Integrated Cold Chain and Value Addition Infrastructure Scheme

The Ministry of Food Processing Industries (MoFPI) has highlighted the significant impact of the Integrated Cold Chain and Value Addition Infrastructure (ICCVAI) Scheme in reducing post-harvest losses of perishable commodities.

About Integrated Cold Chain and Value Addition Infrastructure (ICCVAI) Scheme

ICCVAI is a demand-driven central sector scheme administered by the Ministry of Food Processing Industries (MoFPI) under the Pradhan Mantri Kisan Sampada Yojana (PMKSY).
Objective: To create an integrated cold chain from farm to consumer, minimise post-harvest spoilage, and increase farmers’ income.
Financial Assistance: Provides grants or subsidies of up to ₹10 crore per project for setting up integrated cold chain systems.
- Covers 35% of eligible project costs in general areas and 50% in ‘difficult areas’ (e.g., Northeast, Himalayan regions, IITDP areas, and Islands), as well as for SC/ST groups, FPOs, and SHGs.
Scope: Encompasses perishable sectors like horticulture, dairy, meat, poultry, marine, or fish products.
- Fruits, vegetables, and shrimp are excluded and covered under the Operation Greens scheme.
Eligible Entities: Project Implementing Agencies (PIAs) may include individuals, FPOs, FPCs, NGOs, PSUs, cooperatives, SHGs, and private firms.

Achievements and Impact of the ICCVAI Scheme

Project Expansion: Over 370 cold chain projects completed by 2025, adding 13 lakh MT of modern storage capacity (MoFPI).
Loss Reduction: Post-harvest losses in perishables cut by 10–12%, improving food availability and farmer returns (ICAR).
Market Connectivity: Enhanced farm-to-market linkage for mango, banana, dairy, and fish through integrated logistics hubs (MoFPI).
Farmer Inclusion: Over 1,200 FPOs integrated into cold chain networks, increasing collective bargaining and income by 25–30%.
Export Growth: Processed food exports surged to US$ 9.5 billion in FY2024–25, up 15% year-on-year.

India’s Cold Storage Landscape

Total Capacity: India operates 8,815 cold storage units with a combined capacity of 40.2 million metric tonnes (MT), yet faces a deficit of ~35 million tonnes.
Capacity Utilisation: Existing cold storage facilities operate at about 70-75% efficiency.
Top States: Uttar Pradesh leads with 15 MT of capacity, followed by West Bengal and Gujarat.
Storage Distribution: Horticultural and agricultural produce occupy 83% of capacity, while processed foods and animal husbandry products utilise 9% and 7% respectively.
Dominant Crop: Potatoes have historically occupied around 70% of total cold storage space.

Key Factors Responsible for Post-Harvest Losses

Cold Chain Gaps: Only 10% of perishables use cold chains, leading to ₹92,000 crore worth of annual losses (ICAR).
Transport Inefficiency: Less than 1% of goods vehicles are refrigerated, causing 30–40% spoilage during transit.
Low Processing Levels: Barely 10% of fruits and vegetables are processed in India versus 40% in China, limiting value addition.
Storage Deficit: India faces a cold storage gap of 35 million tonnes, especially for perishables like fruits and dairy.
Market Fragmentation: Poor grading, multiple intermediaries, and weak farmer-market linkages reduce price realisation by 25–30%.

Key Challenges in India’s Cold Chain Ecosystem

Energy Burden: Cold storages spend up to 40% on power, with only 8% using renewables.
Regional Skew: 60% of capacity lies in western and southern India, neglecting eastern states.
Skill Deficit: Only 10% of the 1.4 million needed cold chain workers are trained.
Data Fragmentation: Lack of unified databases across ministries hampers cold chain planning.

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Way Forward for Cold Chain Development

Digital Monitoring: Deploy IoT and blockchain for real-time traceability and predictive logistics.
Green Transition: Expand solar cold rooms and eco-refrigerants to cut 30% energy costs.
Skill Training: Upskill 2 lakh workers annually via Skill India and PMKVY 4.0.
Cluster Hubs: Build 50 agro-logistics hubs under ODOP and Gati Shakti by 2030.

The ICCVAI Scheme marks India’s shift from production-centric to value-chain-centric agriculture, promoting efficiency, value addition, & higher farmer incomes through a technology-driven farm-to-fork model.

Reference: PIB

PMF IAS Pathfinder for Mains – Question 399

Q. “Post-harvest losses significantly erode farmers’ income in India.” Analyse the key factors responsible and evaluate how the Integrated Cold Chain and Value Addition Infrastructure (ICCVAI) Scheme addresses them. (250 Words) (15 Marks)

Approach

Introduction: Write a contextual introduction by mentioning the current fact.
Body: Analyse key factors responsible for post-harvest losses, mention how the ICCVAI scheme addresses this issue, and the way forward.
Conclusion: Emphasis on value-chain-centric agri-economy and mention future course of action.