Lok Sabha Question No. 277 (UNSTARRED), answered on 2025-02-04
Subject: Storage Facilities
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Ms. S Jothimani

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

## LOK SABHA UNSTARRED QUESTION NO. 277

TO BE ANSWERED ON THE 04 TH  FEBRUARY, 2025

## STORAGE FACILITIES

## 277. MS. S JOTHIMANI :

Will the Minister of AGRICULTURE AND FARMERS WELFARE क ृ िष एवं िकसान कʞाण मंũी be pleased to state:

- (a) whether  the  Government  is  aware  that  the  current  facilities  for  storing  produce  like flowers,  drumsticks  and  other  vegetables  in  the districts in the  Karur  Parliamentary Constituency are insufficient;
- (b) if  so,  whether  the  Government  proposes  to  build  cold  storage  in  Karur,  Dindigul, Pudukottai and Tiruchirapalli districts; and
- (c) if so, the details thereof and if not, the reasons therefor?

## ANSWER

## THE MINISTER OF STATE FOR AGRICULTURE AND FARMERS WELFARE

कृ ͪष एवं ͩकसान कãयाण राÏय मंğी (SHRI RAMNATH THAKUR)

(a) to (c): A  study  was  conducted  by  NABARD  Consultancy  Services  (NABCONS)  in 2015 on 'All India Cold-chain Infrastructure Capacity (AICIC-2015)'. The study assessed the present  capacity  of  cold  storage  at  that  time  as  2.95  lakh  MT  in  Tamil  Nadu  against  the required capacity of 1.94 lakh MT in 2014. As per available information, at present, there are 188 number of cold storages with the capacity of 3.99 lakh MT available in Tamil Nadu. As per information received from Department of Horticulture, Government of Tamil Nadu, there is  no  cold  storage  facility  for  storing  produce in  Karur  District of  Tamil  Nadu. The  State  of Tamil Nadu has also informed that already cold storage facilities exist in Dindigul (3750 MT) and Pudukottai Districts (8000  MT). If  cold  storage  facilities  are  requested  by  the  farmers, additional cold storage facilities will be established.

Further, government does not setup cold storages of its own. However, Government is implementing various schemes under which capital assistance is available for setting up of cold  storage  for  perishable  horticultural  produce  throughout  the  country  including  Karur, Dindigul, Pudukottai and Tiruchirapalli Districts of Tamil Nadu.

Department of Agriculture & Farmers Welfare is implementing Mission for Integrated Development of Horticulture (MIDH) under which capital assistance is provided for various horticulture  activities  including  Construction/Expansion/  Modernization  of  cold  storages  of capacity up to 5000 MT in the country on the basis of Annual Action Plan (AAP) received from States/UTs. AAPs are prepared by the States/UTs based on their requirement, capacity and availability of resources. The component of Cold Storage 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 through respective State Horticulture Missions.

Under the scheme, assistance is available to individuals, Groups of farmers/ growers/ consumers,  Partnership/  Proprietary  firms,  Self  Help  Groups  (SHGs),  Farmers  Producer Organization (FPOs), Companies, Corporations, Cooperatives, Cooperative Marketing Federations,  Local  bodies,  Agricultural  Produce  Market  Committees  (APMCs)  &  Marketing Boards and State Governments.

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) implements a Scheme for Integrated Cold Chain, Food Processing and Preservation Infrastructure as one of the components of Pradhan Mantri Kisan Sampada Yojana (PMKSY) 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, Integrated Tribal Development Programme (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. 10.00 crore per  project  for  setting  up  of  integrated  cold  chain  projects  including  irradiation  facility. Standalone cold storages are not covered under the Scheme.

All the above schemes are demand/entrepreneur driven through commercial ventures for which government assistance is in the form of credit linked back ended subsidy/grant-inaid and is provided based on the proposals received from the States/entrepreneur.

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.

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