Total project Outlay of INR 9000 initiated by GOI towards infrastructure development is expected to boost the Indian Agricultural cold storage market growth in the next 5 years, says a report by Ken Research
1. “Favorable Policies:” Growth of agricultural sector is driven by favorable policies towards the farming population in India
Recent Trends in India Agricultural Cold Storage Industry
A massive stream of support has been given to the agricultural ecosystem in India including the cold chain industry via Capital Investment Subsidy Scheme, Agricultural Marketing Infrastructure Scheme and Role of NCDC. Government Schemes such as PM Kisan Sampada Yojana wherein integrated cold chain & value addition infrastructure have been added with the objective of reducing post-harvest losses of horticulture & non-horticulture produce & providing remunerative price to farmers for their produce. In a similar way, capital investment subsidy investment scheme has been introduced with the objective of creation of 12 lakh tonnes of new cold storages and modernization/rehabilitation of 8 lakh tonnes of existing cold storages.
2. “Investment boost:” Multiple schemes are implemented on ground to accelerate investment in the sector
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A total of 325 projects (214 completed and 111 on-going) are operational in various parts of India. With a total project outlay of INR 9000 Cr, government of India has approved a cumulative grant –in aid of INR 2,478 Cr via its various schemes under MOFPI & NHB. These projects are mainly being undertaken in Fruits & Vegetables, Marine, Fisheries, Diary and Irradiation sectors in Tier II/III cities of the country. Release of this type of data as well as positive feedback from new unit operators further emboldens the confidence in govt.
3. With increasing government initiatives & rising investment scenario from private entities, the sector looks attractive in the long run
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Cold storage units provide aid in getting better prices of crop produce to farmers by providing cooling solutions. Further, storage units near export zones has allowed generated export receipts from domestic crop produce. During 2010-20, establishments of new cold storage units led to substantial reduction in post-harvest losses. Presence of cold storage units has enabled backward integration by food processing firms undertaking massive contract farming of Potato. In the upcoming years, it is expected that an increased investment from government & private entities will boost the market growth. The market is expected to register a market growth of 3.2% in the upcoming years.
