Hydrogen trucks, smart warehousing, and the cold chain comeback

Sanjay Aggarwal, CMD of Dev Bhumi Cold Chain, envisions a future where India’s cold chain logistics matches global standards. With advanced infrastructure, green energy solutions, and strategic government support, cold chain development can reduce food waste and ensure better food security across South Asia.

What do you envision for the cold chain warehousing and logistics market?

We do not need a clairvoyant to envision the future of the Cold Chain in India. All you have to do is see the developed nations. If they are 50 years ahead of us, you can be sure we will get there in 20 years. If India continues to develop at its current momentum, we can expect to see state-of-the-art green energy warehouses. We should also see 40-foot electric or hydrogen-powered reefer trucks on air-shocker systems travelling across a vast network of well-designed highways crisscrossing our great country.

How can cold chain logistics play a pivotal role in reducing food waste and improving food security in South Asia?

India is a world in itself with many different climates and geographical features. We have the highest mountains, rain forests, deserts, deltas, plains, and so on, and South Asia even more so. With this varied microcosm of ecosystems, produce comes up in many different parts of this area. Large populations in this area are unaware of the variety of food grown in South Asia.

Only the evolution of Cold Chain logistics can play a pivotal role in making these food items available in different parts of the vast market that is South Asia. Along with such an evolution comes automatically ‘food security’. If produce reaches a larger area, farmers benefit from better price realisation and reduction of food waste. Also, consumers everywhere can enlarge the variety of their palate and consume more micronutrients, achieving a healthier, happier and more productive life. For example, every year, the Gange river brings down more than 3 Billion Tons of Minerals from the Himalayas and spreads them on the plains of India, making it the single Richest and most fertile land in the world. India is already the second-largest producer of fruits and vegetables globally, but that too at dismally low yields. For instance, India produces 5.5 Tons of Apples per Hectare. Compare that with 60 to 100 Tons/hectare in the developed world. If our yield reaches those levels, India can feed six such worlds! All this can come about through the evolution of the Cold Chain, with the resultant prosperity of the farmer, lower food prices, lower inflation for the consumers, and a healthier, happier, and more productive population.

Please suggest measures to strengthen the cold chain business in India.

The government has to recognize the challenge as above. A two-pronged approach is needed. On the one hand, extension programs that have remained ineffective over the past 70 years need to be revamped and made a party to (and answerable to) private cold chain businesses that depend upon the quality and quantity of production to take their businesses to the next level.

Conversely, the government must partner with committed stakeholders in the cold chain field, powered by a well-thought-out plan. Not like the present subsidy schemes, which, while promising a 50 percent subsidy for setting up Cold Chain Projects, limit the cost of CA Storage at Rs.10,000/ton + something (woefully inadequate) for other components like optical sorting/grading lines, etc., whereas a technically good project would cost a little over Rs.100,000/ton. So finally, the realized subsidy for a technically good project amounts to ~7% instead of the promised 50 percent. Besides being dishonest, such a scheme provides a powerful impetus to substandard projects (which is certainly NOT the intention of the Govt.) as the emphasis of new budding entrepreneurs is forced upon much lower costs, and they end up with failed projects. The government should announce a well-thought-out scheme to serve as a proper guide to entrepreneurs and honestly promise the right percentage (which may be 7 or 10%) of subsidy to serious players in the now somewhat mature cold chain field.