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Cold Chain Logistics in India: A Study
Abstract
Cold Chain refers to the transportation of temperature sensitive products like perishable goods from the point of origin to point of consumption in the food supply chain, which keeps it fresh and edible for a much longer period than in normal conditions. Cold Chain helps in transporting seasonal products and also making it available throughout the year. Two main parts of cold chain are transportation and storage systems. The key Indian industries where cold chain logistics play very important role are fruits and vegetables, milk and milk products (ice cream), Poultry and processed meat, marine products, pharmaceutical (mainly vaccines) and chemicals. An efficient cold chain industry ensures availability of food products as well as prevents spoilage of medicines. Country like India, where infrastructure is one of the major challenges, cold chain plays a critical role. Analysis for this study shows that cold supply chain network does not differ significantly from products to products at least in Indian scenario. Some of the challenges to the growth of sector in India are high energy cost, power deficit, rising real estate cost, lack of logistical support and uneven distribution of capacity. All these challenges bring down the operating margin of a company and makes it not so attractive business sector. But during last couple of years there is a positive environment being created for this sector in India. The growth in organized retail, growing interest in horticultural crops, demand for cold chain logistics from Pharmaceutical industry and various initiatives by government are some of the reasons why there is a renewed interest in this sector especially by private sector players. This study, which is focused on Indian cold chain logistics, analyzes the industry on PEST (Political, Economy, Social and Technology) model and presents top 3 factors on each of these 4 parameters.
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