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Cold Storage Project Report, Cost and Subsidy

Table of Contents

Cold Storage Project Report, Cost and Subsidy:

INTRODUCTION TO COLD STORAGE PROJECT

Post-harvest management of produce is a highly important aspect of farming because all vegetables or fruits that are produced can’t be sold fresh at the same time. Some quantity of produce needs to be stored for further processing or for future table use. Under such circumstances, cold storage becomes an integral aspect of the post-harvest management techniques. The losses that can occur by not storing the produce under proper conditions can be avoided using a cold storage. Storing farmed products enhances their shelf life and also facilitates continuous supply of produce in the market. The cold storage method stabilizes the price of the product, provides equal distribution and marketing of the product. It is being realized that proper and timely storage of produce is an essential factor in the agriculture industry and due importance is given for the same. Research has suggested that the Indian cold storage industry is making a steady growth and the annual growth rate is estimated to be 25.8%. Currently there are 6227 cold stores in India and they are capable of storing a produce of 30 million tonnes. Cold stores are generally used for storing agricultural produce, processed food, animal husbandry produce, pharmaceutical products etc.

CURRENT SCENARIO AND PROBLEMS OF COLD STORAGE PROJECT

India produces large quantities of fruits (11.36%) and vegetables (14.04%) on the global scale, but there is less motivation for storing the produce. Therefore the loss due to inefficient post-harvest management (cold storage) is estimated around 133 billion rupees per year. The present requirement for cold storage facility is around 61 million tonnes in India for both vegetables and fruits, but the availability of storage now in India is just around 26.85 million tonnes. The non-availability of storage space has resulted in loss of productivity, which is increasing gradually. Initially the loss was 25%, but now it has reached 40% of the total production. This loss creates a big difference between the quantities produced and consumed. Originally the average consumption quantity per head should be 120-280 g per day, whereas due to the loss of produce it has decreased to an average consumption quantity of 90-190 g per head in a day. This situation threatens the food and nutrition security of the people in the country.

Cold Storage Units.
Cold Storage Units.

If the loss occurring due to non-availability of storage (post-harvest management) is analyzed in a broad way, then it is clearly known that all the natural resources involved in the production cycle, such as crop, power, labor, land, water, time, fertilizers etc. are all wasted in the process and such wastage for a developing country like India cannot be tolerated. The availability of gluts helps in storing the harvest of edible products like mango, potato, tomato, etc. in the areas where there is a shortage of storage space.

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Another important factor which contributes to loss of produce is not processing the perishable and highly perishable varieties in a proper way. There are other problems  which also account for loss of produce such as high cost of cold storage, improper management, unequal distribution, standalone variety with outdated mechanisms and non-accessibility to farmers located in remote areas. All these problems actually demanded the right action in terms of implementing cold storages which are easily accessible and work at a lower cost, but unfortunately these demands are partially being fulfilled.

THINGS TO BE DONE FOR COLD STORAGE PROJECT

  • Proper connectivity by road, drainage facilities and elevation of the site should be considered.
  • The land for cold storage should be converted to non-agricultural land.
  • The load bearing strength of the soil should be tested and suitable rack design is proposed.
  • Permission from the local authority for the construction of cold storage should be taken.
  • The product and its market size should be evaluated and properly matched to the capacity of the cold storage.
  • The cold storage should be planned in such a way that it does not work more than 12 hours in a day.
  • Pressure and vacuum testing of the refrigeration systems is an important aspect of safety.
  • Water used in the cold storage area should be soft.
  • The people operating the cold storage should be trained on the working and maintenance of the systems.
  • Cold storages should always plan for standby equipment.
  • The power supply to the cold storage should be provided as per the requirements or an alternate source should be kept ready at hand.
  • The cold storages should have alarms, fire extinguishers and fire exits designed properly.
  • Insurance for the cold storage plant and its machinery is a precautionary measure which can’t be avoided.

THINGS TO BE AVOIDED IN COLD STORAGE PROJECT

  • Cold storages should not be set up in areas which are low lying and have poor road connectivity.
  • Agricultural land is not permitted to be used for cold storage construction without conversion into non-agricultural land.
  • Soil test for load bearing capacity and design should never be avoided.
  • Never set up a cold storage plant without proper estimation
  • Avoiding to take permission from the local authorities for the construction may lead to problems.
  • Hard water should never be used.
  • Safety measures should never be avoided.
  • Critical equipment should never be avoided to save expenses.
  • Never start a cold storage without proper insurance cover.
  • People not trained on the equipment should not be allowed to handle them.

TECHNOLOGICAL ASPECTS OF COLD STORAGE PROJECT

To store a product at a required temperature the refrigeration system within a cold storage plant work on two principles, they are:

Vapor absorption system in the cold storage project: this system is economical and can compensate for the initial investment. It helps conserve energy and operational cost. It has some limitations in storing items or produce below 10ËšC.

Vapor compression system in the cold storage project: this is again available in three different types depending on the temperature required in the storage rooms. The diffuser type system is used when the height of the storage room is low. The bunker type system is used when the storage room height is above 11.5 m. The fin coil type system is used for room height above 5.4 m and this is an energy efficient system, but 5% more costly than the other two system types.

The refrigerant is a material which allows the cooling process to happen, i.e. it takes up heat by evaporation (at a lower temperature and pressure) and gives up the heat by condensation (higher temperature and pressure). Freon as a refrigerant is banned and ammonia is being presently used as a refrigerant for cold storages.

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Compressors with high speed reciprocation and atmospheric condensers are used because they are easy to maintain, cost less and are energy efficient.

Equipment for the cold storage should be properly selected such that it can handle heat loads and heavy use during the summer. The capacity of a cold storage to tolerate the heat load depends on its design and therefore the following factors should be considered:

  • Fan load.
  • Light load.
  • Age of the equipment.
  • Product load.
  • Heat from the stored produce.
  • Load of the fresh air charge.
  • Heat from the ceiling, walls, floors etc.

There should be proper insulation of the cold storage area and the commonly used material for insulation purpose is thermocouple or poly urethane fiber (PUF). Each part of the cold storage should be insulated with two layers of the material. In areas exposed to the heat of the sun need to be insulated with a material thickness of 100 mm, whereas for other areas 80 mm thick insulation material is enough.

If there is no availability of soft water near the cold storage area, then it is important to incorporate a water softening plant nearby.

A 10 Metric tonne capacity of cold storage has an electric load of 5.9KW and the power supply requirement is around 230 volts/3 phase /50 Hz.

The cold storage room basic design and requirements:

  • Cold storage room dimensions: 14 ft x 10 ft x 10 ft.
  • The temperature requirement: 4ËšC ± 2ËšC.
  • Humidity of the storage space: 85-90%.
  • The outer ambiance temperature is assumed to be: 43ËšC.
  • Storage materials: vegetables and fruits.
  • Capacity of the storage unit: 10 metric tonnes.
  • Incoming product load rate: 3300 kg per day.
  • Initial Temperature of the produce: 28-35ËšC.
  • Insulation material: 60 mm PUF.
  • Refrigeration capacity: 30000 Btu/hr.

FOOD THAT REQUIRE COLD STORAGE PROJECT FACILITY

The produce form the agricultural and other industries can be categorized into three groups

  • Fruits and vegetables
  • Meat and fish products
  • Other commodities like beer, tobacco, khandsari etc.

ECONOMICS OF COLD STORAGE PROJECT OR COST OF COLD STORAGE PROJECT

The assumption of the investment is made in a small area and this may vary depending on the location of the cold storage. The actual cost may deviate from the reality, depending on the availability and demand of materials in the market. The investment shown here is for a 10 MT cold storage.

MATERIALS REQUIRED FOR COLD STORAGE PROJECT INVESTMENT (IN Rs) FOR COLD STORAGE PROJECT
Machinery cost 4, 65,000.00
Cost of 192 sq ft area @ Rs 1000/sq ft 1, 92,000.00
Electricity supply and stabilizer cost 1,00 000.00
Insurance cover 30,000.00
Other cost of generators, accessories and plastic crates 3,90,000.00
Other miscellaneous costs 10,000.00
Installation and tax charges 1,50,000.00
Total expenses 13,37,000.00

The assistance given by the government is such that 60% of the expenses should be borne by the beneficiary and 40% of the expenses would be given as subsidy to the person.

Therefore, the government pays: Rs 5, 34,800.00 on behalf of the beneficiary.

And the remaining amount of Rs 8, 02,200.00 should be invested by the individual.

The revenue generated depends on the type of product stored in the storage and the cost of storing the item per day.

For e.g. if the store is rented, then there is a possibility of renting charge approximately: Rs 0.75/kg (for 300 days).

Then the revenue generated is: Rs 9, 00,000 annually.

LOANS AND SUBSIDIES FOR COLD STORAGE PROJECT

50% of the total cost and machinery is financed by the Ministry of Food Processing industries. North eastern states receive 75% of the grants.

Cold storage business can also be done with the 80% loan from nationalized bank. If the land is rented, then the loan available is 90% of the total rental cost of the cold storage.

NABARD in association with Reserve Bank of India provides loans for the creation of storage infrastructure of 5000 MT capacity.

The state government of Kerala provides 40% subsidy on the total investment for the cold storage business.

National cooperative development corporation (NCDC) provides financial assistance for building cold storages depending on the project size and its feasibility.

MANAGEMENT OF COLD STORAGE PROJECT

Properly managing the cold storage needs maintaining the temperature, humidity levels, storage bins, trays and containers and mixing the compatible produce.

Temperature control: is important to avoid chilling injury to the produce because each variety of the produce needs different temperature. The maturity of the produce and the point of harvest affect the sensitivity of the produce. The symptoms of chilling injury are:

  • Water soak.
  • Discoloration.
  • Susceptible to decay.
  • Surface lesions.

Mix of storage: storing multiple items together is a complex task because the temperature requirement may be different and also odor transfer and decay due to exposure to ethylene may occur. For e.g. onions, nuts, citrus and potatoes should never be mixed in the storage area.

Stacking: while storing the produce the flow of air and its proper distribution are important. The stacking shelves should be at least 8 cm away from the walls. Storage pallets should have a minimum gap of 4 to 6 inches.

Operation: it is a costly and energy intensive business so it should be handled with care. The lights and fans should be moderately used things such as logbook, inventory and loading should be taken care of.

Hygiene: use of proper Sanitizers, ozone generators and ventilators are highly important to prevent the growth of molds, fungi, odors and carbon dioxide in the cold storage area.

FUTURE PROSPECTS OF COLD STORAGE PROJECT

To address the issue of shortage in cold storages and loss of produce, the government of India is emphasizing on setting up new cold storages and modernizing the techniques used in the existing cold storages through various policies. This enables efficient handling, storage and maintenance of the produce for a longer period of time.

Processing of the surplus fresh produce is highly important for enabling longer shelf life. India is known to process only around 2-4% of the surplus produce when compared to developed nations processing around 40-75% of the produce. Therefore the Government of India has taken initiatives like the 100% FDI for automatic processing of produce and infrastructure planning such as food parks, cold storages and five year tax holiday for newly built processing units with some extra benefits to encourage the storage industry.

Setting up of food parks in the country would enable diverting and diversifying the produce into processed and value added products. This will help reduce the post-harvest loss.

The timely availability of cold storage at an effective cost for both long term and short term are important factors that initiate the idea of schemes and policies. To ensure that the produce from the farm reaches the consumers without any loss, development of the cold chain is proposed and supported by the Mission of Integrated Development of Horticulture under the government of India initiative, where a financial grant of 35-50% of the cost is provided.

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Last Updated:
Author: Jagdish

137 COMMENTS

  1. hello Team,

    Please assist me with the latest information regarding the cold storage project in India (1000 MT).
    Also the list of companies who will assist in the installing and training of the cold storage.

  4. I am a distributor of Processed veg and non veg material. Presently at north coastal districts of Andhra Pradesh. I am having space in very thickly populated commercial area. I am taking pallets for rent from Cold storage place 12 ft X12 ft X 10ft. I like to construct my own Cold storage. Shall I get subsidy from government? How much it will be costing.

  8. Hi,

    Good morning and greetings of the day to you, Please guide me to set up a cold store in Himachal Pradesh Kangra distt.
    Please provide details of sources from where loan facility can be availed.
    Thanks & Regards

  9. Hi, Team
    Please guide me to set up cold storage In uttar pardesh
    Agra didst.
    Please provide details of sources from where loan facility can be availed
    Thanks
    Saddam malik

  10. Hi, Team
    Please suggest me to set up new cold storage in Bihar. Please provide me all details including cost.
    Thanks,
    Om Prakash Ray

  15. Hello sir I’m a farmer and i grow vegetable and spices but i sell it unwanted price due to i have not proper source to preserve the vegetable so i have need of small cold storage i have a piece of land 40/40

  16. Sir I am interested to start new business.i want to establish cold storage plant near Kanpur (up).plz send me Complete detail and project report .guide me… thanks

  17. Sir I want to start this business and want to know where should I stable cold store in india. Which area has such great demand in our country.

  18. Am interested in setting up Cold storage in Punjab. Please share your contact details for further discussion.
    We already have land.

  21. I am interested and I have my own land of 1acre near nelamangala rmc …pls help to me set up a plant with latest equipment

  22. I want to setup a cold storage in (Surat) Gujraat can you provide me a project report and all supporting data.
    details of subsidy available from state as well as from central goverment.

  24. Can I establish a small cold storage in 400 yards residential area near maheswaram village near Hyderabad. What are the requirements. What could be its cost please clarify.

  26. We are planning to construct cold Storage in Andhra Pradesh, Chittoor Dist. In Area of 25,000 sqft… We are looking for Project estimates and End to end service providers for setting up the Cold Storage

  28. I want to establish cold storage until in 15000 sqfeet plsz give the necessary project cost n guidance to establish the fram

  30. I m very much interested in cold storage project.Sir I want to set up this in my town. Village- Narmada Nagar, District – Dhar (Madhya Pradesh)454335
    What should I do now?To whom I contact for further details?Can u plz tell me.

  34. Hello Team!!
    I am from Indore, Madhya Pradesh and keen intrested for a small scale cold storage business of 10-25MT.
    Kindly guide for loans, subsidaries and project.

  35. My name is Rajashekhar and residence of Viajayapur district in Karnataka
    We have 2 acres of NA land on NH52 which in now getting converted to 4 lane by end of 2020
    We are looking consultancy service which can provide end to end service on setting up of cold storage unit from ideation to final execution.
    Please share your service details and associated fees

  41. I am interest in COLD STORAGE business. Please send me details about CAPACITY, PRICE level and etc. Iam from Guwahati, Assam.

  42. I want to start 5000MT cold storage in west U.P. Kindly guide me for land, construction, machinery, loan, and also subsidy.

  44. I want to start a small cold storage I have a plot of area 2000 sq feet. I am from Imphal Manipur please guide me how can I go forward. I have a firm with GST no.

  45. hey
    i want to set up cold storage in chittorgarh rajasthan
    please provide me subsidy details & project plan

  48. I’m interested to build one cold storage in Andra pradesh, prakasam dist area. Can you please let me know the details and construction costs to build one. Based on the numbers i would like to decide on the size , etc…

  49. Sir,
    I am interested for a mini cold storage. Around 100MT only. So please guidance to me how much cost will be per one metric ton.

  50. I’m interested to build one cold storage in Hyderabad. Can you please let me know the details and construction costs to build 500 MT & 1000 MT for storage of Vegetables, Fruits & Pluses.

  51. I am interested to start cold storage in Maharashtra with the capacity of 200 tonnes, pl suggest me the turn key project cost and agencies to get it done.

  52. I am intrested to constructed cold storage 5000 mt capacity in bhopal, pl suggest me lay out plan & other detail

  55. We have an area of about 13000 sq.ft. brick and mortar structure with 14 ft height under our possession in Assam. Whether cold Storage can be constructed there and of what capacity. What would be the expenditure and whether subsidy can be obtained.

  56. I am interested to set up a 10 Tonne Capacity Cold store for storage of vegetables produced by a small farmer group in Vithura, in Trivandrum District, Kerala. can I get Technical and fesibility guidance

  57. I want to set up a medium size cold storage unit near Nashik Airport. I am searching for a well-experienced person or a good consultant.

  58. Hi,
    I want to start cold store in west bengal near my village. Approximately .36acre land is there. pls guide me how much maximum capacity cold storage can be created. Kindly help me. Approx expenditure cost , loan can obtain, subsity and how much revenue can be created per year.

  59. Sir, I am interested to start a new business, please share me the Complete details 20 MT capacity cold Storage Project Report. Near Sanand Dis- Ahmedabad,Gujarat …thanks

  62. Hi sir I have own lemon farm so I want cold storage for lemon. Minimum how many days storage for lemon my planning small cold storage room build and same time I want storage tomoto and drumstic tomoto how many days storage and drumstic how days storage. Please reply

  63. Sir, I want setup a farming cold storage a want general information about can I setup cold stroreg Hingoli district in rural area .

  64. Planning to set up cold storage for vegetables in Mysuru district .14 km from Mysuru city. Please help me with the right contact.

  65. Hello Sir / Madam,
    Good evening.
    wish you happy new year and Advance Happy pongal.
    I would like to know scheme in Tamil nadu. Advantage and disadvantage from cold storage un India. Please let you know.
    Thanks.

  66. Sir, I am interested to setup a cold storage plant of 500 MT capacity. Please guide for the same also please provide me a project report.

    Regards
    Sanjeev

  68. AMV INTERSTED IN SETTING UP IA 500MT COLD STORAGEPLANTIN PUNE . PLEASE PROVIDE ME DETAILED & ELABORATE REPORT THANKS
    HAVE A NICE DAY

  69. Sir, I am interested to setup a cold storage plant of 500 MT capacity. Please guide for the same also please provide me a project report.

    Regards

  70. Hello sir.. we are planning to set up cold storage in rular area..near jabalpur madhya pradesh. Need guidance.. could you guide us..

  71. Hello, we have our own nursery and farm. We produce dragon fruits and tomatoes in tons. We are interested building our own cold storage. Kindly suggest. Thanks!

  72. Sir, I would like to take a newly cold chain project on my company name and suggest the remedial measure sending the detailed project report/newly imported machine manpower/top companies quotation to supply the cold chain instrument for the early course of action, kindly suggest and guide regarding on this project.
    OK thanks.

  73. What is the minimum investment required to start small cold storage. I have a piece of land near nelamangala Bangalore rural district which is at a distance of around 6kms from both tumkur and kunigal highways.

  74. Sir can i know the details for setting cold storage capacity of 20MT for storing flowers and fruits and pls let me know whom to contact and also send me the project details.

  77. Our farmers register group interests setup cold storage plant near satara (Maharashtra) pls give proper guidance to us

  78. I m interested in cold storage business need a guidence for the aproxx manufacturing cost of 1000 Mt cold storage

  80. hi, I am planning to start a cold storage business of approx 1000MT in Rajasthan, can someone help with with the requisite details of the costing and details of consultants into cold storage making business..

  82. we are having 4 acre land on lucknow ayodhya highway.willing to setup 5000mt cold storage.pleas advice your service details n charges form ideation to fnal excuation

  84. Want to set up cold storage and need fully projection and I actually want some good consultant for cold storage project.

  88. I am interested to start cold storage business but I have finance problem can I stat a business with₹15lakh loan Plz kindly response me

  89. Can you give me suggestion for make a cold storage in saurashtra region around surendranagar? Any chance around here? Or from where can i do more research and get information about profit loss statistic?

  90. I am interested in setting up 10 MT Cold Storage. Location is in Gorakhpur UP. Can you please help in connecting to the right people for Constrcution. Land is available.

  92. I am interested set up this project at Gadwal district, Telangana state ,so please give information and suggestion regarding above cold storage

  93. I’m Puneet Kumar from Carrier and we are the lead company for cold storage so pls contact me for your any cold storage requirement

  96. INFICOLD INDIA PVT LTD is National Technology Award winning company making farm level cooling system efficient and inexpensive to own and operate.
    INFICOLD INDIA PVT LTD are manufacturer of
    1) Solar Instant Milk Coolers
    2) Solar Bulk Milk Coolers
    3) Solar Cold Storage
    4) Data Logger for Bulk Milk coolers

  98. Sir,
    At present withine Rs 50-60 lakhs ,what capacity of a cold storage room can be constructed ? Will it be a profitable ,? If so pl provide all details of acompetant company name to support us.
    Thanks.

  99. I Want to Open Cold Store in Village ( Chhiachhi Ramshehar) for purpose of storage of Capacity Up to 5 Tone (Mini Cold Store) what will be cost for this Project. What is formalitie for opening of Cold Store (15*15*10 ft)

  101. We arelooking for cold storage warehouse(for storage of fruits and vegetables)of capacity approx 2000 MT in dhar district (M.P) kindly let us known the approx cost of project ,subsidy provided by govt., other compliances details.

  102. I am intrested to setup my own cold storage. Meed someone who can help me in all process including documentation as well as construction

  107. Sir actually i want to setup a small cold storage for apple at Kashmir having land 1 kanal with dimensions 110 x 50 feet.
    What is minimum capacity of a cold storage in thae said available land.
    Also please mention the total cost for the complete project.
    Thanks

  115. I would like to proceed with the cold storage warehouse project in Karnataka north east.
    I have NA land about an ACRE on Highway. Good connectivity as well.
    I would like setup and need consultants who can provide complete solutions from scratch to end.

  119. Hi,

    We are planning to start Cold storage and ICE Plant for Sea food(Fish) in Tamil Nadu.

    Looking for the consultants who can provide end to end solution.

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