Mini Cold Storage Plant Cost in India-A Complete Guide 22-Oct-2024 05 Comment BAZAARBUY Cold storage is an essential part of the supply chain, especially in India, where agricultural and perishable goods need to be stored safely to prevent spoilage. As the demand for fresh produce and frozen goods increases, mini cold storage plants have become a popular option for businesses, farmers, and entrepreneurs. Content Left Left What is a Mini Cold Storage Plant? A mini cold storage plant is a facility designed to store perishable items like fruits, vegetables, dairy products, and frozen goods at low temperatures. Unlike large-scale cold storage plants, mini cold storage units are smaller and more affordable, making them a viable option for small and medium-sized businesses or even farmers. Content Left Left Importance of Cold Storage in India India is one of the largest producers of fruits and vegetables globally, but a significant percentage of these products get wasted due to a lack of proper storage facilities. Cold storage plants help in preserving these perishable goods, reducing wastage, and ensuring a steady supply to the market throughout the year. Content Left Left Factors Affecting Mini Cold Storage Plant Cost The cost of setting up a mini cold storage plant in India can vary based on several factors: Capacity : The storage capacity you choose (usually measured in metric tons) significantly impacts the overall cost. A small plant may have a capacity of 10-50 MT, while larger ones can go up to 500 MT. Type of Refrigeration System : You can opt for different types of cooling systems such as air-cooled or water-cooled units. Water-cooled systems are more efficient but tend to be more expensive. Land and Location : The cost of land, electricity, and water in the area where you set up the plant can influence the total investment. Urban locations may have higher costs compared to rural areas. Insulation and Construction : High-quality insulation and durable construction materials are important to ensure long-term efficiency. Poor insulation can increase operational costs. Government Subsidies : The Indian government offers various subsidies and schemes to encourage the development of cold storage facilities. These can significantly reduce the setup costs. Power Supply : Cold storage plants need a consistent power supply. In areas where electricity is unreliable, you may need to invest in backup systems like generators, which add to the cost. Content Left Left Average Cost of a Mini Cold Storage Plant in India The average cost of setting up a mini cold storage plant in India can range from ₹10 lakh to ₹30 lakh depending on the factors mentioned above. Here's a breakdown: Land Cost : The price of land varies by location. In rural areas, it may be relatively cheap, whereas, in urban regions, it can be significantly higher. Construction and Insulation : This can cost around ₹3 lakh to ₹5 lakh for a small plant. Refrigeration System : A high-quality refrigeration system can cost ₹5 lakh to ₹15 lakh depending on its type and capacity. Other Costs : Licensing, power backup systems, and transportation can add another ₹2 lakh to ₹5 lakh to the total cost. Content Left Left Government Schemes and Financial Assistance The Indian government has recognized the need for cold storage infrastructure and has introduced several schemes and subsidies to encourage its development. Some of the key schemes include: NABARD Subsidy : National Bank for Agriculture and Rural Development (NABARD) offers financial assistance to farmers and businesses setting up cold storage facilities. MIDH (Mission for Integrated Development of Horticulture) : This scheme provides a subsidy of up to 35-50% of the project cost for cold storage plants. State-Level Schemes : Various state governments also offer subsidies and incentives to support cold storage projects. These schemes can reduce the overall cost and make the investment more affordable. Content Left Left Benefits of a Mini Cold Storage Plant Reduced Wastage : Cold storage reduces the spoilage of perishable goods, ensuring longer shelf life and better quality products. Steady Supply : By preserving fruits, vegetables, and other goods, you can maintain a steady supply throughout the year, even during off-seasons. Higher Profits : Farmers and businesses can sell their products at higher prices when supply is low, increasing their profitability. Job Creation : Setting up a cold storage plant also creates job opportunities in rural and urban areas, contributing to economic development. Content Left Left Conclusion: Setting up a mini cold storage plant in India is a smart investment for businesses and farmers alike. With the help of government schemes and a proper understanding of the costs, you can establish a cold storage facility that offers long-term benefits, reduces wastage, and boosts profitability. The initial investment may vary, but the advantages in the long run make it a worthy venture. For more information about cold storage in India please contact Bazaarbuy.io