Challenges faced

The cold chain logistics system involves two main elements, namely, surface storage- refrigerated warehouses for storage of the perishable products; and refrigerated transportation- reefer trucks, containers, ships and trains for transport of perishable products.

Since, India is an agrarian economy, its agri-supply chain can be better integrated. The biggest obstacle is the quality of infrastructure, which is below par compared to other competing sites. Current spending on organised warehousing in India constitutes nine per cent of total logistics spending, as against 25 per cent in the US. Logistics costs account for around 6-10 per cent of average retail prices in India as against the global average of 4-5 per cent.

Therefore, there is a clear scope to improve margins by 3-5 per cent if efficiency of the supply chain and logistics is improved. Developing an integrated supply chain, including a cold chain can save up to 30,000 crore