Technology and policy roadmap for energy efficient cold storages in India

Panel: 9. Products, appliances, ICT

This is a peer-reviewed paper.

Authors:
Sandeep Kachhawa, Alliance for an Energy Efficient Economy (AEEE), India
Tarun Garg, Alliance for an Energy Efficient Economy (AEEE), India
Kriti Khurana, Alliance for an Energy Efficient Economy (AEEE), India
Gerry George, Alliance for an Energy Efficient Economy (AEEE), India

Abstract

Agriculture, one of the most important sectors of the Indian economy, has seen phenomenal growth in the production of perishable commodities, including horticulture produce. Among the horticulture crops, Uttar Pradesh was the largest potato producing state in India, followed by West Bengal, where 13.16 million metric tonne (MMT) of potatoes were produced in 2019-20. However, investments for cold chain development in India and West Bengal, in particular, undermine the importance of a climate-friendly uninterrupted cold chain as an essential requirement for the potato value chain. It provides the critical market linkages for reducing food loss, ensuring food security, and farmers' welfare in India. In this context, the paper focuses on assessing the cold storage industry in West Bengal, emphasizing the potato value chain. A large majority of farmers in West Bengal sell their potato produce to the village traders who store them in the cold storages and sell it in the wholesale markets (mandis) as per the demand. Due to improper handling and storage procedures, more than 25% of post harvest losses are reported in the supply chain of potatoes in West Bengal, occurring at production, cold storages, wholesale markets, and retail outlets.

It is estimated that there is a potential to reduce cold storage losses by up to 75% if traditional cold storages are retrofitted to modern ones. Detailed energy audits of three different types of cold storage facilities located in the Hooghly district of West Bengal were carried out to understand the potato handling, storage practices, and energy utilization. Energy Efficiency Measures (EEMs) validated with technical and financial data from different industry players have been assessed and proposed to improve the cold storages' overall energy performance while retaining the product quality.

It is estimated that around 0.38 MMT of potato losses can be avoided by modernization of cold storages in West Bengal, leading to a monetary benefit of INR ~600 crores (EUR 70 million) per year. A typical 5000 MT cold storage can save up to INR 60 Lakh (Euro ~70,000) per season through avoided potato losses. Factoring the MIDH subsidy support of INR 95 Lakh (EUR ~111,000) out of the total investment of INR 233 Lakh (Euro ~270,000), the energy savings coupled with the monetary benefits of avoided food losses, present an extremely attractive payback period of just 1.6 years.

The State has vast growth potential in the horticulture sector, requiring a shift from cold storages to integrated cold chains to realize its full potential. Retrofitting and modernization of the existing traditional cold storages into multi-purpose cold storages will be the right first step. This will also incentivize diversification of the cropping pattern, bringing new avenues of growth for the farmers. The multiple benefits of modernization, which are generally underestimated worldwide, will significantly outweigh the energy savings considered in isolation. It will help the farmers to realize a greater economic value for their produce and boost their income.

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