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A Need To Meet The Rising Demand Of Cold Chain Storage

Recently, the cold chain industry in India had geared itself up to meet the demands of the Covid-19 vaccine distribution as the government works to establish an effective logistical network to ensure smooth delivery to more than 1.3 billion people

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The advanced technology in cold chain storage is making its space in India. Cold chain storage which is widely used in different industries such as food and beverages, healthcare and pharma, hospitality, etc. is witnessing a huge surge in demand in the Indian market. Along with these industries, the agriculture sector is also observing similar demand. A few years back, Indian agriculture entered the third revolution: the ‘cool’ revolution to build an efficient market through a sustainable cold chain. Also, the Government of India recently approved cold chain projects. As a result, with continued government assistance, new players have entered India, necessitating the creation of a platform where the latest know-how, equipment, and infrastructural facilities can be seen.

Recently, the cold chain industry in India had geared itself up to meet the demands of the Covid-19 vaccine distribution as the government works to establish an effective logistical network to ensure smooth delivery to more than 1.3 billion people. According to the JLL data, India's cold chain sector is expected to grow at over 20 percent CAGR by 2025. In India, this segment has observed limited infrastructure investments due to a fragmented distribution approach, low compliance, and a lack of awareness in handling perishables. There is an urgent requirement to create the right awareness and meet the changing consumption patterns of the consumers. 

With efficient and effective cold chain storage, the transportation and warehousing of temperature-sensitive products from the point of origin to the point of consumption, increase shelf life and prevents spoilage. Various industry players are stepping in to form an aggressive and smooth cold chain storage system that can comply with the requirements.

Ways to meet the need of a cold chains demand in India:

1. An organized regulatory framework is needed to reduce or minimize the roadblocks and allow smoother business within the cold chain sector 

2.There's a requirement for a business model for the cold chain industry in India which will be applied at the local level which can make sure the involvement of the farmers. 

3. Industry should accompany cost-effective solutions for temperature-controlled storage spaces and transportation because the initial investment required within the cold chain sector is large. 

4. Technologies such as Artificial Intelligence (AI) and Internet of Things (IoT) is paving their way in cold chain storage optimizing the products effectively and helping in a reduction in wastage 

5. Temperature monitoring devices are being developed which will help in detecting temperature, humidity, or pressure

6. Alongside, having a strong cold chain infrastructure with effective policy support and implementation strategy can go an extended way in unprecedented times 

Overall, the cold chain capacity in India will still grow aggressively to succeed in 40.7 million metric tonnes of total perishables by 2023, rising 8.2% from 2020, consistent with a Colliers report. With an uneven spread across the country, India has over 6,500 cold storage facilities with an installed capacity of 30 million tonnes. The segment is predicted to become more organized and attract more institutional funds. 

It is conjectured that a lot of large domestic and foreign companies are going to be joining the league in the coming years to cater to the growing demand for cold chain logistics. This may also inject required investment and the latest technologies within the Indian cold chain industry in near future. Additionally, the cold chain industry in India is expected to witness some major mergers and acquisitions by large companies to determine their base and to expand their reach. The staggering growth in the pharma sector, however, will also further drive the demand for strong cold supply chain infrastructure.


Disclaimer: The views expressed in the article above are those of the authors' and do not necessarily represent or reflect the views of this publishing house. Unless otherwise noted, the author is writing in his/her personal capacity. They are not intended and should not be thought to represent official ideas, attitudes, or policies of any agency or institution.


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Sanjay Jain

The author is the Director at Elanpro.

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