Why India Still Struggles with Cold Storage Infrastructure
Introduction: The Need for Cold Storage in Agriculture
India is the second-largest producer of fruits and vegetables in the world. Despite this, nearly 30%–40% of agricultural produce goes to waste every year due to lack of proper storage facilities, especially cold storage. The absence of a strong cold chain infrastructure—from farm to fork—has long been a bottleneck in India’s agricultural economy. While technological progress has revolutionized other sectors, the cold storage network remains fragmented, underdeveloped, and largely inaccessible to small farmers.
What Is Cold Storage and Why Is It Important?
Cold storage refers to temperature-controlled facilities used to store perishable items like fruits, vegetables, dairy, meat, and seafood. These storage units help extend shelf life, maintain quality, and reduce spoilage. A well-connected cold chain system not only reduces post-harvest losses but also improves farmers’ incomes by allowing them to sell produce when market prices are favorable, rather than immediately after harvest.
In India, however, this system is either missing or insufficient in large parts of the country, especially in rural and semi-rural regions.
Key Challenges in India’s Cold Storage Sector
1. Lack of Rural Accessibility
Most cold storage units are concentrated near urban centers or food processing hubs. Remote rural areas, where perishable crops are grown, lack access to these facilities. As a result, farmers are forced to sell quickly at low prices or risk losing their produce entirely.
2. High Cost of Infrastructure and Power
Setting up and running cold storage requires significant investment and a reliable power supply. In many parts of India, electricity is either unavailable or unaffordable. Diesel generators, often used as backup, raise operating costs and increase environmental impact.
3. Fragmented Supply Chain
India’s agricultural supply chain lacks coordination. Even where cold storage exists, the absence of refrigerated transport (cold trucks) breaks the cold chain. Produce is often exposed to ambient temperatures during transport, reducing its quality and shelf life.
4. Limited Private Sector Participation
Private companies often hesitate to invest in cold storage due to high capital costs, policy uncertainties, and low returns. The sector remains dominated by unorganized players with outdated technologies.
5. Poor Policy Implementation
Although several schemes like the Pradhan Mantri Kisan Sampada Yojana and Mega Food Park projects aim to support cold chain development, ground-level implementation is slow. Delays in subsidies, red tape, and lack of awareness among farmers and entrepreneurs further weaken the system.
Impact on Farmers and Consumers
The lack of cold storage infrastructure has a direct impact on both producers and consumers. Farmers suffer due to distress sales and crop wastage, while consumers face price fluctuations and reduced quality of food. For example, during bumper harvest seasons, the market is flooded with produce like tomatoes, onions, and potatoes. Without storage options, prices crash and farmers incur heavy losses. Months later, the same items may be sold at high prices due to supply shortages.
The Way Forward
To overcome these challenges, a multi-pronged approach is needed:
Decentralized Cold Storage Units
Small, solar-powered cold rooms can be set up in villages to serve local farmers. Startups like Ecozen and Tan90 are already working on such technologies.
Public-Private Partnerships (PPP)
The government must create an investment-friendly environment to attract private players into cold chain logistics. Tax breaks, easier loans, and faster clearances can help.
Upgrading Transport Infrastructure
Developing a reliable network of refrigerated trucks and railcars is critical to completing the cold chain.
Awareness and Training
Farmers must be educated about the benefits of cold storage and how to utilize it effectively. Farmer Producer Organizations (FPOs) can play a key role in this.
India’s struggle with cold storage infrastructure is not just a logistical issue—it is a major economic and social challenge. Strengthening this vital link in the agricultural chain can reduce waste, stabilize prices, and improve farmer incomes. With smart planning, sustainable technologies, and targeted investments, India can unlock the full potential of its agricultural bounty.
