5th April 2022 Incentive appraisal and projections of opportunities in the Fisheries cold chain to move towards EE, reduced HGWPRS and ODS Confederation of Indian Industry HYDERABAD © 2022 The World Bank 1818 H Street NW, Washington DC 20433 Telephone: 202-473-1000; Internet: www.worldbank.org Some rights reserved This work is a product of the staff of The World Bank. The findings, interpretations, and conclusions expressed in this work do not necessarily reflect the views of the Executive Directors of The World Bank or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. This background report was prepared by a consultancy appointed by the staff of the World Bank. This study would not have been possible without generous financial support of UK’s Department for Environment, Food and Rural Affairs (DEFRA). 1 Contents 1 Introduction ............................................................................................................................ 3 1.1 Fish consumption ............................................................................................................. 4 2 Incentives in India for fisheries sector................................................................................... 6 3 Cold chain infrastructure – Fisheries ................................................................................... 18 3.1 Estimating future cold chain capacity ............................................................................ 19 4 Opportunities in cold chain capacity to move towards EE, reduced HGWPRS and ODS .. 20 4.1 Energy Efficiency, HGWPRS and ODS in Fisheries .......................................................... 20 4.2 Energy Efficiency, Low GWP and Low ODS Measures ................................................... 21 2 List of Figures Figure 1: Fish production South Asian countries ....................................................................... 4 Figure 2: Fish production South Asian countries ...................................................................... 4 Figure 3: Fish consumption in South Asian countries (kg per capita/yr.) .................................. 5 Figure 4: GVA contribution ........................................................................................................ 5 Figure 5: Export value (Item-wise) ............................................................................................. 6 Figure 6:Quantity exported (Item-wise) .................................................................................... 6 Figure 7: Food wastage emissions compared with other countries(WRI) .............................. 18 Figure 8: Cold chain path for fisheries ..................................................................................... 18 Figure 9:Focus Areas – Opportunities in Fisheries cold chain ................................................. 20 List of Tables Table 1: List of Incentives - Indian Fisheries sector ................................................................... 9 Table 2: Cold chain infrastructure 2021 - 22 ........................................................................... 19 Table 3: CAGR of the of post – harvest infrastructure components ....................................... 19 Table 4: Opportunities in First and Last mile transportation .................................................. 22 Table 5: Opportunities in Cold storage & Processing, Reefer transport & Multiple areas ..... 23 3 Executive Summary The global population is growing at a rate of 1.18%1 year on year. The challenge the world is facing is to achieve food and nutrition security in the present scenario. WHO estimates that the number of people affected by hunger would be more than 840 million2 by 2030. The Fisheries sector plays a prominent role in providing the nutritional requirement of this growing population. Fisheries sector has immense potential in strengthening the food supply, generating job opportunities and improve nutritional level. Growing urbanization, globalization and rapidly changing social structure have had a major impact on fisheries sector in the country. Although India has a strong position in global fisheries trade, the sector faces numerous infrastructure challenges, especially across the domestic market value chain. The role of efficient and sufficient cold chain infrastructure is critical for the industry to reduce spoilage of fish (and fish products) and move towards a sustainable solution. The fish industry utilizes only 1% of the total cold storage capacity available in the country3. Although 75% of fish harvested in India is marketed in fresh form, there is a strong need for the cold chain industry to come up with innovative & cost-effective transportation and storage facilities to ensure supply of superior product and reduce spoilage. Innovative & integrated cold chain solutions need to be implemented in the domestic supply chain to guarantee superior quality of fresh, chilled, frozen and processed fish products. Primary focus is to strengthen the post-harvest infrastructure such as chilled storage facilities, ice plants cold chain and freezing/processing units, transportation facilities, modern and hygienic wholesale and retail market outlets etc., as the development of this sector. Considering the massive growth expected for cold chain, reducing GWP & ODS footprint by adopting energy efficient practices, low carbon processes, choosing correct refrigerants and positive policy impacts in the sector is important for sustainable growth. The key objective is to facilitate adoption of best practices for energy efficient and low Global Warming Potential (GWP) and Ozone Depleting Substance (ODS) cold chain operations. Various incentives and policies are there to aid the Indian Fishery sector to develop infrastructure development, especially related to cold chain. The Central and State governments have formulated various schemes, for the sustainable development of Fisheries sector, that can facilitate and incentivize improvements to be adopted by the private sector. There is a 95% gap in the cold chain requirement in India (incl. all sectors). The cold chain capacities for different post-harvest infrastructures in Fisheries have been estimated. And Opportunities in cold chain capacity to move towards Energy Efficiency, reduced HGWPRS and ODS were identified in different stages of the cold chain. Major technological interventions as well as relevant policies pertaining to cold chain in Fisheries sector is discussed in this report. 1 https://population.un.org/wpp/DataQuery/ (2010-2015) 2 https://www.who.int/docs/default-source/nutritionlibrary/publications/state-food-security-nutrition-2020- inbrief-en.pdf 3 https://nfdb.gov.in/PDF/E%20Publications/3%20Cold%20Chain%20&%20Postharvest%20Infrastructure%20De velopment%202017.pdf 4 1 Introduction Fisheries sector plays a significant role in increasing the food supply chain, increasing job availability and strengthens the economy. The sector helps to fight global hunger by helping in strengthening food and nutrition security. Fisheries sector is a highly commercialised sector in European as well as South Asian countries. It is the primary food source of some of the countries in these regions. The South Asian countries consist of India, Pakistan, Bangladesh, Afghanistan, Nepal, Bhutan and Sri Lanka. The south Asia fishery sector contributes to 10% of fish production in the world with a production of 18.14 million tons. The major contributors are from India and Bangladesh contributing 68% and 24% respectively4. India is growing at a CAGR of 4.65% compared to overall CAGR of 4.1%. Indian fishery sector contributes to 1.24% of India’s GDP. Maldives Nepal Afghanistan Pakistan 0.45% Fish production south asian countries 0.83% 3.66% 0.06% Sri Lanka 20.00 17.33 18.14 2.99% 16.21 14.83 15.21 Bangladesh 15.00 23.58% Bhutan 0.00% 10.00 5.00 India 68.44% 0.00 2014 2015 2016 2017 2018 Figure 1: Fish production South Asian countries Figure 2: Fish production South Asian countries 1.1 Fish consumption India’s per capita fish consumption is 9 kg/per capita/year in 20185. The world average fish per capita consumption of fish is 20.3 kg/per capita. Some states and UTs have high per capita consumption compared to others. The states with high per capita consumption are shown below. 4 World Bank data on fisheries 5 Handbook of fisheries 2018 5 Goa Kerala Lakshadweep 19.44 kg per capita/year 26.16 kg per capita/year 36.72 kg per capita/year Andaman & Nicobar Tripura West Bengal 16.98 kg per capita/year 15.3 kg per capita/year 11.04 kg per capita/year Figure 3: Fish consumption in South Asian countries (kg per capita/yr.) Indian fish exports The fisheries sector in India contributes to 1.24% of GDP. GVA contribution of Agriculture, The GVA contribution has been 7% for fisheries in for Forestry and fishing Forestry Fisheries overall agriculture, forestry and fishing. The key fish 8% 7% exports in the market are Ribbonfish, Croaker, Pomfret, Jack, Sole, Surimi fish, Grouper, Catla fish, Seer fish and cod fish. During the last financial year (2020-21), India Livestock exported 11,49,341 MT seafood worth US $ 5.96 billion, 30% which is equivalent to Rs. 43,717 crores despite the market uncertainties raised by the Covid-19 pandemic Crops outbreak. The marine products export is targeted to 55% reach Rs. 1 lakh crore by 2025. The distribution of fish export in quantity and value are provided in figure. Figure 4: GVA contribution 6 Figure 6:Quantity exported (Item-wise) Figure 5: Export value (Item-wise) 2 Incentives in India for fisheries sector The fish production in India has been at a CAGR of 5.65%. The government has a target to reach around 22 million tonnes by the year 2024 – 25.6 Indian government has been focusing on several incentives in the fishery sector expecting its growth to be exponential in the future. Several incentives have been placed systematically by the government in various sections such as boat fishing, aquaculture, post- harvest infrastructure - cold chains, reefer systems, last mile transport and retail. A consolidation of schemes is mentioned with possible advantages in the sector. 2.1 Pradhan Mantri Matsya Sampada Yojana (PMMSY)7 The PMMSY is one of the largest programs in India to address various challenges faced by the Fisheries sector. The scheme has two components – Central Sector Scheme and Centrally Sponsored Scheme. PMMSY has a total approved funding potential of INR 20,050 Crores in which INR 9,407 Crores is sponsored by Central government, INR 4,880 Crores by State governments and INR 5,763 Crores by Beneficiaries. The period of the scheme is from 2020-21 to 2024-25. The key targets to be achieved by 2025 are: • Increase the rate of fish production. It aims to achieve the productivity level of 22 million metric tons by the year 2024-25. • Enrichment of aquaculture production from three tons per hectare to five tons per hectare. • Augmentation in consumption of domestic fish to twelve kg per capita from the current average of five kg per capita. • Generation of 55 lakh employment opportunities - directly or indirectly. • Doubling income levels of fishermen 6 Pradhan Mantri Matsya Sampada Yojana 7 https://pmmsy.dof.gov.in/ 7 • Raise the contribution of the fisheries department to the Agricultural Gross Value Added (GVA) rate to about 9% • Doubling the export earnings from Rs. 46,589 crores in 2018-19 to Rs.1 lakh crores by 2024- 25. • The scheme focuses to minimize post-harvest losses to about 10% by 2025. PMMSY has different activities in order to achieve the targets set for 2025. The main activities of PMMSY are: • Enhance fish production and productivity o Technology adoption • Infrastructure development and Post-Harvest Management to reduce losses due to spoilage o Post-harvest and cold chain infrastructure o Markets and marketing infrastructure • Fisheries Management and Regulatory Framework o Monitoring, control & surveillance o Extension of fisheries and their support system Key reforms and initiatives under PMMSY: • Policy support • Technology Infusion • Enhanced investment in Value chain • Productive use of land and water • Financial inclusion • Development of cluster-based approach Highlights of the scheme till date: • Proposals amounting to INR 7,242 Crores sanctioned till date. • Estimated beneficiaries impacted directly or indirectly - 1.6 million • 12,456 transportation facilities created • 2,870 numbers of re-circulatory Aquaculture systems installed • 527 existing fish vessels upgraded • 235 ice plant/ cold storages built 2.2 Fisheries and Aquaculture Infrastructure Development Fund (FIDF)8 FIDF was instituted by The Department of Fisheries, Ministry of Fisheries, animal Husbandry and Dairying, Government of India with National Fisheries Development Board (NFDB) as the nodal implementing agency. The objective of this scheme is to accelerate sustainable growth by developing infrastructure facilities in marine and inland fisheries sector. FIDF has a funding potential of about INR 7500 Crores. The entities that can avail support from FIDF are: • State Governments / Union Territories • State Owned Corporations/State Govt. Undertakings/ Govt. Sponsored / Supported Organizations 8 https://www.fidf.in/ 8 • Fisheries Cooperative Federations (including FISHCOPFED etc.) • Cooperatives, collective groups of fish farmers & fish produce groups etc. • Panchayat Raj Institutions/Self Help Groups (SHGs)/ NGOs • SCs/STs/Marginal Farmers, Women & entrepreneurs, Self Help Groups and cooperatives • Private companies/entrepreneurs • Physically disabled • Any other institution/entity to be decided by the Government The fund can be used for activities that helps in increasing the fish production in a sustainable manner. Some of these activities also support in strengthening the Fisheries cold chain like: • Construction of Ice Plants (both Marine and Inland) • Construction of Cold Storage (both Marine and Inland) • Fish Transport Facilities (both Marine & inland) • Integrated Cold Chain (both Marine & Inland) • Development of Modern Fish Markets • Construction of Modern Fish Processing units • Any other innovative projects/activities designed to enhance fish productivity/value The scheme was started in 2018-19 and is proposed to be available till 2022-23. Entities that avail FIDF support are required to contribute at least 20% of the project cost as margin money. Contribution of margin money in case of States/UTs, State Entities implemented projects shall not be mandatory. The Maximum repayment period is 12 years inclusive of moratorium of 2 years on repayment of principal. As of date, FIDF has received 174 proposals and 39 of them have been sanctioned b Nodal Loaning Entities (NLE). The total sanctioned amount for these 39 proposals is INR 1777 Crores. Majority of the applications (101 out of 174) were from Government bodies. A particular activity can avail financial assistance from either PMSSY or FIDF but not under both. 9 Table 1: List of Incentives - Indian Fisheries sector Implementing Scheme Objectives Description Funding Beneficiaries agencies Pradhan Enhancement of Doubling farmers income Rs 20,050 crore • Central • Fish farmers Mantri Production and Government • (Fish workers and Fish vendors Matsya productivity and its entities • Fisheries Development Sampada Fisheries Beneficiary for fishermen including corporations Yojana9 Management and National Regulatory Fisheries • Self Help Groups (SHGs)/Joint Framework Development Liability Groups (JLGs) in the Infrastructure and Cold chain reefer system Board fisheries sector Post-Harvest • State/UT • Fisheries cooperatives Management Governments • Fisheries Federations and their entities • Entrepreneurs and private • State Fisheries firms Development • Fish Farmers Producer Boards Organisations/Companies • Any other End (FFPOs/Cs) Implementing • SCs/STs/Women/Differently Agencies as abled persons decided by Department of Fisheries Intensive Construction, Infrastructure and Subsidy from 20 – National fisheries Fishers, Aquaculture owners aquaculture10 renovation of awareness training for 95% development aquaculture fishermen handling Rs 3 – 800 Lakhs board aquaculture 9 https://www.nfdb.gov.in/PDF/PMMSY-Guidelines24-June2020.pdf 10 NFDB schemes 10 Implementing Scheme Objectives Description Funding Beneficiaries agencies Fisheries Stocking in reservoirs 100% subsidy for smaller 50 – 100% National fisheries Fishers, Reservoir owners development and training to reservoir and 50% for larger subsidy development in fishermen reservoir. Training for board reservoirs11 fishermen Coastal Infrastructure and Brackish water fin fish 25 – 30% subsidy CIBA Aquaculture owners aquaculture financial assistance infrastructure and support 25 – 100% grant National fisheries for development and for Increase in production, for Innovative development demonstration of new species, Infrastructure project board innovative/new development in coastal technology fisheries, pathogen free shrimp nauplii production and infrastructure Deep sea Mariculture Setting up of deep-sea cage Rs 70 Lakhs – 2 Central Fisheries Fishermen, Entrepreneurs and groups fishing and cultures and training Crore funding and Institute of entrepreneurs Tuna training for and processing Government of India Fisheries and ❖ Creation and • Establishment of Fishing Rs 7500 Crores National Bank for ❖ State Governments / Union Aquaculture modernization of Harbours and Fish Landing ❖ Interest Agriculture and Territories Infrastructure capture & culture Centres Subvention: Rural ❖ State Owned Development fisheries • Construction of Ice Plants Up to 3% per Development Corporations/State Govt. Fund (FIDF) infrastructure • Development of Cold annum for all (NABARD), 4.2 Undertakings/ Govt. Sponsored ❖ Creation of Storages EEs for National / Supported Organizations Marine • Fish Transport and Cold development Cooperatives ❖ Fisheries Cooperative Aquaculture Chain Network of identified Development Federations Infrastructure Infrastructure fisheries- Corporation ❖ Cooperatives, collective groups ❖ Creation and • Development of Modern based (NCDC), 4.3 All of fish farmers & fish produce modernization of Fish Markets scheduled Banks groups etc. 11 NFDB schemes https://nfdb.gov.in/PDF/GUIDELINES/Guidelines%20in%20Brief%20Centrally%20Sponsored%20Scheme%20on%20Blue%20Revolution%20- %20February%202019.pdf 11 Implementing Scheme Objectives Description Funding Beneficiaries agencies Inland Fisheries • Establishment of state of infrastructure ❖ Panchayat Raj Institutions/Self Infrastructure art Fisheries Training facilities. Help Groups (SHGs)/ NGOs 5.6 Reduce post-harvest Centres ❖ Lending Rate SCs/STs/Marginal Farmers, losses and improve • Fish Processing Units of interest : Women & entrepreneurs, Self domestic marketing • Any other innovative Not lower Help Groups and cooperatives facilities through projects/activities than 5% per of these etc. infrastructure designed to enhance fish annum for all ❖ Private support production/ EEs for companies/entrepreneurs To bridge the productivity/value development ❖ Physically disabled resource gap and of identified ❖ Any other institution/entity to facilitate completion fisheries- be decided by the Government of ongoing based infrastructure infrastructure projects. facilities. Pradhan ❖ Mega Food PM Kisan Ministry of food Mantri Kisan Parks SAMPADA Yojana processing Sampada ❖ Integrated is expected to industries MOFPI Yojana12 Cold Chain leverage and Value investment of Rs. Addition 31,400 crores for handling of 334 Infrastructure lakh MT agro ❖ Creation/ produce valued at Expansion of Rs. 1,04,125 Food crores, benefiting Processing/ 20 lakh farmers Preservation and generating 5,30,500 12 https://www.mofpi.gov.in/Schemes/pradhan-mantri-kisan-sampada-yojana 12 Implementing Scheme Objectives Description Funding Beneficiaries agencies Capacities direct/indirect (Unit Scheme) employment in ❖ Infrastructure the country by for Agro- the year 2019-20. processing Clusters ❖ Creation of Backward and Forward Linkages ❖ Food Safety and Quality Assurance Infrastructure ❖ Human Resources and Institutions Central Centralised ❖ Encouraging Rs 1.86 Lakh National Fishers, Entrepreneurs Sector schemes for youth to join co crores Cooperative Integrated development of co operatives Development Scheme on – operatives ❖ Internship Corporation Agricultural opportunities for Cooperation students ❖ Healthcare infrastructure in co operatives ❖ Promotion of FFPO 13 Implementing Scheme Objectives Description Funding Beneficiaries agencies Financial Development of ❖ Integrated Pack House Agricultural and Fishers, Entrepreneurs, students Assistance Export Infrastructure and processing facilities Processed Food under for addressing missing Products Export Agriculture gaps Development and ❖ Purchase of insulated, Authority Processed reefer transport /mobile (APEDA) Foods Export pre-cooling units Promotion including special vehicle Scheme of for livestock carriers APEDA ❖ Cable handling system for banana and other crops ❖ Food processing facilities for addressing missing gaps required for enhancing productivity/ efficiency or quality for value added products which may include facilities like x-ray, Screening equipment, Sortex, IQF, cooking/blanching line, filth / metal Enhancing productivity, efficiency, and quality for value added products. The assistance shall be up to 40% of the total cost subject to a ceiling of Rs. 200 lakhs Page 7 of 51 14 Implementing Scheme Objectives Description Funding Beneficiaries agencies detector, sensors, vibrators or any new technology or equipment for food safety and quality requirements. ❖ Up-gradation of facilities mentioned above Quality Development ❖ Implementation and Certification of quality and Food Safety Management Systems for all APEDA scheduled products. ❖ Standardization, Harmonization with international standards for adoption of International Standards including special cases such as control of fruit fly and/or any other unforeseen outbreaks as per the requirements of international market. ❖ Procuring hand-held devices including cost of software for capturing farm level peripheral coordinates for traceability systems. This 15 Implementing Scheme Objectives Description Funding Beneficiaries agencies will include any electronic management system, software, block chain, Artificial Intelligence (AI), or any other high precision technology Strengthening Of Training and study tours Technical and national and international Managerial Skills National Business Technology upgradation and Estimated Ministry of food Exporters, Entrepreneurs Mission on development, Post- modernization of food expenditure of Rs processing Food harvest Infrastructure processing industries, Cold 912.82 crore Industries(MOFPI) Processing and food parks chain projects, mega projects India Cooling Cold storage, Reefer A 20-year perspective and Policies to Ozone cell, Entrepreneurs, Government Action Plan transport recommendation to address achieve required Ministry of 201713 cooling requirements across energy efficiency, environment, sectors and provide access Low ODP and forest and to sustainable cooling. To GWP climate change harmonize energy efficiency (MOEFCC) with the HCFC phase-out and high-GWP HFC phase-down schedules. National Implementation of Addresses the specific needs Bureau of Energy MSME (Micro, Small & Medium Programme Energy Efficiency of the industries in the SME Efficiency, Enterprises) on Energy measures in MSME sector for EE improvement Ministry of Power Efficiency and sector 13 http://ozonecell.nic.in/wp-content/uploads/2019/03/INDIA-COOLING-ACTION-PLAN-e-circulation-version080319.pdf 16 Implementing Scheme Objectives Description Funding Beneficiaries agencies Technology and to overcome the Upgradation common of MSMEs barriers in the implementation of EE technologies in cluster through knowledge sharing, capacity building, and development of innovative financing mechanisms. The major activities in the BEE SME program are: • Energy use and technology studies • Capacity building of stake holders in cluster for building EE projects • Implementation of energy efficiency measures • Facilitation of Innovative financing mechanisms for implementation of energy efficiency projects 17 2.3 Challenges faced by the Indian Fisheries sector Indian Cold Chain sector and Fisheries sector has got lot of support from various agencies as mentioned in the table above. But still there are challenges that reduce the impact of these schemes. Some of these barriers are: • High cost of setting up of infrastructure: The project cost goes significantly higher than the estimates due to various external factors like land cost, logistical difficulties for construction materials, state taxes etc… • Lack of awareness: Indian Fisheries Cold chain is largely an unorganised sector and as such lacks awareness on the different schemes available. The smaller players especially face this problem and operate as same as always without any upgradation in their process or infrastructure. This lack of knowledge and awareness impact the effectiveness of the policies. • Policies are more directed to cold storage rather than on the cold chain, as a whole: The subsidies and other support appear to be more towards cold storage infrastructure development. There has been an approach of incentivising cold-rooms more than the other phases of the cold chain. • There are limited incentives to the smaller players to adopt efficient cold chain technologies. • Some policies are generic in nature and is for India as a whole. These types of policies fail to meet the desired effect due to its inability to adapt to variance in terms of the local geography, particular technology, etc… • The sector is very large and unevenly spread across India. This poses a real challenge in determining the effectiveness of the different policies. Marketing, hand holding and monitoring the sector is very hard. • The Corona outbreak also made a huge negative impact on the effectiveness of the policies. 2.4 Policy comparison with other South Asian countries14 The policies and financing mechanisms vary between different countries. All the South Asian countries where fishing sector contributes significantly faces numerous challenges and a comparative study between them will be beneficial for all of them. Countries like India, Cambodia, Indonesia, etc. have detailed strategies and policies associated with their Fisheries sector. Some of the differences in policies in Indian Fisheries sector as compared to other South Asian countries are: • Countries like Indonesia have an increased collaboration with international fisheries, investors and related organisations. Whereas India has limited engagement with international community organisations and investors. • In India, land and maritime based activities are not integrated and have two different institutional setup. • The engagement of Fisheries ministry with other ministries is minimal when compared with that of other countries. In countries like Cambodia there is a substantial overlap between different ministries – Ministry of Finance plays a coordinating role. • In Indonesia, the fiscal policy and instruments In Fisheries sector is part of its NDC (Nationally Determined Contribution). Also, they are more open to innovative financial instruments (like Blue bond) when compared to other South Asian countries. The Asian Development Bank (ADB) supports a model in which blue bond funds projects that generate financial returns. 14 https://www.adb.org/sites/default/files/publication/756266/adbi-wp1289.pdf 18 Blue bond: A form of a sustainability bond, which is a debt instrument that is issued to support investments in healthy oceans and blue economies. In blue bond, earnings are generated from the investments in sustainable blue economy projects. Perishable food wastages GHG emissions of food wastage(LULUCF15) if considered as a country will be the third largest emitter in the world as declared by World resource Institute(WRI). In developing countries, due to lack of post- harvest infrastructure up to 30% food is wasted. The fishery sector has loss of 5.2% and 10.5% for Inland and marine fishing. Figure 7: Food wastage16 emissions compared with other countries(WRI) 3 Cold chain infrastructure – Fisheries According to National cold chain Development (NCCD), the recommended path for cold chain is suggested as Figure 8. Live fish transportation is also added as a part of long-haul reefer as it can have significant impact on the quality and low loss of fish. Figure 8: Cold chain path for fisheries The large cold chain network for fisheries is mainly for export products, which is taken care through sea. The retail cold chains are for last mile are smaller in size. The number of cold chain systems have significantly increased over the last few years. The gap of cold storage requirement in the country is 15 Land Use, Land-Use Change and Forestry (LULUCF) 16 https://www.wri.org/events/2021/12/reducing-greenhouse-gas-emissions-food-loss-waste 19 less, the requirement of long-haul reefer and last mile transport system are significantly high. India needs further requirement to fill 95% of the gap.17 Table 2: Cold chain infrastructure 2021 - 2218 Post-harvest infrastructure Nos Capacity in MT Processing plants 611 34495 Ice plants 79 2262.35 Peeling sheds 690 10859.04 Conveyance 227 211102.4 Storages 790 476324.8 Fresh/Chilled FHC 67 1196.3 Live fish HC 63 1676.36 Salted/Dried FHC 133 2473.26 3.1 Estimating future cold chain capacity The future cold chain capacity is estimated by considering the years 2015 – 16 to 2021 – 22. The CAGR of the units is mentioned Table 3 for the corresponding periods. Both the number of units and capacity has been taken into consideration. Table 3: CAGR of the of post – harvest infrastructure components CAGR Projected for 2029 - 2030 Post-harvest infrastructure Capacity Capacity Nos Nos (MT) (MT) Processing 3.84% 8.09% 858 69496 plants Ice plants 0.00% 0.70% 79 2410 Peeling sheds 1.39% 10.37% 781 26382 Conveyance 2.88% 34.89% 293 3121102 Storages 4.46% 10.74% 1170 1192957 Fresh/Chilled 7.81% 0.00% 132 1196 FHC Live fish HC 8.97% 0.00% 137 1676 Salted/Dried 4.64% 21.33% 200 14096 FHC 17 National cold chain Development (NCCD) 18 Annual report 2020 – 21 Marine Products Export Development Authority (MPEDA) CAGR calculated from 2015-16 to 2021-22 data from MPEDA 20 4 Opportunities in cold chain capacity to move towards EE, reduced HGWPRS and ODS 4.1 Energy Efficiency, HGWPRS and ODS in Fisheries Fisheries sector uses close to 1% of the total cold storage capacity available in India. Further, while three-fourths of fish harvested in India is marketed in fresh form, there is a strong need for the cold chain industry to come up with innovative & cost-effective transportation and storage facilities to ensure supply of superior product to the consumer. The presence of a strong cold chain ensures minimal wastage. The Innovative & integrated cold chain solutions across the Fisheries supply chain can act as a critical enabler to guarantee superior quality of fish and fish products. The government is supporting, through various policies and incentives, strengthening the post-harvest infrastructure such as chilled storage facilities, ice plants and processing units, logistics, state of the art technology, wholesale and retail market, etc., for the development of this sector. However, opportunities still exist for the sector to improve their energy efficiency, reduce use of GHWPR and reduce use of ODS. These opportunities will aid the Fisheries sector to move in a sustainable and eco- friendly direction. The Fisheries sector have been implementing various measures to increase energy efficiency, minimize use of HGWPR and reduce use of ODS in its cold chain across various stages in the cold chain. Opportunities exists in multiple levels in Fisheries cold chain and can be broadly classified into: – Transportation, Cold storage, Processing plant and Reefer transport. First & Last Mile Transportation Processing Multiple Areas plants/ Cold Storage Reefer Transport Figure 9:Focus Areas – Opportunities in Fisheries cold chain 21 The energy efficiency at equipment or component level can be achieved by adopting various new technologies, preventive maintenance, optimum utilization, or replacement of old equipment with new and energy efficiency equipment. In addition to improving energy efficiency at equipment or component level, the Fisheries cold chain in India has made significant improvements in refrigeration and fish transportation through various energy conservation and low HGWPRS – ODS measures such as Use of refrigerants having low GWP and ODP, use of energy efficient chillers, Tunnel IQF, etc. Refrigerants have a deep impact in the environment due to their global warming and ozone depleting potential. CFCs have already been phased out due to their ozone depletion potential. HCFCs are also now being phased out in stages. HFCs like R134a, R404a, etc. are currently in use but will be phased out soon due its high global warming potential (GWP). Hence, Hydro Fluro Olefins (HFOs) have been developed with zero ODP and very low GWP. Often, these measures when implemented not only result in improvement in energy efficiency, lower GWP and lower ODP but also in higher productivity, reduced wastage and higher quality retention. To summarize, the strategy for efficiency improvement, low HGWPRS and low ODS for Fisheries cold chain is primarily focused on is mentioned in Figure 9:Focus Areas – Opportunities in Fisheries cold chain. 4.2 Energy Efficiency, Low GWP and Low ODS Measures The significant energy consuming in Fisheries cold chain is linked to Refrigeration and Transportation required for Fish and Fish products. Refrigerants used in Cold storages and Processing units have certain Global Warming and Ozone Depleting potential associated with it. It is crucial to use low GWP and ODP refrigerants to reduce the impact of Fisheries cold chain in climate change. The India Cooling Action Plan (ICAP) developed by the Government of India provides an approach for reduction of cooling demand, refrigerant transition, enhancing energy efficiency and better technology options. The following section provides an overview of some of the key energy efficiency, low GWP and low ODP measures in Fisheries cold chain. 22 Table 4: Opportunities in First and Last mile transportation Opportunity Description Benefits Savings FIRST & LAST MILE TRANSPORTATION Phase Changing Materials (PCM) technology in • Used in fish distribution • Ice usage and cost will 20% fuel saving Coolers/Chest Freezers network from Central come down potential in reefer stores to Customers transport • Cycle time improvement, • Phase change materials productivity improvement (PCM) based pouches are as ice loading etc avoided lined up in the coolers • Temperature should be • Reduction in GWP lesser than 5 ⁰ Celsius during transportation. • Energy Efficient Cold storage using PCM installed in the distribution network. PCM cartridges are used to sustain the cold temperature. • Can be seen in Reefers and chest freezers in urban regions in India. (Pluss Advanced Technologies Pvt. Ltd. Is providing PCM solutions) • The main challenge that prevents large scale adoption of this technology is the cost and availability 23 Table 5: Opportunities in Cold storage & Processing, Reefer transport & Multiple areas Opportunity Description Benefits Savings COLD STORAGE & PROCESSING Hybrid Freezer with Thermal Energy storage • Chest freezers and coolers used • Reduction in GHG 10% Reduction in for storage of fish rely heavily emission due to operation cost on continuous uninterrupted energy savings power supply for operating the • Avoidance of generator cooling unit. & Use of low GWP & • System uses compressor – PCM Zero ODP Refrigerant combo for maintaining the • Reduction in peak temperature demand • Improvement in product quality / shelf life Solar PV system for Fishery Cold storage • Phase change materials (PCM) • Operating costs 10% reduction in filled heat exchanger plates are reduced drastically electricity cost by lined up on the inner side cold since the system substituting with room wall requires no electricity Solar • Solar powered refrigeration • Reduction in GHG unit will cater to the cooling emissions since requirement renewable energy is • Will operate for 24 hours by used charging the PCM when the solar energy is available • The PCM plates will work during non-sun hours to cater the cooling requirements. of +2 to +4⁰C for 16- 20hrs / day 24 Opportunity Description Benefits Savings • Popular in Indonesia’s Fisheries cold chain and can be replicated in India’s Fisheries cold chain • New regulations are needed to accelerate the implementation rate by reducing regulatory restrictions on the use of PV on-grid to obtain affordable electricity prices Efficient Ammonia / CO2 Brine system in Cold • Carbon Dioxide is used in • Zero ODP and low GWP 25% energy savings storage19 conjunction with Ammonia as a since Ammonia is used potential cascade system (better than other • Cascade heat exchangers used refrigerants) • Low stage heat exchangers are • Lower maintenance used for generating lower cost (no cooling temperature up to - 40⁰ C required on the low • CO2 also used as secondary side compressors) coolant • CO2 is non-hazardous • Can be used for > 50 TR and non-flammable • Double stage system consumes (low ODP & GWP of 1) lesser energy compared to • Increase in system single stage systems safety due to reduced • System installed onboard use of Ammonia fishing vessels in Denmark. Widely accepted in European countries. 19 https://www.mmrefrigeration.com/wp-content/uploads/2018/03/Alternative-Refrigeration-CO2-Cascade-Systems-.pdf 25 Opportunity Description Benefits Savings Use of Evaporative condenser for cooling • Evaporative condensers can be • Reduction in GHG 10 – 15% energy used instead of conventional emission due to savings potential condensers like PHE energy savings condensers • Environmentally • Evaporative condensers spray friendly (No ODS) water directly over the coils and a fan blows air through the falling spray of water • The cool water absorbs heat from the condenser coil, cooling the refrigerant • Installed in Kochi Seafood processing cluster (Kerala) • Has very good replication potential in other units where cooling towers are present. Low charge Ammonia refrigeration system20 • Low charge Ammonia systems • Cleaner and greener 10% energy saving handle and store smaller than HFC systems potential quantity of Ammonia and use • Reduction in operating sensors to detect leaks. costs due to lower • Existing refrigeration systems energy consumption (Capacity > 50 TR) can be • Zero Global Warming replaced with Low charge Potential & Ozone Ammonia refrigeration systems Depleting Potential • Systems are supplied by Evapco • Lesser safety concerns as compared to traditional NH3 refrigeration systems 20 https://shaktifoundation.in/wp-content/uploads/2019/04/Cold-Chains-in-India-Report-Final-Web.pdf 26 Opportunity Description Benefits Savings Tunnel IQF (Individual Quench Freezing) machines 21 • Rapid freezing of individual fish • Modern IQF machines 25% energy saving before packing consume lesser water potential compared • Freezing done by placing fish or and energy to conventional IQF by passing it through a spray- • Reduced stream of refrigerant environmental • Able to blast freeze large footprint (Low GWP) quantities of seafood in a short • Lesser quantity of period of time refrigerant/Nitrogen • Maintains a higher degree of used as compared to seafood quality and process conventional IQF more seafood as compared to methods other Freezers Reefer Transport Mobile Chilling for Reefer trucks • Use of Reefer trucks with • Lower costs as 30 – 40% reduction Thermal storage systems for expensive diesel is potential in CO2 delivery of fish replaced with grid emissions • Chilling station charges the electricity thermal storage tank by using • Eliminates compressor electricity from the truck • Thermal storage tank stores the cold energy and is used to • More eco-friendly as power the cooling carbon footprint for requirements in reefer vans the grid generation is • Technology is gaining traction 30-40%* lower than in India (Eg:- Promethean burning fossil fuels Spenta Technologies based out of Pune, India) 21 https://www.afellc.com/equipment-solutions/iqf-hybrid-tunnel/ 27 Opportunity Description Benefits Savings Multiple Areas Variable Frequency drive solution for Refrigeration • VFD installation for different pumps • Energy savings based 20% energy saving systems and motors in the Refrigeration on modulating demand potential system due to variation in • Capacity control of Chilled refrigeration process water pumps, recirculation • Improved equip. life pumps, condenser, water • Energy savings by pumps, ammonia pumps optimizing excess /condenser fans installed capacity • Compressor Motor capacity • Reduction in GHG control emissions • Installed in processing units in Kerala seafood processing cluster Electronic Level Control for Refrigeration system • Electronic / modulating valves • Reduction in pressure 10% energy saving are used instead of drop in the refrigerant potential conventional valves for level circuit – resulting in control of refrigeration energy savings • Controls level of refrigerant • High reliability (Low requires optimizing condenser maintenance and and evaporator pressure service down time) • Sensors are used for detecting • Lesser GHG emissions and measuring the different as compared to parameters conventional systems • Can be installed in refrigeration systems of any capacity • Used in larger processing plants in India 28 Opportunity Description Benefits Savings IOT for Refrigeration systems • Integrated Internet of Things • Energy savings 5% energy saving (IoT) sensors provide powerful potential – reduces capabilities to the refrigeration GWP of the system systems like: • Automatic alerts if • Real Time monitoring, there is a refrigerant Increased system efficiency by leakage analysing the operation and • Continuously monitor adjusting parameters in real energy consumption time, Predictive maintenance is and health of the possible helping to increase system reliability of the system • Technology is yet to be adopted in India due to the high capital requirement • Successful in North American and EU countries The key challenges in implementation of these technologies are: • Investment Barrier • Awareness among the stakeholders about the opportunities • Lack of Innovative financing models22 22 Based on discussions with technology suppliers 29 5 Consultation with OEMs CII has done extensive consultations with OEMs and other relevant suppliers in the Indian Fisheries sector. Based on the interactions, OEMs have suggested various technologies which can improve energy efficiency and reduce GHG and ODP in the Fisheries cold chain. Name of the supplier Technologies Danfoss Industries Pvt. Ltd. ❖ Electronic Expansion valve ❖ IOTs ❖ VFDs for compressors ❖ Automation and Safety system for ammonia Trane India Pvt. Ltd. ❖ Energy efficient Chillers ❖ Possible futuristic refrigerants Thermoking India ❖ Reefer transport system ❖ Zero ODP and GDP transportation ❖ E – Vehicle reefer last mile transport Frick India Pvt. Ltd. ❖ Ammonia chillers ❖ Evaporative condensers ❖ Automation for chillers Tan 90 ❖ PCM based transport cooling CII has engaged the suppliers mentioned in the above table over telephone or in online platform (MS Teams). 23 23 See Annexures for more details 30 6 Annexures Figure 10: Consultation with Danfoss (Minutes of Meeting) 31 Figure 11: Consultation with Trane Technologies (Minutes of meeting) 32 References https://data.worldbank.org/indicator/ER.FSH.CAPT.MT https://dof.gov.in/sites/default/files/2021-02/Final_Book.pdf https://dof.gov.in/sites/default/files/2020-08/HandbookonFS2018.pdf https://www.fao.org/3/bb144e/bb144e.pdf https://pmmsy.dof.gov.in/ https://nfdb.gov.in/PDF/GUIDELINES/Guidelines%20in%20Brief%20Centrally%20Sponsored%20Scheme%20on %20Blue%20Revolution%20-%20February%202019.pdf http://www.fardodisha.gov.in/sites/default/files/misc/NFDB%20scheme.pdf https://www.mofpi.gov.in/Schemes/pradhan-mantri-kisan-sampada-yojana http://ozonecell.nic.in/wp-content/uploads/2019/03/INDIA-COOLING-ACTION-PLAN-e-circulation- version080319.pdf https://shaktifoundation.in/wp-content/uploads/2019/04/Cold-Chains-in-India-Report-Final-Web.pdf https://www.afellc.com/equipment-solutions/iqf-hybrid-tunnel/ https://mpeda.gov.in/?page_id=2365 https://www.mmrefrigeration.com/wp-content/uploads/2018/03/Alternative-Refrigeration-CO2-Cascade- Systems-.pdf https://apeda.gov.in/apedawebsite/ https://dof.gov.in/related-links/fidf https://www.nabard.org/CircularPage.aspx?cid=504&id=5262 https://www.adb.org/sites/default/files/publication/756266/adbi-wp1289.pdf