Cold Storgae and Fruits & Vegetable

     Approximately 20-25% of the horticulture produce goes waste due to improper post harvest operations which reduces the growers share In the present marketing arrangements. The grower is getting hardly 25-35 paisa of a consumer rupee. There is, therefore, a need to evolve a marketing system where growers and consumers both benefit. The efforts are also on the Value Addition activities where the fruits and vegetables are processed, that fetches higher remunerative prices of the produce.

     The National Cooperative Development Corporation  (NCDC) supports fruit and vegetable marketing and processing cooperatives. It is a unique organisation, which not only plays a developmental role but also provides financial assistance for creating infrastructure for marketing, processing and storage of agricultural produce in the Cooperative Sector.

     It extends financial assistance in practically all the areas of post harvest operations. The details of schemes of the Corporation for providing financial assistance are given below:

· Strengthening of share capital base of fruit and vegetable cooperatives.   Under this scheme, assistance up-to Rs.10 lakhs is provided for increasing the capital base of the beneficiary Cooperative societies for improving their marketing operations.

· Margin money assistance for raising working capital. Assistance is provided to enable the cooperative society to raise working capital from Banks for increasing business operations.  This assistance is available to State Federations, District Level Federations and Commodity Marketing Societies.

· Assistance for purchase of transport vehicles.  The Corporation provides assistance to the beneficiary societies for purchase of transport vehicles for moving stocks from growing areas to consuming centers.

· Construction of packing and grading sheds and godowns. For construction of godown and sheds, assistance is provided to cooperatives at the primary and mandi level,

· Construction of Cold Storages & Ice Plants. Assistance to the cooperatives is provided for setting-up of new Ice plants and cold storages as also for expansion/modernisation of the existing units.

· Creation of marketing infrastructure including retailing. Assistance is provided to create integrated marketing infrastructure including that of retail outlets.

· Setting up of Processing Units. Assistance is provided to Cooperatives for establishment of Processing units of fruits and vegetables including that of other products like Ayurvedic Medicines, Honey & Spices Processing units etc.

2.  NCDC’s assistance

     Fruits & Vegetables       

     The Corporation has, so far, assisted 446 projects in the country to enable cooperatives to market fruit and vegetables. An assistance of Rs.65.69 crores has been sanctioned for these projects.   This includes 32 projects for setting up of pre-cooling and cold storage units for marketing and export of grapes and other fruits.

     NCDC also assists fruit & vegetable cooperatives for establishment of fruit and vegetable processing units. Assistance is provided for setting up spice, honey and tapioca processing units also. So far (as on 31.03.2006), 49 cooperative fruit & vegetable processing units have been sanctioned out of which 39 have been installed.   The Corporation has sanctioned Rs.44.62 crores for establishing such units.

     Cold Storage

     NCDC has cumulatively assisted setting up of 312 cold storages (including capacity expansion) with a capacity of 9.22 lakh tons as on 31.3.2006.   Of these, 293 cold storages, with a capacity of 8.84 lakh ton have been completed.   The Corporation has, so far, provided about Rs.153.14 crores for establishment of cold storages.  The assisted cold storages are mainly for storage of potatoes, though items like fruits, tamarind, spices, milk products etc. are also being stored. 


Eligibility Criteria for availing Financial Assistance

     The following conditions govern the availability of assistance from NCDC for establishment of fruit  & vegetable projects-

· The project should be technically feasible and economically viable.

· Most  of   the  raw material requirement  should  be available  from within the area of operation of  the  society.

· The  cooperative  character of the  unit  should  be maintained.

· The  society  should  have  firm  arrangements   for marketing of fruit & vegetable items.


3.  Dovetailing GOI Schemes

Ministry of Food Processing Industries (MFPI)

Scheme for Technology Upgradation / Establishment/ Modernization of Food Processing Industries.

     The assistance will be in the form of grant subject to 25% of the plant and machinery and technical civil works subject to a maximum of Rs.50 lakhs in General Areas and 33.33% up to Rs.75 lakhs in Difficult Areas.

Food Park

     25% of the project cost in General Areas and 33.33% in Difficult Areas subject to a maximum of Rs.4 crores  for provision of common facilities like cold storage, food testing and analysis laboratory, effluent treatment plant, common processing facilities, power, water supply, etc.

Integrated Cold Chain Facilities

     25% of the cost of plant and machinery and technical civil works in General Areas and 33.33% in Difficult Areas with a common ceiling of 75 lakhs.

Value Added Centre

     25% of the cost of plant and machinery and technical civil works for setting up such centre subject to a ceiling of Rs.50 lakhs in general areas and 33.33% subject to a maximum of Rs.75 lakhs in difficult areas is provided.

Irradiation Facilities

     25% of the cost of plant and machinery and technical civil works for setting up of irradiation facilities in General Areas and 33.3% in Difficult Areas subject to a maximum of Rs.5 crores is provided.

Packaging Centre

     25% of the total cost of plant and machinery and technical civil work in General Areas and 33.33% in Difficult Areas, subject to maximum of Rs.2 cores, is provided for establishing packaging centre independently and in food parks (where the packaging centre is not already a part of the common facilities).

Food Processing Industries

     The assistance will be in the form of grant subject to 25% of the plant and machinery and technical civil works subject to a maximum of Rs.50 lakhs in General Areas and 33.33% up to Rs.75 lakhs in Difficult Areas.


Agricultural & Processed Food Export Development Authority (APEDA)

(Ministry of Commerce & Industry)

     APEDA has a scheme for providing financial assistance to the extent of 50% of the project cost subject to ceiling of Rs.10 lakhs per beneficiary under the scheme titled assistance to Semi Government, State Government, Public Sector Undertakings for conducting surveys, feasibility studies etc.

     APEDA also provides 100% grant-in-aid towards establishment of common infrastructure facilities or any other Government or Public Sector agency like Airport Authority of India or Port Trust etc.

National Horticulture Board (NHB)

Horticulture Programme

     Back-ended capital investment subsidy @ not exceeding 20% of the total project cost with a maximum limit of Rs.25 lakhs per project shall be provided under the scheme to these projects which are found technically and financially viable.  However, for the North-Eastern/Tribal/Hilly Areas, maximum limit of subsidy would be Rs.30.00 lakh per project

Cold Storage Programme

NCDC Vide letter No.NCDC:9-1/98-P(F&V) dated 7.3.200 has  circulated details of Capital Investment Subsidy Scheme  for construction /expansion / modernization  of cold storages and  storages  for horticulture  produce. The cost of  5000 MT capacity for new cold storage and expansion of existing capacity would not exceed to Rs.2.00 crores.  Back-Ended Subsidy @ 25% would not exceed Rs.50.00 lakh per project, including for the CA/MA Stores and Projects of higher capacity.  However, for the projects in the North-Eastern States @ 33.33%.  However, maximum subsidy admissible would be Rs.60.00 lakhs. For modernisation and re-habilitation BES @ Rs.1000/ton and for storage like onions @ Rs.2000/ton capacity created/to be created is also available under the scheme.

     Initially, the amount of subsidy would also be  sanctioned as loan to the State Govt. for which a separate account would  be maintained by the State Govt.  No interest on such loan would  be charged  by  NCDC till the completion of the unit  in  stipulated period of 18 months.  On completion, this loan will be  converted into subsidy. 

4.  Role of Cooperatives              

     Cooperatives continue to play an important role in marketing operations of fresh fruits and vegetables.  During 2004-2005, the  value of fruits and vegetables marketed by cooperatives  was around  Rs.542.35 crores as against Rs.433.36 crores  during  the  year  2003-2004.  Besides, domestic marketing, the cooperatives also export fresh and processed fruits & vegetables products. 

Listed below are a few good working cooperatives:-

· HOPCOMS, Lalbagh, Bangalore

· MAHAGRAPES, Pune, Maharashtra

· Lahoul Potato Growers Cooperative Marketing Society Ltd., Manali (LPS), Himachal Pradesh

· Rau Cooperative Cold Storage, Distt. Indore, Madhya Pradesh.

· Uttar 24 Paraganas Krishi Samabya Himghar Samity Ltd., Distt. 24 Parganas, West Bengal.

· Mahua Cooperative Cold Storage Ltd. Distt-Vaishali, Bihar

5.  Impact of NCDC Scheme 

     NCDC’s scheme for marketing of horticulture produce enables the grower to obtain better return for his produce and secure efficient post harvest management infrastructure that help reducing post harvest losses.

     NCDC’s scheme for processing of horticulture produce provides benefit of value addition to the growers in respect of their horticulture produce through processing.  Besides, processing reduces wastage and also help in combating seasonal gluts. It provides more nutrition, employment opportunities in rural areas and earnings for the country through export.

     Cold Storages help in extending the shelf life and the period of marketing of fruits and vegetables, avoiding gluts, reducing transport bottlenecks during peak period of production and maintenance of quality produce.  Cold Storages help the producers to avoid distress sale and realise better prices in the post harvest season.  The consumers are assured of constant supply of quality produce at reasonable price.

6.  Future Thrust         

        NCDC’s endeavor is to, among others, develop fruit and vegetable cooperatives and enable them to market and process horticulture produce in an efficient manner.  NCDC is assisting fruit and vegetable cooperatives for practically all aspects of post harvest operations.  The cooperatives are being encouraged to set up modern facilities for marketing and export of fruits and vegetables.  Emphasis has been laid in organising cooperative marketing projects in and around medium and large towns.


7.  Pattern of funding for the Cold Storage & Fruit & Vegetable Division is as shown in the general pattern of assistance. 



India is the second largest producer of fruits in the world, producing 46.8 million tons of fruits and accounting for 10% of the world's fruit production.  It is also the second largest producer of vegetables, producing 90.85 million tons of vegetables and accounting for 14% of the world’s production. Apart from fruits & vegetables, India also produces about 20 million tons of root and tuber crops.

Cold Storage and Fruits & Vegetables Programme