India Region

India’s Cold Chain Needs Shift from Capacity to Connectivity as Post-Harvest Losses Reach $18.5 Billion

India has built a substantial cold-storage network, but an ASSOCHAM-ASCELA report highlights the need for greater integration, utilisation and end-to-end connectivity to reduce post-harvest losses and strengthen agricultural value chains.

11 September 2026, New Delhi: India’s cold-chain sector needs to move beyond expanding storage capacity and focus on better integration, utilisation and connectivity across agricultural supply chains, according to a new ASSOCHAM-ASCELA Knowledge Report released at the ASSOCHAM Cold Chain and Warehousing Summit in New Delhi.

The report estimates India’s annual post-harvest losses at nearly USD 18.5 billion, while only around 4% of perishables currently move through organised cold-chain networks. The figures point to significant opportunities to improve temperature-controlled logistics for fruits, vegetables, dairy, fish and other perishable commodities.

India had 8,815 cold-storage facilities with a combined capacity of 40.22 million tonnes as of June 2025. However, capacity is projected to reach 43.7 million tonnes by 2031, representing a compound annual growth rate of just 2.2%.

The report therefore calls for a shift in focus from simply creating additional capacity towards developing multi-temperature and multi-product facilities, improving asset utilisation and establishing seamless connections between farms, processors, warehouses, transport networks and markets.

From storage capacity to value preservation

Speaking at the summit, Sukanta Kumar Panigrahi, Member of Parliament and Member of the Parliamentary Standing Committee on Agriculture, Animal Husbandry and Food Processing, Government of India, said India’s next challenge is to preserve more of the agricultural value it produces.

“India produces enough. Now, India must preserve enough,” Panigrahi said, stressing the importance of managing time and temperature across perishable supply chains.

He said cold chain should not be viewed solely as logistics infrastructure, but as an important component of farmer incomes by helping connect agricultural production with processing, markets, consumers and export opportunities.

Connectivity becomes the next priority

Saandip Wadhwa, Chairman, National Council on Logistics and Warehousing, ASSOCHAM, and Group Director, JM Baxi Group, said warehousing and cold chain are becoming strategic enablers of food security, farmer incomes, exports and industrial competitiveness.

While India has made progress in building physical infrastructure, he said the next phase should focus on connectivity and integration rather than capacity alone.

Sanjay Bajpai, Industry Veteran and Advisor, National Council on Logistics and Warehousing, ASSOCHAM, and Former Executive Director, CONCOR, said global supply chains are increasingly dependent on standardisation, quality preservation and resilience.

He noted that warehousing and cold-chain infrastructure will become increasingly integrated with broader supply-chain networks as agricultural and food products move into domestic and international markets.

Financing the cold-chain ecosystem

The financial sector also sees opportunities to support the expansion and modernisation of India’s cold-chain infrastructure.

Mata Prasad, DGM – ABU and GSS, State Bank of India, said financing can support activities across the agricultural value chain, including cold-storage construction, plant and machinery and working capital.

He said SBI evaluates the wider agri value chain and develops financing solutions according to the nature of the activity, borrower and cash-flow profile.

Growing agricultural output increases the need for efficient logistics

Devendra Kumar Dhodawat, Former Additional Chief Secretary to the Governor of Kerala and Member, Warehousing Development and Regulatory Authority (WDRA), highlighted the scale of India’s agricultural production.

India recorded foodgrain production of approximately 358 million tonnes in 2024-25, while horticulture production reached around 371 million tonnes.

With agricultural and horticultural output continuing to expand, Dhodawat called for greater attention to integrated, efficient and sustainable cold-chain infrastructure as India works towards its Viksit Bharat 2047 objectives.

Amrit Lal Meena, Former Chief Secretary, Government of Bihar, and Former Special Secretary (Logistics), DPIIT, Ministry of Commerce, Government of India, called for closer coordination between industrial development and logistics infrastructure.

He said industrial townships, warehousing facilities and multimodal logistics parks—including smaller logistics parks—should be developed around trunk infrastructure, railway lines and highways.

Sustainable cold chains and export competitiveness

The summit featured three thematic sessions covering future-ready warehousing and cold-chain infrastructure, sustainable cold chains for global markets, including green warehousing and smart refrigeration, and multimodal logistics for seamless supply-chain connectivity.

A special address was also delivered by Ajit Kumar Panda, Chairman and Managing Director, CONCOR.

The event concluded with remarks from Saurabh Sanyal, Secretary General, ASSOCHAM, who highlighted the importance of practical measures to strengthen India’s cold-chain, warehousing and multimodal logistics ecosystem.

The report’s findings highlight a critical issue for Indian agriculture: production growth needs to be matched by the ability to preserve, transport and market perishable commodities efficiently. Strengthening cold-chain integration could help reduce post-harvest losses while improving farmer returns, food security and India’s competitiveness in global agricultural markets.

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