Agri-warehousing needs attention

Discussions on infrastructure tend to be centred largely round energy, transportation, and water.

- VINAYAK CHATTERJEE

However, the "National Logistics Policy", launched in 2022, has succeeded in putting the spotlight on the neglected area of warehousing infrastructure. While industrial- and commercialwarehouse developers are taking rapid strides to upgrade facilities, it is "agriculture warehousing" that is crying out for attention.

According to a report by Invest India, the Indian warehousing market is expected to see a robust annual growth rate of 15.64 per cent from 2022 onwards. However, this promising growth of the warehousing sector is driven largely by industrial and commercial warehouses, contrasting sharply with the silent crisis unfolding in the agricultural heartland. The absence of modern warehousing infrastructure, and associated advantages, is bleeding the agricultural economy with staggering post-harvest losses and lost opportunities.

For a country in which agriculture is the lifeblood of the rural population and sustains half of it, the implications are serious. According to India Infrastructure Research, the agricultural warehousing capacity needs to grow from 145 million tonnes in June 2023 to 223 million tonnes by 202627. Focusing on agri-warehousing in India is crucial due to the significant post-harvest losses the agricultural sector experiences. A government-supported study conducted in 2022 revealed India incurred losses of 513 per cent in fruit and vegetables, and 3-7 per cent in other crops such as oilseeds and spices, between harvesting and consumption. These losses translate into an annual economic impact exceeding ₹1.52 trillion.

Moreover, India's value-added agricultural produce is significantly hampered by a lack of coldchain storage and transportation facilities, leading to widespread spoilage of high-value-added produce throughout the supply chain. This is despite a coldstorage capacity of 37-39 million tonnes.