Cold Storage and Supply Chain Infra: Strengthening Agro-Processing Ecosystem

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Recognizing the importance of sustainability, PMKSY mandates the use of Non-Ozone Depleting Substances (Non-ODS) and Low Global Warming Potential (Low-GWP) refrigerants for cold storage infrastructure.

The Pradhan Mantri Kisan Sampada Yojana (PMKSY), launched in 2016-17 by the Ministry of Food Processing Industries (MoFPI), is a transformative initiative aimed at reducing post-harvest losses and creating a robust supply chain for the food processing sector. Among its various components, the cold storage and supply chain infrastructure segment plays a critical role in ensuring food preservation, minimizing wastage, and enhancing the efficiency of India’s agri-value chain.

Significance of Cold Storage and Supply Chain Infrastructure

A well-developed cold storage and supply chain infrastructure is vital for maintaining the quality of perishable agricultural products, dairy, meat, and seafood. India, being one of the largest producers of fruits and vegetables, faces a substantial challenge in post-harvest losses due to inadequate storage facilities. PMKSY addresses this gap by providing financial assistance and technological support to modernize storage and distribution systems.

Financial Assistance and Incentives Under PMKSY

The PMKSY scheme provides credit-linked financial assistance in the form of grants-in-aid to entrepreneurs, Farmer Producer Organizations (FPOs), Self-Help Groups (SHGs), and cooperatives. This includes funding for setting up cold storage facilities and acquiring refrigerated transport vehicles.

Financial Assistance: Up to 35% of the eligible project cost in general areas and 50% in difficult areas such as hilly, tribal, and northeastern regions.

Cold Chain and Infrastructure Grants: Up to ₹10 crore per project for the establishment of integrated cold chain facilities, including pre-cooling units, packing centers, reefer transport, and storage.

Renewable Energy Support: Projects integrating solar, biomass, or wind energy for cold storage can avail of additional financial assistance of up to ₹35 lakh per project.

Achievements Under Cold Chain Infrastructure

PMKSY has significantly contributed to the modernization of India’s food storage and logistics network. As of 2023:

  • 397 cold storage projects have been approved under PMKSY, of which 286 projects have been completed.
  • 25.39 lakh metric tonnes (MT) of preservation capacity has been created, reducing spoilage and increasing food security.
  • 112.35 lakh MT of annual processing capacity has been established, ensuring better price realization for farmers.
  • Grant assistance of ₹2,108.02 crore has been allocated for cold chain infrastructure development.

Environmental and Technological Advancements

Recognizing the importance of sustainability, PMKSY mandates the use of Non-Ozone Depleting Substances (Non-ODS) and Low Global Warming Potential (Low-GWP) refrigerants for cold storage infrastructure. Compliance with Ministry of Environment, Forest & Climate Change (MoEFCC) regulations ensures that modern cold storage units are environmentally friendly and energy efficient.

Furthermore, research institutions like the National Institute of Food Technology Entrepreneurship and Management (NIFTEM) – Thanjavur have developed innovative packaging technologies using biodegradable polymers such as Polylactic Acid (PLA), starch, and nanofibers to enhance food preservation.

Collaboration With Other Government Schemes

PMKSY aligns with various government initiatives to create a comprehensive food supply chain ecosystem:

  • PM Formalisation of Micro Food Processing Enterprises (PMFME) Scheme: Provides financial and business support for the establishment of 2 lakh micro food processing units.
  • Production Linked Incentive (PLI) Scheme (2021-27): Encourages global food brands to establish processing units in India.
  • Agricultural and Processed Food Products Export Development Authority (APEDA): Supports exporters through quality control, laboratory infrastructure, and Hazard Analysis and Critical Control Points (HACCP) certification.
  • National Agriculture Infra Financing Facility: Provides funding for the development of large-scale food storage and processing units.

Impact on Agriculture and Rural Development

By strengthening cold storage and supply chain infrastructure, PMKSY has brought tangible benefits to farmers, processors, and consumers:

  • Reduced Post-Harvest Losses: India’s agricultural wastage, which was estimated at ₹92,651 crore annually, is being significantly curtailed through modern storage facilities.
  • Higher Farmer Income: With improved storage and transportation, farmers get better price realization by reducing distress sales.
  • Increased Agri-Exports: Processed food exports from India have grown to $43 billion in 2023, fueled by better logistics and compliance with international quality standards.
  • Employment Generation: The scheme has created thousands of direct and indirect jobs in the food processing, logistics, and retail sectors.

The cold storage and supply chain infrastructure under PMKSY is revolutionizing India’s food processing industry by enhancing efficiency, reducing losses, and increasing exports. With continued investments and policy support, the scheme is paving the way for a self-reliant and globally competitive agri-business ecosystem. As India moves toward becoming a $5 trillion economy, strengthening the food processing sector will play a crucial role in achieving long-term food security, sustainability, and economic prosperity.


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Saurabh Mishra

Saurabh Mishra, an MBA professional with experience in multinational corporations, specializes in business strategy and supply chain. Originally from West Champaran, Bihar, he now resides in Noida and is actively associated with VisionViksitBharat. His work focuses on corporate governance, economic development, and development of Bihar.

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