92% Cold Storages In India Only Suitable To Store Potatos: PHD Chamber

Despite the fact that India has aggressively been chasing persuasive policies to woo investments to promote its food processing to optimally harness its potential across the country in the last couple of years, it is so far able to create roughly 7000 cold storages over 92 per cent of which are only suitable to store potato products, reveals findings of the PHD Chamber of Commerce and Industry (PHDCCI).

According to current status of cold stores, their total capacities have reached 31 million MT even though India allows 100 per cent Foreign Direct Investments (FDIs) in setting up of its cold chains with proposed futures' 30 mega food parks to propel demand for cold storage and transportation.

Multi-purpose cold store capacity created by India so far stagnates at 7.63 per cent against 92.82 per cent for potato and 1.07 percentage for fruit and vegetables .Whereas cold storage capacity for fish stays at 0.73 per cent and that of meat , it remains suspended at 0.15 per cent, diary and milk product 0.68 per cent and others at 0.36 per cent, said President PHD Chamber of Commerce and Industry Mr. Sharad Jaipuria.

The total cold chain market, according to PHD Chamber, was estimated at $ 3.2 billion in 2009, which with a compounded annual growth rate of 20 to 25 per cent is expected to climb at $9 billion by 2015 but India has not been able to progress to put up cold chains as desired to harness its food products, added President of the Chamber.

As a result, 30 per cent of fruit and vegetables grown in India get wasted because of lack of cold storage facilities and energy infrastructure and only 8 per cent of the produce is processed, feels the Chamber.

The Chamber has recommended that India needs smart food supply chain in which 25 per cent of its total food production is processed in next few decades for which both the centre and state governments should collaborate to bring in investments with much more flexible policies that are aggressively industry and consumer friendly.

In addition, agriculture reforms are must and amendment to existing act such as agriculture marketing produce act is absolutely called for on priority basis, feels the Chamber.

Powered by Capital Market - Live News