In July 2025, the Union Cabinet approved an additional ₹1,920 crore for the Pradhan Mantri Kisan Sampada Yojana (PMKSY), enhancing ICCVAI’s budget to ₹6,520 crore to expand cold chain infrastructure.

About Integrated Cold Chain and Value Addition Infrastructure (ICCVAI)

• The ICCVAI Scheme, under the Pradhan Mantri Kisan Sampada Yojana (PMKSY) which aims to develop a seamless cold chain network from the farm gate to the consumer.
• Objectives of ICCVAI
  • To minimize post-harvest losses in perishable commodities such as dairy, meat, poultry, and fish.
  • To create integrated cold chain infrastructure connecting farms, processors, and markets.
  • To increase farmers’ income through better price realization and reduced wastage.
  • To promote value addition through modern processing and preservation facilities.
  • To strengthen linkages between production, storage, and distribution networks for perishable goods.
• Key Components
  • Establishment of Farm Level Infrastructure (FLI) connected to Distribution Hubs (DH) and refrigerated or insulated transport.
  • Financial assistance for pre-cooling, processing, packaging, and temperature-controlled logistics.
  • Inclusion of multi-product food irradiation units to enhance shelf life and ensure food safety.
• Eligible Entities: Individuals, Farmer Producer Organizations (FPOs), Farmer Producer Companies (FPCs), Non-Governmental Organizations (NGOs), Public Sector Undertakings (PSUs), cooperatives, Self-Help Groups (SHGs), and private companies are eligible as Project Implementing Agencies (PIAs).

Complementary Government Initiatives

• Mission for Integrated Development of Horticulture (MIDH): Provides 35% subsidy in general areas and 50% in North Eastern, hilly, and scheduled areas for setting up cold storages up to 5,000 metric tonnes (MT).
• Operation Greens Scheme: Ensures price stabilization and integrated value chains for fruits, vegetables, and shrimp under the Pradhan Mantri Kisan Sampada Yojana.
• National Horticulture Board (NHB) Scheme: Offers capital investment subsidy (35%–50%) for the construction, expansion, and modernization of cold storages and Controlled Atmosphere (CA) storage facilities.
• Agriculture Infrastructure Fund (AIF): A ₹1 lakh crore fund providing collateral-free term loans up to ₹2 crore with 3% annual interest subvention for creating post-harvest and community farming assets like cold storages and warehouses.

Financial Assistance

• Grants of 35% of project cost in general areas and 50% in difficult regions (North-East, hilly, and tribal areas).
• Maximum financial assistance of ₹10 crore per project.
• Budgetary support includes ₹1,000 crore for 50 multi-product food irradiation units to preserve food and extend shelf life.

Achievements

• 395 projects approved since 2008, with 291 projects operational, creating 25.52 lakh metric tonnes (LMT) of preservation capacity and 1.74 lakh jobs.
• Post-2016 reforms strengthened fund utilization, technological upgradation, and market linkages.

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Significance of ICCVAI

• Reduces post-harvest losses and enhances food security.
• Increases farmers’ incomes and generates rural employment.
• Promotes hygienic and safe food through advanced preservation technologies.
• Boosts India’s agri-export competitiveness through value addition and efficient supply chains.
• Encourages sustainable practices using energy-efficient, IoT-enabled, and AI-driven infrastructure.

Conclusion

ICCVAI represents adaptive and technology-driven governance, building modern cold chain networks to enhance farmer welfare, reduce wastage, and strengthen India’s agri-food economy.

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