Cold Chain Sector to Grow by 15% YoY Till 2022: Report
The increased production and low number of existing storage facility has resulted in an optimistic approach of the investors owing to the favorable investment environment in India. The growing interest of the investors, foreign and domestic, has propelled in the expansion of cold chain industry.
According to our report, “Indian Cold Chain Industry Outlook 2022“, conducted by the RNCOS, Indian cold chain industry has witnessed growth in recent years on account of rising awareness due to need of cold chain storage and transportation facility. The increased production and low number of existing storage facility has resulted in an optimistic approach of the investors owing to the favorable investment environment in India. The growing interest of the investors, foreign and domestic, has propelled in the expansion of cold chain industry.
Further, the investments are driven by 100% FDI in the cold chain industry along with various incentives on cold storage set up supporting destination companies in their expansion and facilitation to expand the footprints in the market. Such government initiatives fulfilling the cold chain industry requirement would continue to drive the cold chain industry in the country.
Also, huge post harvest loss and wastage of the perishable products are the key factors that resulted in governmental intervention. Also, other initiatives by government such as reduction of excise duty from 12.5% to 6%, and Basic Customs Duty (BCD) from 10% to 5% on refrigerated containers, setting up new mega food parks etc. would further drive the cold chain industry in the future.
Recently, Union Minister of State for Food Processing Industries announced opening of 4 mega food parks this year along with plan of 42 mega food parks to become operational by 2019. Also, Dubai-based DP World and National Investment Infrastructure Fund (NIIF) have signed an MoU to develop projects spanning the port and logistics sectors including opportunities under the Sagarmala initiative, the dedicated freight corridors and logistics infrastructure aimed at reducing agriculture produce losses. The country is focusing at the aim of revamping the cold chain infrastructure in the country while promoting awareness on providing cost effective logistics and warehousing solutions to India’s growing export and import trade.