Authored by Aamir Zaman, Research Associate, Alliance for an Energy Efficient Economy

Reefer trucks transport perishable goods and cargo in a temperature controlled environment. According to the India Cooling Action Plan (ICAP- 2019), India currently operates only 13,000–14,000 reefer trucks. Over 95 per cent of these reefer vehicles carry frozen foods such as ice cream and ready meals, leaving less than 5 per cent for fresh produce. The consequences of such an imbalance are tangible. Consider the famous Shahi Litchi of Bihar, famed for its aroma and flavour, with a fragile shelf life of only 2-3 days. Sending it from Muzaffarpur to Bengaluru, a journey of more than 1,500 km and 48 hours by road, without temperature control, is a race against inevitable spoilage. So, while our frozen desserts stay intact, the quality and value of India’s fresh and essential harvests lose their quality and value on long, overheated journeys.

A significant share of losses in horticulture stems from inadequate cold-chain logistics, especially during transportation. Fresh produce spoils and perishes rapidly when not kept at the right temperature. Every year, out of the 19.3 million tonne of fresh horticultural produce that go to waste (as per the NABCONS Study, 2022), an estimated 3–4 million tonne of fruits and vegetables are lost in transit alone, simply because they are not transported in refrigerated vehicles. This absence of reliable, temperature-controlled mobility translates into an annual loss of about Rs 9,000-12,000 crore per year (estimated using the NABCONS study). 

India requires at least 62,000 reefer vehicles to adequately serve the horticulture sector (as per ICAP 2019). That means an 85  per cent shortfall in capacity, leaving farmers, traders, and consumers vulnerable to huge losses. Despite the urgent need, the adoption of reefer logistics in India faces several roadblocks. High operating costs make refrigerated transport unaffordable for many. Refrigerated reefer trucks typically cost Rs 6-10 more per kilometer than non-refrigerated trucks, pricing out small farmers and traders. The problem is compounded by poor aggregation: in states like Meghalaya or Bihar, individual farmers often cannot fill an entire large reefer truck, forcing them to rely on regular vehicles even if it means compromising quality. 

The hurdles 

On the road, regulatory bottlenecks slow things further. Despite RFID and e-tolling, reefer trucks carrying perishables are still stuck at toll plazas and checkpoints, with no dedicated fast-track lanes. Meanwhile, the lack of India-specific standards for refrigerated transport has led to non-standardised vehicle designs and suboptimal performance. Finally, taxes and import duties can also increase the cost of reefer trucks. In the past, different tax treatment for fully built trucks, parts, and specialised refrigeration equipment often pushed companies toward customised fabrication instead of standardised models. This has made reefer trucks costlier and harder to scale than they should be.

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