Khushboo Gupta, Principal Research Associate, AEEE, and Santosh Kumar Saini, Senior Research Associate, AEEE, explain how cold chain infrastructure can enhance the resilience of rural farmers to climate variability and benefit public health
As the world’s second-largest producer of fruits and vegetables, India grapples with significant post-harvest losses amounting to 15 per cent-20 per cent of produce due to the absence of an integrated farm-to-table cold-chain system. The lack of an integrated cold-chain deteriorates food’s quality, nutritional value and safety and has ramifications for people’s health. It also increases greenhouse gas emissions and inflicts economic setbacks reverberating across livelihoods. Access to sustainable cold-chain solutions is a crucial enabler for solving these challenges and achieving Sustainable Development Goal (SDG) 2 (Zero Hunger) for the over 800 million people who suffer from hunger. SEforAll, in their report “Chilling Prospects-2022”, estimated that due to a lack of sustainable cold-chain solutions across the globe, 526 million tons of food production is lost every year, a factor that also contributes to the 15 per cent reduction in smallholder farmers’ income.
The backbone of India’s agricultural sector comprises small and marginal farmers, constituting about 90 per cent of the farming community, with women farmers representing 20 per cent to 50 per cent across various states. Despite available cold-chain solutions, these farmers face critical challenges related to awareness, accessibility, and affordability. With rising temperatures, prolonged summers, and frequent extreme weather events like heat and cold waves, climate change is no longer a distant problem; this year’s summer exemplifies this. A recent report, “State of Marginal Farmers of India-2024,” indicates that about 10 per cent of farmers experience these extreme events four times a year, while around 50 per cent face them annually. While addressing this issue requires global mitigation efforts, local adaptation strategies are pivotal, too, especially in vulnerable communities.
Cold-chain solutions at the source of production, ie the farms, are crucial for preserving produce freshness by rapidly removing field heat and slowing degradation. A cold room, typically with capacities ranging from 10 to 20 metric tons, is a thermally insulated chamber essential for storing agricultural produce under controlled conditions. It is crucial in preserving perishable goods and thereby meeting nutritional standards. Cold rooms also bring down post-harvest losses and secure good market value, resulting in higher income levels for the farmers, particularly women. This enhances the resilience of rural farmers to climate variability and benefits public health.
The need to prioritise small cold rooms for public health and farmers’ livelihoods
Smaller cold-chain solutions, such as cold rooms, are pivotal yet underappreciated, with immense potential to bolster agricultural quality and productivity and uplift farmers’ livelihoods. The reason such an effective agricultural solution is not adopted widely is not just a lack of financing. A lack of awareness about the multiple benefits of cold rooms, including preservation of nutrition, reduced post-harvest losses and better prices for produce, severely hinders their adoption.
The absence of this crucial knowledge was highlighted during our interaction with local actors in Uttar Pradesh and Meghalaya. The team found that several cold rooms deployed using multi-lateral funding were either defunct or not utilised. There is an immediate need to create awareness about cold room benefits and their role in expanding business opportunities amongst farmer groups and government entities responsible for providing subsidies. Moreover, novel financing mechanisms such as loss insurance and guarantees can effectively de-risk investments in these solutions, fostering greater private sector participation in cold-chain infrastructure development.
The transformative impact of farm-level cold-chain infrastructure
Successful projects across India showcase the transformative benefits of implementing cold rooms at the farm level. Renewable energy-powered cold rooms installed by Farmer Producer Organisations (FPOs) have led to improved produce freshness, significant reductions in post-harvest losses, higher market prices, and decreased reliance on grid energy, resulting in lower greenhouse gas emissions. These initiatives empower farmers to avoid distress selling, gain enhanced market access, and bolster their incomes.
One such example is the transformative usage of Ecofrost cold rooms by Kattangur Farmers Producer Company Limited (KFPC). By installing 12 Solar Cold Rooms, supported by the Agri Infrastructure Fund, KFPC has revolutionised produce storage and management. Its initiative has positively impacted 2,400 farmers, reducing monthly food loss by 108 metric tons.
Meanwhile, our interaction with individual farmers in Rajasthan highlighted some success stories. One of the progressive farmers shared how installing a 10 MT solar cold room with thermal energy storage transformed his farming business. His facility stores lemons harvested in July-August, enabling sales in September-October at three to five times the regular price. Similarly, produce from the January-February harvest was stored and sold in March-April. By utilising the cold room for two lemon harvests and other produce in the off-season, the farmer reduced produce loss by 30 per cent and doubled his profits. Additionally, renting the cold room to fellow farmers boosted community income, showcasing a sustainable and impactful agricultural solution.
These projects illustrate how cold rooms can enhance food preservation, reduce waste, increase profits, and promote sustainable agricultural practices across India.
Economic and social impact
The economic implications of developing small cold rooms near the farms are profound. By maintaining optimal storage conditions, these systems effectively curtail post-harvest losses, extend the shelf lives of perishable goods, and stabilise market prices, thereby augmenting farmers’ incomes and public health. Cold-chain networks also expand market access, enabling farmers to tap into distant, higher-value markets and fortify India’s position in global agricultural trade. Furthermore, the establishment and upkeep of cold-chain infrastructure generate significant employment opportunities across rural areas. These opportunities span construction, operation, maintenance, transportation, and ancillary sectors like packaging and processing, contributing substantively to poverty alleviation and elevating living standards within rural communities.
Socially, cold-chain infrastructure assumes a pivotal role in fortifying food security by safeguarding the quality and safety of perishable foods. The cold-chain helps in maintaining low temperatures, which slows the metabolisation and microbial degradation process, preserving carbohydrates, proteins, and other nutrients and doubling shelf life for each 10°C reduction. This ensures consistent access to nutritious food—a critical need in regions plagued by malnutrition and food insecurity. By stemming rural-to-urban migration in pursuit of livelihoods, cold-chain systems help preserve the social fabric of rural communities and alleviate the pressures of urbanisation. Additionally, these systems mitigate public health risks by diminishing incidents of foodborne illnesses and associated healthcare costs, thereby enhancing overall well-being through improved access to fresh and wholesome food.
Conclusion
The economic and social benefits of renewable energy-powered cold-chain infrastructure in rural India are transformative. These initiatives promise sustainable agricultural development and contribute to SDGs 2 (Zero Hunger), 3 (Good Health and Well-being), 7 (Access to affordable, reliable, sustainable and modern energy), 8 (Employment) and 13 (Climate Action). Successful examples, such as the efforts by KFPC and individual farmers in Jaipur, illustrate how cold rooms enhance produce freshness, reduce post-harvest losses, and boost farmer incomes. Government support, innovative financing, community-driven ownership, and training and capacity building for stakeholders are crucial to overcoming challenges and ensuring the sustainability of these projects. Strengthening cold-chain infrastructure fosters food security, reduces environmental impact, and improves social welfare, paving the way for a prosperous future for rural communities. Recognising the pivotal role of cold-chain infrastructure, especially small cold rooms, is essential for transforming rural economies and enhancing societal well-being.