National Horticulture Board

Heralding Golden Revolution

Govt. initiatives in
Cold Chain Development -
emphasis on Energy Efficiency

Dr. R.K. Sharma

Director
National Horticulture Board
Ministry of Agriculture, Govt. of India
(Former Core Expert (FAO, UN)
 Structure of Presentation
• Regulation through technical standards & financial
incentives
• R&D - Protocol for tropical produce
• NCCD-HRD
• MFPI
• WDRA
• Concessions in duties and FDI
• Multi-Modal Transport
• Prospect for cold chain development in the next
decade
• Role of Govt. in development process
• Synergy
In developing countries more than 40% of the food losses occur at post
harvest and processing levels, while in industrialized countries, more than
40% of the food losses occur at retail and consumer levels. Food waste at
consumer level in industrialized countries (222 million ton) is almost as high
as the total net food production in sub Saharan Africa (230 million ton).
 Govt. initiatives - milestones
• High Power Committee Study (1997-99)
• Lunch of first scheme (25% subsidy) in 2000
• NHB, NABARD, Commercial Banks, State Govt.
involved
• Cold Chain Task Force constituted (3.5.2007)
• Task Force Report (14.8.2008) - Implementation
• Technical Standard Committee constituted (16.6.2009)
• Implementation of Technical Standards starts 1.4.2010
• Creation of National Centre for Cold Chain
Development (27.1.2011)
 Technical Standards
and financial incentives
-regulatory tools
 Regulation through technical standards
• TSC submitted standards in February 2010, revision workshop
14.10.2011
• Amount of subsidy linked to the level of technology employed
through the following five technical standards notified
- Cold storages for storage of fresh horticulture products which do not require
pre-cooling
- Multi-commodity Cold storages for short term and long term storage of fresh
horticulture products which require pre-cooling and varying storage
requirements.
- Control Atmosphere (CA) Storages: Active modified atmosphere systems,
control of one or more gases (Oxygen, Nitrogen, Carbon dioxide) within an
enclosed space, is a Non-chemical process.
- Scientific Fruit Ripening Units
- Specialized Transport Vehicles including insulated and or refrigerated transport
vehicles for perishable food items including fresh fruits & vegetables.
 Enhanced Capital Investment Subsidy linked to Standards
1. Multi-chamber CS with mezzanine floors of RCC and or wooden structure: not
requiring pre-cooling; civil structure, insulations and cooling system as per
prescribed Standards; minimum two chambers - @ Rs 6,000 per MT
2. Multi-chamber and Multi-Product CS: excluding mezzanine floors CS & cost of
pre-cooling system; having rack pallets system & forklift, bins, crates and
safety devices against accident; civil structure, insulations and cooling system
as per Standards - @ Rs 7,000/ MT
3. Multi-chamber and Multi-Product CS: excluding mezzanine floors CS; having
on- or off-farm pack house facility of washing/de-sapping, drying, sorting,
grading, waxing, packing, pre-cooling system, rack pallets system & forklift (as
per site conditions), bins, crates and safety devices; civil structure, insulations
and cooling system as per prescribed Standards - @ Rs 8,000/MT
4. Modernization of Cold Storages: up-gradation of thermal insulation, cooling
system, refrigeration, air flow, electric installation, handling devices, safety
devices etc. Project based @ maximum Rs 1000/MT for (2) and upto Rs
2000/MT for (3)
5. CA Storages: @ Rs 32,000/MT (CA space) + 38,000/MT (CA Grading
Packing Systems etc)
6. Frozen Food Stores: @ Rs. 25,000/MT (500-1,000 MT capacity), @ Rs.
23,000/MT (larger capacity)
 Financial Incentives
• Enhanced project cost & Capital Investment Subsidy rate linked to
Standards
• Credit linked back-ended subsidy @ 40% of the capital cost of
project in general area and 55% in case of Hilly & Scheduled Areas
limiting to 5,000 MT storage capacity per project
• Depending upon the type of produce, different types of cold storage
defined; with mezzanine floors; with rack pallets system; with on- or
off-farm pack house facility
• Modernization of cold storages included
• Controlled Atmosphere cold storages with integrated lines
• PHM facilities including reefer trucks as integral part of projects
being encourage
 Energy Saving
• Power consumption in most projects 0.16
unit/day/MT (for 5000MT store) against ideal of
0.18-0.20 unit/day/MT, against 0.14 ideal
• 10 -15% energy saving, with automation
• Weight loss reduced 8 -10% to 2.3% presently
• Quality of the produced improved Use of Automation
like VFD, PLC especially in CA Store.
• Change of trend for automation
• Standards help in selection of equipment
R&D - Protocol for
tropical produce
 10.00
20.00
30.00
40.00
50.00
60.00
70.00
80.00
90.00
100.00

0.00
12.05 AM
2 6.0 0 85
12.05 PM .9
2 7.5 0 76
12.05 AM .3
2 6.7 0 87
12.05 PM .0
2 0.1 0 63
12.05 AM .7
1 5.9 0 70
12.05 PM .8
1 4.3 0 76
12.05 AM .2
1 4.8 0 86
12.05 PM .7
1 5.2 0 85
12.05 AM .3
1 4.7 0 84
12.05 PM .6
1 3.8 0 85
12.05 AM .5
1 3.6 0 85
12.05 PM .4
1 3.3 0 85
12.05 AM .7
1 3.2 0 85
12.05 PM .6
1 3.1 0 85
12.05 AM .7
1 3.0 0 85
12.05 PM .8
1 2.9 0 85
12.05 AM .7
1 2.9 0 85
12.05 PM .7
1 2.9 0 85
12.05 AM .6
1 2.9 0 85
12.05 PM .6
1 2.9 0 85
12.05 AM .5
1 2.9 0 85
12.05 PM .4
1 2.9 0 85
12.05 AM .4
1 2.9 0 85
12.05 PM .4
1 2.9 0 85
12.05 AM .7
1 2.9 0 85
12.05 PM .4
mangoes transport (June 2010)

1 2.9 0 85
12.05 AM .3
1 2.9 0 85
12.05 PM .4
1 2.8 0 85
12.05 AM .3
(%H) Mango Rh

85
(°C) Mango Tem p

1 2.9 0 85.3
12.05 PM
16- 16- 17- 17- 18- 18- 19- 19- 20- 20- 21- 21- 22- 22- 23- 23- 24- 24- 25- 25- 26- 26- 27- 27- 28- 28- 29- 29- 30- 30-
Jun Jun Jun Jun Jun Jun Jun Jun Jun Jun Jun Jun Jun Jun Jun Jun Jun Jun Jun Jun Jun Jun Jun Jun Jun Jun Jun Jun Jun Jun

1 2.9 0 .6
Successful Protocol for GI Dusheheri
Carrots storage; Wooden bins, Tolsma
Holland (left), bags in MS bins
18

16

14 13.5
13.5 13.3
13.2
1312.9
12.7
12.6 12.7
12.6
12.3
12.3
12.1
11.9
11.7
11.5
11.511.4
12
1111
10.6
10.4 10.4
10.2 10.1
10 9.9
9.8
9.7 9.8 9.9
9.69.5 9.5
10 9.4 9.4
9.2
8.98.8 Actual Chamber Temperature in degree C
8.6
8.2 88.1
7.7 7.7
Agreed Chamber Temperature Degree C
8 7.3
7.17 7.2 7.1 7.1
6.96.8
6.7
6.9 Product temp in degree C
6.56 .5 6.56.4 6.4 6.4
6.2 6.2
5.85.9 2 per. Mov. Avg. (Product temp in degree C)
6 5.45.3 5.45.4 5.25.3
5.1
4.94.9
4.7 4.6 4.7
4.4 4.5
4.3 4.1 4.34 .3
3.8 3.8
3.7 3.5 3.4
4 3.2 3.2 3.1
2.8
2.52.3 2.6
2.5
2.3
2.1 2.1
1.91.8 1.9 2
1.71.6 1.7 1.6
1.5
2 1.4
1 1 1 1 1 1 11.11.1 1 1 1

0
1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 53 55 57 59 61 63 65 67 69 71 73 75 77 79 81 83 85 87 89 91 93 95 97 99101103105107109111113115117119121123
 Observations
• Time taken in chamber loading to first temperature
recording: 4 days
• Initial recorded chamber temperature: 13.5 degree C
• Initial recorded product temperature: 16.5 and 16.7 degree C
• Date of chamber attaining holding temperature of 1 +/- 10%
degree C; 4 April '11
• Date of produce attaining holding temperature of 1+/- 10%
degree C; 4 April '11
• No. of days from date of sealing in produce attaining desired
holding temperature: 8 days
• Slope of Time - Temperature curve is indicative of smooth
cooling as captured by the probes; there is no rise in product
temperature either, however, material in certain pockets may
be watery causing foul smell during inspection on 27 April
'11, low temperature may not have allowed its spread.
National Cold Chain Development Centre
• Center of excellence for cold chain
development in India, and to help in reducing
wastage of food products at various levels of
supply chain and strengthen India’s
competitiveness in handling perishables.
• Autonomous body under the Ministry of
Agriculture
• Governing Council to have private and Govt.
members in the ratio of half and half.
Training on cold storage operations and
ripening protocols
HRD- Graduate Engineers Training
Ministry of Food Processing Industries
(MFPI) Initiative
 MFPI – Integrated Cold Chain
Infrastructure
• For Integrated Cold Chain, Value added Centers, Packaging
Center and Irradiation Facilities
• Infrastructure facilities without any break, from the farm gate
to the consumer.
• Salient Features
a) Minimal Processing Centre at the farm level and this centre
is to have facility for weighing, sorting, grading waxing,
packing, pre-cooling, Controlled Atmosphere (CA)/
Modified Atmosphere (MA) cold storage, normal storage and
IQF.
b) Mobile Pre-cooling vans and reefer trucks
c) Distribution hubs with multi product and multi CA/MA
chambers cold storage/ variable Humidity chambers, packing
facility, CIP Fog treatment, IQF and blast freezing
d) Irradiation facility
 Pattern of release of grant
• 1st installment of 25% after 25% of the promoters contribution
and 25% of the term loan spent on the project
• 2nd installment of another 50% after utilization of first
installment of grant and 75% of promoter contribution and
75% of term loan. Utilization Certificate of the first
installment shall be submitted by the promoter at the time of
making claim for the second
• 3rd and final installment of remaining 25% after utilization of
the second installment and 100% of promoter contribution and
100% of term loan has been invested. Utilization certificate of
the second installment shall be submitted by the promoter at
the time of making claim for the 3rd and final installment
• Implementation schedule would be about 18 months from the
date of the approval of each project
Warehousing Development and
Regulatory Authority (WDRA)
Accreditation for Cold Storage
 Why Accreditation?
Storage Conditions for Potatoes
Fresh Potato Temperature Storage Period Relative Humidity

Early Crop 4 – 10°C 0 – 3 months * 95%

Seed Potato 3°C @ 5 – 10 months 90 – 95%

Table Potato 4°C 5 – 10 months 90 – 95%

For French Fries 7.2 - 10°C 1 – 10 months ** 90 – 95%

For Chipping 7.2-10°C # 1 – 8 months ** 90 – 95%

 Commodity Storage Conditions
Group Storage Conditions
1 0 to 2°C (32 to 36°F), RH
90-95%
2 0 to 2°C (32 to 36°F), RH
95-100%
3 0 to 2°C (32 to 36°F), RH
65-75%
4 4.5°C (40°F), RH- 90% -
95%
5 10°C (50°F), RH-85-90%
6 13°C to 15°C (55°F to
60°F), RH-85-90%
7 18°C to 21°C (65°F to
70°F), RH- 85-90%
F &V
Apples, Apricot, Grapes
Cherries, broccoli, cabbage, carrots, pears,
cauliflower, mushroom
Garlic, onion
Tangerines, oranges
Tamarind, cucumber, okra
Banana, papaya, lemon, mangoes, ripe
tomatoes
Yams, sweet potatoes, mature green
tomatoes, water melon
 Cold Storages Warehouses Manual
(Horticulture Produce and Processed Food Items)

• Application Form for Warehouse Accreditation

• Description of Cold Storage Warehouse
• Identity of Warehouseman and Capacity to Discharge
Liability
• Goods to be Stored, Storage Conditions and Insurance
Cover
• Managerial Competence
• Storage Worthiness of Warehouse
• Check List for Accreditation Agency
• Guidelines for Grading, Packaging, Marking and
Labeling, Stacking and Storage
 Commodities for issuance of NWRs

1. Table Potatoes (with or 10. Red Chilies 19. Pomegranate

without CIPC application)
2. Seed Potatoes 11. Almond 20. Onion (Fresh or
dehydrated)
3. Processing (Potatoes 12. Tamarind 21. Carrots
With CIPC application)
4. Apples 13. Date Palm 22. Garlic (Fresh or
dehydrated)
5. Grapes 14. Lemon 23. Dried Edible
Mushrooms
6. Raisins 15. Nagpur Mandarin 24. Ginger (Fresh
dehydrated)
7. Turmeric 16. Kinnow 25. Frozen Processed
horticulture Items in IQF
or Blast Freezing.
8. Cinnamon 17. Khasi/Darjeeling 26. Seeds & Bulbs
/NE Oranges
9. Coriander (Dry) 18. Sweet Lime
Concessions in duties
and FDI
 Concessions in duties & taxes
• Central Excise Duty: Full exemption for specified equipments
for storages or transport, self loading/unloading trailers/semi-
trailers.
• Customs Duty: Full exemption for manufacture of refrigerated
vans/trucks; bio-polymer/bio-plastics; and concessional duty of
5% for initial setting up or substantial expansion of a cold storage,
cold room, processing
• Service Tax: Exemption for ‘Erection, Commissioning or
Installation’ of Mechanized Handling Systems; Cold Storage
equipment; transport; Technical Testing; Analysis Service and
‘Technical Inspection and Certification Service’ provided by
Central and State seed testing and certification
laboratories/agencies.
• Foreign Direct Investment Cold Chain: Establishments already
in place
 Trial
Multimodal Transport System
Test Case for SPV – Multimodal Transport
System
• Ground Truth: Bulk Transport of Banana, Onion, Mangoes,
Potatoes taking place by BCN wagons
• Banana: Bhusawal - Azadpur/Kanpur
• Onion: Nashik - Kolkata /Fatuha /Guwahati
• Mangoes: AP - Azadpur
• Chikoo: Amalsad - Azadpur
• Potato: Agra/ Azadpur - Guwahati / Kolkata

Railway Presently Provides

a. 50% freight discount on parcel rate
b. Applies carrying capacity formula
c. Provides Assured Transit Time Facility
d. More than 5 hours loading time
Fruit Movement
 Inner side View- Insulation, Ventilation and
Doors
Surface Insulation

3 Doors

Ventilation
Holes
Features of Specially Fabricated Freight Containers
for Long Distance Transport Solution for Fresh F & V

• Proper Thermal Insulation

• Proper ventilation
• Preference for Multi-modal Transport System
• Facility for Loading & Unloading at Railway
Sidings and at Warehouse Loading Platform
• Easy Switchover to Refrigerated System
• ISO Standard for Engineering Design
Loading in Bunches, Plastic Crates and CFB Boxes (Left Top,
3th August 2011) Azadpur Market Delhi (19 August 2011)
Horticulture Train
Prospect for cold chain development in
the next decade
 Availability of Cold Storages

• India has 6,488 cold storage with a cumulative installed capacity of approximately 30
million Metric Tons
• More than 30% of the cold storage units (~10 mill tons) have been built in the previous
10 years and reports states another 30+ million tons capacity is to be built
• 12th Five year plan target 40 lakh MT for cold chain infrastructure & reefer transport
 The gap in cold storage capacity in
various states
• Cold Storage Requirement: 611.30 lakh MT
• Present Capacity: 242.98 lakh MT
• Gap: 368.32 Lakh MT
Source: DMI & NSE study 2010

• 12th Five year plan target 40 lakh MT for cold chain

infrastructure & reefer transport
 PHM-Cold Store Integration
(Value Chain)

Most of the cold stores are stand alone units (84%), only 16%
being part of a network (value chain). Transport services were not
provided by 80% of the cold storage units. Of the 20% that
provided transportation, 52% had an outsourced asset base.
High Operating Expenditure will see change

• About 28% of the total expenses for cold storages in India is

accounted for by energy expenses compared to only 10% in
the West
• About 30-35% of the losses can be reduced by transporting the
freshly harvested fruits and vegetables in refrigerated
containers or in suitable containers, crates etc.
• investment costs in the back-up systems of cold storages
further makes the setting up of cold storage difficult, unviable
and uneconomical
• Alternate sources of non-conventional energy to be tapped
Difference in reefer exports between peak
month and slack month per country
Role of Govt. in development process
 Govt. policy interventions to develop
integrated Cold Chain
• No Clear cut policy on cold chain development, presently
• Need for Adoption of modern Technology in Warehousing
Business Model of Cold Chain Infrastructure
• Enforcement of Technical Standards for Specialized / Reefer
Transport System as regulatory tools for claiming subsidies
• Generating minimum critical mass of Skilled Man-Power
• Creating synergy for Indian produce and institutions
• Specialized Purpose Vehicle (SPV) for Cold Chain Logistics
Initiative
• National Centre for Cold Chain Development (NCCD)
activation
Compliance cost and benefit to economy
- Pack house, Ropeways, Conveyor belts etc: 400
-Cold storage with mezzanine floors: 2,400
-Advance Cold storages: 640
-CA Storages: 1,440
-Onion storage: 750
-Refrigerated vans: 500
-Multi-modal transport system for horticulture produce: 100
-Fruit Ripening Chambers: 800

• Total: 7,030 (Rs. Crores in 12th Plan Working Group Report)

• Investment of about Rs 7,000 crore to go upto Rs 18,000
crores, on the conservative estimates
• Sectors such as meat, fish, poultry, dairy products,
confectionery and pharmaceuticals to double to Rs 40,000
crores
 Socio - Economic Impact of Cold Chain
• Farming Community getting better price encouraged
their bargaining power
• Availability of large period of fruit like Apple 9
months, Carrot & Lemon 5-6 months in onion
through out of the year
• Diversification and improved quality of processed
potato and seed potato
• Wide verities of F&V imported through cold chain
• Enhancement of processing industry raw material and
LCC
 Synergy with other Institutions
• Indian Research Centers: CPRI (Potato Storage), CISH
(Mango Protocols) helped. ISHRAE, ASHRE can
provide inputs for critical areas
• International: GCCA for basic concepts & conditions
through WFLO, IARW, IART. India member to IIR,
Paris. GeorgiaTech Cold Chain Management & logistics
Courses; Cold chain management, Assessment and Audit,
Strategies for Successful handling of Fresh Produce,
Integration.
• Integration through Knowledge sharing and awareness by
CII, FICCI etc.
 Possibility for generating synergy
• Firming up critical storage condition for fresh Fruits &
Vegetables for Indian conditions taking for to account
locally produced varieties of F&V and agro-climatic
condition; so far we have been adopting WFLO standards
without fine tuning them for Indian conditions.
• Economically viable technology solutions in terms of
integrated cold chain for tropical fruits like mangoes,
banana and mandarin; so far cold chain technology
solutions are, generally, not fitting into economics of trade
• HRD for all levels of industry – may be with help of
existing institutions.
• Bring cold stores under Warehousing Regulatory
Authority system for credit receipts (initially apple, potato,
spices etc)
Thank You
directornhb@yahoo.com , sharmark54@yahoo.com