Question : Setting up of Cold Storages

(a) the number of existing cold storages in rural areas vis-à-vis urban areas of the country ;

(b) whether majority of cold storages are mainly concentrated in urban areas leaving behind the rural areas where there is imperative need for more cold storages;

(c) if so, the details thereof and corrective measures taken by the Government in this regard;

(d) whether the Government has conducted a survey to assess the number of cold storages required to be set up in rural areas in next two years ; and

(e) if so, the outcome thereof and the steps taken by the Government to involve private sector/co-operative sector in setting up of more cold storages in rural areas?

Answer given by the minister

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

(a) to (c): National Horticulture Board, Department under Department of Agriculture, Cooperation and Farmers Welfare, Ministry of Agriculture & Farmers Welfare has conducted an “All India Cold Storage Capacity & Technology – Baseline Survey” through M/s Hansa Research Group Pvt. Ltd., Mumbai. As per the survey report, 68% of the existing cold storages in the country are located at the farm gate. Further, 75% of the cold storages in the country are exclusively storing horticulture produce and directly linked to farms.

Setting up of cold storages/ cold chain infrastructure forms part of the total agri-logistics supply chain from farm gate to the consumers. The schemes being implemented by the Government for assisting in creation of cold storage/ cold chain infrastructure are primarily private sector driven and provide flexibility to the promoters to choose the components, their capacities and location of the project as per technical feasibility and economic viability of the project.

(d) & (e): National Centre for Cold Chain Development (NCCD) – an autonomous organization under Department of Agriculture, Cooperation and Farmers Welfare through NABARD Consultancy Pvt. Ltd. (NABCONS) has conducted a consumption driven study to understand the holistic requirement of cold chain infrastructure. The report released in September, 2015 provides details of cold storage requirements as well as associated key infrastructure such as pack houses and reefer trucks integral to the appropriate and holistic cold chain connectivity between production areas and consumption centres. As per above All India Cold Chain Infrastructure Capacity (Assessment of status & gap) conducted by NABCONS, the total Cold Chain requirement has been assessed to be 35.10 million tonnes and taking into present capacity of 31.82 million tonnes, the gap is of 3.28 million tonnes.

To attract investment in cold chain infrastructure the Ministry of Food Processing Industries is implementing the Central Sector Scheme of Cold Chain, Value Addition and Preservation Infrastructure since 2008-09. The scheme has provision for providing financial assistance for setting up of integrated cold chain infrastructure for arresting post-harvest losses of horticulture & non-horticulture produce. The scheme is primarily private sector driven wherein financial assistance @ 50% of the total cost of plant & machinery and technical civil works in general areas and 75% for NE region and difficult areas (North Eastern states, Sikkim, J&K, Himachal Pradesh and Uttarakhand) subject to a maximum grant-in-aid of Rs 10 crore per project is provided for setting up the cold chain infrastructure in the country. 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. Various other incentives provided by the Government to promote this sector are at Annexure-I.

In addition, Department of Agriculture and Cooperation is implementing Mission for Integrated Development of Horticulture (MIDH) for holistic development of horticulture in the country including creation of post-harvest management infrastructure for better efficiency of cold supply chain to reduce losses of perishable horticulture produce. Post-Harvest Management component includes establishment of cold storages, primary/ mobile processing units, pack houses, pre-cooling units, controlled atmosphere storage, reefer vans and setting up of ripening chambers etc. Under post-harvest component credit linked back ended subsidy @ 35% of the project cost in general areas and 50% in case of hilly and schedule areas is available.

Further, National Cooperative Development Corporation (NCDC) under Department of Agriculture, Cooperation and Farmers Welfare, Ministry of Agriculture & Farmers Welfare and Agricultural and Processed Food Products Export Development Authority (APEDA) under Department of Commerce, Ministry of Commerce and Industries, Government of India are also providing assistance for creation of post-harvest management infrastructure through their respective schemes.

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