India is one of the countries with the fastest-growing food sectors. The need for fresh foods on the global stage is increasing. As a result, the country’s processing and packaging sectors are equally important cold chain logistics. In this regard, the cold storage food transportation system presents one of the most profitable and scalable options for entrepreneurs in the food sector in India.
As stated in the annual report of 2023-2024 by the Ministry of Food Processing Industries (MoFPI), cold chain logistics is considered one of the key components of the Pradhan Mantri Kisan SAMPADA Yojana (PMKSY) which aims to improve exports and reduce losses. The current market trends with increased foreign support alongside domestic demand considerably turn towards investing in cold chain businesses.
What Is Cold Chain Logistics?
Cold chain logistics is the temperature-controlled supply chain required to maintain the quality of items like:
- Fruits
- Vegetables
- Fish
- Meat
- Pharmaceuticals
It includes:
- Refrigerated transportation and storage
- Grade and pack centers
- Cold storage and ripening chambers
Cold chain logistics—from the farm gate to the consumer plate—helps preserve food products and ensure their safety for consumption.
Related: How to Tap into India’s $46 Billion Agri-Food Export Opportunity
India’s Cold Chain Market: Forecast and Growth Potential
By 2027, India’s cold chain logistics market is projected to hit USD 53 billion with a CAGR of 14%. The factors contributing to this growth are:
| Growth Drivers | Details |
| Urbanization & Health Consciousness | Increased demand for fresh produce, organic items, and dairy products. |
| E-commerce Boom | Need for cold storages in quick commerce and grocery delivery. |
| Export Growth | Agri-food exports expected to reach USD 46.4 Billion in 2023-24. |
| Government Incentives | Capital grants, viability gap funding, ODOP, and PMFME. |
| Food Waste Reduction | Targeted post-harvest loss reduction of 10–20%. |
Cold Chain Infrastructure under MoFPI
The MoFPI grants up to ₹10 crore for cold chain projects under the Integrated Cold Chain logistics and Value Addition Infrastructure scheme. The grants aid the construction of:
- Packhouses with sorting/grading lines
- Pre-cooling units and cold rooms
- Ripening chambers
- Reefer vans and mobile cooling units
State-Wise Cold Chain Projects
MoFPI records indicate that 91 cold chain projects have been sanctioned across the country. Below is the distribution:
| State | Number of Projects |
| Maharashtra | 15 |
| Uttar Pradesh | 12 |
| Karnataka | 10 |
| Andhra Pradesh | 9 |
| Gujarat | 8 |
| Others (24 states combined) | 37 |
Insight: Due to strong agriculture output along with ports and urban demand, Maharashtra, UP, and Karnataka lead the way.
Essential Aspects of a Cold Chain Business
To set up a cold chain business, one needs to interlink several elements. Here’s how a scalable cold chain unit is structured.
| Component | Function |
| Pre-Cooling Unit | Field heat removal after harvesting |
| Cold Storage | Short and long-term storage (-25°C to 0°C) |
| Reefer Transport | Distribution with temperature control |
| Ripening Chamber | Used for mangoes and bananas |
| Pack House | Fruits and vegetables are graded; washed and packaged |
| Quality Control Lab | Export compliance is checked and issued (APEDA/FSSAI standards) |
Who Requires Cold Chain Assistance?
| Sector | Cold chain application scenarios |
| Horticulture | Tomatoes, grapes, onions, bananas |
| Dairy | Storage and transport of milk products like cheese, yogurt, and paneer |
| Meat & Poultry | Export frozen meat and processed halal meats |
| Marine/Fisheries | Frozen and shipped seafood |
| Processed Foods | Snacks, frozen and ready-to-eat meals, baked goods, and beverages |
| E-commerce | Grocery, dairy, and meal kit delivery |
Financial Analysis: Investment and Potential ROI
A small to mid-sized cold chain facility with:
- 5,000 MT cold storage capacity
- 4 reefer trucks
- 2 ripening chambers
- 1 packhouse with grading line
…will require an investment of around ₹12–15 crore.
Return Expectations
| Metrics | Year 1 | Year 3 |
| Revenue | ₹3.2 Cr | ₹6.5 Cr |
| Operating Profit Margin | 18% | 25% |
| Payback Period | — | 4–5 years |
Cold Chain & Export Boost
In 2023–24, India’s processed food exports exceeded USD 10.88 billion, achieving a CAGR of over 15% for five years. This level of success is attributed to cold chain infrastructure, which allows exporters to ship:
- Frozen buffalo meat
- Marine products (shrimp, fish)
- Dairy concentrates (paneer, ghee)
- Processed fruits and vegetables
Top Export Markets:
- Middle East (UAE, Saudi Arabia)
- ASEAN (Malaysia, Singapore)
- EU & UK
- USA & Canada
Government Support Schemes
Through MoFPI, other agencies offer a plethora of fiscal and policy incentives.
| Scheme | Description |
| PM Kisan SAMPADA Yojana | Capital subsidy up to ₹10 crore for cold chain infrastructure |
| PMFME Scheme | Credit linked support for micro units |
| NABARD Agro Processing Fund | Concessional term loans to FPOs and SMEs |
| State Policies | Stamp duty waivers and power tariff incentives |
Related: Top 10 Government Schemes for Food Processing Startups in India
Cold Chain Challenges & How to Overcome
| Challenge | Solution |
| High CapEx | Use MoFPI grants and viability gap funding |
| Power dependency | Solar or hybrid energy setups |
| Lack of last-mile reach | Partnerships with e-commerce and delivery startups |
| Product wastage | Real-time monitoring and IoT sensors |
NPCS: Your Partner in Cold Chain Project Development
At Niir Project Consultancy Services (NPCS), we provide extensive assistance to entrepreneurs and SMEs aiming to develop cold chain infrastructure.
We complete:
- Market Survey cum Detailed Techno-Economic Feasibility Reports
Additionally, we conduct surveys alongside the Techno-Economic feasibility Reports.
The report includes the processes of production, needed materials, plant construction, and finances of the project.
The suggestions and insights which we provide help to assess technical insights, commercial value, and financial feasibility of the project.
NPCS helps with setting up everything from cold storage units, ripening chambers, to integrated farm-to-port reefer chains. Their blueprints provided help businesses scale with confidence.
For more information check our related videos on Food Processing
Strategic Locations to Consider
| Region | Strategic Advantage |
| Nashik, Maharashtra | Grape and pomegranate growing centers; close to Mumbai port |
| Chittoor, Andhra | Mango growing region; marine trade center |
| Lucknow, UP | Dairy and horticulture; cold supply chain corridors |
| Ludhiana, Punjab | Surplus in wheat, potatoes, and dairy |
| Kochi, Kerala | Processed foods from spices and seafoods skip the country |
The Road Ahead: Cold Chain 2.0
The World food processing and supermarket is slating India as a global food center. India’s cold chain logistics are likely to connect with these changes. The key trends are:
- IoT-based temperature monitoring
- Blockchain for traceability
- Drone-enabled remote area delivery
- Integrated agri-cold chain zones through Gati Shakti
Conclusion: Cold Chain — A Business Built to Last
The logistics are not about storing food alone but facilitating quality chilled boxes of food to every corner of India and the world. There are policies favoring it and an ever-growing demand which makes this a good business locotion for the next generation food entrepreneurs.
Cold chain is an open option for proposing structures around infrastructure enabling the $46 billion food economy India possesses and works towards serving every market instantly and expanding quickly.
