Our Cold Supply Chains

Improving the cold chains and post-harvest infrastructure will significantly reduce waste, create a surplus for exports, and enhance the income of farmers. This will also go a long way in achieving the Sustainable Development Goal of zero hunger, which aims to end all forms of hunger and malnutrition and double the agricultural productivity and incomes of small-scale food producers.

India stands as a burgeoning production hub, witnessing exponential growth across diverse sectors. As a leading exporter, the country boasts of a formidable portfolio encompassing machine equipment, petroleum products, jewellery, iron, and steel, alongside a prominent presence in pharmaceuticals, chemicals, and vegetables. These commodities are exported across the globe, to markets in the Middle East, Europe, Africa, and the Americas.

A common thread binds these diverse exports together, i.e., their reliance on cold chain logistics to maintain optimal quality and minimize losses from spoilage. Given the critical role of goods like pharmaceuticals, sensitive chemicals, dairy, and meat products, and perishable vegetables in driving India’s economic engine, stringent temperature control emerges as a linchpin in ensuring seamless supply chain operations.

Nevertheless, Indian cold chain logistics is still in its infancy and grapples with a significant challenge – fragmentation. The logistics landscape still faces disruptions stemming from organizational inefficiencies, a dearth of specialized knowledge, and limited visibility into cargo movements. This fragmentation poses a formidable hurdle in the path toward achieving robust and efficient cold chain logistics systems, essential for sustaining India’s position as a global export powerhouse.

India’s food processing industry accounts for 32% of the total food market, making it one of the largest industries in the country. The Government of India (GoI) has recognized the food processing sector as a high-priority industry; it has been promoting it with various forms of fiscal relief and incentives, and is encouraging investments in the sector with a strong focus on supply chain infrastructure.

Growth in the food processing industry is also being driven by growth in the formal food retail sector, as well as by increasing urbanisation. The production of processed and frozen FFV, dairy, meat and fish products requires a temperature-controlled supply chain from the point of origin to the last point of the distribution channel. The growing penetration of formalised food retail outlets, where such products are sold, is therefore boosting the development of efficient cold supply chains and cold chain infrastructure. Since each type of perishable produce has specific storage needs, it is vital to understand these differences and develop the right CCI fit for every product.

In some cases, inappropriate cold chain use can actually increase food losses. Freezing, for example, is necessary to transport fish and seafood over long distances, but it is inappropriate for certain fruits and vegetables. Failure to understand a product’s needs results in reduced shelf life, deterioration in product quality, increased losses and/or unnecessarily high energy consumption. GoI has also recognized the importance of an integrated cold chain system to meeting its own goals.

In recent years, the government has established a number of incentive schemes, subsidies, tax breaks and investment funds for the promotion of CCI, with the intention of boosting exports, stimulating the food processing industry and providing higher prices to farmers. Still, further work needs to be done to decentralize CCI and bring it closer to the farmgate.

Many smallholder farmers are still unaware of proper post-harvest handling procedures, and cannot access or afford the CCI they need to prevent losses. Business models like pay-as-you-store would help drive CCI uptake at the first mile level, as would farmer education and the development of more off-grid cold chain solutions that could reduce the risk of power cuts in areas with poor grid connectivity. Conventional CCI technology relies on ozone-depleting refrigerants, and the environmental impact of these chemicals is substantial.

There are considerable opportunities, however, to design CCI with cooling technologies that use climate-friendly refrigerants and maximise the efficient use of low-carbon energy. Cold chain development efforts should prioritise sustainable and energy-efficient technologies, which would lead to both lower operational costs and a reduced environmental footprint.

As the world’s second largest food producer, India should be able to feed its population; instead, 190 million Indians are malnourished. Proper food preservation techniques could help change this by ensuring that a higher proportion of domestically produced food reaches the Indian population. Reducing food losses would also boost the incomes of smallholder farmers and others who earn their livelihoods at the first mile segment of the value chain, creating jobs and improving food security for rural populations.

But solving this problem requires more than the proper technology; a system-wide approach combining education, financing and policy changes is needed for the potential of the cold chain market to be fully realized, and for Indians to finally revolutionise their agricultural sector.

Emerging trends in Indian cold supply chain

Focus shifting to end to end cold chain and not just storage

• Modernization of existing stores
• Better and more sophisticated machinery and equipment
• Setting up of multipurpose cold storages rather than conventional single commodity storage
• Modern pack houses
• Ripening Facilities
• Farm-gate or source point Cold storage
• Energy Efficient technology and new storage technology
• Integrated cargo complexes are being planned at major airports in India that will be equipped to handle all kinds of goods, including perishables

Development of cold chain logistics in India

Improving cold chain logistics in India requires a comprehensive approach addressing various aspects including infrastructure, technology adoption, regulatory reforms, and skill development. Here are some strategies:

• Infrastructure development: Logistics companies in India need to invest in building standardized cold storage facilities across different regions to meet the demands of local markets. There needs to be an impetus for private and public partnerships to expand and modernize the cold chain infrastructure and establish cold chain facilities in underserved areas.
• Technology integration: Innovation is the key to a seamless cold chain that is less susceptible to disruptions. Logistics service providers can adopt cold chain management software for real-time monitoring of temperature, humidity, and location of goods. IoT (Internet of Things) devices and sensors to ensure proper handling and tracking of perishable goods throughout the supply chain can ensure less wastage due to damage and improve time to market. Block chain technologies allow cold chain customers access to transparent and secure record-keeping of cold chain transactions and help them keep track of their inventory.
• Energy efficiency and renewable energy: India’s climate provides ample opportunity for the use of renewable energy like solar power and wind power to run cold chain warehouses and mobile storage facilities. Renewable energy sources mitigate the impact of power shortages on cold chain operations. Additionally, switching to sustainable transportation like electric trucks can also reduce long-term costs as well as carbon emissions.
• Skill development and training: Specialized training programs for cold chain professionals can help enhance their technical expertise in operating and maintaining refrigeration equipment. Logistics companies can partner with educational institutions and industry associations to develop curriculum and certification programs focused on cold chain logistics.
• Regulatory reforms: The Government of India has taken measures to improve cold chain infrastructure, from providing various agri-schemes to set up integrated and complete cold chain facilities, to encourage private participation through subsidies, loans, and grants. Regulatory processes also need to be streamlined to reduce bureaucratic delays and corruption in obtaining permits and approvals for cold chain operations. Regulatory bodies need to adopt stringent quality standards and regular inspections to ensure compliance with food safety regulations and prevent the circulation of substandard products in the cold chain.
• Collaborative initiatives: By facilitating collaboration among stakeholders including government agencies, logistics companies, cold chain operators, and technology providers, businesses can address common cold chain challenges and foster innovation. Industry alliances can support the exchange of best practices, data, and resources for optimising cold chain logistics operations nationwide.
• Integrated cold chain: A successful cold chain is reliant on seamless movement of cargo, without disruption to the temperature of the goods. This means having a stable environment for the cargo from the time it is packaged, through its transportation and warehousing, right till it reaches its end customer. With a single logistics partner to manage the cold chain from end to end, businesses can ensure the quality of goods by eliminating redundancies and inefficiencies, streamlining processes, and reducing lead times.

By implementing these strategies in a coordinated manner, India can significantly enhance the efficiency, reliability, and safety of its cold chain logistics network, ultimately benefiting businesses, consumers, and the overall economy.

Cold chain infrastructure and challenges in India

An efficient cold chain infrastructure involves movement of temperature-sensitive goods from one place to another within a required time frame. It requires a stable chain of refrigerated manufacturing, production, storage, packaging, tracking, transportation, management and safe and secure delivery and distribution.

Presently, there are 8,653 cold stores in the country with a capacity of 394.17 lakh MT, whereas only 60% of these facilities are being utilized. Cold chain infrastructure is also critical for the chemicals and vaccines industry. India typically sees an average annual temperature of 30 degrees Celsius, soaring to as high as 45 to 50 degrees Celsius during the summer months. Unfortunately, the intricate geographical terrain and logistical challenges compromise the infrastructure for maintaining cold chains. Consequently, many temperature-sensitive products transported within the country often arrive damaged or degraded due to insufficient or broken cold chain systems and other challenges such as:

• Lack of awareness among farmers, food processors and logistic experts about the benefits of cold storage and cold chain.
• High cost of building and operating cold storage facilities in India, which is a barrier for startups to venture into this industry.
• Unavailability of proper equipment, frequent power shortages and lack of skilled workforce.
• Vehicle breakdowns and inappropriate packaging while delivering temperature-sensitive packaged goods leading to food wastage.
• Power outages and electricity fluctuations cause breakdown of powered cooling systems, which leads to a lot of waste, as perishable goods get affected by heat exposure for prolonged periods.
• Cold chain facility is fragmented and virtually non-existent in many states as in India. Only 4 states acquire 60% of the total cold storage – UP, Gujarat, West Bengal and Punjab.

Emerging solutions and opportunities

Creating an unbroken cold chain network necessitates maintaining temperature-controlled conditions throughout all phases of cold chain logistics. With a 15-20% rise in the demand for fresh produce, grocery deliveries, vaccinations, and pharmaceuticals, there exists a fertile ground for innovation and technological progress, presenting significant opportunities for Indian startups.

Cutting-edge cold chain technologies like payment automation, robotics, packaging innovation, warehouse automation are some of the technologies adopted by businesses. Here are some of the technologies that could help transform the cold chain sector in upcoming years:

• AI and ML-based smart sensors and real-time tracking: AI and ML-powered smart sensors offer real-time alerts concerning temperature, humidity, and other environmental conditions, facilitating prompt actions to mitigate losses. Additionally, they aid in tracking vehicle maintenance records, inventory parts, and predicting malfunctions using historical data.
• Advancements in last-mile delivery technologies: These technologies facilitate transparent and immutable record-keeping for Proof of Delivery (POD), which helps in reducing costs, minimizing disputes and updates on real-time shipment tracking and payment processes. Additionally, predictive analytics enables companies to forecast package arrivals and update customers minutes before delivery.
• Adoption of sustainable logistics practices: With consumers increasingly educated about the advantages of sustainable development, their preference is shifting towards products that are not only fresh and healthy but also sustainably sourced and packaged. Consequently, the industry is placing greater emphasis on sustainable and technological innovations. This trend may inspire businesses of various sizes and forms to adopt modern sustainable practices.
• Green technologies in transport & warehousing: To enhance sustainability and efficiency, the cold chain sector is embracing innovations such as eco-friendly refrigerants, Phase Change Materials (PCMs), IoT based technologies etc.
• Data analytics for predictive maintenance: Data analytics has surfaced as a transformative force in the cold supply chain, offering predictive maintenance algorithms driven by AI to anticipate equipment failures and avert downtime.
• Focus on skill development: Acknowledging the necessity of a proficient workforce to navigate the intricacies of the cold supply chain, there is a need of heightened focus on skill development and training initiatives. This encompasses training for personnel in cold storage facilities, logistics professionals, and individuals engaged in maintaining temperature-sensitive transportation.

Conclusions

The cold chain is becoming more and more significant. As has already been mentioned, cold chain infrastructure is crucial for lowering post-harvest losses – and is extremely important for India’s overall food security.

There are many opportunities in the cold storage infrastructure, and as previously mentioned, the government has taken a multifaceted approach to building contemporary infrastructure while taking into account the needs of different industries.

GoI has already started providing financial incentives to a number of stakeholders, including the private sector, SHGs, FPOs, PSUs, local bodies, cooperatives, APMCs, and others, to help the cold chain industry grow in the future. The cold chain industry will inevitably expand.

Dr. (Prof.) D. B. Jani received Ph.D. in Thermal Science (Mechanical Engineering) from Indian Institute of Technology (IIT) Roorkee. Currently, he is a recognized Ph.D. Supervisor at Gujarat Technological University (GTU). He has published more than 255 Research Articles in reputed International Conferences and Journals. He has also published 18 reputed books and book chapters in the area of thermal engineering. He is working as an Academic Editor for the Journal of Materials Science Research and Reviews. Presently, he is an Associate Professor at GEC, Bhavnagar, Gujarat Technological University, GTU, Ahmedabad (Education Department, State of Gujarat, India). His area of research is Desiccant cooling, ANN, TRNSYS, and Exergy.