Saturday, June 10, 2023

Email id: support@kenresearch.com, Contact Us : +91-9871552944

Home Automotive, Transportation and Warehousing Growing food processing industry, shift in cropping patterns to horticulture, and Proactive...

Growing food processing industry, shift in cropping patterns to horticulture, and Proactive Govt. Policies and Financing Support will propel the growth of the Indian Agricultural Cold Storage Market: Ken Research

1. Cold storage capacity has increased year on year, however, there is a lack of modern storage facilities that hold back the industry’s extreme growth.

India Agricultural Cold Storage Market

The cold storage sector in India is driven by the increase in international trade because of liberalization in trade. Also, with the push by the government via various incentive-led schemes and recommendations of NCCD (2015), the number of cold storage units increased dynamically in August 2020. Although the highest number of units are concentrated in Uttar Pradesh, the top 5 states contribute >75% to total Indian capacity. This highlights the focus to ensure a well-distributed mechanism in India. Moreover, more than 80% of units are decades old in nature and lack modern techniques for storing more commodities, temperature control methods, etc. which inhibits the growth of the cold storage industry.

2. Inadequate capacity for multi-storage, high Opex, long gestation period & small unorganized players are some of the other pain points of this industry.

India Agricultural Cold Storage Market RevenueTo Know More about this report, download a Free Sample Report

While the cold storage capacity has increased at a CAGR of ~4.8% during 2010-20, it is still behind the capacity of New Zealand, the USA, and Great Britain in terms of availability per urban resident in cubic meters. There can be many reasons for it. One of them is the inadequate capacity for multi-storage. Around 68% of its capacity is suitable for potato storage only which makes it an economically not so-viable option in bumper years of production.

Also, only 20% of revenues of the cold chain sector are generated from Potato while the multi-purpose sector increases the capacity utilization rate and contributes 54% to total revenue. Moreover, the presence of small independent private players has restricted the growth of the industry as these players do not possess the required monetary backing for undertaking capacity expansion, technological advancements across cold chains, procuring reefer trucks, setting up mobile units, etc. Also, the low availability of skilled staff at economically viable rates increases the Opex.

3. Opening up of the sector and technological push is gearing up for unleashing the potential of the cold storage market in India.

India Agricultural Cold Storage Market ShareVisit this Link Request for a custom report

Despite having challenges, the industry is expected to grow in the future as multiple factors are working together to boost growth. One of them is the surge in the adoption of CA Technology. Cold storage operators with sound capacity & sizeable operations expressed willingness to upgrade their cold storage rooms with Controlled Atmosphere technology. Given the inherent benefits of technology, cold storage operators are looking to diversify clientele to export partners; fetching higher returns than normal market prices.

In addition to this, in 2020, Mumbai airport became the world’s largest airport-based temperature-controlled facility with a capacity of stock holding up to 700 tonnes at a time. Railways of India has been undertaking multiple steps via CONCOR & subsidiaries to establish/ operate cold storage units in various states. Entry of new players, increase in contract farming, and backward integration are some of the other trends and development in the industry.

RELATED ARTICLES

Malaysia Unorganized Automotive Aftermarket Services Market Poised to register a CAGR of over 11% during the period 2020-25. Will the projections justify growth?

91% of the market is captured by unorganized independent garages which offer personal touch, flexibility, convenience and economic services to the customer: Ken Research 1....

سوق الخدمات اللوجستية في المملكة العربية السعودية مدفوع بزيادة الطلب على صادرات النفط والغاز بشكل رئيسي عن طريق البحر وازدهار قطاع التجزئة والتجارة الإلكترونية...

Buy Now التحول نحو القطاع غير النفطي: تمتلك المملكة العربية السعودية حوالي 17٪ من احتياطيات النفط المؤكدة في العالم. يمثل قطاع النفط والغاز حوالي 50٪...

UAE logistics industry is concentrated with top 5 players contributing about 50% of the domestic express revenues in 2019- How will the 3 growth...

Buy Now 1. UAE oil and gas logistics market is driven by high contribution of exports to UAE government Click to Read Full Article: UAE Logistics...

Most Popular

Malaysia Unorganized Automotive Aftermarket Services Market Poised to register a CAGR of over 11% during the period 2020-25. Will the projections justify growth?

91% of the market is captured by unorganized independent garages which offer personal touch, flexibility, convenience and economic services to the customer: Ken Research 1....

سوق الخدمات اللوجستية في المملكة العربية السعودية مدفوع بزيادة الطلب على صادرات النفط والغاز بشكل رئيسي عن طريق البحر وازدهار قطاع التجزئة والتجارة الإلكترونية...

Buy Now التحول نحو القطاع غير النفطي: تمتلك المملكة العربية السعودية حوالي 17٪ من احتياطيات النفط المؤكدة في العالم. يمثل قطاع النفط والغاز حوالي 50٪...

ارتفاع القدرة الشرائية لأولياء الأمور في الإمارات العربية المتحدة مدعوما بالسعي المتزايد للتعلم التجريبي قد دفع نمو السوق: كين للأبحاث

Buy Now تزال صناعة أدوات الأنشطة وكذلك صناعة التعلم الإلكتروني في الإمارات العربية المتحدة في مرحلتها الوليدة ولم تكتسب الصناعتان معا وتيرة إلا بعد عام...

In 2021, the market size of (B2B) E-Commerce was worth over USD 5 Bn in India. Will India be able to stand on this...

Buy Now 1. Growth of B2B Start-ups in India. Trends and Developments in Indian Online B2B Industry (4,650) of Total Online Startups in 2019 provide B2B...