Foreign Direct Investment could act as a game changer
The cold chain sector in India has been growing at a consistent pace and has huge potential. Therefore, it is imperative to remove bottlenecks and take advantage of the opportunities to surge ahead. CARGOTALK speaks to industry veterans and tries to explo
Venugopal Bangera, CEO, Cargo Service Centre
It is now a well-known fact that the lack of adequate infrastructure in the cold-chain sector is causing severe losses and leading to inefficiencies in the cold chain. About 40 per cent of the fruits and vegetables produced are lost. This is because only 10 per cent of it goes into a cold chain compared to 90 per cent in developed countries.
It is important to connect the remote villages of India to the robust supply chains so that all stakeholders get the benefit and wastages can be mitigated to the extent possible.
Moreover, to reduce wastage cold chain infrastructure needs to be state-of-the-art and well maintained, integrated approach and efforts are required for effective policy formulation, availability of technically qualified people to support efficient cool chain services and the supply chain need to be designed and built as a whole in an integrated manner.
The infrastructure in cold chain is very critical. It is time now to plan guidelines, standards and legislations on how they will be built, the right incentives to be offered to understand the subject and to find institution that are ready to finance them. The government should do its part by legislating, and investment will start flowing.