, which outlines an existing
whitespace in the Indian Agricultural Cold Storage Industry.
 Despite being an agrarian state, India suffers from huge food losses
annually ranging from INR 90,000-100,000 due to poor post-harvest
management and lack of proper cold storage infrastructure.
 The government has been taking steps to promote development in the
agricultural cold storage sector by introducing a plethora of schemes and
providing grant in aid, along with special preference to the states lagging
behind in terms of infrastructure.

It is no wonder that India is a key contributor to agriculture sector worldwide

with 308.6 Mn Tonnes food-grain production during FY’21 (ranks second after
China), 198.4 Mn Tonnes of Milk in FY’20 (world’s largest milk producer) and
dominant producer of horticulture produce as well. After all, India has an arable
land of ~160 Mn hectares and 58% of population is dependent on agriculture for
its livelihood.

However, the situation on per capita consumption of food grains, fruits,

vegetables and milk is not good. As per the Global Hunger Index (GHI) in
2020, India ranked 94 out of 107 countries and malnutrition was found to be the
leading risk factor for death of children <5 years age. Further, prevalence of
Anaemia was noted to be among 53% women of all reproductive age and 54%
among girls aged 15-19 years.

India Agricultural Cold Storage Market Future Outlook

Upon a deep dive research and data analysis, analysts at Ken Research were
able to find that poor post-harvest management policies of agriculture,
especially Horticulture, is a key contributor to this grim situation. An estimate
shows that India incurs an annual loss of INR 90,000-100,000 crores every year
in wastage of agricultural and horticulture produce owing to poor post-harvest
management policies. Further, 35-50% of such economic loss happens due to
lack of required cold chain infrastructure at farm-gate and hub level.
Before ready for final consumption, produce of fruits and vegetables produce is
harvested, pre-cooled, sorted, graded into different categories and stored in cold
storage rooms for specified duration. Cold Storage facilities do not allow
bacteria formation, retains humidity and moisture; thereby increasing the shelf
life of produce while retaining the nutritious value. Although the cumulative
cold storage capacity has augmented in the past decade from 23.4 Mn MT in
2010 to 37.4 Mn MT in 2020 (surpassing the requirement of 35 Mn MT in
2015), a further deep dive tells us the disproportionate growth and inefficiencies
at the grass root level. More than 75% of the cold storage capacity is
concentrated among the top 5 states (UP, West Bengal, Gujarat, Punjab and
Andhra Pradesh) while 73% of total capacity is suitable for storing single
commodity only. 68% of cold storage capacity across India is suitable for
storing Potato only (foregoing economic benefits of storing milk, livestock and
other high value crops) and 92% of such units are being operated by private
players, characterizing an unorganized and fragmented industry unwilling to
undertake capacity expansion or invest in modernization of facilities.

With high growth expected in food and diary processing industries, rising
urbanization, shift in cropping patterns from agriculture to horticulture, surging
demand for nutraceutical products, maturing ecosystem with new age Agri-tech
startups and increase interest from PE/VC fraternity, analysts at Ken Research
believe that agricultural cold chain industry is poised for strong growth with an
estimated capacity addition of 6.5 Mn MT by 2025.

Opportunities in Cold Chain Sector in India

 Fastest growing economy in the world
 Largest producer of several agri commodities
 Second largest Consumer market
 Significant investments in world class ports, logistics & supply chain
infrastructure Advantage India
 Investor friendly incentives
 Highly skilled manpower pool
 Proactive Government policies.

Why India for Cold Chain?

 India produces more than 400 million MT of perishables every year

(Horticultural produce+ dairy+ meat+ poultry + fish).
 The wastage levels in perishables in India are significantly high- 4.6-
15.9% in fruits, 5.2% in inland fish, 10.5% in marine fish, 2.7% in meat
and 6.7% in poultry.
 Estimated annual value of losses of agri produce currently stands at
92,651 crores. Annual value of losses in fruits and vegetables, meat, fish
and milk is estimated at ` 50,473 crores.
 Adequate and efficient cold chain infrastructure from farm gate to
consumers is required to arrest the high losses in supply chain of
perishables.
 Baseline survey conducted by National Horticulture Board (in Dec. 2014)
estimates the total cold storage capacity in India at 31.8 million MT.
 Overall average capacity utilization in cold storage is 75%- showing
sustainability of the cold chain business in India.
Advantage India
 Fastest growing economy in the world
 Largest producer of several agri-commodities
 Second largest Consumer market
 Significant investments in world class ports, logistics & supply chain
infrastructure
 Investor friendly incentives
 Highly skilled manpower pool
 Proactive Government policies
Schemes of Ministry of Food Processing Industries
Mega Food Park Scheme by Ministry of Food Processing Industries.
Government of India through MoFPI is putting up 42 mega food parks (35
approved). The parks have around 1,200 developed plots (of approximately 1
acre each) with basic infrastructure enabled, that entrepreneurs can lease for the
setting up of food processing and ancillary units.
State Specific Incentives Being Offered by Different States.