India, the second largest producer of fruits and vegetables in the world, throws away fresh produce worth Rs 13,300 crore annually due to lack of adequate cold storage facilities and refrigerated transport, a report said.
A report by Emerson Climate Technologies India, an outfit of the US-based technology firm Emerson, cites studies which have pegged the value of fruits, vegetables and grains wastage in India at Rs 44,000 crore annually.
Fruits and vegetables account for the largest portion of the wastage. About 18 per cent of India’s fruit and vegetable production, valued at Rs 13,300 crore, is wasted annually, according to data from the Central Institute of Post-Harvest Engineering and Technology (CIPHET).
Without improvements to its ‘cold chain’ infrastructure, from farm harvest to table, India’s food problems will remain vast and are likely to grow, the report points.
Currently, India has 6,300 cold storage facilities unevenly spread across the country, with an installed capacity of 30.11 million tonnes.
Studies have shown this is half the amount of cold storage facilities that India actually needs. Cold storage capacity for all food products in the country should be more than 61 million tonnes.
In order to reach that target, the report says, an investment of more than Rs 55,000 crore is needed by 2015-2016 just to keep up with the growing fruit and vegetable production levels.
“While progress is being made, this report confirms the cold storage situation is more acute than many realise. Emerson is seeing this in the marketplace and we commissioned this report to keep the spotlight on the issue,” said Pradipta Sen, President of Emerson’s India, West Asia and Africa region.
While financial investment in cold storage facilities and refrigerated transport is vital, the Emerson Climate Technologies report also highlights additional challenges faced by India’s cold storage industry today.
Three biggest challenges are high lifecycle costs for a cold storage facility that typically needs land and buildings to hold 6,000 tonnes of food; uneven distribution of cold storage facilities with 60 per cent of existing facilities located near the point of production in just four states and very few closer to distribution points in the other 24 states; and low awareness of best storage practices among industry players.
The report says that cold storage facility with a capacity of 6,000 tonnes requires an initial investment of Rs 5 crore excluding land costs. However, high real estate costs contribute significantly to the high lifecycle cost.