India’s next phase of agricultural growth will not be driven solely by higher acreage or yields. It will be shaped by how efficiently crops are stored, moved, financed, and connected to markets. As food supply chains become more time-sensitive and quality-driven, strengthening agri infrastructure emerges as a national priority, one that demands deeper participation from private players with the ability to build, operate, and scale modern solutions.

The scale of the gap

Every year, India loses a substantial portion of its produce between farm and fork. Recent government-linked studies and sector analyses estimate post-harvest losses running into tens of millions of tonnes annually, a drain on farmer incomes and national food security.

Cold storage and cold-chain capacity have expanded rapidly but remain unevenly distributed, often focused on a few states and commodities. As of June 30, 2025, India reported around 8,815 cold storage facilities with a combined capacity of about 40.2 million tonnes, signalling both progress and the size of the logistics challenge ahead.

At the same time, modern warehousing demand is surging: leasing in India’s industrial and warehousing market rose sharply in H1-2025 (record activity and 63% YoY growth), reflecting stronger demand from 3PLs, e-commerce, and food distribution partners, all of which require reliable agri logistics and storage.

Role of private players in establishing agri infrastructure

• Speed and scale of capital deployment: Private firms can mobilise equity and project finance to build modern warehouses, packhouses and cold-chain assets faster than many public programs, meeting demand in high-growth corridors.
• Technology and operations expertise: Many private operators bring inventory management systems, IoT temperature monitoring, and integrated last-mile logistics that dramatically reduce spoilage and improve traceability.
• Market-linked pricing and incentives: Private infrastructure enables warehouse receipts, collateralisation and market-linked financings that can convert stored produce into working capital for farmers and traders.
• Integration with value-add services: Private players can offer sorting, grading, minimal processing and linkages to processors and exporters — creating more remunerative market outcomes for growers.

Economic upside for the country

The cold-chain and warehousing segments are predicted to be among the fastest-growing parts of the logistics ecosystem. Industry estimates show India’s cold-chain market was already large (over INR 2287.5 Billion in 2024 figures) and poised for further expansion to  INR 6061.7 Billion by 2033 at a CAGR of 10.86% (2025-2033) as food processing and fresh exports scale up. Similarly, Grade-A warehousing stock in India was on track to exceed 300 million sq ft by 2025, indicating rising professionalisation of storage capacity.

Investing in private agri infrastructure therefore multiplies benefits:

• Lower post-harvest losses
• Higher availability of quality produce for processors
• Improved export readiness
• Better farm credit against stored commodities.

Policy enablers: Public + Private partnership

The public sector has invested in schemes and subsidies for cold chains, but gaps remain in last-mile, smallholder-friendly storage and integrated logistics. A pragmatic path is stronger PPPs and enabling regulations for warehouse receipts, transparent grading standards, tax incentives for green cold chains and streamlined land/clearances for agri-warehouses. Private operators, working alongside state programs, can deploy commercially sustainable models while public policy ensures equitable access for farmers.

StarAgri services supporting agri infrastructure growth

StarAgri offers an integrated set of services that directly complements private agri infrastructure expansion:

• Pre-harvest intelligence: Satellite-verified land intelligence that geo-tags farms, captures crop history, acreage, and crop patterns, and supports better planning, risk assessment, and credit decision-making even before harvest.
• Warehousing & Collateral Management: End-to-end warehouse onboarding, inspection, activation, and periodic revalidation to ensure safe, compliant, and transparent storage of agricultural commodities. Through collateral management, StarAgri helps customers to have access to easy credit options.
• Integrated Logistics Support: Facilitates efficient movement of commodities across the supply chain—from farm gates and mandis to warehouses, processors, and export destinations.
• Quality Testing through Star Labs: Scientific assaying and quality testing services that ensure standardisation, price discovery, and trust in commodity transactions.
• Value-Added Services: Grading, sorting, and other services that improve commodity quality, consistency, and market readiness.

Conclusion

India’s agricultural growth story will increasingly be defined by the strength of its agri infrastructure, from pre-harvest intelligence and quality assurance to storage, logistics, and market linkage. Greater participation from private players can bridge long-standing gaps in efficiency, transparency, and scalability across the value chain. With its integrated ecosystem spanning agritech solutions, warehousing and collateral management, logistics, and Star Labs, StarAgri is playing a critical role in building future-ready agri infrastructure that supports farmers, strengthens trade, and accelerates the formalisation of India’s agricultural economy.

FAQs

• What is meant by ‘agri infrastructure’?
  It includes physical and digital assets that support agriculture, such as warehouses, cold storages, packhouses, processing units, transport links, and systems like warehouse receipt platforms and inventory software.
• How do private players reduce post-harvest losses?
  By providing temperature-controlled storage, faster handling, better grading/sorting, and traceable logistics that reduce spoilage and quality downgrades.
• Will more private infrastructure hurt small farmers?
  Properly structured, private infrastructure increases market access and provides options (paid storage, market linkages, credit against inventory). Policy design and inclusive business models are important to ensure smallholder benefits.
• How can farmers access finance using warehoused produce?
  Through warehouse receipt financing and structured trade finance, farmers or aggregators can pledge stored produce as collateral to obtain short-term working capital, a service StarAgri provides.
• What role should the government play?
  The government should enable PPPs, provide targeted incentives for hinterland cold-chain and smallholder-friendly warehouses, and ensure standards and frameworks (grading, receipts) that build trust in private supply chains.

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