The Emerson food wastage and cold storage report reveals the truth about Indian Cold Chain

India, the world's second largest producer of fruits and vegetables, is throwing away fresh produce worth Rs 13,300 crore every year because of the country's lack of adequate cold storage facilities and refrigerated transport, according to data compiled in a new report by Emerson Climate Technologies India, a business of the US-based manufacturing and technology company Emerson.

In response to India's cold chain infrastructure needs, Emerson Climate Technologies has also established its first Cold Chain and Distribution Centre in Chakan to increase awareness of technology solutions and services available to the industry.

The Emerson food wastage and cold storage report cites studies that have pegged the value of fruits, vegetables and grains wastage in India at Rs 44,000 crore annually. Fruits and vegetables account for the largest portion of that wastage. Eighteen per cent of India's fruit and vegetable production - valued at Rs 13,300 crore - is wasted annually, according to data from the Central Institute of Post-Harvest Engineering and Technology (CIPHET). Two of the biggest contributors to food losses are the lack of refrigerated transport and the lack of high quality cold storage facilities for food manufacturers and food sellers.

Without improvements to its "cold chain" infrastructure, from farm harvest to table, India's food problems will remain vast and are likely to grow, warns the Emerson report.

Currently, India has 6,300 cold storage facilities unevenly spread across the country, with an installed capacity of 30.11 million metric tonnes. Studies have shown this is half the amount of cold storage facilities that India actually needs. Cold storage capacity for all food products in the country should be more than 61 million metric tonnes. In order to reach that target, the report says an investment of more than Rs 55,000 crore is needed by 2015-2016 just to keep up with growing fruit and vegetable production levels.

"While progress is being made, this report confirms the cold storage situation is more acute than many realize. Emerson is seeing this in the marketplace and we commissioned this report to keep the spotlight on the issue," said Pradipta Sen, president of Emerson's India, Middle East and Africa region. "India has more than 1.2 billion people. Better protection of the integrity of our fruits and vegetables from harvest to table should be of paramount importance. Part of the solution is more effective, more efficient and well-thought-out cold storage infrastructure in India."

While financial investment in cold storage facilities and refrigerated transport is vital, the Emerson Climate Technologies report also highlights additional challenges faced by India's cold storage industry today. The three biggest challenges are high lifecycle costs for a cold storage facility that typically needs land and buildings to hold 6,000 metric tonnes of food; uneven distribution of cold storage facilities with 60 per cent of existing facilities located near the point of production in just four states and too few closer to distribution points in the other 24 states; and low awareness of best storage practices amongst industry players. 

 Source: The Economic Times Nov 28, 2013