PRESENTATION

Cold Chain and Export Opportunities

APEDA
Ministry of Commerce and Industries
Government of India

9th December, 2009

 APEDA’s Mandate
(From Section 10 of the APEDA Act, 1985)

• Promotion of Export Oriented Production

• Support for R&D and Quality Assurance
• Fixing of Quality Standards and Specifications for the Scheduled
Products
• Inspection & Certification of Processing Plants, Storage and
Transportation Points for Meat Products
• Infrastructure for Transportation Handling and Storage
• Improving Packaging of Products
• Market Development and Promotion
• Market Intelligence – Undertaking Surveys & Feasibility Studies
• Training in Various Aspects of the Scheduled Products Industries
 Products Monitored

1. Fruits, Vegetables and their products

2. Meat and Meat Products
3. Poultry and Poultry Products
4. Dairy Products
5. Confectionery, Biscuits and Bakery Products
6. Honey, Jaggery and Sugar Products
7. Cocoa and its Products, chocolates of all kinds
8. Alcoholic and Non Alcoholic Beverages
9. Cereal & cereal products
10. Groundnuts, Peanuts and Walnuts
11. Pickles, papads and Chutneys
12. Guar Gum
13. Floriculture and Floriculture Products
14. Herbal and Medicinal Plants
 Vision

Establishing India as a supplier of quality agro and

food products in the global markets.
 Macro Indicators

Global Trade - 23431 Billion US$

Agriculture In Global Trade - 1554 Billion US$

% Share In Global Trade - 6.63 %

Major Agri Trade Players - USA ,Germany, France , UK , Japan

Agri Trade - Global Vs India

Value : (Billion US$)

Global India % Share
Agri Trade 1554 21 1.35
Agri export 751 14 1.86
Agri Import 803 7 0.87

Source: UN COMTRADE Year 2007

 Globally India occupies a prominent position in production
India’s Rank in
Commodity Production
the World
Bananas, Buffalo Milk, Chick Peas, Ginger, Buffalo Meat, Lentils,
Mangoes, Millet, Okra, Peas, Pulses, Sesame Seeds, Spices, Tea 1
Beans, Cabbages, Cauliflower, Eggplants, Garlic, Lemons/Limes, Dry
Onions, Pumpkins, Fresh Fruits, Fresh Vegetables. 2
Coconuts, Nutmegs, Potatoes, Rapeseed, Sorghum, 3
Oranges, Papayas, Pepper, Pineapples, Tomatoes 4
Indigenous Chicken Meat, Lettuce, Soybeans 5
Hen Eggs, Maize 6
Honey, Sunflower Seed, Walnuts, 7
Cantaloupes & Other Melons, Grapefruit & Pomeloes, 8
Sweet Potatoes 9
Apples 10
Source: FAO
Vegetables Fruit
China India Brazil
China
29% 7% 5%
11% USA
5%
Italy
India 2%
USA
6% Spain
3%
Others 2%
54% Turkey Mexico
2% Others 2%

Italy
60% Iran Source: NHB
Spain 2%
Egypt 1%
1% Japan Iran Russia Philippines
1% France
1% 1% 2%
1% 2%
 Share of Agri. Exports in
Total Exports from India
Value in US $ billion

  2006-07 2007-08 2008-09

Total merchandise exports 127.35 159.25 183.01

Export of all agri. products 11.60 16.83 16.93

Export of products monitored by APEDA 4.86 7.93 7.50

Share in total merchandise exports 3.81 4.98 4.10

Share in all agri. exports 41.86 47.11 44.30

Source : DGCI&S 7
 Export of APEDA Products
Value Rs. Crores

2 0 0 8 -0 9 34451

2 0 0 7 -0 8 31871

2 0 0 6 -0 7 21806

2 0 0 5 -0 6 18783

2 0 0 4 -0 5 16828
2 0 0 3 -0 4 14184
2 0 0 2 -0 3 13828

2 0 0 1 -0 2 10169

2 0 0 0 -0 1 9213

Source : DGCIS
 Export of Perishable produce requiring cold chain
Fresh Fruits and Vegetables Value in Rs. crores
Flriculture and Seeds

2008-09 4399.04
2008-09 488.71

2007-08 2007-08 2437.11

482.26

2006-07 415 2006-07 2468.32

2005-06 399.4 2005-06 1697.39

0 100 200 300 400 500 600 0 1000 2000 3000 4000 5000

Livestock Products

2008-09 6914.26

2007-08 5129.26

2006-07 4118.56
Processed food is becoming high value with IQF
products which require Cold chain facilities
2005-06 3851.19

0 2000 4000 6000 8000

Cold Storages in India
1. 82% of existing cold storage capacity in the country is dedicated for potatoes
 In North and Eastern states, which account for the largest production zone for potatoes,
over 93% of cold storage capacities is dedicated for them
 Cold storage for potatoes can cater to the temperature needs of only a small number of
products such as onions, apples

State/UT POTATOES
  No. Capacity Distribution

Central 118 580832 4%

East 594 5225207 33%
North 1917 9574757 60%
North East 0 0 0%
South 3 0 0%
West 168 587284 4%
India 2800 15968080  
    81.7%  
Cold Storages in India

Only 16.7% of the total cold storage capacity is dedicated for Multi - purpose

State/UT MULTIPURPOSE
  No. Capacity Distribution

Central 98 507109 16%

East 128 437597 13%
North 258 730425 22%
North East 38 108716 3%
South 291 873433 27%
West 260 608657 19%
India 100%
1073 3265937
    16.7%  
 Cold Storages in India

Only 0.2% of the total cold storage capacity is dedicated for fruit and vegetables
 Largest share of the capacities are in the western region, probably due to the fact that most of the
exports happen from the region

State/UT FRUITS & VEG.

  No. Capacity Distribution

Central 4 2577 6%
East 0 0 0%
North 11 9733 22%
North East 0 0 0%
South 13 12950 29%
West 95 19157 43%
India 100%
123 44417
    0.2%  
Components of the Cold Chain

 Storage facilities with Controlled Atmosphere

Stationary (CA) / Modified Atmosphere (MA) facilities
 Pre-cooling facilities
Cold Chain Infrastructure

 Reefer trucks for road transport

 Reefer Containers movement by rail
Mobile  Reefer container exports by sea
 Air Transport

 Special facilities to improve the shelf life of the

products and increase its value
Special Sorting and grading facilities
Treatment facilities
Packaging and Palletisation
Laboratories and R&D Centres
Existing Cold Chain and shortcomings
◆ At the national level, a cold chain exists only for Production
Centre
meat, dairy, frozen foods, since these business are Z

dependent on a cold chain and exporters / players

A
are organized. Collection
Centre
Intermediate
◆ A cold chain almost does not exist for fruit & storage

B
vegetables, lack of backward integrated cold G

chain lead to underutilization of common

facilities
Foreign Market Local Markets

◆ Losses are highest at the farm level without C

proper cold chain
E
D F
◆ The existing chain breaks at all principal nodes
 At farm level - Post Harvest Facilities Port

 Storage - Cold Storages Airport

 Transportation - Reefer Transport

State of Transportation
◆ High transportation cost Contribution of elements of the supply chain to the CIF price

◆ India’s international transportation costs are 20-30%

higher than their corresponding global counterparts 4.7% International transport costs
5.8%
 International transportation costs account for over 51%
Procurement cost
of CIF price while inland haulage account for another 9.7%
6%. Exporter's margins
 As a result Indian products are 5 to 15% more Total Delivery
9.9%
expensive than their foreign counterparts simply on this Costs ˜ 57% 51.3% Grading & packaging costs
account
Inland transport, storage,
handling & wastage
3. Perishable products have an average shelf-life of 18.6% Others
only a month, thereby “time” is a critical factor in
trade
The World Bank
4. Given the current inefficiency in the logistics
system, ratio of exports to domestic production
among F&V is strongly correlated with the degree
• To become a successful exporter,
of their perishability, i.e. onions India needs become an efficient and
low cost mover and distributor of
commodities, i.e. India must lower
its high cost of logistics of about
10-14%, which are double the cost
of logistics in developed countries
Status of Transportation by Reefer Vans

1. Availability is low because producers do not use them due to high costs
2. Costs are high since vans are in short supply as business is seasonal
3. The trickiest problem faced by truck operators is in catering to the seasonality
of horticultural produce (especially fruit), which keeps the operators solvent
from February to May. In the off seasons, reefers are able to haul goods only at
a sub-optimal rate
4. As per transport operators, the present costs of reefer transportation are
exorbitant
 Transport cost per MT/km is Rs. 6 for non-reefer trucks
 Corresponding transportation cost per MT/km for reefer vans is Rs. 18-21!
State of Rail Transportation

◆ Indian Railways has been transporting agro commodities, primarily grain and pulses throughout its
widespread network in the country

◆ For the last 3 decades, Indian Railways has discontinued piece meal movement of agricultural
goods and prefers to transport goods by block rakes (40 wagons)
 Although this has reduced turn around time 5-fold (from 30 days to 6 days)
 However, time for a container rake to travel from Delhi to Mumbai is 48 hours.

◆ Currently, only bananas, mangoes and oranges are transported by non-reefer wagons
 They can be transported almost raw and ripened later

◆ Indian Railways procured 10 reefer wagons for transporting F&V. However, none are being used
for F&V (no demand and/or unsustainable charges)
 Reefer wagons based in Bangalore are currently being used by the pharmaceuticals industry

◆ Cost of freight transportation by rail is comparable to road transport costs. Not lower.

**As per Study conducted by ICRA Management Consulting for APEDA in 2005-6
 State of Container Transport
Inland and Port Container Stations
1. Currently the level of cargo containerisation is
just over 16% as against over 50% globally

3. In the last five years, India’s reefer container

exports have risen to about 1.1 MT/year at an
annual growth of 14%

5. As imports through reefers are very low (<

0.04 MT/year), reefer sector has heavily
imbalances with more reefer containers going
out than coming in

4. There are currently no serious constraints in

the number of reefer infrastructure in ports -
280 slots are available in JNPT and 672 in
Nhava Sheva International Container Terminal
(NSICT)
Our experience :Why improved infrastructure……….
1. Cold Chain provides linkages into the production areas and bring produce onto
a modern supply chain that
 Reduces transaction time
 Reduces wastages
 Retains quality
◆ Cold Chain is utilized during season / production otherwise remain unutilized..
◆ Improved infrastructure and better technologies and processes required to
reduce losses and to meeting world standards
◆ Cold Chain is successful
• Either in clusters of perishable producing areas ;
• Or having large players with backward integration.
5. Pre-cooling is almost non existent and Sorting Grading Lines are unutilized
especially for exports.
Existing Cold Chain – Post Harvest!

Post Harvest
Transportation

Pre Cooling
Chambers
Existing Cold Chain – Storage, Ripening and Grading !

Ripening
Chamber

Sorting &
Grading Line
Existing Cold Chain – Transportation !

Road
Transportation

Rail
Transportation
APEDA’s Initiatives for Cold Chain Development

Scheme for Development of Infrastructure Pattern

A. Establishment of common infrastructure Upto 100% grant in

Assistance upto 100% of the cost of projects to State and Central aid
Government Public Sector Enterprises for setting up of Centers for
Perishable Cargo, Pack Houses, Laboratories, Specialized
infrastructure like VHT Machines, Irradiation Plants etc.

• Provided financial assistance to 22 Integrated Pack House projects in

different States with a total assistance to the tune of Rs. 86.35 crores
 Centres for Perishable Cargo
Amritsar

Delhi Bagdogra

Nashik
Kolkata
Mumbai
Hyderabad CPC Facilities
Goa ◆ Receiving area
Bangalore ◆ Weighment
Cochin Chennai ◆ X Ray
◆ Palletisation
Trivendrum ◆ Cold Room
APEDA’s Initiatives for Cold Chain and Logistics Development

PART II 25% of the cost

A. Assistance for purchase of specalised transport units for ceiling - Rs. 2.50 lakhs
perishable products
B. Assistance to exporters/producers/coop. orgns. ,etc. 25% of the cost .
for mechanisation of harvest and setting up of intermediate Ceiling – Rs. 5 lakhs
storage
For integrated mechanized handling, precooling with proper 25% of the cost
handling system Ceiling - Rs. 10 lakhs
Setting up of integrated post harvest-handling system 25% of the cost
Ceiling - Rs. 25 lakhs
Setting up of vapor heat or irradiation faciity 50% of the cost
Ceiling – Rs. 25 lakhs
Setting up of specialised storage facilities such as high humidity 25% of the cost
cold storage, deep freezers, CA/MAP Ceiling – Rs. 10 lakh

APEDA has provided assistance to the tune of Rs. 957.59 lakhs

in last three years in the above components of the Scheme.
Cold Chain for Grapes

1. Cold chain is maintained right from the harvesting stage to maintain the quality and
extend the optimum shelf life

3. Large investment by exporters for upgradation of infrastructure facilities like integrated

pack houses, high humidity cold storages, pre coolers, reefer vans and other modern
technology.

5. This has resulted in India becoming a prominent quality supplier of grapes to EU

7. Around 200 integrated modern pack house with cold chain facility have been set up in
the grape clusters within the radius of 200 kms.

9. APEDA has introduced GrapeNet traceability system integrating the entire activities
including maintenance of cool chain.
Cold Chain for Meat and Meat Products

• World largest livestock population.

• Currently India has been exporting meat to more than 60 countries.
• Exports has been constantly rising at a CAGR of 20%
• Compulsory registration of abattoirs and meat plants
• Registration of 21 modern and integrated Abattoirs and 36 Meat
Processing Plants by APEDA
• Adherence to Quality Standards
• Compulsory Inspection by group of experts from various Central
and State Govt. Departments
• Strong Veterinary health infrastructure
Cold Chain for Meat and Meat Products
• Meat sector is one of the highly organised sector with
substantial investment in cool chain

• Effective implementation of cool chain assures in disease

control and food safety

• The cool chain is maintained right from the arrival of raw

material till final despatch

• The cool chain has been improving both in terms of technology

and applicability

• Replication of the modern cool chain concept introduced by

developed countries to ensure supply of quality frozen boneless
buffalo meat
Cold Chain for Meat and Meat Products

The entire supply chain is maintained at various stages

Arrival of raw Chilling Processing

material

Cold Storage Freezing Packaging

(Blast/Plate)

Transportation (Inland Despatch

+ Outbound)

• 21 integrated abbatoirs
• 36 Meat Processing plants
Suggestive Steps

1. Integration of Cold Chain infrastructure with various government

agencies.
2. Given the wide dispersion of products and producing regions,
infrastructure needs to
❖ Be able to address specific needs of produce
❖ Be flexible enough to cater to emerging demands / requirements
◆ Adoption of world class technologies with energy efficient
equipments
◆ A viable PPP models to establish cold chain.
◆ Accreditation and monitoring of cold chain operators
Suggestive Steps

1. Economic viability through mobile facilities like Precooling etc.

2. Awareness for optimum utilization of facilities like Precooling,
Sorting Grading Line for maintaining consistent quality supply for
exports meeting international standards
3. Development of National Standards on Cold Chain
4. More thrust and investment on cold chain with support of
government
5. Fiscal incentives for Cold Chain Developers
Thank You