Feb 06, 2013, 03.19 PM | Source: PTI
The total market value of Indian cold chain industry is expected to reach Rs 64,000 crore by end by 2017, says an Assocham report.
The, report, however, said that factors like uneven distribution of storage capacity and high capital investment may be deterrent for the growth of the industry.
The report, 'Opportunities in Cold Chain- emerging Trends and Market Challenges', released during a national summit on cold chain here also said though India produced 147 million tonnes of vegetables in 2011, the country has cold chain capacity available for only 9 millions tonnes, leading to huge
"During the period 2009-2017, the cold chain industry of India is expected to register a magnificent CAGR of around 25.8 per cent, which will make the value of Indian cold chain industry to reach at an astonishing figure of around Rs 640 billion by 2017," the report said.
"India is the second largest producer of vegetables and fruits after China. India on an average produces 85 million tonnes of vegetables and 45 million tonnes of fruits annually. But India's overall contribution in world trade is quite dismal as the country losses about 30 to 40 per cent of its fruits and vegetables due to improper cold storage facilities," the report said.
The location of cold storages in India is highly concentrated to a few states. Uttar Pradesh, West Bengal, Punjab, Gujarat etc., are the hub of cold storages in India, according to the report.
"Over 65 per cent of the cold storage capacity is confined to UP and WB only. On the other hand, majority of Indian states lack investments from government as well as private players. This has made presence of modern cold chain technology minimal in such parts of the country," it said.