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PRESENTATION

Cold Chain and Export Opportunities

APEDA
Ministry of Commerce and Industries
Government of India

9th December, 2009

APEDA’s Mandate
(From Section 10 of the APEDA Act, 1985)

• Promotion of Export Oriented Production
• Support for R&D and Quality Assurance
• Fixing of Quality Standards and Specifications for the Scheduled
Products
• Inspection & Certification of Processing Plants, Storage and
Transportation Points for Meat Products
• Infrastructure for Transportation Handling and Storage
• Improving Packaging of Products
• Market Development and Promotion
• Market Intelligence – Undertaking Surveys & Feasibility Studies
• Training in Various Aspects of the Scheduled Products Industries

Products Monitored

1. Fruits, Vegetables and their products
2. Meat and Meat Products
3. Poultry and Poultry Products
4. Dairy Products
5. Confectionery, Biscuits and Bakery Products
6. Honey, Jaggery and Sugar Products
7. Cocoa and its Products, chocolates of all kinds
8. Alcoholic and Non Alcoholic Beverages
9. Cereal & cereal products
10. Groundnuts, Peanuts and Walnuts
11. Pickles, papads and Chutneys
12. Guar Gum
13. Floriculture and Floriculture Products
14. Herbal and Medicinal Plants

Vision Establishing India as a supplier of quality agro and food products in the global markets. .

USA .86 Agri Import 803 7 0.35 Agri export 751 14 1. Macro Indicators Global Trade . 1554 Billion US$ % Share In Global Trade . UK .Germany. 6. France . Japan Agri Trade .63 % Major Agri Trade Players .87 Source: UN COMTRADE Year 2007 . 23431 Billion US$ Agriculture In Global Trade .Global Vs India Value : (Billion US$) Global India % Share Agri Trade 1554 21 1.

Pulses. Lettuce. 2 Coconuts. Chick Peas. Nutmegs. Lentils. Buffalo Milk. Maize 6 Honey. Fresh Vegetables. Eggplants. Millet. Sesame Seeds. Sorghum. Mangoes. Globally India occupies a prominent position in production India’s Rank in Commodity Production the World Bananas. Peas. Pepper. Pineapples. Dry Onions. 7 Cantaloupes & Other Melons. Garlic. Rapeseed. Okra. Cauliflower. Lemons/Limes. Grapefruit & Pomeloes. Pumpkins. Tea 1 Beans. Potatoes. Walnuts. Spices. Fresh Fruits. 3 Oranges. Sunflower Seed. Buffalo Meat. 8 Sweet Potatoes 9 Apples 10 Source: FAO Vegetables Fruit China India Brazil China 29% 7% 5% 11% USA 5% Italy India 2% USA 6% Spain 3% Others 2% 54% Turkey Mexico 2% Others 2% Italy 60% Iran Source: NHB Spain 2% Egypt 1% 1% Japan Iran Russia Philippines 1% France 1% 1% 2% 1% 2% . Soybeans 5 Hen Eggs. Tomatoes 4 Indigenous Chicken Meat. Cabbages. Ginger. Papayas.

Exports in Total Exports from India Value in US $ billion   2006-07 2007-08 2008-09 Total merchandise exports 127. exports 41. Share of Agri.01 Export of all agri.10 Share in all agri.50 Share in total merchandise exports 3.30 Source : DGCI&S 7 .98 4. products 11.60 16.86 7.11 44.86 47.35 159.83 16.93 Export of products monitored by APEDA 4.93 7.81 4.25 183.

Export of APEDA Products Value Rs. Crores 2 0 0 8 -0 9 34451 2 0 0 7 -0 8 31871 2 0 0 6 -0 7 21806 2 0 0 5 -0 6 18783 2 0 0 4 -0 5 16828 2 0 0 3 -0 4 14184 2 0 0 2 -0 3 13828 2 0 0 1 -0 2 10169 2 0 0 0 -0 1 9213 Source : DGCIS .

Export of Perishable produce requiring cold chain Fresh Fruits and Vegetables Value in Rs.04 2008-09 488.32 2005-06 399.4 2005-06 1697.26 2007-08 5129.71 2007-08 2007-08 2437.26 2006-07 415 2006-07 2468. crores Flriculture and Seeds 2008-09 4399.19 0 2000 4000 6000 8000 .26 2006-07 4118.39 0 100 200 300 400 500 600 0 1000 2000 3000 4000 5000 Livestock Products 2008-09 6914.56 Processed food is becoming high value with IQF products which require Cold chain facilities 2005-06 3851.11 482.

which account for the largest production zone for potatoes.7%   . Capacity Distribution Central 118 580832 4% East 594 5225207 33% North 1917 9574757 60% North East 0 0 0% South 3 0 0% West 168 587284 4% India 2800 15968080       81.Cold Storages in India 1. 82% of existing cold storage capacity in the country is dedicated for potatoes  In North and Eastern states. over 93% of cold storage capacities is dedicated for them  Cold storage for potatoes can cater to the temperature needs of only a small number of products such as onions. apples State/UT POTATOES   No.

purpose State/UT MULTIPURPOSE   No. Capacity Distribution Central 98 507109 16% East 128 437597 13% North 258 730425 22% North East 38 108716 3% South 291 873433 27% West 260 608657 19% India 100% 1073 3265937     16.7% of the total cold storage capacity is dedicated for Multi .7%   .Cold Storages in India Only 16.

2%   . probably due to the fact that most of the exports happen from the region State/UT FRUITS & VEG. Capacity Distribution Central 4 2577 6% East 0 0 0% North 11 9733 22% North East 0 0 0% South 13 12950 29% West 95 19157 43% India 100% 123 44417     0.2% of the total cold storage capacity is dedicated for fruit and vegetables  Largest share of the capacities are in the western region.   No. Cold Storages in India Only 0.

Components of the Cold Chain  Storage facilities with Controlled Atmosphere Stationary (CA) / Modified Atmosphere (MA) facilities  Pre-cooling facilities Cold Chain Infrastructure  Reefer trucks for road transport  Reefer Containers movement by rail Mobile  Reefer container exports by sea  Air Transport  Special facilities to improve the shelf life of the products and increase its value Special Sorting and grading facilities Treatment facilities Packaging and Palletisation Laboratories and R&D Centres .

lack of backward integrated cold G chain lead to underutilization of common facilities Foreign Market Local Markets ◆ Losses are highest at the farm level without C proper cold chain E D F ◆ The existing chain breaks at all principal nodes  At farm level . dairy. frozen foods.Cold Storages Airport  Transportation . Collection Centre Intermediate ◆ A cold chain almost does not exist for fruit & storage B vegetables.Existing Cold Chain and shortcomings ◆ At the national level.Reefer Transport .Post Harvest Facilities Port  Storage . a cold chain exists only for Production Centre meat. since these business are Z dependent on a cold chain and exporters / players A are organized.

7% International transport costs 5. storage. India must lower its high cost of logistics of about 10-14%. which are double the cost of logistics in developed countries . i.e.6% Others only a month. of their perishability. Perishable products have an average shelf-life of 18.State of Transportation ◆ High transportation cost Contribution of elements of the supply chain to the CIF price ◆ India’s international transportation costs are 20-30% higher than their corresponding global counterparts 4.7% 6%. handling & wastage 3. Given the current inefficiency in the logistics system. i. thereby “time” is a critical factor in trade The World Bank 4.8%  International transportation costs account for over 51% Procurement cost of CIF price while inland haulage account for another 9. onions India needs become an efficient and low cost mover and distributor of commodities. Exporter's margins  As a result Indian products are 5 to 15% more Total Delivery 9.9% expensive than their foreign counterparts simply on this Costs ˜ 57% 51.3% Grading & packaging costs account Inland transport.e. ratio of exports to domestic production among F&V is strongly correlated with the degree • To become a successful exporter.

Costs are high since vans are in short supply as business is seasonal 3. the present costs of reefer transportation are exorbitant  Transport cost per MT/km is Rs. 6 for non-reefer trucks  Corresponding transportation cost per MT/km for reefer vans is Rs. In the off seasons. As per transport operators. 18-21! . The trickiest problem faced by truck operators is in catering to the seasonality of horticultural produce (especially fruit). reefers are able to haul goods only at a sub-optimal rate 4.Status of Transportation by Reefer Vans 1. Availability is low because producers do not use them due to high costs 2. which keeps the operators solvent from February to May.

none are being used for F&V (no demand and/or unsustainable charges)  Reefer wagons based in Bangalore are currently being used by the pharmaceuticals industry ◆ Cost of freight transportation by rail is comparable to road transport costs. Indian Railways has discontinued piece meal movement of agricultural goods and prefers to transport goods by block rakes (40 wagons)  Although this has reduced turn around time 5-fold (from 30 days to 6 days)  However. ◆ Currently. primarily grain and pulses throughout its widespread network in the country ◆ For the last 3 decades. However. **As per Study conducted by ICRA Management Consulting for APEDA in 2005-6 . Not lower.State of Rail Transportation ◆ Indian Railways has been transporting agro commodities. mangoes and oranges are transported by non-reefer wagons  They can be transported almost raw and ripened later ◆ Indian Railways procured 10 reefer wagons for transporting F&V. time for a container rake to travel from Delhi to Mumbai is 48 hours. only bananas.

There are currently no serious constraints in the number of reefer infrastructure in ports - 280 slots are available in JNPT and 672 in Nhava Sheva International Container Terminal (NSICT) . India’s reefer container exports have risen to about 1. reefer sector has heavily imbalances with more reefer containers going out than coming in 4. Currently the level of cargo containerisation is just over 16% as against over 50% globally 3.04 MT/year). State of Container Transport Inland and Port Container Stations 1.1 MT/year at an annual growth of 14% 5. As imports through reefers are very low (< 0. In the last five years.

◆ Improved infrastructure and better technologies and processes required to reduce losses and to meeting world standards ◆ Cold Chain is successful • Either in clusters of perishable producing areas .Our experience :Why improved infrastructure………. . 1. • Or having large players with backward integration.. 5. Pre-cooling is almost non existent and Sorting Grading Lines are unutilized especially for exports. Cold Chain provides linkages into the production areas and bring produce onto a modern supply chain that  Reduces transaction time  Reduces wastages  Retains quality ◆ Cold Chain is utilized during season / production otherwise remain unutilized.

Existing Cold Chain – Post Harvest! Post Harvest Transportation Pre Cooling Chambers .

Existing Cold Chain – Storage. Ripening and Grading ! Ripening Chamber Sorting & Grading Line .

Existing Cold Chain – Transportation ! Road Transportation Rail Transportation .

Irradiation Plants etc. 86. Establishment of common infrastructure Upto 100% grant in Assistance upto 100% of the cost of projects to State and Central aid Government Public Sector Enterprises for setting up of Centers for Perishable Cargo.APEDA’s Initiatives for Cold Chain Development Scheme for Development of Infrastructure Pattern A. Specialized infrastructure like VHT Machines. • Provided financial assistance to 22 Integrated Pack House projects in different States with a total assistance to the tune of Rs.35 crores . Laboratories. Pack Houses.

Centres for Perishable Cargo Amritsar Delhi Bagdogra Nashik Kolkata Mumbai Hyderabad CPC Facilities Goa ◆ Receiving area Bangalore ◆ Weighment Cochin Chennai ◆ X Ray ◆ Palletisation Trivendrum ◆ Cold Room .

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Rs. 10 lakhs Setting up of integrated post harvest-handling system 25% of the cost Ceiling . orgns. 10 lakh APEDA has provided assistance to the tune of Rs. Assistance for purchase of specalised transport units for ceiling .Rs. 25 lakhs Setting up of vapor heat or irradiation faciity 50% of the cost Ceiling – Rs.APEDA’s Initiatives for Cold Chain and Logistics Development PART II 25% of the cost A.59 lakhs in last three years in the above components of the Scheme. . precooling with proper 25% of the cost handling system Ceiling . 2. CA/MAP Ceiling – Rs. 25 lakhs Setting up of specialised storage facilities such as high humidity 25% of the cost cold storage.50 lakhs perishable products B. 5 lakhs storage For integrated mechanized handling. Assistance to exporters/producers/coop.Rs.etc. deep freezers. . for mechanisation of harvest and setting up of intermediate Ceiling – Rs. 957. 25% of the cost .

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9. high humidity cold storages. Around 200 integrated modern pack house with cold chain facility have been set up in the grape clusters within the radius of 200 kms. Cold chain is maintained right from the harvesting stage to maintain the quality and extend the optimum shelf life 3. pre coolers. reefer vans and other modern technology. This has resulted in India becoming a prominent quality supplier of grapes to EU 7. . Large investment by exporters for upgradation of infrastructure facilities like integrated pack houses. APEDA has introduced GrapeNet traceability system integrating the entire activities including maintenance of cool chain. 5.Cold Chain for Grapes 1.

• Exports has been constantly rising at a CAGR of 20% • Compulsory registration of abattoirs and meat plants • Registration of 21 modern and integrated Abattoirs and 36 Meat Processing Plants by APEDA • Adherence to Quality Standards • Compulsory Inspection by group of experts from various Central and State Govt. Departments • Strong Veterinary health infrastructure . • Currently India has been exporting meat to more than 60 countries.Cold Chain for Meat and Meat Products • World largest livestock population.

Cold Chain for Meat and Meat Products • Meat sector is one of the highly organised sector with substantial investment in cool chain • Effective implementation of cool chain assures in disease control and food safety • The cool chain is maintained right from the arrival of raw material till final despatch • The cool chain has been improving both in terms of technology and applicability • Replication of the modern cool chain concept introduced by developed countries to ensure supply of quality frozen boneless buffalo meat .

Cold Chain for Meat and Meat Products The entire supply chain is maintained at various stages Arrival of raw Chilling Processing material Cold Storage Freezing Packaging (Blast/Plate) Transportation (Inland Despatch + Outbound) • 21 integrated abbatoirs • 36 Meat Processing plants .

Suggestive Steps 1. ◆ Accreditation and monitoring of cold chain operators . Integration of Cold Chain infrastructure with various government agencies. 2. infrastructure needs to ❖ Be able to address specific needs of produce ❖ Be flexible enough to cater to emerging demands / requirements ◆ Adoption of world class technologies with energy efficient equipments ◆ A viable PPP models to establish cold chain. Given the wide dispersion of products and producing regions.

Fiscal incentives for Cold Chain Developers . Development of National Standards on Cold Chain 4. 2. Sorting Grading Line for maintaining consistent quality supply for exports meeting international standards 3. More thrust and investment on cold chain with support of government 5.Suggestive Steps 1. Awareness for optimum utilization of facilities like Precooling. Economic viability through mobile facilities like Precooling etc.

Thank You .