Punjab is one of India’s greenest states with the highest agricultural production. So, it is essential to preserve the crop post-harvesting. The cold storage business in Punjab is highly profitable as the economy is mostly dependent on agriculture. The Government of India is promoting cold storage subsidies in Punjab for safeguarding crops for a longer period. MoFPI (Ministry of Food Processing Industries) and NHB (National Horticulture Board) are providing cold storage subsidies as government initiatives.
Factors to consider before investing in cold storage
Before investing in cold storage, everyone needs to do research and analysis considering factors like how much the cost of investment is, the location of cold storage, the type of cooling device required, and the daily maintenance cost of equipment. Seeking professional advice before opening a cold storage is essential because cold storage infrastructure requires a lump sum cost of investment and strategic decision-making.
Subsidy on cold storage in Punjab
The maximum subsidy provided by the Government of India is up to 50% of the total capital cost. However, the percentage of subsidy depends on the applicant’s cold storage project planning, the capacity of the facility, and other relevant documents in compliance with the Mission on Integrated Development of Horticulture (MIDH) guidelines.
Why Punjab introduced subsidies, real-life cases
There are several real-life incidents that took place in Punjab that insisted the government step forward in promoting cold storage subsidies in Punjab. Many cold storage owners recently distributed leftover potatoes as fodder at the lowest price of just Rs. 10 to clear the old stock and make room for new harvested crops. The scenario is so much worse that owners cannot recover the cost of maintenance for cold storage.
Cost of installation of cold storage
The cost of installing a cold storage facility depends on several factors, like location, size of cold storage, and any special needs specific to customization. However, the approximate estimation of cold storage installation cost in Punjab is between Rs.10 million to Rs.20 million.
Procedure of availing cold storage subsidy
Individuals seeking cold storage installation need to apply at the National Horticulture Board (NHB) or the Office of Local Horticulture Mission. The applicant needs to apply via online portal and take the acknowledgment receipt of the online application form submission. A duly signed copy of documents must be submitted to the NHB or MIDH office.
Maximize profitability by warehousing the project.
Plan earlier for cold storage subsidy in Punjab. Prepare all documentation before securing the tender. Consult with professionals and apply through the Government subsidy online portal to avail the subsidy. It will reduce costs and maximize your profit by increasing the chances of winning tenders.
FAQ
- Who can apply for a cold storage subsidy?
Any individual, private organization, farmer group, entrepreneur, or PSU is eligible for the Punjab cold storage subsidy program.
- What are the eligibility criteria?
- The applicant should be within the age group of 18 to 65.
- Must have a CIBIL score above 700.
- Should be an Indian citizen and should not have any criminal offenses.
- Should not be a loan defaulter
- How much is the subsidy amount?
The subsidy amount is a minimum of 35% to a maximum of 50% of admissible costs (MIDH).
