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Update : June 26 , 2023

Cold chain storage refers to a temperature-controlled supply chain that ensures the maintenance of a certain temperature range for products that are sensitive to temperature variations. In India, the cold chain industry has been growing significantly over the past few years, due to the increasing demand for fresh and temperature-sensitive products, such as fruits, vegetables, dairy, and pharmaceuticals. In this blog, we will delve into the various aspects of cold chain storage in India, including its importance, challenges, and the government's efforts to improve the industry.

Importance of Cold Chain Storage in India:

The demand for fresh and temperature-sensitive products has been increasing in India due to the country's growing population and rising income levels. However, India's hot and humid climate and inadequate infrastructure pose significant challenges to the storage and transportation of these products. Cold chain storage helps to preserve the quality and shelf life of temperature-sensitive products by maintaining a constant temperature range throughout the supply chain.

It ensures that the products remain fresh and safe for consumption, while also reducing food waste and losses. In the pharmaceutical industry, cold chain storage is essential for maintaining the efficacy and stability of temperature-sensitive drugs. It ensures that the drugs are delivered in their optimal condition and remain effective until they reach the end consumer.

Cold chain storage also plays a crucial role in supporting the growth of small and medium enterprises (SMEs) in the agriculture and food processing sectors. It enables these enterprises to access distant markets and expand their customer base, leading to increased income and employment opportunities.

Challenges in Cold Chain Storage in India

Despite its importance, the cold chain industry in India faces several challenges that limit its growth and efficiency. Some of the key challenges include:

Infrastructure

India lacks adequate cold storage infrastructure, with a majority of the existing facilities being old and inadequate. The lack of modern and efficient cold storage facilities leads to high energy consumption and losses due to spoilage and wastage.

Transportation

The lack of refrigerated transportation options in India makes it challenging to maintain the required temperature range during transit. The absence of a coordinated and integrated cold chain system also leads to inefficiencies and losses.

Funding

The high capital investment required to set up and maintain cold chain infrastructure is a major challenge for small and medium enterprises. As a result, many of these enterprises are unable to afford the necessary infrastructure, leading to a lack of access to cold chain storage for many producers.

Regulatory framework

The absence of a comprehensive regulatory framework for the cold chain industry in India limits the growth and development of the sector. The lack of standards and guidelines for cold storage facilities and transportation leads to a lack of quality and efficiency in the industry.

Government Initiatives to Address Challenges of Cold Chain Storage in India

The government of India has recognized the importance of cold chain storage and has taken various initiatives to improve the industry. Some of the key initiatives include:

  • National Centre for Cold-chain Development (NCCD): The NCCD is a government-funded organization that aims to promote the development of the cold chain industry in India. It provides technical assistance and support to cold chain stakeholders, including farmers, processors, and traders.
  • Cold Chain, Value Addition and Preservation Infrastructure (CCVAPI): The CCVAPI is a central sector scheme that aims to create a network of cold chain, value addition, and preservation infrastructure in the country. The scheme provides financial assistance to eligible projects for the construction of cold storage facilities, refrigerated transport, and other related infrastructure.
  • Scheme for Augmentation of Cold Chain, Value Addition and Preservation Infrastructure (CACP): The CACP is a central sector scheme that aims to create a network of cold chain, value addition, and preservation infrastructure in the country. The scheme provides financial assistance to eligible projects for the construction of cold storage facilities, refrigerated transport, and other related infrastructure. The CACP aims to increase the availability of cold storage facilities, reduce the wastage of perishable products, and increase the income of farmers and other stakeholders in the agriculture and food processing sectors. It also aims to improve the quality and safety of temperature-sensitive products, such as fruits, vegetables, dairy, and pharmaceuticals. The CACP has been implemented in various states across India and has contributed to the development of the cold chain industry in the country.
  • Private Sector Participation: The government has also encouraged the participation of the private sector in the cold chain industry. Private players have invested in the development of cold storage facilities and transportation, leading to the growth of the sector.
  • Food Safety and Standards Authority of India (FSSAI): The FSSAI has laid down guidelines and standards for cold chain storage and transportation in the food industry. These guidelines aim to ensure the safety and quality of food products and help reduce losses due to spoilage.
  • National Agricultural Market (e-NAM): The e-NAM is an online platform that connects farmers with buyers and helps them sell their produce directly. The platform also provides cold storage facilities to farmers, enabling them to store their produce until they find a buyer.
  • National Mission on Food Processing (NMFP): The NMFP is a government scheme that aims to promote the growth of the food processing industry in India. It provides financial assistance to projects that involve the development of cold chain infrastructure and value addition.

Role Of Logistics in Ensuring Robust Cold Chain Storage Facilities

Logistics companies play a critical role in ensuring robust cold chain storage facilities in India in several ways:

Role of logistics

Transportation

They provide refrigerated transportation services that help maintain the required temperature range during transit. They use specialized vehicles equipped with refrigeration units to transport temperature-sensitive products, such as fruits, vegetables, dairy, and pharmaceuticals.

Warehousing

They provide cold storage facilities for the temporary storage of temperature-sensitive products. These facilities are equipped with refrigeration units that maintain the required temperature range and help preserve the quality and shelf life of the products.

Coordination

Logistics companies coordinate the movement of temperature-sensitive products from one location to another, ensuring that the products are stored and transported under optimal conditions. They also work with cold storage facilities and transportation providers to ensure a smooth and efficient supply chain.

Quality control

They play a critical role in ensuring the quality and safety of temperature-sensitive products. They follow strict quality control measures, such as regular temperature checks and documentation, to ensure that the products are delivered in their optimal condition.

Compliance

Logistics companies operating in the cold chain industry in India need to adhere to the regulations and guidelines set by the government and the industry. They ensure compliance with these regulations to maintain the integrity and safety of the cold chain supply chain.

In addition to the roles mentioned above, logistics companies also play a critical role in the development and expansion of the cold chain industry in India. Some of the ways in which they contribute to the industry's growth include:

Investment in infrastructure

Logistics companies invest in the development of modern and efficient cold storage facilities and refrigerated transportation. These investments help to improve the quality and efficiency of the cold chain supply chain and support the growth of small and medium enterprises in the agriculture and food processing sectors.

Partnerships and collaborations

They often enter into partnerships and collaborations with cold storage facilities, transportation providers, and other stakeholders in the cold chain industry. These partnerships help to improve the coordination and integration of the supply chain and facilitate the expansion of the industry.

Innovation and technology

They contribute to the growth of the cold chain industry through the adoption of innovative technologies and processes. For example, they may use GPS tracking, temperature monitoring devices, and other technologies to improve the efficiency and quality of the supply chain.

Training and capacity building

Logistics companies also invest in training and capacity building for their employees and other stakeholders in the cold chain industry. This helps to improve the knowledge and skills of the industry's workforce, leading to increased efficiency and competitiveness.

Our Cold Chain Services

Cold chain storage plays a crucial role in the preservation and distribution of temperature-sensitive products in India. Various initiatives have been taken to improve the infrastructure and regulatory framework to continue these efforts and encourage the participation of the private sector. Know more

Moreover, with our robust cold chain storage logistics services, businesses can ensure:

  • Efficient Supply Chain:

    We have the necessary infrastructure, including modern and efficient cold storage facilities and refrigerated transportation, to ensure that temperature-sensitive products are stored and transported under optimal conditions. This helps to reduce losses due to spoilage and ensure the freshness and quality of the products

  • Cost-effectiveness

    We offer competitive rates for our air freight services and have access to a wide range of carriers and aircraft to ensure the most cost-effective solution for your needs.

  • Quality and Safety

    We follow strict quality control measures and adhere to industry regulations to ensure the safety and quality of temperature-sensitive products. We also have trained and experienced staff who are knowledgeable about handling and storing these products.

  • Coordination and Integration

    We coordinate the movement of temperature-sensitive products from one location to another, ensuring that the products are stored and transported under optimal conditions.