The government provides a credit-linked back-ended subsidy covering 35 per cent of the project cost in general areas and 50 per cent in hilly and scheduled areas through the respective State Horticulture Missions.
In a strategic move to enhance the management of perishable horticultural produce, the government has announced a series of initiatives aimed at boosting the cold storage infrastructure across the country. These measures are part of a broader effort to reduce post-harvest losses and improve the efficiency of agricultural supply chains, the union minister of state for agriculture and farmers’ welfare Ramnath Thakur said in a written reply in the Lok Sabha on Tuesday.
The department of agriculture and farmers welfare is spearheading the mission for integrated development of horticulture (MIDH), which offers financial assistance for the construction, expansion, and modernization of cold storage facilities. This initiative supports projects with capacities of up to 5000 metric tons (MT), based on the annual action plans (AAPs) submitted by states and union territories. These AAPs are crafted according to local needs, capacity, and resource availability.
Under the MIDH scheme, cold storage projects are largely driven by demand from entrepreneurs and commercial ventures. The government provides a credit-linked back-ended subsidy covering 35 per cent of the project cost in general areas and 50 per cent in hilly and scheduled areas through the respective state horticulture missions. The program is open to a wide array of entities, including individuals, farmer groups, cooperatives, and local bodies.
Additionally, the National Horticulture Board (NHB) administers a scheme titled ‘Capital Investment Subsidy for Construction/Expansion/Modernization of Cold Storages and Storage for Horticulture Products.’ This scheme targets cold storage facilities with capacities between 5000 MT and 10000 MT. It offers a credit-linked back-ended subsidy of 35 per cent in general areas and 50 per cent in the North East, hilly, and scheduled areas. Notably, units in the North East with capacities exceeding 1,000 MT are also eligible for this assistance, the minister said.
The ministry of food processing industries (MoFPI) supports a related initiative under the Pradhan Mantri Kisan Sampada Yojana (PMKSY). This scheme focuses on integrated cold chain projects, including storage and transport infrastructure, with a view to minimizing post-harvest losses and ensuring better prices for farmers. Financial aid is provided as grant-in-aid, covering 35 per cent of costs in general areas and 50 per cent in the North East, n the Himalayan states, ITDP areas, and Islands. For value addition and processing infrastructure, the grant-in-aid is set at 50 per cent for general areas and 75 per cent for the specified regions, with a cap of Rs. 10 crore per project. However, standalone cold storage units are not eligible under this scheme.
In addition to these efforts, the Agricultural Marketing Infrastructure (AMI), a component of the Integrated Scheme for Agricultural Marketing (ISAM), provides support for the construction of godowns and warehouses to increase storage capacity for agricultural produce. This scheme offers a subsidy of 25 per cent for plain areas and 33.33 per cent for North Eastern and hilly regions, the minister said.
To further bolster agricultural infrastructure, the government has introduced the Agriculture Infrastructure Fund (AIF) with an allocation of Rs. 1 lakh crore. This fund provides collateral-free term loans up to Rs. 2 crore and an interest subvention of 3 per cent on these loans for the establishment of post-harvest infrastructure, including cold storage facilities.
These initiatives are part of a comprehensive approach to addressing the challenges in the agricultural sector, particularly concerning post-harvest losses. The government’s support is structured around commercial ventures and is dependent on the proposals received from states and entrepreneurs.
In a related development, a new mobile application has been launched in anticipation of the Third World Food India (WFI) 2024 event. This app aims to streamline information related to the event, including buyer-seller meetings, event updates, speaker profiles, and real-time navigation features to facilitate access to venue locations.
Furthermore, a 2022 study commissioned by the Ministry of Food Processing Industries and conducted by NABARD Consultancy Services (NABCONS) highlighted significant post-harvest losses across various crops. The study revealed loss rates ranging from 3.89 per cent to 15.05 per cent depending on the crop type, emphasizing the critical need for improved storage and management infrastructure.
Union Minister of State for Agriculture and Farmers’ Welfare, Ramnath Thakur, provided these details in a written reply in Lok Sabha today, underscoring the government’s commitment to strengthening the agricultural infrastructure and mitigating post-harvest losses.
