The cold storage business in India, or anywhere, calls for a huge investment. Therefore, new setups or entrepreneurs try to understand ‘what is the scope of a cold storage business in India.’
There is scope for the cold storage business in India. There is around 7500 cold storage, and the majority is for storing potatoes. The cold storage business is useful to keep medicinal products in store. It helps in reducing the farm produce off-season cost. It helps facilitate the perfect remunerative prices for farmers and agriculturists. It assures the availability with ease of both processed and packaged foods to consumers.
What is the scope of a cold storage business in India
Starting a business requires knowing ‘what is the scope of a cold storage business in India.’ The truth is that the percentage of waste from vegetables and fruits is around 18-21%. Nearly, 35% of cold storage is below 1000MT.
The wastes are due to storage of post-harvest lacking facilities. The sector of cold storage facilities is most undermined in India, regardless of various subsidies and government policies.
A traditional cold storage business in India has an encouraging scope. However, there is a need for good management, proper planning, quick decision, and proper time constraints. Produce in India is only two percent that is transported or held in cold storage facilities. Thus, it creates a gap between demand and supply accounting for millions of tones.
A multi-tier traditional cold storage featuring 6000 tones capacity costs 5 crores excluding the land cost. A cold storage unit typically features a 5000 MT storage capacity and requires an acre of land at least. The land price estimate is that it constitutes a total project cost of around 10 to 12 percent.
To comprehend the scope of the cold storage business, contact NSSPL. They have in-house facilities to show you the entire process from packing to cleaning, storing, and drying.
How does the cold storage facility be of help?
The cold storage facility is of immense help though it requires huge capital as investment. The need for huge capital brings to mind ‘what is the scope of a cold storage business in India.’ Cold storage is not found in India as common as it is found in western countries. However, it is now catching up with the speed.
India is an agricultural and fishing-intensive country requiring large and small capacity cold storage. There is a lot of wastage of perishable items, resulting in huge losses. Cold storage includes agriculture and fishery, besides the solar industry. The facility of cold storage relies on diesel generators as they shift to hybrid solar systems. It helps in reducing electricity bills and getting maximum efficiency. The investment for cold storage is initially high, but the potential and the return on investment are promising. It proves in India there is scope for the cold storage business.
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Is there an urgency to increase the cold storage business in India?
It is a correct question to acknowledge ‘what is the scope of a cold storage business in India.’ The scope of the cold storage business is easy to understand with its urgency to increase the cold storage facilities.
The Indian population is around 65-70% relies on agriculture, and many times, the fruits and vegetables rot lacking storage facilities.
The fresh produce gets spoiled and is of huge loss to the farmers. To avoid this situation, there is a need for cold storage business in India.
With the global warming threat increasing in India day by day, the risk is high of vegetable and fruit spoilage. Global warming indicated the urgency to increase the cold storage special need in India.
The good thing is that the good technology in cold storage now can keep vegetables and fruits for 2 to 6 months. The fruits and vegetables that are not sold immediately are acceptable. Instead, it fetches a good price as there is demand increasing. Agricultural produce enjoying storage for the long term is of special need. It keeps the farmers safe and offers assurance to earn profits.
Consulting NSSPL will be beneficial to get clarity on the cold storage business scope in India. They will show your renewed types of equipment and machinery to fulfill ever-increasing demand.
Contact Natural Storage Solutions Pvt.Ltd., the one-stop for cold storage!