India wastes nearly 40% of its agricultural produce annually, amounting to a staggering Rs 92,000 crore—approximately 1% of the country’s GDP. This loss not only threatens food security but also aggravates the economic challenges faced by millions.
As climate change intensifies disruptions in agricultural production, cold chain logistics are emerging as a crucial solution. As global cold chain demand surges, India’s market, valued at $35 billion, is expected to reach $50 billion by 2027, making strategic investments in this sector more pressing than ever.
Impact of climate change on food security
Climate change is reshaping the landscape of agriculture in India. The country is grappling with rising temperatures, erratic rainfall, and increasingly frequent extreme weather events such as droughts, floods, and heat waves.
These disruptions are placing immense pressure on food production, with unpredictable harvests and crop failures becoming more common. The consequences of this are dire, not just for farmers but for the entire food supply chain. Food insecurity is emerging as one of India’s most pressing challenges, especially in a country where agriculture is the primary livelihood for over 55% of the population.
As the climate shifts, food production is not only becoming less predictable, but the quality and shelf life of perishable goods like fruits, vegetables, dairy, and meat are also being compromised. In a nation where food waste already amounts to approximately one-third of the total production, these losses are devastating, both economically and socially.
India’s food security challenges
India’s food security challenges are exacerbated by climate change, inadequate infrastructure, and inefficient supply chains. Despite being one of the world’s largest agricultural producers, the country faces staggering post-harvest losses, with up to 40% of food spoiled before reaching consumers. For fruits and vegetables, improper cold storage causes the loss of around 30% of produce, depriving consumers of fresh food and undermining farmers’ incomes, according to the Food and Agriculture Organization (FAO). This inefficiency leads to food scarcity and drives price volatility and inflation, particularly during lean seasons when supply tightens and demand surges.
With our population projected to reach 1.65-1.7 billion by 2050, the food demand will only intensify. To ensure food security amid these challenges, India must urgently innovate its food supply chains, particularly in managing perishable goods, to optimize storage, reduce waste, and meet the growing demand while addressing the impacts of climate change.
Role of cold chain in addressing food security challenges
Cold chain logistics have emerged as a vital solution to India’s food security challenges. By maintaining temperature-controlled environments from storage to transportation, these systems ensure that perishable goods such as fruits, vegetables, and meats stay fresh, safe, and nutritious as they travel from farm to fork.
With proper refrigeration and temperature management, the shelf life of these items can be extended, significantly reducing post-harvest losses and waste. This stabilisation helps curb price volatility and ensures a steady supply of fresh produce year-round.
Beyond food, cold chain logistics are crucial for India’s pharmaceutical sector. Climate change and rising temperatures threaten the stability of vital medical supplies, especially vaccines and temperature-sensitive medicines.
Cold storage solutions are essential to preserve their efficacy and safety. With innovations like real-time temperature monitoring and data analytics, the pharma industry can further enhance the reliability of cold chain systems, ensuring that life-saving products like insulin and vaccines remain in optimal condition during storage and transport.
Cold chain infrastructure in India
Despite its critical role, India’s cold chain infrastructure remains underdeveloped and fragmented. The country has about 100 million metric tons of cold storage capacity, but much of it is outdated or underutilised. In fact, of the 8,653 cold stores nationwide with a capacity of 394.17 lakh metric tons (MT), only about 60% is effectively used, according to NABARD Consultancy Services. This gap between capacity and utilisation significantly contributes to post-harvest losses and higher costs for producers and consumers alike.
Recognising the urgent need for modernisation, both the government and private sector are stepping up investments. Initiatives like the ‘Pradhan Mantri Kisan Sampada Yojana’ (PMKSY), ‘Mission for Integrated Development of Horticulture’ (MIDH), and ‘Agriculture Infrastructure Fund’ (AIF) are supporting infrastructure development through subsidies and policy support.
At the same time, tech-driven innovations are reshaping logistics. IoT-enabled sensors now allow real-time monitoring of temperature and humidity, reducing spoilage risks. Blockchain technology is also being explored to enhance transparency and traceability, building a more flexible and efficient cold chain ecosystem.
Future outlook
India’s cold chain sector is undergoing a transformative phase, driven by the pressing need to enhance food security amid climate change. Advancements in 5G technology and IoT devices will further revolutionise transportation management, making it more efficient and widespread.
While challenges in capacity, efficiency, and accessibility persist, sustained investments, innovative solutions, and cohesive partnerships offer a promising outlook. As the nation’s logistics infrastructure continues to modernize, the efficiency of cold chain utilization is expected to improve, contributing to reduced food wastage and economic stability. In this scenario, cold chain logistics stand as a cornerstone in ensuring food security and minimising post-harvest losses.
Swarup Bose, Founder and CEO, Celcius.
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