Can Cold Storage Be Profitable In Tamil Nadu?

Which Type Of Business Entity Should I Use For A Cold Storage Business

The cold storage facility in India is still in its infancy. There are many more miles to cover before the market of Tamil Nadu reaches maturity. As stated earlier, cold storage has just entered the Indian market due to various reasons. Some of these reasons include the emergence of storage facilities during the pandemic situation, and the benefits realized later on. So, there is a huge question about whether cold storage facilities are profitable or not. In general, there is an increased demand of the.

Can cold storage be profitable in Tamil Nadu?

After cold storage enterprises began operating, fruit and vegetable waste was reduced by 25%. Less than 1000 MT accounts for about 40% of the cold storage market. Due to fruit and vegetable deterioration, there is a lack of post-harvest storage solutions available nowadays.

The lack of fruits and vegetables Cold storage facilities cause deterioration and the waste of large quantities of fruits and vegetables. Therefore, there aren’t enough vegetables, fruits, and other eatable goods available for consumption as a consequence of product spoiling. They must be preserved and given a longer shelf life. In the absence of competitors in the market, cold storage facilities seem to be the best option for entrepreneurs or businessmen in Tamil Nadu. So, can cold storage be profitable in Tamil Nadu?

We have answered the above question in this article. So keep reading to learn everything about the profitability of cold storage.

This blog is also worth reading for you:–  How much land is required for a small cold storage?

Is Cold Storage Still Profitable In Tamil Nadu?

In this section, we are going to consider whether cold storage is profitable or not in Tamil Nadu.

  1. The Cold Storage Facility in Tamil Nadu. The COVID-19 pandemic’s aftershocks have brought about a wide range of difficulties, dangers, and chances for the cold-storage sector. Demand surpassed production throughout the first 2 years of the worldwide epidemic from the perspective of domestic retail spending. As a result of a reduced average of people with “long-term’ on-hand stock in 2020 and 2021, more firms were capable of finding third-party logistics cold-storage capacity. However, as food producers continue to increase production to pre-pandemic levels, the cold-storage marketplace has recently become more competitive, and there is once again a shortage of space. So, it is a great time to establish, and grow cold storage facilities in Tamil Nadu also.
  2. The Cold Storage Facility in India. The Indian government is assisting the cold storage industry. In the form of loans and subsidies, it is giving out financial aid from the bank. The traditional cold storage business has enormous potential in India. The right management and planning are crucial. Making a rapid decision that is sensible aids in success. About 2% of the agricultural products in India are kept in cold storage. As a result, it greatly distorts supply and demand, which contributes to tones.
  3. The Agriculture Produce in Tamil Nadu. Data for Amil Nadu indicated that amount at 11.450 Ton mn in 2021. This represents an increase from the prior figure for 2020 of 11.270 Tons mn. This agricultural produce would require cold storage facilities. Tamil Nadu does not have an extensive number of cold storage facilities in Tamil Nadu. So, it is highly profitable to produce agricultural products in Tamil Nadu.


Different elements increase the demand for cold storage facilities in Tamil Nadu. Some of these elements include the agricultural produce of Tamil Nadu, the lack of cold storage facilities, and the subsidies given by the Indian government. All of these elements increase the profitability of the cold storage facilities in Tamil Nadu.

cold storage machine
Yogesh Dahiya

Yogesh Dahiya

The Managing Director of Natural Storage Solutions Pvt Ltd is known for his expertise in setting up cold storage, chilling plants and food processing units.

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Have you come to my website for cold storage business information? If yes then you can watch video related to cold storage business by clicking here. 

YouTube Channel Video List