How Cold Chain Logistics are Solving Food Wastage in India

In an interaction with Thiruamuthan, Assistant Editor of Industry Outlook, Prajakt Ghone, Head of Operations at FSN, discusses how India’s cold chain sector is rapidly evolving, leveraging IoT, real-time tracking, and energy-efficient warehouses to reduce food wastage. He underscores that government schemes, micro-fulfillment hubs, and sustainable logistics innovations are enabling small farmers and e-grocery growth while ensuring freshness, efficiency, and nationwide food security.

With India’s cold chain sector expanding rapidly due to rising perishables demand, what logistics innovations are effectively reducing food wastage nationwide?

To effectively reduce food wastage, the cold chain industry is adopting tech-driven innovations such as IoT sensors and GPS trackers, predictive analytics, and real-time tracking. These technologies enable a comprehensive and cost-efficient supply chain from sourcing to final distribution. Adoption of IoT (Internet of Things) sensors and GPS trackers allows for continuous monitoring of temperature, humidity, and location. This data provides real-time visibility and enables immediate alerts if conditions deviate, allowing for proactive intervention to prevent spoilage during transport and storage. The use of real-time tracking and end-to-end traceability helps in minimizing operational inefficiencies and enhancing food safety. By leveraging intelligent procurement, warehousing, and optimized route and outlet storage, the industry ensures seamless operations and better availability of products.

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In light of growing small farmer participation, how are schemes like PM-FME or aggregator-led cold storage networks overcoming inefficiencies in organized retail integration?

Schemes like the Pradhan Mantri Formalisation of Micro food processing Enterprises (PMFME) and the Pradhan Mantri Kisan Sampada Yojana (PMKSY) are providing crucial financial assistance and credit-linked subsidies to support small farmers and micro-enterprises. These schemes encourage the creation of integrated cold chain infrastructure, including multi-temperature storage facilities and refrigerated vehicles. This government support, along with the development of aggregator-led cold storage networks, helps farmers access better storage and transportation, which in turn reduces post-harvest losses and enables them to integrate more effectively with organized retail and larger markets.

As investments surge in temperature-controlled warehouses, what measures are ensuring energy efficiency while maintaining strict perishable food safety standards?

As investments in temperature-controlled warehouses surge, a focus on energy efficiency has become paramount. To ensure both energy efficiency and food safety, the industry is incorporating sustainable measures into its logistics. Key measures include the integration of renewable energy sources, such as solar panels, to power operations and reduce reliance on fossil fuels, thereby lowering operational costs. This includes the use of  CNG-powered fleets, battery-operated material handling equipment (MHEs), and eco-friendly warehouses. These practices are focused on reducing the environmental impact and carbon footprint of operations. While implementing these energy-efficient solutions, the industry maintains 100 percent cold chain compliance, which ensures strict temperature control throughout the supply chain and upholds food safety standards. The industry is also leveraging data-driven optimization, where warehouses use data analytics to monitor energy consumption and identify opportunities for savings. They analyze factors like temperature set points, equipment operating hours, and weather conditions without compromising food safety.

Can technology like IoT sensors and real-time tracking reshape cold chain operations to minimize spoilage during transport and storage?

Technologies are fundamentally reshaping cold chain operations to minimize spoilage and waste. IoT sensors provide continuous data on critical parameters like temperature and humidity, which allows logistics managers to shift from a reactive to a proactive model. If a refrigeration unit malfunctions or a temperature threshold is breached, the system immediately sends an alert, enabling staff to take quick corrective action before a shipment is ruined.

Real-time tracking provides a transparent, end-to-end view of the supply chain, which not only builds confidence with clients but also provides an immutable record of a product's journey, crucial for regulatory compliance and food safety audits. The use of real-time data, predictive analytics, and end-to-end traceability provides insights that enhance operational efficiency and food safety. These technologies allow for consignment-level tracking, ensuring that food products remain at the correct temperature from the beginning to the end of their journey. This level of visibility helps to minimize the risk of spoilage and ensures the delivery of fresh products.

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Given India’s rapid e-grocery growth, which temperature-controlled micro-fulfillment centers or last-mile refrigeration solutions are helping meet fast delivery while preserving freshness?

The rapid growth of the e-grocery sector is driving the adoption of specialized last-mile solutions. To meet the demands of the e-grocery sector, the industry provides comprehensive solutions that include last-mile delivery and specialized fulfillment services. This involves the use of micro-fulfillment hubs located closer to customers. This approach reduces the distance between stock and households, which significantly cuts down on delivery times. In addition, a diverse fleet of vehicles, including refrigerated vans, is used for doorstep delivery. These vehicles are equipped with temperature-controlled compartments to maintain product freshness during the final leg of the journey, even for short-distance deliveries. By offering a full suite of logistics solutions, including refrigerated transport, the industry can support e-commerce businesses in maintaining the cold chain and preserving the freshness and quality of perishable goods during rapid delivery.

Looking forward, what innovations or policy measures could enable India’s cold chain sector to scale sustainably and further reduce nationwide food wastage?

Scaling the cold chain sector sustainably will require a combination of new technologies and supportive policy measures. Further investment in automation and the integration of AI with blockchain for enhanced traceability will be crucial. Automation and robotics in warehouses can improve efficiency and reduce energy consumption. Furthermore, blockchain technology can enhance transparency and traceability, building greater trust with consumers. A key innovation for scaling sustainably is the adoption of an asset-light model combined with a technology-first approach.

On the policy front, the government could expand financial incentives and subsidies for the adoption of renewable energy sources and energy-efficient technologies. Additionally, fostering greater collaboration between government agencies, industry stakeholders, and farmers can help in creating a more resilient, integrated, and efficient cold chain network that can effectively tackle food wastage.