Chal­lenges faced

Cargo Talk - - Guest Column -

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

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