Lok Sabha Question No. 1761 (UNSTARRED), answered on 2018-03-06
Subject: Cold Storage Units
Ministry: FOOD PROCESSING INDUSTRIES
Asked by: DUSHYANT CHAUTALA

## GOVERNMENT OF INDIA MINISTRY OF FOOD PROCESSING INDUSTRIES

## LOK SABHA UNSTARRED QUESTION NO.1761

ANSWERED ON 06 TH  MARCH, 2018

## COLD STORAGES UNITS

## 1761. SHRI  DUSHYANT CHAUTALA:

Will the Minister of FOOD PROCESSING INDUSTRIES be pleased to state:

- (a) whether it is a fact that there are only 7,000 cold storage units across the country and out of these, almost 5,000 were based on outdated technologies and if so, the details thereof;
- (b) whether the existing cold storage facilities have low capacity for post-harvest storage and if so, the details thereof;
- (c) whether the Government has any plan to upgrade the existing cold storage units technically to enhance storage capacity  and  creat  cold  chain  facilities  to  cut  post-harvest  losses  and  ensure  a better return to farmers; and
- (d) if so, the details thereof and the actions taken by the Government in this regard?

## ANSWER

## THE MINISTER OF STATE FOR FOOD PROCESSING INDUSTRIES (SADHVI NIRANJAN JYOTI)

- (a):    National  Horticulture  Board  has  conducted  a  study  on  'all  India  Cold  Storage  Capacity  & Technology-Baseline  Survey'  through  M/s  Hansa  Research  Group  Pvt  Ltd.,  Mumbai.  The  report contains data for cold storages which were constructed up to March,2013 (i.e. up to 2012-13). As per this report, 5367 cold storages were operational in the country. As per the information available as on 31.12.2017, there were 7845 cold storages with a capacity of 35.88 million MT in the country. Ministry does not have any information that almost 5000 cold storages are based on out dated technologies.
- (b):  National  Center  for  Cold  Chain  Development  (NCCD)  under  Department  of  Agriculture, Cooperation  and  Farmers  Welfare,  Ministry  of  Agriculture  &  Farmers  Welfare  had  commissioned  a study on 'All India Cold Chain Infrastructure Capacity (Assessment of Status & Gap)' conducted by NABARD  Consultancy  Services  Pvt.  Ltd.(NABCONS).  As  per  the  gap  study,  the  cold  chain requirement in the country stands at 35 million tonnes of cold storage vis-a vis available capacity of 32 million tonnes. The study has made the following gap analysis of cold chain infrastructure:

| Type of Infrastructure   | Infrastructure Requirement (A)   | Infrastructure created (B)   | All India Gap (A-B)   |
|--------------------------|----------------------------------|------------------------------|-----------------------|
| Pack-house               | 70,080 nos.                      | 249 nos.                     | 69,831 nos.           |
| Cold Storage (Bulk)      | 34,164,411 MT                    | 31,823,700 MT                | 32,76,962 MT          |
| Cold Storage (Hub)       | 9,36,251 MT                      |                              |                       |
| Reefer Vehicles          | 61826 nos.                       | 9000 nos.                    | 52826 nos.            |
| Ripening Chamber         | 9131 nos.                        | 812 nos.                     | 8319 .                |

The study was primarily based on requirement of fruits & vegetables and has excluded the requirement for milk, meat, marine and processed products.

(c)  &  (d):  Ministry  of  Food  Processing  Industries  is  implementing  a  central  sector  Scheme  for Integrated  Cold  Chain  and  Value  Addition  Infrastructure  in  order  to  arrest  post-harvest  losses  of horticulture & non-horticulture produce and to provide remunerative prices to farmers.  In this scheme cold  storage  can  be  set  up  as  one  of  the  component.    Ministry  is  implementing  the  Central  Sector Scheme of Integrated Cold Chain and Value Addition Infrastructure to provide integrated cold chain and  preservation  infrastructure  facilities  from  the  farm  gate  to  the  market.  Under  the  scheme,  the Ministry provides financial assistance in the form of grant-in-aid @ 35% for general areas and @ 50% for North East States, Himalayan States, ITDP areas and Islands for storage and transport infrastructure and  @  50%  and  75%,  respectively  for  value  addition  and  processing  infrastructure  subject  to  a maximum grant-in-aid  of  Rs.10  crore  per  project  for  setting  up  integrated  cold  chain  projects  in  the country. The integrated cold chain and preservation infrastructure can be set up by individuals, groups of  entrepreneurs,  cooperative  societies,  Self  Help  Groups  (SHGs),  Farmer  Producer  Organizations (FPOs),  NGOs,  Central/State  PSUs,  etc.The  scheme  is  primarily  private  sector  driven  and  proposals under this scheme are invited through Expression of Interest (EOI). Proposals received against the EOI are first evaluated by Technical Committee(TC) and then by Inter-Ministerial Approval committee(IMAC)  after  that  the  approval  letter  are  being  issued  to  the  project.  The  scheme  for Integrated Cold Chain and Value Addition Infrastructure is demand driven and entrepreneur are free to apply  for  upgradation  and  modernization  of  their  existing  integrated  cold  chain  facilities  under  the Scheme for Cold Chain and Value Addition Infrastructure.

Further, Department of Agriculture, Cooperation & Farmers Welfare (DAC&FW), Ministry of Agriculture  &  Farmers  Welfare is  implementing Mission for  Integrated  Development of Horticulture (MIDH) for holistic development of horticulture which also  provides assistance  for  creation  of  postharvest infrastructure including setting up of Cold Storages for perishable horticulture produce in rural areas.  The  assistance  is  available  to an  individual  or  an  enterprise  through  State  Horticulture Mission/National Horticulture Board for setting up of maximum 10,000 MT capacity cold storage with the cost norms varies between Rs. 6,800/MT and Rs. 10,000/MT. The components are demand/entrepreneur-driven  from  among  entrepreneurs,  private  companies,  cooperatives,  farmers groups  etc.  through  commercial  ventures  for  which  assistance  @35%  of  admissible  project  cost  in general areas and @50% in hilly and schedule area is available as credit linked and back ended subsidy.

In  addition  to  above,  National  Horticulture  Board  (NHB)  is  also  providing  credit  link  back ended subsidy under its scheme 'Capital Investment Subsidy for Construction/Expansion/Modernization of Cold Storages and Storages for Horticulture Products' on all India  basis  to  set  up  cold  storages  for  Horticulture  Produce  @  35%  of  the  capital  cost  of  project  in general area and 50% in case of NE, Hills states & scheduled area for a storage capacity above 5000 MT up to 10000 MT. In case of NE Region w.e.f. 01.04.2017 the storage having capacity above 1000 MT is also eligible for NHB assistance.

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