Bridging the Cold-Chain Gap: How Budget 2025 Fuels Farmers’ Growth
The Union Budget 2025, presented by Finance Minister Smt Nirmala Sitharaman on 1 February 2025, charts a transformative path for India’s economic growth, aligning with the vision of ‘Viksit Bharat’ by 2047. The budget introduces several initiatives that directly and indirectly bolster cold-chain infrastructure, a critical enabler for reducing post-harvest losses and doubling farmers’ incomes through targeted interventions in agriculture, investments, and exports. These initiatives have the potential to drive the expansion of modern cold storage facilities, refrigerated transport, and temperature-controlled warehousing.
Empowering Farmers with Strategic Reforms
The budget introduces pivotal initiatives to enhance agricultural productivity and resilience, including:
- Prime Minister Dhan-Dhaanya Krishi Yojana, benefiting 1.7 crore farmers
- Mission for Aatmanirbharta in Pulses, launching a six-year plan to boost productivity
- Enhanced Kisan Credit Card loans, offering INR 5 lakh in short-term credit to 7.7 crore farmers, fishermen, and dairy farmers
- Establishment of the Makhana Board, promoting self-reliance and sustainable growth
- Setting up NIFTEM (National Institute of Food Technology, Entrepreneurship, and Management) in Bihar, strengthening food processing, value addition, and employment generation in the Eastern region
Cold-Chain Infrastructure: A Strategic Growth Driver
Budget 2025 places significant emphasis on areas that have the potential to strengthen cold-chain logistics, recognising its role in safeguarding perishable agricultural produce. Key measures include:
- Infrastructure and air cargo upgrades: The expansion of Patna airport and the development of a brownfield airport at Bihta will enhance the efficiency of high-value perishable exports.
- Cargo screening simplification: Faster clearance will ensure that perishable goods reach markets in optimal condition, reducing food losses.
- Public-Private Partnerships (PPPs) & PM Gati Shakti: These initiatives will drive investment in energy-efficient cold-chain systems, leveraging vital data and mapping tools for effective planning and execution.
- INR 500 crore allocation for the Mission for Vegetables and Fruits: This initiative will improve storage, streamline supply chains, and reduce post-harvest losses.
- INR 2,217.25 crore under the Ministry of Food Processing Industries (MoFPI): This fund will be used to modernise storage facilities, ensuring better preservation and a resilient supply chain.
A New Era for India’s Agricultural and Cold-Chain Ecosystem
The Union Budget 2025 marks the beginning of a new era in agricultural resilience, laying the foundation for a robust, sustainable cold-chain infrastructure. By fostering strategic investments, encouraging PPPs, and modernising logistics, the government is ensuring an efficient, farmer-friendly, and globally competitive agricultural system. As India moves towards ‘Viksit Bharat 2047,’ strengthening cold-chain logistics will be key to securing food security, enhancing farmer incomes, and driving inclusive economic growth.
Disclaimer: The opinions expressed in this article are those of the authors and do not purport to reflect the views of AEEE
This blog is written by Akansha Ujala Dean and Dashrath Gholap