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IFC lends $6.5m to Indian food logistics company

  • Alvina Yuen
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International Finance Corp. (IFC), the World Bank's investment arm, will lend $6.5 million to food supply chain Snowman Logistics, in a move to foster efficiency and organization in India’s logistics sector.

The funding will help Snowman to expand its cold storage facilities in various locations in India, as well as reducing wastage and promoting food security.

India's $390 million agricultural logistics industry is highly fragmented. It is estimated that one third of farm output is wasted due to inadequate transportation and storage facilities. IFC's goal is to support the development of farm-to-market cold food supply chains in order to make distribution more effcient and stabilize prices.

"IFC's investment in Snowman will help lower overall logistics costs and reduce wastage associated with Snowman's clients, most of whom are in the agriculture and food sector," Anita M. George, IFC director for infrastructure in Asia, said in a statement. "This is an ongoing strategic partnership with Snowman."

In 2009, IFC also contributed $5 million to help expand Snowman's storage capacity across India. The company provides cold chain services for a variety of products in over 100 cities across 4,400 outlets.

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