From Farms to Fridges: How Cold Chain Infrastructure is Transforming India’s Agriculture

Agriculture is one of the core components contributing to India’s remarkable success today. It is one of the primary sources of income for many households in the country. About 65% of people in India are engaged in agricultural and allied activities. In FY25 itself, India exported around Rs. 3,17,831 crore (US$ 36.97 billion) worth of agricultural produce to over 200 countries worldwide. Yet, a significant portion of this produce never reaches the consumers. That’s where cold storage infrastructure comes in. By maintaining the product’s efficacy, cold storages bridge the gap between high production and high demand markets, both domestic and international.

Why cold chain infrastructure matters so much?

Cold chain logistics involves the specialised handling, storage and transportation of temperature-sensitive products, ensuring they remain within a defined temperature range throughout the supply chain. This system is vital for sectors such as food, pharmaceuticals and chemicals, where preserving product quality and safety is critical. Cold chain infrastructure plays an important role in addressing challenges pertaining to the agricultural sector. It helps:

• Minimise waste: Helps reduce wastage of produce generated after harvest, estimated at Rs. 92,651 crore (US$ 10.78 billion) annually, as per Global Agriculture.
• Increase market access: Cold storage solutions help products stay fresh longer, enabling their distribution even to distant markets. For example, lettuce only has a shelf life of two to three days before it becomes less appealing or edible. However, through proper storage using cold chain infrastructure, its shelf life increases to 10 to 12 days allowing it to be shipped to other countries.
• Helps in Diversification: Farmers are more likely to grow more high-value crops such as strawberries, broccoli and other fruits and vegetables when cold chain access is assured.

According to National Bank for Agriculture and Rural Development (NABARD), cold chain access can significantly boost the income realised by farmers. The increase is estimated to be between 15-20%.

Market overview and growth drivers

India’s cold chain market stood at Rs. 2,28,700 crore (US$ 26.60 billion) in 2024 and is poised for strong growth. As per IMARC Group, it is expected to grow steadily at a compound annual growth rate (CAGR) of 10.86% between 2025 and 2033, reaching Rs. 6,06,100 crore (US$ 70.50 billion), by the end of the forecast period. Key growth drivers include:

• Increasing demand for processed food and ready-to-eat meals.
• Expansion in pharmaceutical sector, particularly in vaccine storage and distribution facilities.
• Increasing exports for perishable food items such as mangoes, grapes and strawberries.
• Government backing for infrastructure and production-related facilities for farmers.

In addition, the increasing urbanisation and dietary transition of the masses are boosting the demand for healthier and sustainable food that can be delivered through the cold chain infrastructure. Influencers and online outlets promote various cuisines and food products, triggering demand in non-tapped markets. Examples include the rise in demand of plant-based food products as influencers have promoted their ethical and environmental value, for example, plant-based cheese produced using natural ingredients such as nuts, soy and coconut.

Cold storage infrastructure in India

As per an article by Indian Infrastructure, India has over 8,689 cold storage facilities, with a total capacity of 39.6 million metric tonnes (MT), as of August 2024. Uttar Pradesh has the largest share of cold storage capacity (around 38%) followed by West Bengal (15%) and Gujarat (10%).

Ministry of Food Processing has approved a total of 400 cold chain projects of which about 293 are completed as of FY24, while 107 are under implementation. The current capacity with completed cold chain projects amounts to 8.59 lakh MT and expected capacity after completion of all approved projects will be at 10.28 lakh MT.

Cold chain associated infrastructure includes:

• Reefer Vehicles (vehicles equipped with refrigeration): 1,482 completed projects; expected to reach 1,860.
• Individual Quick Freezing (IQF): 274.25 MT per hour as of 2024; expected to increase to 335 MT per hour.
• Milk Processing / Storage: 137.53 lakh litres of milk is being processed and stored each day, expected to increase to 175 lakh litres per day.

Government initiatives supporting cold chain expansion

• Pradhan Mantri Kisan Sampada Yojana (PMKSY): PMKSY project aims to modernise food processing infrastructure to develop efficient supply chains across India. Between 2017 and 2025, around 1,217 projects are approved under the scheme at a total project cost of Rs. 8,698 crore (US$ 1.01 billion). A total of 651 projects has been completed so far in this scheme. The scheme is entirely demand-driven, offering flexibility to implement projects wherever potential exists, regardless of the state, region, or crop type.
• Pradhan Mantri Formalisation of Micro Food Processing Enterprises Scheme (PMFME): The PMFME scheme aims to provide training and promote value addition to reduce post-harvest food wastage. Currently, 76 approved incubation centres across India are delivering around 1,500 training sessions, directly benefiting over 10,000 individuals.
• National Agriculture Infrastructure Financing Facility: This facility provides farmers low interest loans to construct and renovate facilities relating to agriculture and post-harvest operations such as cold stores, ripening chambers, sorting-grading and refrigerated transport. Loans worth Rs. 67,717 crore (US$ 7.88 billion) were sanctioned as of 2024, under this scheme.

Collectively, these government programmes are not only filling critical infrastructure gaps in the cold chain ecosystem but also are providing farmers and small businesses with the advantage to reduce post-harvest losses, improve product quality and increase revenue due to greater access to markets.

Tech trends: How the internet, artificial intelligence (AI) and solar power are optimising cold chain efficiency

The integration of technology into cold chain systems has fundamentally transformed the industry making it more efficient, sustainable and reliable. This integration is helpful in cases where temperatures and end- to-end transparency is important.

• Internet access: Real time data collection and analysis helps to know market consumption patterns and assess if the product is selling in the market. Platforms such as Open Network for Digital Commerce (ONDC) help farmers access distant markets and offload their harvest and reduce spoilage.
• AI and Analytics: Companies are using AI and machine learning algorithms for delivery and procurement route optimisations and use predictive analysis to forecast demand and supply patterns to maximise profitability.
• Renewable energy: Solar-powered cold rooms are increasingly being used in rural India. As per Astute Analytics, over 1000 solar-powered cold rooms are installed helping farmers reduce wastage while being sustainable and economical.
• Cold chain as a service: Companies and startups now offer pay-per-use models to reduce upfront costs for small to medium enterprises (SME) and farmers. Major e-commerce players such as Amazon and BigBasket are expanding by adding over 500 refrigerated vehicles to their fleet to help distribute agri-products to more regions.
• Smart Monitoring: Digital dashboards and sensors at farms and warehouses enable remote monitoring of humidity, temperature and energy use. This ‘smart cold room’ approach often cloud-connected allows efficient maintenance and less wastage.

Cooling the supply chain, heating up farmer incomes

India’s cold-chain revolution is picking up pace. With market growth nearing new highs, supportive schemes such as PMKSY and Agriculture Infrastructure Fund (AIF) and newer technologies are converging to modernise the supply chain. These developments promise to sharply cut the post-harvest losses of today, boosting farmer incomes and food security. In summary, cold chains are on track to transform Indian agriculture, ensuring that what farmers grow, reaches consumers fresh, reducing waste and adding value across the economy.

FAQs

What is the size of India’s cold chain market and how fast is it growing?

As of 2024, India’s cold chain market was valued at Rs. 2,28,700 crore (US$ 26.60 billion). It is expected to record a CAGR of 10.86% and reach Rs. 6,06,100 crore (US$ 70.50 billion) by 2033.

How many cold storage facilities does India currently have?

India has over 8,689 cold storage facilities with a total capacity of 39.6 million MT as of August 2024.

How much post-harvest loss does India face annually in agriculture?

India faces an estimated post-harvest loss of Rs. 92,651 crore (US$ 10.78 billion) annually, primarily due to the lack of adequate cold storage and transportation facilities.

What is the estimated impact of cold chain access on farmer incomes?

According to NABARD, cold chain access can boost farmer incomes by 15-20%.

Which states have the largest cold storage capacities in India?

Uttar Pradesh led with around 38% of India's cold storage capacity, followed by West Bengal (15%) and Gujarat (10%), as of August 2024.