Ziraat Times Team Report
Srinagar: India’s efforts to reduce post-harvest losses and boost farmers’ income are gaining momentum through the government’s Integrated Cold Chain and Value Addition Infrastructure (ICCVAI) scheme — a flagship initiative under the Pradhan Mantri Kisan Sampada Yojana (PMKSY).
Designed by the Ministry of Food Processing Industries (MoFPI), the ICCVAI scheme seeks to create a seamless cold chain from the farm gate to the consumer, ensuring that perishable produce retains its quality and value across each step of the supply chain. The objective: to prevent wastage, improve farmers’ returns, and enhance food availability at stable prices.
Bridging the farm-to-market gap
India’s agriculture sector loses a significant portion of its perishable output due to poor post-harvest handling and storage. Estimates suggest that these losses not only erode farmers’ profits but also inflate consumer prices and strain food security.
The ICCVAI scheme addresses this by supporting the creation of pre-cooling units at farms, modern processing centers, temperature-controlled warehouses, and refrigerated transport systems. These are designed to work in an integrated manner, ensuring that perishables move efficiently and safely from rural producers to urban markets.
Though the Cold Chain Scheme predates PMKSY, it was restructured and integrated under the umbrella programme in 2016-17 to ensure comprehensive supply-chain connectivity. Since then, the initiative has emerged as a critical pillar in India’s agri-logistics transformation.
How J&K buainesses couls benefit
The scheme covers a diverse range of perishable products including dairy, meat, poultry, and fisheries, while fruits and vegetables have been covered under the Operation Greens component of PMKSY since 2022. This restructuring helped avoid duplication and focus on sector-specific solutions.
An evaluation study by NABARD Consultancy Services (NABCONS) in 2020 found that ICCVAI interventions significantly reduced wastages, particularly in fruits, vegetables, dairy, and fisheries — sectors where post-harvest losses were previously the highest.
Key objectives and components
At its core, ICCVAI aims to create an integrated network that links farm-level infrastructure (FLI) with distribution hubs and cold transport. To qualify for financial support, applicants — including farmers, FPOs, cooperatives, SHGs, private firms, NGOs, and PSUs — must establish facilities that connect these nodes.
The Ministry invites project proposals periodically through Expressions of Interest (EOIs). Financial assistance is offered as capital grants covering 35% of project cost in general areas and 50% in hilly or northeastern regions, with a ceiling of ₹10 crore per project.
Complementary government initiatives
The ICCVAI scheme operates in synergy with several complementary programmes:
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Mission for Integrated Development of Horticulture (MIDH): Offers credit-linked subsidies for cold storages up to 5,000 MT capacity, at 35% subsidy in general areas and 50% in hilly or scheduled regions.
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Operation Greens Scheme: Focuses on stabilising prices and reducing wastage for fruits, vegetables, and shrimp.
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National Horticulture Board (NHB): Provides subsidies for cold storage and Controlled Atmosphere (CA) facilities up to 20,000 MT capacity.
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Agriculture Infrastructure Fund (AIF): With a corpus of ₹1 lakh crore, AIF provides collateral-free loans up to ₹2 crore with 3% annual interest subvention for creating post-harvest assets such as warehouses and processing units.
Massive financial boost and expansion
In July 2025, the Union Cabinet approved an additional ₹1,920 crore for PMKSY, taking the total outlay to ₹6,520 crore for the 15th Finance Commission cycle (till March 2026). Of this, ₹1,000 crore has been earmarked for establishing 50 Multi-Product Food Irradiation Units under ICCVAI — integrating modern preservation technologies to extend shelf life and ensure food safety.
As of June 2025, a total of 395 integrated cold chain projects have been sanctioned under ICCVAI since 2008. Of these, 291 are fully operational, adding 25.52 lakh metric tonnes of storage capacity and 114.66 lakh MT of processing capacity.
These projects have generated over 1.74 lakh direct and indirect jobs and have played a crucial role in stabilising rural incomes, especially in states like Maharashtra, Punjab, Himachal Pradesh, Jammu & Kashmir, and the Northeastern region.
Since 2016–17 alone, ₹1,535.63 crore has been disbursed for 269 approved projects, reflecting the scheme’s growing momentum.
Key policy revisions
The ICCVAI has evolved through several revisions:
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June 2022: Fruits and vegetables shifted to Operation Greens for targeted focus.
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August 2024: Guidelines introduced for establishing food irradiation units to reduce spoilage and enhance food safety.
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May 2025: Updated operational framework emphasised farm-to-consumer connectivity, efficient preservation, and fair farmer remuneration.