Cold Storage

Cold storage CS are the high sized freezer, which are commonly used to storage purpose. CS are used to store fruits, vegetables, processed meat, frozen foods and for pharmaceutical uses. Cold storage have an important link between the farmers and consumers. Due to the rapid growth of food and their industries, cold storage are gaining huge demand. cold chain consultancy 

The Government has developed a number of schemes to encourage cold storage and storage and warehouse in india  through various tax exemption and subsidies. Government institutions like the national horticulture board (NHB), national horticulture mission (NHM), agriculture and processed food production export development authority(APEDA), ministry of food processing industry (MOFPI),mission of integrated development of horticulture(MIDH) and department of agriculture and cooperation currently operates in the cold storage sector..

Component of the scheme

The scheme aims to facilitate the establishment of a strong cold chain facility for agricultural, horticultural ,dairy, fish & marine, poultry & meat products by establishing linkage from farm gate to the consumer, end to end, to reduce losses through efficient storage, transportation and minimal processing. The different components of the Cold Chain projects are as under:

  • Minimal Processing Center at the farm level and centers is to have facility for weighing, sorting ,grading waxing, packing , pre-cooling, Control Atmosphere (CA)/ Modified Atmosphere (MA) cold storage ,normal storage and Individual Quick Freezing(IQF).
  • Mobile pre-cooling vans and reefer trucks.
  • Distribution hubs with multi products and multi Control Atmosphere (CA)/ Modified Atmosphere(MA) chambers/ cold storage/ Variable Humidity Chambers, Packing facility, Cleaning in Process (CIP) Fog treatment, Individual Quick Freezing (IQF) and blast freezing.
 

Financial Assistance:

 

For this business, Ministry of food processing Industries provides financial assistance up to 50% of the total cost and machinery and other works.

In the Northern states, Sikkim, Himachal Pradesh, J& K,  Uttarakand, etc. you get 75% grants in aid subject to a maximum of 10 crore.

For acquiring the subsidy from ministry, the land where you are planning to start CS must be registered in your name or in the name of your any of the partners. Once you get approval for the subsidies the nationalized banks will also provide you loan very easily. cold chain consultancy 

 

Subsidies for Cold Storage chains from the Government:

The Ministry of Food Processing Industries (MOFPI) India is offering Financial Assistance for the Establishment of Cold storage Chain. These integrated Cold storage chains from the farms to the consumer ensures the safety and preservation of the food products.

 The government  also offers a grant-in-aid ranging from 50 to 75% of the total cost of plant and machinery installation along with the technical civil work depending on the location. The subsidy amount limit is up to Rs. 10 crores.

The main facilities involved in the cold storages chain are Production facility, Transport facility and the Distribution network, and you need to set up at least two of the three facilities to get a  grant of assistance scheme. cold chain consultancy 

 

Financial Assistance:

 

For this business, Ministry of food processing Industries provides financial assistance up to 50% of the total cost and machinery and other works.

 In the Northern states, Sikkim, Himachal Pradesh, J& K, Uttarakand, etc. you get 75% grants in aid subject to a maximum of 10 crore.
 For acquiring the subsidy from ministry, the land where you are planning to start Cold storages must be registered in your name or in the name of your any of the partners. Once you get approval for the subsidies the nationalized banks will also provide you loan very easily.

1. Development of Commercial Horticulture through Production and Post Harvest Management of Horticulture Crops

Commercial Horticulture Development in open field conditions on project mode a) Activity (ies) allowed and Area norms: National Horticulture Board will take up integrated commercial horticulture development projects in open field conditions on project mode , including components viz planting material, plantation, irrigation, fertigation, mechanization, precision farming, GAP etc. for projects covering area over 2.00 ha. (5 Acres).In case of NE Region, projects having area over 1 Acre are eligible. cold chain consultancy 

Crop eligible: May please see from cost norms of Open field cultivation under NHB scheme.

Pattern of assistance: Credit linked back-ended subsidy @ 40% of the total project cost limited to Rs 30.00 lakh per project in general areas and @ 50% of project cost limited to Rs. 37.50 lakh in NE Region, Hilly States and scheduled areas.

Item

Cost Norms*

Pattern of Assistance#

Commercial Horticulture Development in open field conditions, including components viz planting material, plantation, irrigation, fertigation, precision farming, GAP etc.

Rs. 75.00 lakh /per project (Rs 125.00 lakh for date palm, olive and saffron) for projects covering area over 2 ha.

Credit linked back ended subsidy @ 40% of project cost limited to Rs.30.00 lakh per project in general area and @ 50% of project cost limited to Rs. 37.50 lakh for NE Region, Hilly States and scheduled areas. Component-wise/crop-wise cost norms are given at table 1.1 (e). Add on component given in table 1.1(f) may be added in project mode within overall cost ceiling

 

 

 

2. Operational guildline : Mission for Integrated Developmet of Horticulture

To promote creation of agricultural marketing infrastructure by providing backend subsidy support to State, cooperative and private sector investments.

The overall budgetary allocation for ISAM is Rs.4548 crores during the XII Plan. Sub scheme-wise break up of budget provision is Rs.4000.00 crores for AMI, Rs.12.00 crores for MRIN, Rs.6.00 crores for SAGF, Rs.500.00 crores for ABD and Rs.30.00 crores for NIAM.

For functional infrastructure projects (other than storage projects) where plant and machinery is to be installed in civil structure, the cost of plant & machinery should be more than 25% of the Total Financial Outlay (TFO) of the project. If it is less than 25%, subsidy will be restricted cold chain consultancy 

3. Small Farmer Agri-Business Consortium (SFAC) assistance to cold storage

Setting up of cold storage as a part of a integrated value chain project are eligible for subsidy provided the cold storage component is not more than 75% of TFO (Total Financial Outlay). The scale of assistance as subsidy to projects is @ 25% of capital cost and maximum ceiling to Rs 2.25 crores in general area and 33.33% and maximum ceiling up to Rs 4 crores in case of NE, Hilly & Scheduled area. cold chain consultancy