A Cold storage helps in preservation. It covers pre-­cooling facilities at production sites, vans, and mobile cooling units. As addition some centers incorporates infrastructural facilities like Processing/ Multi-line Processing/ assortment Centers, etc. for husbandry, organic turn out, marine, dairy, meat and poultry etc.

A cold storage contains multiple facilities at numerous centers as beneath. To avail monetary help, any two of the subsequent facility from the below can got to be setup by the unit.

i) Production Facility: Own facility for sorting, grading cleaning, and packing, pre-cooling, controlled temperature cold storage.

ii) Transport Facility: Transport level consists of mobile pre-cooling vans and trucks required to transport goods and products in a temperature controlled atmosphere.

iii) Distribution Facility: Distribution facility consists of distribution hubs with multi product and multi management atmosphere. Cold storage, packing facility, cleaning in process, fog treatment, individual quick freezing and blast freezing

How is that the monetary help provided throughout the fitting of the unit?

To set up a multi-commodity cold storage of 10,000 tons capacity, investment of around Rs 20 crore is needed with a payback period of 6-7 years. The financial assistance will be released in 3 installments after the investors have paid or invested their share of the capital fully as per the following schedule:

1st Installment: First installment of twenty fifth of the whole grant are free once making certain that twenty fifth of the promoter’s contribution and twenty fifth of the term loan has been spent on the project.

2nd Installment: The second installment of another five hundredth of the whole grant are free once making certain that utilization of 1st installment of grant and seventy fifth of promoter’s contribution of term loan has been spent on project. Utilization certificate for the first installment has to be submitted by the promoter at the time of making claim for the second installment.

3rd Installment: The 3rd and final installment of remaining 25% of the grant assistance will be released after ensuring that the utilization of the second installment and 100% of promoters and 100 percent of term loan has been invested within the project. Further, the project ought to have achieved completion operation ought to have started. Finally, the promoter must submit utilization certificate for the second installment at the time of making claim for the 3rd and final installment.

Cold storage is employed to preserve Seeds, Grains, Foods, Fruits and vegetables. Any item once required can be taken from the cold storage and can be made available to consumers very easily. Apart from the conservation of food product, the cold storage additionally facilitate in increasing the selling amount of those commodities and guarantee convenience over an extended amount. A new entrepreneur can well venture into this field by installing a project of cold storage to save the above mentioned commodities from wastage.

The Cold Storage follows the native existing distribution network i.e. storage of fruits & vegetables as well as other commodities such as fruit pulps and pharmaceuticals, exporters, food processors, and pharmaceutical companies. These organizations or individuals store their commodities in cold storages, for future sales in the local market at better prices or for exports.

Do you wish to be a part of this business? Why not begin your own cold storage business and freeze your thanks to a profitable business.

How to begin Cold Storage Business in India

The business of Cold Storages comes beneath tiny Scaled Industrial Units. A person might enquire regarding the cold storage and also the subsidies, grants for his or her fitting, from either the workplace of agriculture Board or connected department of native IAS officer. He also can apply for FSSAI license on-line. The list of documents needed for FSSAI license depends on the annual turnover of the food business.

Steps to Start a Cold Storage Business

Here is a step-by step procedure that you can follow to start your own cold storage business:

  • Determine industries in your locations would like cold storage or the abundant of those have already been provided. If you understand that there’s still a requirement that has not been provided, then fill that void. Make a careful study on a way to move your plans and execute them. You can request recommendation from others.
  • Once you establish that, you can test run by starting small. For example you’ll purchase a fridge van to be used as bait storage and cater to business fishermen and alternative small-scale corporations. This take a look at doesn’t involve really high money. This can be expected for all start-up businesses, because the operations are not that efficient yet.
  • A crucial part of the business is marketing. You need to acknowledge your base market moreover as your competitors. You can expand your marketing by reaching what your customers need. You can not solely store however additionally package them and so sell them reckoning on what the demand is.

Value of cold storage: 

  • The subsequent physical provisions for a storage unit are: Land, Website development as well as leveling, fencing, road, drainage, etc.
  • Civil structures as well as main cold storage building rack provisions, drying shed, machinery room, store for consumables, generator room, office, security cabin, etc.
  • Insulation of main cold storage building
  • Machinery for cooling, air movement, loading, grading and weighing
  • Electric supply arrangement including installation of transformer
  • Standby electric supply arrangement/ DG set

Undoubtedly, cold storage forms the most vital post-harvest value chain for the downstream processing industry.

  • Facility arrangement and treatment plant
  • If required Pollution control and waste disposal equipment including office equipment and furniture
  • Future aspects

Benefits of Cold Storage  

India is the world’s largest producer of the fruits and vegetables, milk, major spices, fresh meat, few fibrous crops like jute, many staples like millets, seeds etc. and graded amongst the world’s 5 largest manufacturers of over eightieth agricultural produce things, as well as several money cash crops like cotton.

  • Wastage: The cold storage system can greatly facilitate in reducing the wastage of many agri based commodities due to its nature of short life and lack of storing facilities. so the cold storage encompasses a bigger role in reduction of wastage.
  • Inaccessibility of cold storages in close proximity to farms : Lack of quality & awareness, leads to instability in costs
  • Political aspects:
  • Govt. of India promoting cold storage investments by providing subsidies up to five hundredth to seventy fifth on Investment. The national banks are also providing loans for cold storages.

‘India needs to expand cold storage facilities’

Standing of Cold storage and its potential in India:

The annual production of fruits and vegetables within the country is 130 Million Tons. This accounts for eighteen of our agricultural output. Although, there’s a massive scope for increasing the production, the shortage of cold storage facilities has become major bottlenecks. The Food Corporation of India (FCI) generally purchases most of the stock but in case of perishable food items like fruit and vegetables, a cold storage facility is required immediately after they are ready for processing. In next 4-5 years Rs. 21,000 crore will be invested in setting up or upgrading cold storages to address the problem of stockpiling of perishable commodities. The current cold storage capability in India is pegged at 37-39 million tones. Currently, 95% of the cold storages are owned by the private sector, 3% by cooperatives and the remaining 2% by the public sector undertakings.

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