AgricultureAnalysisFinanceFood ProcessingGlobalInFocusMake In IndiaNewsPoliciesSectors

Cold Chain Sector to Grow by 15% YoY Till 2022: Report

Sharing is caring!

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.

SMEStreet Desk

SMEStreet is fast growing platform dedicated to entrepreneurs from small and medium sized businesses (SMEs). Committed to facilitate Knowledge & Networking for Business Growth, SMEStreet offers value added content which shows the actual voice of Indian MSMEs.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Back to top button
%d bloggers like this: