Lok Sabha Question No. 1413 (UNSTARRED), answered on 2022-07-26
Subject: Cold Storage in Rural Areas
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Talari Rangaiah

## GOVERNMENT OF INDIA MINISTRY OF AGRICULTURE AND FARMERS WELFARE DEPARTMENT OF AGRICULTURE AND FARMERS WELFARE

## LOK SABHA UNSTARRED QUESTION NO. 1413

TO BE ANSWERED ON THE 26 TH  JULY, 2022

## COLD STORAGE IN RURAL AREAS

1413.  DR. TALARI RANGAIAH:

Will the Minister of AGRICULTURE AND FARMERS WELFARE कृ ष एवं कसान कयाण मंी be pleased to state:

- (a) whether the Government plans to build cold storage in rural areas particularly in Andhra Pradesh to provide  storage  facilities  to  farmers  to  store  perishable  food grains, fruits, fish and vegetables to enable them to get remunerative prices and to protect them from selling their  goods at a  lesser  price during  harvesting  season itself; and
- (b) if  so,  the  details  of  the  funds  allocated  to  the  State  of  Andhra  Pradesh  for  the same, district and scheme-wise?

## ANSWER

MINISTRY OF AGRICULTURE AND FARMERS WELFARE कृ ष एवं कसान कयाण मंी (SHRI NARENDRA SINGH TOMAR)

- (a) : Government is implementing various schemes under which financial assistance is available for various horticulture activities including setting up of cold storage in rural areas  to  enable  farmers  to  get  remunerative  prices  and  to  protect  them  from  selling their produce at a lesser price in the country including Andhra Pradesh.

Department  of  Agriculture  &  Farmers  Welfare  is  implementing  Mission  for Integrated  Development  of  Horticulture  (MIDH)  under  which  financial  assistance  is provided for various horticulture activities including setting up of cold storages in rural areas. The component is demand/entrepreneur driven for which Government assistance in the form of credit  linked back  ended  subsidy is available  at  the  rate of 35%  of  the  project  cost  in  general  areas  and  50%  of  the  project  cost  in  hilly  and scheduled areas.

Besides,  National  Horticulture  Board  (NHB)  is  implementing  a  scheme  namely 'Capital Investment Subsidy for Construction/Expansion /Modernization of Cold Storages  and  Storages  for  Horticulture  Products'.  Under  the  scheme,  credit  linked back-ended subsidy at the rate of 35% of the capital cost of the project in general areas and 50% in case of North East, hilly & scheduled areas for construction/expansion/modernization of cold storage and Controlled Atmosphere (CA) storage of capacity above 5000 MT and up to 10000 MT is available. In case of North East region, the units with capacity above 1000 MT are also eligible for assistance.

Ministry of Food Processing Industries (MOFPI) is implementing a Scheme for Integrated  Cold  Chain,  Value  Addition  and  Preservation  Infrastructure  as  one  of  the component of Pradhan Mantri Kisan  Sampada Yojana with  the  objective of  reducing post-harvest losses of horticulture and non-horticulture produce and providing remunerative price to farmers for their produce. Under the scheme, Ministry provides financial assistance in the form of grant-in-aid at the rate of 35% for general areas and 50% for  North  East  and  Himalayan  States,  ITDP  areas  and  Islands  for  storage  and transport infrastructure and at the rate of 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  including  irradiation facility. Standalone cold storages are not covered under the Scheme.

Further, to strengthen agriculture infrastructure in the country, Government has launched Agriculture Infrastructure Funds (AIF) of Rs. 1.00 lakh crore. Under AIF, there is provision for collateral free term loan upto Rs. 2.00 crore and interest subvention of 3%  on  the  term  loan  availed  for  creation  of  post  harvest  infrastructure  including establishment of cold storages. (b) : Under  MIDH  scheme,  the  Ministry  of  Agriculture  &  Farmers  Welfare  allocates funds  to  State  Horticulture  Mission  (SHM).  The  SHM  in  turn  allocate  funds  to  the Districts based upon the approved Annual Action Plan. District level details of the funds allocated, released and utilized are maintained at State level. As informed by State Government, there is only MIDH Scheme in which Cold Storages are being assisted. For the year 2022-23, Rs. 166.66 crore has been allocated to Andhra Pradesh for various horticulture activities including setting up of cold storage.

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