The enormous loss caused by the recent transporters’ strike has not only thrown the routine daily life of the common man out of gear but has also paralysed the movement of agricultural products and perishable commodities. It has also adversely hit the driver community at large.
According to informed sources, the colossal agri wastages estimated at Rs. 92,000 crores have deprived farmers of the potentially large source of income. In fact, the development of an extensive climate control supply chain is an essential prerequisite for effectively addressing the problem of wastage of perishable commodities. The high cost of energy-intensive cold chains has severely constrained the widespread deployment of such infrastructure. The larger markets are unable to bear the high cost of such value addition, recognizing the crucial need to unlock the lost value hidden in agri wastage.
Many companies are actively pursuing the long-term strategy to build the cost-effective cold chain that contributes to rising rural incomes and prove a new growth driver to a company’s agri business.
An official study reveals that out of the 3,443 cold storage units in India, 2,975 are in the private sector, 303 are in the co-operative sector and the rest are in the public sector. Vast produce in India rots due to lack of cold storage, resulting in higher prices.
The Union Government is thus promoting cold storage warehouse investments, and recently the Cabinet also approved an outlay of Rs. 6,000 crores for mega food processing projects. The country’s current requirement of 3.5 crore tonnes capacity cold storage facilities keeps expanding.
Nearly one-third of India’s horticultural produce, especially fruits and vegetables, are wasted mainly on account of poor cold storage and other facilities. Wastage of fruits and vegetables due to poor post-harvest management and lack of cold chain facilities is estimated to cost to Rs. 500 billion annually. The country also experiences wide fluctuations in prices of horticultural produce, particularly potatoes and onions. The cold storage chain will help boost exports of agricultural and allied produce, marine produce, etc.