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Cold Chain APEDA

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  • 8/8/2019 Cold Chain APEDA

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    Cold Chain and Export Opportunities

    APEDAMinistry of Commerce and Industries

    Government of India

    9th December, 2009

    PRESENTATION

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    Promotion of Export Oriented Production

    Support for R&D and Quality Assurance

    Fixing of Quality Standards and Specifications for the Scheduled

    Products

    Inspection & Certification of Processing Plants, Storage and

    Transportation Points for Meat Products

    Infrastructure for Transportation Handling and Storage

    Improving Packaging of Products

    Market Development and Promotion

    Market Intelligence Undertaking Surveys & Feasibility Studies

    Training in Various Aspects of the Scheduled Products Industries

    APEDAs Mandate

    (From Section 10 of the APEDA Act, 1985)

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    1. Fruits, Vegetables and their products

    2. Meat and Meat Products

    3. Poultry and Poultry Products

    4. Dairy Products

    5. Confectionery, Biscuits and Bakery Products

    6. Honey, Jaggery and Sugar Products7. Cocoa and its Products, chocolates of all kinds

    8. Alcoholic and Non Alcoholic Beverages

    9. Cereal & cereal products

    10. Groundnuts, Peanuts and Walnuts

    11. Pickles, papads and Chutneys

    12. Guar Gum

    13. Floriculture and Floriculture Products

    14. Herbal and Medicinal Plants

    Products Monitored

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    Establishing India as a supplier of quality agro and

    food products in the global markets.

    Vision

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    Global Trade - 23431 Billion US$

    Agriculture In Global Trade - 1554 Billion US$

    % Share In Global Trade - 6.63 %

    Major Agri Trade Players - USA ,Germany, France , UK , Japan

    Agri Trade - Global Vs India

    Value : (Billion US$)

    Global India % Share

    Agri Trade 1554 21 1.35

    Agri export 751 14 1.86

    Agri Import 803 7 0.87

    Source: UN COMTRADE Year 2007

    Macro Indicators

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    Globally India occupies a prominent position in productionGlobally India occupies a prominent position in production

    Source: NHB

    Vegetables

    Others

    54%

    China

    29%

    Italy

    1%

    Iran

    1%

    Turkey

    2%

    Egypt

    1%Japan

    1%

    USA

    3%

    Russia

    1%

    Spain

    1%

    India

    6%

    Fruit

    Others

    60%

    China

    11%

    India

    7%

    Brazil

    5%USA

    5%

    France

    2%

    Philippines

    2%

    Iran

    2%

    Mexico

    2%

    Spain

    2%

    Italy

    2%

    Commodity ProductionIndias Rank in

    the World

    Bananas, Buffalo Milk, Chick Peas, Ginger, Buffalo Meat, Lentils,Mangoes, Millet, Okra, Peas, Pulses, Sesame Seeds, Spices, Tea 1

    Beans, Cabbages, Cauliflower, Eggplants, Garlic, Lemons/Limes, Dry

    Onions, Pumpkins, Fresh Fruits, Fresh Vegetables. 2

    Coconuts, Nutmegs, Potatoes, Rapeseed, Sorghum, 3

    Oranges, Papayas, Pepper, Pineapples, Tomatoes 4

    Indigenous Chicken Meat, Lettuce, Soybeans 5

    Hen Eggs, Maize 6

    Honey, Sunflower Seed, Walnuts, 7

    Cantaloupes & Other Melons, Grapefruit & Pomeloes, 8

    Sweet Potatoes 9

    Apples 10Source: FAO

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    7

    Share of Agri. Exports inTotal Exports from India

    Value in US $ billion

    Source : DGCI&S

    2006-07 2007-08 2008-09

    Total merchandise exports 127.35 159.25 183.01

    Export of all agri. products 11.60 16.83 16.93

    Export of products monitored by APEDA 4.86 7.93 7.50

    Share in total merchandise exports 3.81 4.98 4.10

    Share in all agri. exports 41.86 47.11 44.30

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    9 2 1 3

    1 0 1 6 9

    1 3 8 2 8

    1 4 1 8 4

    1 6 8 2 8

    2 1 8 0 6

    3 1 8 7 1

    3 4 4 5 1

    2 0 0 0 - 0 1

    2 0 0 1 - 0 2

    2 0 0 2 - 0 3

    2 0 0 3 - 0 4

    2 0 0 4 - 0 5

    2 0 0 5 - 0 6

    2 0 0 6 - 0 7

    2 0 0 7 - 0 8

    2 0 0 8 - 0 9

    18783

    Value Rs. Crores

    Export of APEDA Products

    Source : DGCIS

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    Export of Perishable produce requiring cold chain

    Flriculture and Seeds

    399.4

    415

    482.26

    488.71

    0 100 200 300 400 500 600

    2005-06

    2006-07

    2007-08

    2008-09

    Fresh Fruits and Vegetables

    1697.39

    2468.32

    2437.11

    4399.04

    0 1000 2000 3000 4000 5000

    2005-06

    2006-07

    2007-08

    2008-09

    Livestock Products

    3851.19

    4118.56

    6914.26

    5129.26

    0 2000 4000 6000 8000

    2005-06

    2006-07

    2007-08

    2008-09

    Value in Rs. cro

    Processed food is becoming high value with IQF

    products which require Cold chain facilities

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    Cold Storages in India

    1. 82% of existing cold storage capacity in the country is dedicated for potatoes

    In North and Eastern states, which account for the largest production zone for potatoes,over 93% of cold storage capacities is dedicated for them

    Cold storage for potatoes can cater to the temperature needs of only a small number ofproducts such as onions, apples

    State/UT POTATOES

    No. Capacity Distribution

    Central 118 580832 4%

    East 594 5225207 33%

    North 1917 9574757 60%

    North East 0 0 0%

    South 3 0 0%

    West 168 587284 4%India 2800 15968080

    81.7%

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    State/UT MULTIPURPOSE

    No. Capacity Distribution

    Central 98 507109 16%

    East 128 437597 13%

    North 258 730425 22%

    North East 38 108716 3%

    South 291 873433 27%

    West 260 608657 19%

    India

    1073 3265937

    100%

    16.7%

    Only 16.7% of the total cold storage capacity is dedicated for Multi - purpose

    Cold Storages in India

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    State/UT FRUITS & VEG.

    No. Capacity Distribution

    Central 4 2577 6%

    East 0 0 0%

    North 11 9733 22%

    North East 0 0 0%

    South 13 12950 29%

    West 95 19157 43%

    India123 44417

    100%

    0.2%

    Only 0.2% of the total cold storage capacity is dedicated for fruit and vegetables

    Largest share of the capacities are in the western region, probably due to the fact that most of theexports happen from the region

    Cold Storages in India

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    Components of the Cold Chain

    ColdChainInfrastructure

    Stationary Storage facilities with Controlled Atmosphere

    (CA) / Modified Atmosphere (MA) facilities

    Pre-cooling facilities

    Mobile

    Special

    Reefer trucks for road transport

    Reefer Containers movement by rail

    Reefer container exports by sea

    Air Transport

    Special facilities to improve the shelf life of the

    products and increase its value

    Sorting and grading facilities

    Treatment facilitiesPackaging and Palletisation

    Laboratories and R&D Centres

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    Existing Cold Chain and shortcomings

    x At the national level, a cold chain exists only for

    meat, dairy, frozen foods, since these business aredependent on a cold chain and exporters / players

    are organized.

    x A cold chain almost does not exist for fruit &

    vegetables, lack of backward integrated cold

    chain lead to underutilization of common

    facilities

    x Losses are highest at the farm level without

    proper cold chain

    x The existing chain breaks at all principal nodes

    At farm level - Post Harvest Facilities

    Storage - Cold Storages

    Transportation - Reefer Transport

    Collection

    Centre

    Intermediate

    storage

    Local Markets

    Airport

    Port

    Foreign Market

    A

    BG

    C

    ED F

    Production

    Centre

    Z

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    State of Transportation

    x High transportation cost

    x Indias international transportation costs are 20-30%

    higher than their corresponding global counterparts International transportation costs account for over 51%

    of CIF price while inland haulage account for another6%.

    As a result Indian products are 5 to 15% moreexpensive than their foreign counterparts simply on thisaccount

    3. Perishable products have an average shelf-life of

    only a month, thereby time is a critical factor intrade

    4. Given the current inefficiency in the logisticssystem, ratio of exports to domestic productionamong F&V is strongly correlated with the degreeof their perishability, i.e. onions

    51.3%

    4.7%5.8%

    9.7%

    9.9%

    18.6%

    International transport costs

    Procurement cost

    Exporter's margins

    Grading & packaging costs

    Inland transport, storage,

    handling & wastage

    Others

    Total Delivery

    Costs 57%

    Contribution of elements of the supply chain to the CIF price

    The World Bank

    To become a successful exporter,

    India needs become an efficient and

    low cost mover and distributor of

    commodities, i.e. India must lowerits high cost of logistics of about

    10-14%, which are double the cost

    of logistics in developed countries

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    Status of Transportation by Reefer Vans

    1. Availability is low because producers do not use them due to high costs2. Costs are high since vans are in short supply as business is seasonal

    3. The trickiest problem faced by truck operators is in catering to the seasonality

    of horticultural produce (especially fruit), which keeps the operators solvent

    from February to May. In the off seasons, reefers are able to haul goods only at

    a sub-optimal rate

    4. As per transport operators, the present costs of reefer transportation are

    exorbitant Transport cost per MT/km is Rs. 6 for non-reefer trucks

    Corresponding transportation cost per MT/km for reefer vans is Rs. 18-21!

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    State of Rail Transportation

    x Indian Railways has been transporting agro commodities, primarily grain and pulses throughout itswidespread network in the country

    x For the last 3 decades, Indian Railways has discontinued piece meal movement of agricultural

    goods and prefers to transport goods by block rakes (40 wagons)

    Although this has reduced turn around time 5-fold (from 30 days to 6 days)

    However, time for a container rake to travel from Delhi to Mumbai is 48 hours.

    x Currently, only bananas, mangoes and oranges are transported by non-reefer wagons

    They can be transported almost raw and ripened later

    x Indian Railways procured 10 reefer wagons for transporting F&V. However, none are being used

    for F&V (no demand and/or unsustainable charges)

    Reefer wagons based in Bangalore are currently being used by the pharmaceuticals industry

    x Cost of freight transportation by rail is comparable to road transport costs. Not lower.

    **As per Study conducted by ICRA Management Consulting for APEDA in 2005-6

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    State of Container Transport

    1. Currently the level of cargo containerisation is

    just over 16% as against over 50% globally

    3. In the last five years, Indias reefer containerexports have risen to about 1.1 MT/year at anannual growth of 14%

    5. As imports through reefers are very low (


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