IN-Delhi,India_Adadpur

The majority of India's cold storage infrastructure is fit only for potatoes, finds a damning new report by the country's PHD Chamber of Commerce and Industry.

Despite significant recent government investment in cold storage facilities, just 1.07 per cent of India's total cold-storage capacity is suitable for fresh fruits and vegetables, while 92 per cent is adequate for potato products only, the report said.

India has been unable to progress in setting up cold-chain facilities suited to its food products, Chamber of Commerce president Sharad Jaipuria told Food Navigator Asia. As a result, 30 per cent of fruits and vegetables grown in India are wasted because of a lack of cold-storage facilities and energy infrastructure, with only 8 per cent of produce processed, he said.

The Chamber said India's total cold-store capacity is lacking at just 31m tonnes (7,000 facilities), so recommended the building of 30 mega food-parks to boost cold-storage facilities and transport.

The Chamber said India needs a smart food supply chain in which 25 per cent of its total food production is processed over the next few decades, for which both central and state governments should collaborate to bring in investments with more flexible policies.

Agricultural reforms are also needed, the report said.

The Chamber said India's cold-chain market was worth around US$3.2bn in 2009, and is expected to climb to US$9bn by 2015.