Chapter I
Requirements of Model Schemes for Formulation by Banks
General
India is the largest producer of fruits and second largest producer of vegetables in the world. In spite of
that per capita availability of fruits and vegetables is quite low because of post harvest losses which
account for about 25% to 30% of production. Besides, quality of a sizable quantity of produce also
deteriorates by the time it reaches the consumer. This is mainly because of perishable nature of the
produce which requires a cold chain arrangement to maintain the quality and extend the shelf-life if
consumption is not meant immediately after harvest. In the absence of a cold storage and related cold
chain facilities, the farmers are being forced to sell their produce immediately after harvest which
results in glut situations and low price realization. Sometime farmers do not even get their harvesting
and transportation costs what to talk of the cost of production or profit. As a result, our production is
not getting stabilized and the farmers after burning fingers in one crop switch over to another crop in
the subsequent year and the vicious cycle continues. Our farmers continue to remain poor even though
they take risk of cultivating high value fruits and vegetable crops year after year. A cold storage facility
accessible to them will go a long way in removing the risk of distress sale to ensure better returns. This
document endeavors to provide information on various broad technical and financial aspects of a cold
storage unit to enable the financing banks and entrepreneurs in formulation and implementation such
projects.
