What changed in 2025

In July 2025 the Union Cabinet approved an additional outlay that raised PMKSY funding to ₹6,520 crore for the 15th Finance Commission cycle (through March 31, 2026). The package earmarked ₹1,000 crore to establish 50 multi-product food irradiation units under ICCVAI, reflecting an increased focus on modern, non-thermal preservation to extend shelf life and strengthen food safety.

The revised operational guidelines issued on May 22, 2025 clarified priorities: funding will support farm-level infrastructure linked to distribution hubs and refrigerated transport and target non-horticulture perishables such as dairy, meat, poultry and fisheries (shrimp moved earlier to Operation Greens).

How ICCVAI works

ICCVAI is demand driven. Individuals, Farmer Producer Organisations (FPOs), Farmer Producer Companies (FPCs), cooperatives, private firms, NGOs, self-help groups and PSUs may apply for project assistance. The scheme awards grants — typically 35% of eligible project cost in general areas and 50% in difficult regions and to SC/ST groups, FPOs and SHGs with a ceiling of up to ₹10 crore per project.

Projects must prioritise Farm Level Infrastructure (FLI) and link the same to Distribution Hubs (DH) and/or temperature-controlled transport, ensuring produce moves quickly and safely from farms to processing facilities and markets.

Complementary schemes and finance

ICCVAI complements several government initiatives. The Mission for Integrated Development of Horticulture (MIDH) and the National Horticulture Board (NHB) provide credit-linked subsidies for larger cold storage facilities, while the Agriculture Infrastructure Fund (AIF) offers collateral-free loans up to ₹2 crore with interest subvention.

These linkages allow entrepreneurs and producer groups to combine subsidies, loans and technical assistance when building an end-to-end cold chain network.

Progress so far

Since the cold chain scheme began in 2008, 395 integrated projects have received approvals. As of June 2025, 291 projects are operational, adding preservation capacity of about 25.52 lakh metric tonnes per year and processing capability of 114.66 lakh metric tonnes annually. Completed projects have also generated around 1,74,600 jobs nationwide.

A NABARD Consultancy Services (NABCONS) evaluation in 2020 reported that ICCVAI interventions reduced wastage in fruits and vegetables, dairy and fisheries  findings that informed later refinements to the scheme.

Policy shifts and targeted exclusions

The scheme has been periodically realigned. In June 2022, fruits and vegetables and shrimp  were moved under Operation Greens to focus specialized support for horticulture and price-stabilization measures. Later additions, such as multi-product irradiation units (guidelines, August 2024), reflect the government’s willingness to embrace newer preservation technologies.

Challenges and the road ahead

Critical challenges persist: last-mile electricity supply, affordable cold transport, skilled operations and market linkages for smallholders. Experts recommend integrating IoT monitoring, energy-efficient systems and AI-driven logistics to improve uptime and reduce operational costs.

Stronger coordination with state agencies, better access to credit and targeted support for FPOs and small processors will determine whether the scheme translates infrastructure into real income gains for farmers.