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Generations have understood that the cold chain sector is a high-tech field with rapid growth. From an IoT-enabled monitoring system to solar-powered cold rooms, possibilities are endless in this domain. What, then, leads India to weather a huge loss of around ₹92,000 crore every year in agricultural perishables? How can such innovation exist alongside such colossal waste?
Despite technological advancements, several persistent issues continue to undermine the sector’s potential. Here are the main problems, pointwise:
1. Lack of Awareness and Accountability:
Most companies will treat a cold chain solution as a mere option, especially the little ones. This attitude leads to under-investment in storage and transportation procedures, and a tendency to cut corners on maintenance and checking.
2. Poor Technical Implementation:
Even with state-of-the-art technology in cold storage plants, the infrastructure is unreliable due to issues related to power supply. Farms, probably, become further from the solution as it gets installed in faraway locations with poor road networks.
3. No Real-Time Data and Transparency:
Without accurate information on temperature and humidity during transportation, the imperishable cannot be assured from farm to fork. The absence of integrated digital systems means these problems are often discovered way too late.
4. Temperature Variations and Machine Adoption Problems:
Inefficient power supply tends to fluctuate temperature, thereby spoiling the goods in a short time. Even then, operators are incapable of maintaining the newly acquired machines either due to a lack of training or resistance to change, thereby resulting in technology underutilization.
5. Financial Barriers:
Many small and medium enterprises (SMEs) and farmer groups are deterred, if not outright incapable, to pay upfront costs for modern cold chain solutions. If there are any subsidies on these, high taxes, complex paperwork, and poor access to cheap credit keep the technologies out of their reach.
6. Fragmented Infrastructure:
More than 90% of cold storage is private in ownership and separate and isolated in their operations from the supply chain to some extent. This leads to divorcing death, inefficiency and more substantial losses.
Despite all the progress, annual perishable losses have remained stubbornly high over the past six years, as shown in the graph below.
Despite these challenges, there are practical steps that can help India’s cold chain sector realize its full potential:
1. Workforce Training, Upskilling, and Technology Implementation:
Retraining the cold-chain workforce to reduce the spoilage is very important. But it also has to be coupled with technology implementations. The staff must be trained to operate and maintain new-age equipment such as IoT-based sensors and digital monitoring systems. Otherwise, human intervention can negate all the benefits brought about by innovations, and issues can still remain unaddressed in real-time.
2. Smarter Technology Adoption:
It is not just about equipping with the best of technologies—it is also about ensuring their correct installation, maintenance, and use. From IoT sensors, AI logistics, to solar-powered cold rooms: These technologies are making an impact, especially in Maharashtra and Karnataka.
3. Integrated Digital Platforms:
Digital platforms and blockchain traceability could be used to bring together farmers, transporters, and retailers, therefore easing them in coordinating logistics and avoid delays.
4. Policy and Financial Reforms:
Without a doubt, spot subsidies, reduced taxes on cold chain equipment, and easier compliance will hasten sector-wide improvements. Further, providing affordable credit to SMEs and farmer groups will help democratize these innovations.
5. Infrastructure Planning:
If cold storage and logistics hubs are located strategically, near production centers, highway connectivity would ensure that technology is seen and put to effective use by those who need it the most.
Example:
This solar-powered cold storage project at Sadali village in Karnataka decreases spoilage and costs for thousands of farmers-adopting the right approach makes all the difference.
The actual potential of an Indian cold chain, while being harnessed, also lies in checking the disparity between innovation and impact. Therefore, it is not only about utilizing modern technology; it is also about developing rules that allow all stakeholders, especially smallholders, to participate in the modern cold chain environment, investing in human capital, and fostering an accountable culture.
Do you encounter these challenges in your business? Do you want to witness the recent solutions in action? Join us at REFCOLD India 2025! Meet industry leaders, discover award-winning innovations, and find pragmatic solutions to your cold chain problems. Join this movement toward the permanent reform of the cold chain of India, keeping away your perishables from waste.
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