Cold Chain System in India

More than half of the Indian population still relies on agriculture for employment and livelihood * India is the second-largest producer of food in the world * Agriculture accounts for about 10 per cent of the total export earnings * The agriculture sector contributed 17. 2% to the Indian GDP (2011) * The total work force as of 2009 is 52% of total work population * India stand 1st place for the production of Milk, Pulses, Jute * 2nd place for the production Rice, Wheat, Sugarcane (Brazil is first) Groundnut, Vegetables, Fruits, Cotton Production. 10th place in agricultural and food export. MEANING OF COLD CHAIN A cold chain is a temperature controlled supply chain which is used to extend and ensure the shelf life of products such as fresh agricultural produce, seafood, frozen food, chemicals and pharmaceutical drugs. The cold chain consists of two logistic systems: 1. Surface storage 2. Refrigerated Transportation 1. Surface storage: Refrigerated warehouses, for temperature sensitive products. 2. Refrigerated Transportation: Reefer trucks, contain ships and trains for transport of temperature sensitive products.Why India need cold chain 1. The Indian food market is estimated at over $182 billions. 2. India is the second largest producer of fruits and vegetables in the world. 3. annual vegetable production is around 125. 89 million tones 4. annual fruit production is around 63. 5 million tones. 5. nearly 40 percent gets wasted. 6. India is the largest producer of milk in the world, producing close to 105 million metric tons, and accounting for nearly 17 percent of global production. . More than 10 percent of annual milk production in the country is lost due to inadequate storage facilities. 8. Produces 6. 5 million tons of meat 9. 6. 1 million tons of fish. 10. The pharmaceuticals industry in India is the world’s third largest in terms of volume and stands 14th in terms of value. HOW COLD CHAIN WORKS 1. Cold chain system starts from farm to market 2. Farm: ones the farmer cut his agriculture product are put into temporary containers, 3.Packing house: with the help of temporary containers it will be shipped to packing house hear the items are properly packed so that it is free from damages 4. Refrigerated Transportation: with the help of this transportation packed items are shipped from packing house to cold store centers. 5. Cold store centers: it is a refrigerated house used for storing easily perishable product . 6. Market: later again with the help of refrigerated transportation packed items are shipped from cold store centers to ultimate market for sales. COLD CHAIN SCENARIO IN INDIA. According to government estimates, India has 5,400 cold storage facilities, with a combined capacity of 23. 66 million metric tons that can store less than 11% of what is produced. The majority of cold storage facilities are utilized for a single commodity, such as potatoes. * When compared with World standards in respect of Cargo movement through cold chain India is still far behind. The percentage of movement of F&V through Cold Chain in US is to the tune of around 80 – 85% whereas the level in Thailand is 30 – 40 % as compared to negligible in India. Most of these facilities are located in the states of Uttar Pradesh, Uttaranchal, Punjab, Maharashtra, and West Bengal. The following table shows distribution of facilities by commodity: Commodity| Capacity (million tons)| Potato| 9. 282| Multi-purpose| 0. 763| Fruits & Vegetables| 0. 107| Meat| 0. 009| Fish| 0. 073| Milk & Dairy Products| 0. 068| Others| 0. 036| Though there are more than 25000 vehicles and 250 operators involved in refrigerated transport but 80% of this capacity is dedicated for milk only MAJOR DEVELOPMENTS IN INDIAN COLD CHAIN SECTOR In Financial year 2009 – 10, Ministry of Food Processing Industries has sanctioned 10 cold chain projects under the “Scheme for Cold Chain, Value Addition and Preservation Infrastructure” * In last two years a number of private entrepreneurs have invested in cold chain infrastructure * The task of achieving the set out goals of movement of 15% perishable commodities through cold chain in next 3 years * An important development is the movement of refrigerated wagons through Railway network under Public Private Partnership modelChallenges In The Sector 1. Rising Real Estate Cost 2. Location for Cold Storage 3. Lack of Proper Infrastructure 4. High Energy Cost 5. Uneven Distribution of Capacity IMPROVING THE COLD CHAIN * The government of India introduced tax benefits for companies investing in cold chain facilities as part of the budget 2009-2010 * Investment from private equity funds in various cold chain projects. The involvement of railways and airports for transportation of cold chain products. The government of India has taken a decision to set up the National Centre for Cold Chain Development (NCCD) to address the issue relating to gaps in cold chain infrastructure in India * Rs 5,000 crore to NABARD to finance construction for warehousing. Window to Panchayats to finance construction of godowns and cold storing centers (2013 budget)NATIONAL CENTRE FOR COLD-CHAIN DEVELOPMENT Abbreviation| NCCD| Formation| February 9, 2012| Type| Autonomous Government Body| Headquarters| 645, Nirman Bhawan| Location| New Delhi, India| Region served| India| Membership| Government & Private| Director| Shailendra Kumar, IAS| Chief Advisor| Capt. Pawanexh Kohli| Main organ| Technical Committees| Remarks| National Body to serve as a nodal agency to promote and develop cold-chain in India|

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