Cold storages serve as a crucial link between the final consumer and the farm produce. The service of cold storage is increasing steadily and knowing ‘how do I start a cold storage unit in India is helpful.
What are the business models in cold storage?
Cold storages business models are:
- Agri and food products storage- The items for cold storage here include meat, dairy, and fruits. These are required anytime in the year and so the cold storage facility should be located closely.
- Storage of off-season products- The products in the cold storage include potatoes, chilies, and seeds that are in off-season demand. The storage is located close to the product’s originator or the source.
It requires you to contact NSSPL to get a clear analysis of the market and the customers as a part of how do I start a cold storage unit in India.
Machinery and profitability
The main two components in cold storage equipment are insulation panels and machinery. It comprises motors, evaporative condensers, and compressors. The cold storage chamber walls are fabricated with polyurethane-made insulation panels.
The cold storage cost relies on the capacity and the cold storage chambers. The cold storages offering facilities for frozen products cost more than the cold storage temperature. The key costs include manpower and electricity costs. These costs are fixed in nature; the cold storage profitability depends on the user capacity.
How do I start a cold storage unit in India? What is the budget? Cold storage setting up cost in India is around 5000 metric tons and it requires 1 acre of land. The cost is around Rs. 4 crores. The cold storage subsidy for financing is available under Pradhan Mantri Kisan’s plan for Integrated Cold Chain and Value additional infrastructure.
The subsidy is on the cost of the room as per the scheme. The single chamber cost per ton is Rs. 8000 for cold storage and the subsidy is project costs 35%. However, the project cost includes technical civil work and machinery.
State-wise cold storage capacity in India
As per the information available cold storage are featuring 374.25 lakh MT capacities in 8186 cold storage. It helps store fruits and vegetables, the perishable horticulture produce. It is about using the capacity in real-time as per availability and cost.
NABARD Consultancy Service carries out a study on State wise cold storage capacity in India. The government is following schemes and implementation under financial assistance. It is providing cold storage and sets up facilities throughout the country. In this way, it eases how do I start a cold storage unit in India. Thus, it bridges the gap between cold storage capacity requirement and availability of cold storage.
The MIDH also offers financial support to several horticulture activities such as cold storage setting up. The component is entrepreneur/demand-driven offering government assistance. It also offers subsidies at 35% and 50% as per the areas, general and hilly areas. This percentage is as per the project cost making for eligibility and is for public and private enterprises.
PMKSY, the Pradhan Mantri Kisan yojana is intending to decrease horticulture and non-horticulture post-harvest losses. It provides farmers with a remunerative price for their produce. The Ministry offers the assistance of finance as a grant-in-aid under this scheme. However, the standalone cold storages stay uncovered in this scheme.
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State-wise distribution of Cold Storages
Name of the State
Andaman & Nicobar Islands (UT)
Andhra Pradesh & Telangana
Jammu and Kashmir
There is always an advantage in contacting experienced professionals such as NSSPL for cold storage information. Learn ‘how do I start a cold storage unit in India’ with their consultation, and you will enjoy success.
For fool-proof methods, contact Natural Storage Solutions Pvt.Ltd.!