Indian perishables exports - a sweet success story

All key players in the supply chain are investing to increase capacity, upgrade technology and focus on sustainability.

Update: 2024-11-25 09:30 GMT

Photo Credit: Maersk

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Exports of fruits and vegetables increased 11 percent to $1.8 billion in the financial year 2023-24 (April 2023-March 2024) while volume declined 10 percent to 3.91 million tonnes. Floriculture exports increased eight percent to $208 million and volume was down marginally to 34,132 tonnes, according to data from Agricultural And Processed Food Products Export Development Authority (Apeda).

The momentum continues in the current financial year with Hyderabad International Airport experiencing a significant surge in the export of fruits and vegetables, achieving an year-on-year growth of approximately 25 percent in the first half of FY2024-25, says Pradeep Panicker, CEO, Rajiv Gandhi International Airport (RGIA). "Additionally, poultry exports, specifically hatching eggs, resumed during this period, with a total export volume exceeding 800 tonnes. This growth was primarily driven by the addition of new exporters who were drawn to the facility's superior perishable handling capabilities. The advanced infrastructure and streamlined processes at GMR Aero Cargo Logistics Terminal in Hyderabad Airport have enabled efficient and reliable handling of perishable commodities, making it an attractive hub for agricultural exports."

Adani Airports registered a six percent growth in the handling of perishable cargo during H1FY2025 over the same period in the previous year. "This achievement underscores our commitment to providing world-class facilities and our contribution in transportation of perishable goods supporting the Indian agricultural sector by providing a reliable and efficient channel in the perishable supply chain. This service also enables access to global markets. Adani Airports is firmly committed to investing in and handling perishable exports, aiming to establish India as a strategic gateway for agricultural exports and to transform our nation into the agro capital of the world," says a company spokesperson.

Cool chain terminal at Mumbai Airport.

Mumbai, Ahmedabad and Lucknow are the top three airports across the Adani Airports network that support perishable exports. "Mumbai, Guwahati and Lucknow are the top three airports supporting domestic movement of perishables. The growth can be attributed to higher movement of vegetable and meat shipments in Lucknow to Gulf destinations and higher movement of coriander shipments in the domestic segment.

"Mumbai and Ahmedabad have high movement of mango shipments to Europe and the U.S. In Mumbai, the domestic cargo perishable segment is also supported by mango, cashews, frozen fish, live fish, fruits & vegetables and chocolates."

Danish logistics integrator Maersk saw varied results across its portfolio in the first half of 2024. "While grape exports maintained consistent volumes despite challenges from the Red Sea situation affecting transit times, we've seen particularly strong momentum in banana exports with double-digit growth, and we expect it to continue," says Ashish Agrawal, Head of Reefer, Cold Chain and Pharma for Maersk in India, Bangladesh & Sri Lanka. "The frozen segment, including seafood and meat exports, has demonstrated modest but steady growth. Onion exports experienced a temporary setback due to regulatory measures, though we anticipate improvement in 2025. Looking ahead, we're particularly optimistic about the frozen processed potato business, where we project double-digit growth in 2025."

Looking ahead, we're particularly optimistic about the frozen processed potato business, where we project double-digit growth in 2025.
-Ashish Agrawal, Maersk

Maersk has established itself as a best-in-class provider in the grape export segment, delivering reliable direct service to Rotterdam during the season even while managing increased transit times. Agarwal says: "Our strength lies in providing comprehensive end-to-end solutions, encompassing everything from initial planning to first-mile logistics and customs at origin. We're particularly excited about our upcoming cold storage facility at Maasvlakte within Rotterdam port, which will enhance our integrated capabilities, enabling seamless service from farm to retail stores when combined with our origin and destination services."

Main export destinations for Maersk remain the Middle East and Southeast Asia with stable demand in U.S. and European markets. "On the import side, India shows an increasing appetite for fresh produce, particularly apples and citrus, while exotic fruits, though primarily moved by air freight due to volume and shelf-life considerations, are gaining traction in the market," adds Agarwal.

Customers in India have been very enthusiastic about Cathay Fresh, according to Tom Owen, Cathay Cargo Director. "Up to September, we have recorded a 50 percent increase in handling volume in 2024 compared to 2023. As our capacity has progressively resumed over the past two years, and with the fantastic efforts of our local teams, customers are quickly recognising the advantages of choosing Cathay Cargo to ship perishables, providing them with a highly reliable shipment schedule and top-class handling quality.

“We have seen excellent export volumes of fruits and vegetables as well as chilled fish from India, with notable destinations including Hong Kong, other parts of Asia, and North America.”

Etihad Cargo achieved a 19 percent growth in perishables tonnage from India in the first half of financial year 2024-25, led by strong demand for FreshForward services, according to Fabrice Panza, Manager, Global Cool Chain Products, Etihad Cargo. "Top performing commodities included mangoes, fresh vegetables and seafood, aligning with seasonal needs in major markets such as the Middle East and Europe. Notably, seafood exports showed surprising growth due to rising global demand. This reflects the growing confidence in Etihad Cargo's ability to deliver high-value perishables efficiently and reliably.

"FreshForward has gained strong traction as a premium perishable cargo solution, with customers responding positively to its reliability, precise temperature control and full end-to-end visibility. In response to growing demand, we're continuing to develop FreshForward by adding advanced tracking technologies and expanding cool chain infrastructure for improved coverage and efficiency."

Current capacity and expansion
The export terminal at Hyderabad Airport is equipped with temperature-controlled facilities, maintaining a range of 15 to 25 degrees celsius, along with dedicated cold rooms for 2 to 8 degrees celsius, says Panicker. "These capabilities enable the terminal to efficiently handle perishables as well as general cargo, with a total handling capacity of 50,000 tonnes.

Perishables processing at Hyderabad Airport.

"Further, GMR Aero Cargo Logistics is working on upgrading its existing domestic terminal to a dedicated perishables terminal that will bolster the efficiency and cost-effectiveness of agri-exports from the region. The dedicated terminal will feature specialised facilities, including dedicated rooms for various product categories such as meat, fish, flowers, fruits and vegetables. This tailored approach ensures the highest standards of hygiene and product integrity by preventing cross-contamination between different perishable goods.

"Additionally, RGIA is working on constructing a pack house near the cargo terminal. Recently, the Ministry of Commerce and Industries, Govt. of India, gave in-principle approval to set up an irradiation facility near the airport. This will further help local traders to export fruits and vegetables to Europe and USA. This infrastructure development is poised to play a pivotal role in streamlining the export of perishables, boosting the region’s contribution to the global agri-export supply chain while supporting local agricultural growth and sustainability. The facility will also provide substantial benefits to local farmers and agricultural exporters, enhancing their ability to access global markets.

“RGIA is also developing a second cargo terminal with a capacity of 50,000 tonnes per annum, which is expected to be commissioned in Q2FY26. GMR Aero Cargo Logistics is also expanding its cargo terminal capacity from 150,000 tonnes to 250,000 tonnes per annum by FY27. These expansions will provide additional handling capacity for perishables at Hyderabad Airport."

We promote sustainable packaging by encouraging the use of eco-friendly, recyclable materials, exemplified by our collaboration with Tyvek for fully recyclable W20 thermal covers.
-Fabrice Panza, Etihad Cargo

Etihad Cargo currently has a strong capacity for handling perishables, bolstered by advanced cool chain facilities in Abu Dhabi and key markets, adds Panza. "These facilities offer temperature-controlled storage, real-time monitoring systems and specialised equipment like breathable thermal covers to maintain product integrity in transit. To support growing demand, especially for FreshForward, expansion plans are in motion. These include upgrading cold storage at our Abu Dhabi hub to handle more high-demand perishables like fresh produce and seafood, investing in IoT-enabled sensors for real-time monitoring of temperature and humidity to improve efficiency and transparency, and partnering with industry leaders to enhance cool chain solutions and global connectivity. These investments reflect Etihad Cargo's commitment to maintaining top-tier service quality while meeting the growing global demand for safe, sustainable perishables transport."

Adani Airports currently offer an annual capacity of over 140,000 tonnes for the handling and processing of perishable consignments, and the upcoming dedicated perishable facility in the Integrated terminal at Ahmedabad airport will further add an annual throughput capacity of 16,000 tonnes.

The perishables logistics sector remains an essential pillar for Maersk in India, says Agarwal. "We wish to continue serving it through our robust ocean freight network for imports and exports. Our strategic depot network is crucial in supporting perishable imports across India, and it is complemented by our operational cold storage facility in Chennai, which serves critical import and storage needs. We're particularly excited about our upcoming expansion in Gujarat where we're developing a 20,000-pallet position cold storage facility in Mehsana, scheduled to be operational in 2025. This facility, designed for Hyfun's processed potatoes, is expected to set new industry standards and demonstrates our commitment to advancing India's cold chain infrastructure."

Cathay Pacific and Cathay Cargo currently operate 31 passenger flights and 13 freighter flights a week to/from India, covering Mumbai, Delhi, Bangalore and Chennai, says Owen. “India is an important market for Cathay, and we will continue to add more flights to our schedule for our customers. The Cathay group has made significant investments in new aircraft over the next seven years, including six Airbus A350F freighter aircraft with the option to acquire an additional 20 in future, which will allow additional cargo capacity and further expand our global network.”

How to handle different certifications
Hyderabad Airport works closely with regulatory bodies such as the APEDA, Marine Products Export Development Authority (MPEDA) and the Food Safety and Standards Authority of India (FSSAI) to ensure that perishable exports meet all required certifications and standards for international trade, says Panicker.

"The airport is also working on meeting the following standards:

*The ISO 9001:2015 (Quality Management) guarantees consistent quality in cargo handling processes, which is crucial for maintaining the integrity of perishables across the supply chain.

*CEIV Fresh Certification: RGIA is working toward this globally recognised certification from IATA for handling perishables, ensuring compliance with international standards for the transportation of perishable goods by air."

Handling perishable products in air cargo terminals requires strict adherence to quality standards to ensure product integrity and minimise spoilage, adds the Adani Airports spokesperson. "Our terminals comply with ISO 9001-2015 standards, maintained with accurate temperature control throughout the handling process, ensuring the consignments are tendered ready for carriage with proper packing and handling instructions. SOPs are strictly followed for handling perishables including unloading, storage and loading. Regular inspections, quality control checks and periodic audits are conducted to constantly monitor process, quality parameters and identify if there are any gaps.

"The perishable goods terminals at Adani Airports have robust traceability systems to track the movement of perishables in real-time. Contingency measures are in place to address emergencies such as power outages, equipment failure, system failure and other disruptions. By adhering to these certifications and quality compliances, Adani Airports ensure safe and efficient handling of perishable products, preserving their quality and minimising losses."

Perishables handling and technology
Technology facilitates cold chain management, for example temperature-controlled packaging solutions, vehicles and cold storage, says Owen of Cathay Cargo. "Moreover, IoT devices play an important role in maintaining quality standards when the perishable shipment is on-the-go by monitoring its condition and providing alerts for any deviations from set parameters. With more data generated, technology also helps with communication and coordination among various stakeholders in the perishable supply chain to ensure the sharing of shipment status. These can all be realised by the state-of-the-art Cathay Cargo Terminal and Cathay Cargo's Ultra Track solution, which utilises technology to provide our customers with ease of mind, safeguarding the quality and safety of perishable goods during transport, helping to reduce spoilage, maintain compliance, and improve overall efficiency in the supply chain."

IoT devices play an important role in maintaining quality standards when the perishable shipment is on-the-go by monitoring its condition and providing alerts for any deviations from set parameters.
-Tom Owen, Cathay Cargo

Perishable terminals need to be equipped with cutting-edge technology in addition to quality compliances to safeguard the integrity of perishable goods, adds the Adani Airports spokesperson. “In today’s fast paced global market, the efficient and timely transportation of perishable goods is paramount..

"Air cargo community systems implemented at Adani Airports cargo terminals have emerged as indispensable tools in streamlining operations and ensuring the integrity of these delicate shipments. By transitioning to digital platforms, our cargo terminals have successfully eliminated paper-based transactions, data duplication and errors. Air cargo community systems have streamlined workflows and optimised processes, enabling faster turnaround times.

"The air cargo management systems have been tailored to meet the specific needs of various stakeholders with the capability to customise based on client and business requirements, thus providing a collaborative environment in cargo handling. Perishable cargo terminals across Adani Airports comprise SMS and alarm alerts, offering real-time notifications in case of temperature deviations, enabling teams to take prompt action.

"Our advanced automated workstations assist us in reducing human errors, minimise processing time and enhance efficiency. Clients can access real-time updates of their consignments through user-friendly mobile applications deployed in the perishable cargo facilities. We encourage the deployment of handheld terminals at cargo terminal operations, a strategic initiative that aims to streamline processes, enhance efficiency and a superior customer experience.”

A view backed by Panicker of Hyderabad Airport when he says technology plays a pivotal role in ensuring the safe and efficient transportation of perishable goods via air cargo. "Perishables, including fresh produce, meat, seafood and pharmaceuticals are highly sensitive to changes in temperature, humidity and handling conditions. Any deviation from the ideal environment can lead to spoilage, loss of quality or regulatory non-compliance. Technology facilitates real-time monitoring, automated tracking and improved handling protocols to ensure the integrity and safety of perishables throughout the supply chain.

"GMR Aero Cargo Logistics Terminal’s existing facility features automated temperature and humidity control systems that continuously monitor storage conditions to ensure compliance with stringent international standards. The terminal’s cold chain management system is integrated with a centralised monitoring system, which tracks temperature data throughout the cargo’s journey, enabling swift action if necessary. Its perishable handling processes are aligned with international standards, supported by certifications such as GDP (Good Distribution Practices), ISAGO, and ISO certifications.

"GMR Aero Cargo Logistics is also exploring blockchain technology to enhance supply chain transparency and AI-based predictive analytics to optimise cargo handling and mitigate risks proactively. Through these investments, GMR Aero Cargo Logistics aims to continue being at the forefront of technology adoption, ensuring the safe and reliable transport of perishables for its customers worldwide."

Technology stands at the core of Maersk's perishable transport operations where the company has implemented sophisticated solutions to ensure product integrity throughout the supply chain. "Our refrigerated containers represent the pinnacle of temperature-controlled transport technology, featuring advanced temperature and relative humidity control settings," says Agarwal. "We've implemented comprehensive remote monitoring systems that provide continuous visibility of container conditions, ensuring temperature reliability throughout the journey. Our commitment to innovation extends to specialised container types designed to maximise product shelf life for fresh and frozen cargo. We also manage all necessary certifications, including phytosanitary certificates, certificates of origin and health certifications, ensuring seamless compliance with regulatory requirements."

Panza of Etihad Cargo adds: "Key technologies include real-time monitoring through IoT sensors, which track temperature, humidity, and location and provide immediate alerts for any deviations. Predictive analytics further support risk management by identifying potential issues like delays or temperature fluctuations and enabling proactive responses. With these technologies integrated into our initiatives like Fresh Corridor 2.0, Etihad Cargo ensures that perishables arrive fresh and in optimal condition, meeting customer expectations and industry standards."

Sustainability - is it even a challenge?
Hyderabad Airport handles challenges of sustainability through various practices, adds Panicker. Some of the measures include:

*Optimised refrigeration systems: GMR Aero Cargo Logistics uses energy-efficient refrigeration systems in the export terminal. These systems are designed to maintain precise temperature controls while minimising energy consumption.

*Green building practices: The facility incorporates environmental-friendly designs such as improved insulation in cold rooms and energy-efficient lighting (e.g., LED lighting), which reduce overall power usage.

*Green energy: RGIA purchases 100 percent green energy from the Government of Telangana.

Hyderabad Airport encourages the use of sustainable packaging materials, including reusable or biodegradable containers and insulated packaging, for perishable shipments. This reduces reliance on single-use plastics and non-recyclable materials, says Panicker.

Adani Airports is committed to minimise environmental footprint through energy-efficient operations, waste reduction and sustainable practices, adds the spokesperson. "The following sustainable measures have been taken:

*Replacement of diesel conveyors by electric conveyors;

*Replacement of battery operated tugs by electric tugs;

*Usage of battery operated forklifts in place of diesel forklifts; and

*Usage of energy efficient lighting systems, reducing noise and CO2 emissions during cargo handling."

Cathay Cargo is advancing sustainability efforts via multiple measures, including adopting 50 percent recycled plastic cargo sheets at Cathay Cargo Terminal. "Developed with supplier collaboration and rigorous testing, this solution minimises reliance on virgin plastics," says Owen. "We also recycle 100 percent of plastic sheets from import shipments, supporting a circular economy. Additionally, our participation in the IATA Environmental Assessment (IEnvA) programme sets globally recognized sustainability standards.

"Our corporate sustainable aviation fuel (SAF) programme, among the first in Asia, enables corporate customers to support flights with SAF, reducing Scope 3 emissions and meeting sustainability goals like the Science Based Targets initiative (SBTi). SAF, made from renewable sources, can cut carbon emissions by up to 80 percent over conventional fuel. Furthermore, our cargo customers can offset the carbon emissions of their shipments through our Fly Greener carbon-offset programme."

Etihad Cargo tackles the challenge of sustainability in handling perishables through innovative practices and strategic partnerships. Panza says: "We promote sustainable packaging by encouraging the use of eco-friendly, recyclable materials, exemplified by our collaboration with Tyvek for fully recyclable W20 thermal covers. Advanced route optimisation reduces fuel consumption and emissions, ensuring timely deliveries with a lower environmental impact. By reducing lead times through streamlined operations and pre-clearance processes with government bodies, we minimise delays, cut handling time, and reduce environmental impact. Additionally, our partnerships with suppliers, customers and global organisations support sustainable practices across the supply chain, aligning with international environmental goals. These strategies uphold the integrity of perishable goods while strengthening our commitment to sustainability."

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