India launches Reefer Vehicle Call-In Centre (RVC) to help improve food exports

Reducing inefficiencies in reefer transport will make India’s food exports more competitive in the global market, says Sushil Rathi, Senior Vice-President, Mahindra Logistics The Dollar Business Bureau | @TheDollarBiz

Most of the perishable products in India are transported via non-reefer mode; existing reefer transport capacity in India covers less than 4% of total requirement

With an aim to improve cold chain transport in India, the government has launched a Reefer Vehicle Call-In Centre (RVC). Complaints and data collected through the RVC will be used to address bottlenecks and build policies to control price rise and boost exports of perishable products. At the launch of the RVC last week, Radha Mohan Singh, India’s Minister of Agriculture, said that key products including fruits, vegetables, meat, fish, poultry, dairy products, confectionery and pharmaceuticals are critically dependent on the reefer (refrigerated) mode of transport. According to Radha Mohan Singh, India has pioneered the RVC, an initiative which will help the government collect data about transport of perishable goods. People can use the toll free number 1800 2676 223 to register their complaints including transit delays and harassment, he added. The RVC is a joint initiative by the Department of Agriculture and Cooperation, National Centre for Cold-chain Development (NCCD) and Mahindra Logistics.

Sushil Rathi - The Dollar Business - Mahindra1

Sushil Rathi, Senior Vice-President (SCM), Mahindra Logistics Limited

Sushil Rathi, Senior Vice-President (Supply Chain Management), Mahindra Logistics Limited, says that the initiative could play a significant role in reducing wastage and help make Indian food products more competitive in the international market. He told The Dollar Business, “India accounts for about 11% of the world’s total vegetable production but its share in global trade is only 1.7%. Lack of reefer transportation is one of the major causes for this low share.” India currently has about 7,000-8,000 refer vehicles in operation with a capacity of carrying up to 3.5 million tonnes of perishable cargo per year, against a requirement of more than 100 million tonnes, says Rathi. However, users of reefer transport also face the challenges of high costs due to major inefficiencies. Rathi says, “Reducing such inefficiencies can make India more competitive in the global market and the RVC is a step in that direction. Data collected by the RVC will help policy makers identify bottlenecks and find a quick resolution with the help of respective agencies. For example, if some refer transporters complain about delays at a border check post between two states, the government will ensure that the problem is resolved quickly.” According to Rathi, the size of the cold chain industry in India is estimated at around Rs.25,000 crore with cold storage accounting for 85% of the market while reefer transport accounting for about 15%. The market is estimated to grow at about 20%-25% CAGR over the next 3-5 years, he says.

This article was published on September 16, 2014.

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The Dollar Business Bureau - Sep 16, 2014 10:41 IST

India launches Reefer Vehicle Call-In Centre (RVC) to help improve food exports

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