Cold storage for perishable crops
Context
The Indian government is actively implementing various schemes to provide financial assistance for setting up cold storage facilities for perishable horticultural produce across the country. These initiatives aim to reduce post-harvest losses and enhance the storage and preservation of perishable crops.
Relevance:
GS-02 (Government policies and interventions)
Key Highlights
- Mission for Integrated Development of Horticulture (MIDH)
- Implemented by the Department of Agriculture & Farmers Welfare.
- Provides financial assistance for constructing, expanding, and modernizing cold storages with a capacity of up to 5000 MT.
- Offers a credit-linked back-ended subsidy: 35% of the project cost in general areas and 50% in hilly and scheduled areas.
- Capital Investment Subsidy by National Horticulture Board (NHB)
- Subsidy for constructing, expanding, and modernizing cold storages and Controlled Atmosphere (CA) storage.
- Subsidy rates: 35% of the capital cost in general areas, and 50% in North East, hilly, and scheduled areas for capacities above 5000 MT and up to 10000 MT.
- Pradhan Mantri Kisan Sampada Yojana (PMKSY)
- Implemented by the Ministry of Food Processing Industries (MoFPI).
- Financial assistance in the form of grant-in-aid: 35% for general areas and 50% for North East, Himalayan States, ITDP areas, and Islands.
- Focuses on reducing post-harvest losses and providing remunerative prices to farmers.
- Maximum grant-in-aid of Rs. 10.00 crore per project for integrated cold chain projects.
- Agriculture Infrastructure Funds (AIF)
- Government has launched AIF of Rs. 1.00 lakh crore.
- Provision for collateral-free term loans up to Rs. 2.00 crore.
- Interest subvention of 3% on the term loan for post-harvest infrastructure including cold storages.
Concerns and Why Implement This?
- Post-Harvest Losses: Significant losses occur post-harvest due to inadequate storage facilities. According to the Ministry of Agriculture, around 30-40% of fruits and vegetables are lost annually, amounting to over Rs. 90,000 crore.
- Demand-Supply Imbalance: The lack of proper storage infrastructure leads to a mismatch between supply and demand, causing price volatility and distress to farmers.
- Financial Barriers: High costs associated with setting up cold storage facilities are a major barrier for small and marginal farmers.
Significance
- Enhanced Shelf Life: Cold storage facilities significantly increase the shelf life of perishable crops, ensuring better quality produce.
- Price Stability: Helps in stabilizing prices by preventing glut and scarcity in the market, ensuring farmers receive fair prices.
- Rural Employment: The establishment of cold storages and related infrastructure creates employment opportunities in rural areas.
- Reduction in Food Wastage: Proper storage facilities reduce food wastage, ensuring more produce reaches the market.
Related Posts
