India Agricultural Cold Storage Industry outlook 2025
An assessment of demand - supply infrastructure across value chain.
October 2021
95
About the Report
About the Report
The publication titled ‘India Agricultural Cold Storage Industry outlook 2025 - An assessment of demand - supply infrastructure across value chain' depicts the snapshot of agriculture in India with core focus on identifying problems at the post-harvest management processes which costs around INR XX Billion (in economic value losses) per annum. Analysts have mapped out the landscape of cold storage industry, skewness in capacity concentration at certain regions, growth drivers, opportunities and challenges restraining the growth till full potential.
Overview of Cold Storage Industry:
While the capacity of cold storage solutions has improved considerably at an aggregate level (XX Mn MT in 2020), there is a lack of cold chain infrastructure at farm-gate and transportation level. Snapshots on cold storage solutions of top 5 capacity states – Uttar Pradesh, West Bengal, Gujarat, Punjab and Andhra Pradesh and certain select states – Maharashtra, J&K & Himachal Pradesh, further indicate the inefficiencies as a single commodity storage unit and emphasize on lack of modern technology (controlled atmosphere, pre-conditioning rooms) of such units.
Drivers and Impediments to growth:
While growing food processing industry, rising urbanization and shift in cropping patterns to horticulture are key growth drivers for uptake in demand for cold storage solutions; challenges such as inadequate capacity for multi-storage, high opex, long gestation period & small unorganized players hinders the growth of industry. At a generic level, it takes 5+ years for a cold storage operator to break even with an initial investment of INR XX Mn to set up a unit of XX MT capacity.
Active Participation by Union and State Government
Being a capital intensive business directly impacting 100 Mn+ farming households, Government of India along with state governments have taken pertinent steps to improve the ‘capacity availability’ situation of cold storage units via various schemes. These schemes include PM Kisan Sampada Yojana, Mission for Integrated Development of Horticulture, establishment of NCDC, schemes by APEDA for registered exporters, Capital Investment Subsidy Scheme for Horticulture, Agricultural Marketing Infrastructure Scheme, and Agri-reform laws - The Farmers’ Produce Trade and Commerce (Promotion and Facilitation, Essential Commodities Act (Amendment) and The Farmers Agreement of Price Assurance and Farm Services Act. As on 31st January 2021, XX cold storageprojects (XX completed and XX on-going) were operational in various parts of India with Maharashtra having XX projects in pipeline.
A Promising Future Outlook:
With maturing Agri-tech ecosystem, increasing traction from start-ups solving farm gate challenges and adoption of technological developments; analysts at Ken Research estimate an addition of XX Mn MT capacity in next five years with an aggregate capacity of XX Mn MT by 2025. The report concludes with highlighting attractiveness of opportunities at farm-gate level coupled with mitigation of short-term challenges which could result in a sound business model emanating from synergies in value chain ownership.
Key Topics Covered in the Report
- Snapshot of Agriculture in India (State wise Production statistics of Cereals, Horticulture, Meat, Livestock and Poultry)
- Situation of Farmers in India (Profile of Farmer, Role in Value Chain, Problems and Issues faced in storage of produce)
- Overview and Segmentation of Cold Storage Units (By Storage Temperature, Technology, Regional & State wise Distribution)
- Demand side and Supply side Indicators of Cold Storage Solutions
- Growth Drivers and Challenges to growth of Cold Storage Industry
- Cold Storage Demand-Supply Profile of Key States – Uttar Pradesh, West Bengal, Gujarat, Punjab and Andhra Pradesh, Maharashtra, J&K and Himachal Pradesh
- Trends and Developments
- Union and State Government Support to Cold Storage Sector
- Impact of COVID-19 and Future Outlook of Industry
- Business Attractiveness at Farm gate level
- Recommendations for operating Sustainable Business
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Table of Contents
Table of Contents
1. Snapshot of Indian Agriculture and Post-Harvest Management
1.1. Indian Agricultural Landscape
1.2. India Production Statistics
1.3. Average Loss of Crop-wise Produce
1.4. Agricultural Production Value Chain
2. Overview of Cold Storage Industry in India
2.1. Ecosystem of Agriculture Cold Storage Industry
2.2. Benefits of Cold Storage Facilities
2.3. Type of Cold Storage Facilities based on Storage Temperature + Technology
3. Demand side Requirements of Cold Storage Facilities
3.1. Demand Landscape of Cold Chain Infrastructure
3.2. State Specific Capacity to Production Trend
3.3. Fruit Production and Cold Storage Requirements
3.4. Production and Cold Storage Requirements of select Vegetables
3.5. Cold Storage Requirements of Diary, Meat, Livestock and Poultry Products
4. Supply side Indicators of India Agri-Cold Storage Industry
4.1. Cold Storage Solutions Capacity in India
4.2. Key Locations and Segmentation of Cold Storage Units
4.3. Segmentation of Cold Storage Units
5. Growth Drivers of India Agricultural Cold Storage Industry
6. Government Support and Incentives
6.1. Union Government Support to Cold Storage Industry
6.2. Government Policies and Initiatives
6.3. Other Schemes & Incentives
6.4. The 3 Agri-Reform Laws
6.5. Various Schemes and Grant-in-Aid Provided
6.6. Boost to Food Processing Industry
7. Challenges and Growth Restraints to Cold Storage Industry
8. Situation of Farmers and their Problems in India
8.1. Profile of Indian Farmer
8.2. Role of Various Entities in Pre/Post Harvest Process
8.3. Issues Faced by Farmers
9. Profiles of Top 5 Cold Storage Capacity States of India
9.1. Uttar Pradesh, West Bengal
9.2. Gujarat, Punjab and Andhra Pradesh
10. Other Key States for Cold Storage Solutions
10.1. Maharashtra
10.2. Other Northern States – J&K, Himachal Pradesh
11. Trends and developments in Cold Storage Industry
11.1. Trends in the Cold Storage Sector
11.2. Technological and Warehousing Development
11.3. Indian Agri-based Startups
11.4. Agri-tech Ecosystem
11.5. Assessment of the Agri-cold Storage Industry
12. Impact of COVID-19 and Future Outlook of the Industry
12.1. Impact of COVID-19 on Agricultural Cold Storage Industry
12.2. Industry Outlook
12.3. Region Specific Trend
12.4. Future Trend
13. Analyst Recommendations
13.1. Recommendations on Business Attractiveness
13.2. Recommendation on Proposed Strategy & Business Framework
14. Appendix
15. Research Methodology
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List of Figure
1.1. India Agricultural GDP in constant terms in INR Trillion during FY’16-20
1.2. Contribution of Agriculture to total GDP of India in Percentage, FY’21
1.3. India Food Grain Production in Million Tonnes during FY’08-21
1.4. India Milk Production in Million Tonnes during FY’08-21
1.5. India Fruits, Vegetables, Spices and Total Horticulture Production in Million Tonnes during FY’08-21
2. Demand side Requirements of Cold Storage Facilities
2.1. Comparison of cold storage capacity with total agricultural production in major states of India as per 2020
2.2. State wise cold storage capacity in Kg/tonne of Agricultural Production, 2020
3. Supply side Indicators of India Agri-Cold Storage Industry
3.1. India Cold Storage Capacity in Million tonnes and number of cold storage units during 2010-20
3.2. Segmentation of India Cold Storage Capacity basis North, South, East, West and Central regions in Percentage in 2020
3.3. Segmentation of India Cold Storage units basis Type of ownership (Private players, Co-operatives, PSU/Govt.) in Percentage in 2020
3.4. Segmentation of India Cold Storage Capacity basis type of end-user industry (Agricultural, Other Industries) in Percentage in 2020
3.5. Segmentation of India Cold Storage Capacity basis type of commodity storage (Fruits and Vegetables, Meat & Seafood, Dairy Products and others) in Percentage in 2020
4. Growth Drivers of India Agricultural Cold Storage Industry
4.1. Market size of India Food Processing Industry in USD Billion and growth rate in percentage during FY’20-25E
4.2. Market size of India Milk Production in Million Tonnes and growth rate in percentage during FY’20-23E
5. Government Support and Incentives
5.1. State wise Distribution of Mega Food Parks and corresponding leasable land in acre, September 2020
6. Challenges and Growth Restraints to Cold Storage Industry
6.1. Global Comparison of select countries basis Refrigerated Warehouse Development Index, 2018
6.2. Categorization of concentration of cold storage capacity among number of states in Percentage, 2020
6.3. Segmentation of Type of Cold Storage facility basis usage (Single and Multi-Commodity Usage) in Percentage, 2020
7. Situation of Farmers and their Problems in India
7.1. Average Monthly Household Farm Income in INR during 2012-13, 2016-17 and 2019-20E
7.2. Yearly number of suicides by farmers and daily wagers in India during 2016-19
8. Profiles of Top 5 Cold Storage Capacity States of India
8.1. Uttar Pradesh
8.1.1. Area under Horticulture in Thousand Hectare and Production of Horticulture crops in Thousand MT in Uttar Pradesh during FY’18
8.1.2. Top 5 districts of high cold storage capacity in Uttar Pradesh, 2020
8.2. West Bengal
8.2.1. Annual Production of Fruits and Vegetables in West Bengal in Thousand Tonnes during FY’14-18
8.2.2. Top 5 districts of high cold storage capacity in West Bengal, 2020
8.3. Gujarat
8.3.1. Area under cultivation of Horticulture crops (Fruits and Vegetables) in Thousand Hectares in Gujarat during FY’16-20
8.3.2. Annual production of horticulture crops (Fruits and Vegetables) in Thousand Tonnes in Gujarat during FY’16-20
8.3.3. Top 5 districts of high cold storage capacity in Gujarat, 2020
8.4. Punjab
8.4.1. Percentage of crop wise area under production in Punjab as at FY’19
8.4.2. Top 5 districts of high cold storage capacity in Punjab, 2020
8.5. Andhra Pradesh
8.5.1. Percentage of crop wise area under production in Andhra Pradesh as at FY’19
8.5.2. Top 5 districts of high cold storage capacity in Andhra Pradesh, 2020
9. Other Key States for Cold Storage Solutions
9.1. Maharashtra
9.1.1. Annual Production of Food Grains, Fruits and Vegetables in Million Tonnes during FY’10-20
9.1.2. Proportion of area under crops in Percentage as at FY’18
9.1.3. Top 5 districts of high cold storage capacity in Andhra Pradesh, 2020
9.2. Other Northern States – J&K, Himachal Pradesh
10. Trends and developments in Cold Storage Industry
10.1. Market size of India Agri-tech industry basis revenue in INR crores during FY’19, FY’20 and FY’25
10.2. Number of new agri-tech startups added in India during 2014-19
10.3. Amount of PE/VC investment in startups in USD Million during 2014-2020
11. Impact of COVID-19 and Future Outlook of the Industry
11.1. Month-wise indexed values of average capacity utilization rate of cold storage unit during 2019 and 2020
11.2. Future Outlook of regional concentration of cold storage capacity in India in Percentage and Million Tonnes during 2020 and 2025E
11.3. Future outlook of cold storage capacity in India in Million tonnes and growth rate during 2020-25E
12. Analyst Recommendations
13. Appendix
14. Research Methodology
List of Table
1.1. Ranking of countries basis Global Hunger Index , 2020
1.2. Annual Production and Estimated Post-Harvest loss of Cereals, Pulses, Fruits, Vegetables, Milk, Oil seeds, Meat and Spices in Percentage
2. Demand side Requirements of Cold Storage Facilities
2.1. Comparison of Fruits and Vegetables, Meat, Fish and Milk production with requirement of cold storage infrastructure in top 10 states of Cold Storage capacity in 2015
2.2. Top 10 states of Fruits and Vegetables, Meat, Fish and Milk production and corresponding actual Cold Storage Infrastructure in 2020
2.3. Annual Production in Thousand Tonnes (FY’20), Major Production states, Requirement of Storage Temperature, Harvest season, Average Holding Period and required cold storage facility as per different Fruits (Banana, Mango, Citrus, Papaya, Guava, Pomegranate, Apple, Pears, Kiwi)
2.4. Annual Production in Thousand Tonnes (FY’20), Major Production states, Requirement of Storage Temperature, Harvest season, Average Holding Period and required cold storage facility as per different Vegetables (Potato, Onion, Tomato, Brinjal)
2.5. Annual Production in Thousand Tonnes (FY’20), Major Production states, Requirement of Storage Temperature, Harvest season, Average Holding Period and required cold storage facility for Meat, Egg, Fish and Dairy products
3. Supply side Indicators of India Agri-Cold Storage Industry
3.1. Segmentation of India Cold Storage Capacity basis type of storage (Temperature Controlled, Controlled Atmosphere, Modified Atmosphere) in Percentage in 2020
3.2. Segmentation of India Cold Storage Capacity basis type of temperature integrated facilities (Chill, Mid-chill, Frozen, Normal) in Percentage in 2020
4. Growth Drivers of India Agricultural Cold Storage Industry
4.1. Area under Food Grain and Horticulture Production during 2004-05 and 2019-20
5. Government Support and Incentives
5.1. Government of India support for India Cold Storage Industry
5.2. Type of Cold Storage Facility and corresponding scale of assistance offered by Capital Investment Subsidy scheme for Horticulture
6. Challenges and Growth Restraints to Cold Storage Industry
6.1. Segmentation of Type of Cold Storage facility basis usage (Single and Multi-Commodity Usage) in Percentage, 2020
6.2. Snapshot of Operational and Financial viability of new cold storage project, 2020
7. Situation of Farmers and their Problems in India
8. Profiles of Top 5 Cold Storage Capacity States of India
8.1. Uttar Pradesh
8.1.1. Area under Horticulture in Thousand Hectare and Production of Horticulture crops in Thousand MT in Uttar Pradesh during FY’18
8.1.2. Contribution of Uttar Pradesh to India Agriculture and Horticulture Production in Thousand Tonnes during FY’19
8.1.3. All India state rank of Uttar Pradesh in production of agriculture and horticulture crops
8.1.4. Comparison of existing and required cold chain infrastructure in Uttar Pradesh
8.1.5. List of Approved Cold Storage Projects in Uttar Pradesh as at January 2021
8.2. West Bengal
8.2.1. Comparison of agriculture statistics of West Bengal including Operational Holding and Employment during FY’04 and FY’14
8.2.2. Contribution of West Bengal to India Agriculture and Horticulture Production in Thousand Tonnes during FY’19
8.2.3. All India state rank of West Bengal in production of agriculture and horticulture crops
8.2.4. Comparison of existing and required cold chain infrastructure in West Bengal
8.2.5. List of Approved Cold Storage Projects in West Bengal as at January 2021
8.3. Gujarat
8.3.1. Contribution of Gujarat to India Agriculture and Horticulture Production in Thousand Tonnes during FY’19
8.3.2. All India state rank of Gujarat in production of agriculture and horticulture crops
8.3.3. Comparison of existing and required cold chain infrastructure in Gujarat
8.3.4. List of Approved Cold Storage Projects in Gujarat as at January 2021
8.4. Punjab
8.4.1. Contribution of Punjab to India Agriculture and Horticulture Production in Thousand Tonnes during FY’19
8.4.2. All India state rank of Punjab in production of agriculture and horticulture crops
8.4.3. Comparison of existing and required cold chain infrastructure in Punjab
8.4.4. List of Approved Cold Storage Projects in Punjab as at January 2021
8.5. Andhra Pradesh
8.5.1. Contribution of Andhra Pradesh to India Agriculture and Horticulture Production in Thousand Tonnes during FY’19
8.5.2. All India state rank of Andhra Pradesh in production of agriculture and horticulture crops
8.5.3. Comparison of existing and required cold chain infrastructure in Andhra Pradesh
8.5.4. List of Approved Cold Storage Projects in Andhra Pradesh as at January 2021
9. Other Key States for Cold Storage Solutions
9.1. Maharashtra
9.1.1. Contribution of Maharashtra to India Agriculture and Horticulture Production in Thousand Tonnes during FY’19
9.1.2. All India state rank of Maharashtra in production of agriculture and horticulture crops
9.1.3. Comparison of existing and required cold chain infrastructure in Maharashtra
9.1.4. List of Approved Cold Storage Projects in Maharashtra as at January 2021
9.2. Other Northern States – J&K, Himachal Pradesh
9.2.1. Contribution of Jammu and Kashmir to India Agriculture and Horticulture Production in Thousand Tonnes during FY’19
9.2.2. All India state rank of Jammu and Kashmir in production of agriculture and horticulture crops
9.2.3. Comparison of existing and required cold chain infrastructure in Jammu and Kashmir
9.2.4. Contribution of Himachal Pradesh to India Agriculture and Horticulture Production in Thousand Tonnes during FY’19
9.2.5. All India state rank of Himachal Pradesh in production of agriculture and horticulture crops
9.2.6. Comparison of existing and required cold chain infrastructure in Himachal Pradesh
10. Trends and developments in Cold Storage Industry
10.1. Profile of Agri-tech startups in India including Firm Name, Year of Establishment, Key Management, Pain Points solved and Products and services offered, 2021
11. Impact of COVID-19 and Future Outlook of the Industry
11.1. Future Outlook of Segmentation of cold storage industry basis end-user industry, type of storage facility, technology, storage temperature and Type of ownership in Percentage, 2020 and 2025E
12. Analyst Recommendations
13. Appendix
13.1. State-wise list of cold storage projects in India as at January 2021
13.2. Technical requirements of cold storage units basis select crops
14. Research Methodology
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