The Indian government has confirmed plans to invest in as many as 20 coldstorage facilities to aid the development of the country's fresh produce sector.
According to Reuters, around 10-20 coldstores could be built during the next 12 months, each at a cost of some Rs20-40m.
'We are looking at 10 or 20 more in 2010/11,' Ashok Sinha, secretary of India's Ministry for Food Processing Industries, said during this week's Food India Forum 2010 in Mumbai. 'All this will be set up with private players,' he added.
The Indian government usually offers a 25 per cent subsidy for coldstorage investments, with an upper limit of Rs5m.
In its latest budget, the Indian government allowed external commercial borrowings for coldstorage and cold room facilities that will be used to preserve and store agricultural products.
Poor post-harvest management and a lack of cold-chain facilities are estimated to cost the country's agricultural trade up to Rs500bn each year, according to the National Commission of Farmers.
“This staggering loss has severely affected India's agri-business and agro economy,' Mr Sinha told the conference. 'It is essential, therefore, to build sustainable supply chains, which will link the farmer to the processing and marketing centres.'
The prospects for foreign direct investment being allowed in India's agricultural infrastructure at some point in the near future appear to be growing.
'With the demand growing and with the growth of economy and with the supply side made easier, the private sector will have to work along side the government to take advantage of the growth potential in the sector,' suggested Mr Sinha.
