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Should I build my own cold storage and is it profitable?

AAshok Reddy8 महीने पहले · 245 व्यू

How to think about building a cold storage versus renting, and the real costs and risks.

3 जवाब

🌾Farmer.in Krishi Teamविशेषज्ञ ✓8 महीने पहले

Building your own cold storage is a large fixed investment and only makes sense if you have steady, large volume to fill it most of the year, either your own produce or paid storage from other farmers and traders. The numbers vary widely by capacity, location, power cost and technology, so treat any single figure with caution and build your own estimate. The big cost heads are land, the building and insulation, the refrigeration plant, and running cost which is mainly electricity. The big risk is low utilisation; an empty or half full cold store still costs you electricity, interest and maintenance, so it bleeds money. Profitability usually depends on filling it with multiple crops across seasons and renting space to others, not just your own crop. Subsidy under schemes like MIDH and the Agriculture Infrastructure Fund interest subvention can improve the maths, so factor those in. Before building, compare honestly against renting nearby cold storage, which has no fixed cost and no utilisation risk. If you cannot keep it reliably full, renting is usually safer. Prepare a detailed project report and verify subsidy and power tariff with your district horticulture office and a bank.

BBalwinder Kaur7 महीने पहले

My neighbour built one mainly on the dream of his own potato crop and it stayed half empty. The electricity bill does not wait. He survived only after he started taking storage from other farmers.

GGopal Krishnan7 महीने पहले

If you go ahead, do it as an FPO or group so the volume and the loan burden are shared. Alone it is a heavy risk for a small farmer.

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