I would like to set up a cold storage in Chhattisgarh state (Jagdalpur). Therefore seeking some expert advice on the following:
1. Capacity of the cold storage
2. Prospects of cold storage business in Chhattisgarh
3. Finance required
4. Finance available from the bank
5. Any subsidy from the government in setting up the project
6. Area of land required and at what location
7. Return on investment
8. Profit margin
9. Time schedule for the project set up
10. Whether building is required to be constructed or to be rented
Thank you so much!
Post harvest micro cooling chamber has good business scope
The storage life of fresh fruits and vegetables even at low temperatures in general varies between 1 to 4 weeks excepting for a few commodities like apples, oranges, potatoes, cabbage etc.
The objective of micro model 10 MT capacity cold chamber project are :
(a) To establish the small capacity of cool chamber / cold room in or around wholesale vegetable mandi / markets or in the field of farmers growing vegetables/fruits.
(b) To store the surplus amount of vegetables in daily market for selling the products later.
(c) To reduce the distress sale of the vegetables in the market.
(d) To develop the cold chain facility in the concerned area
(e) To augment in case of farmers/small beneficiaries.
Income can be generated from micro cold rooms in the following conditions :
Income of the project shall be by the way of rent paid by hirers of cold space on a daily charge basis. It is proposed that space rent shall be Rs.0.30 paisa / kg / day ( the space rent amount can be increased or reduced as per local requirement )
Income of the project shall be by way of procurement and trading of vegetables and fruits.
Income of the project can be made by both the above way i.e. by way of 50% by own trading and 50% by rent basis.
NOTE : Generally cold storage operates for 300 days in a year.
Basic design of 10 MT cold room are as follows :
Room dimensions : 14ft (L) x 10ft (B)x 10ft(H)
Room temperature : + 40 deg C (+/- 2 deg C)
Ambience Temperature : 43 deg C
Material to be stored: Fresh vegetables and fruits
Product quantity : 10 MT
Product Incoming Rate : 33% (3300 kg per day)
Man powers : 2 nos .
Tentative cost of 10 MT cool chamber : 13 lakh
Cost of machinery etc : Rs.5 lac
Civil construction cost : 192sqft @800/sqft: 1.5 lac
Electrification, Stabiliser etc : 1 lac
Insurance etc : 10 K
Cost of Generator, Accessories, Plastic crates etc : 4.25 lac
Tax, Installation etc : 1.25 lac
Estimate is indicative purpose only . The Annual expenditure will be deducted from the profit. The beneficiary may go for different combination for profit as per field condition and storing requirement
PROFIT ANALYSIS
Option-1
If the product stored on rented basis, the rent charge is Rs.0.30 kg / day (maximum 300 days storage in a year) Collected revenue will be = Rs.10000 x 0.30 x 300 = Rs.9,00,000 per year
Option-2
A- If the products stored on rented basis as well as by own trading. Products stored on rented basis = 7 MT Revenue will be collected Rs. 0.30 / kg / day = Rs.7000 x 0.30 x 300 = Rs.6,30,000/-
B- Products will be stored by own trading = 3 MT (8 rotation in a year) Average profit of mixed vegetables = Rs.5 / kg Profit for 3 MT vegetable = 3000 x 5 x 8 = Rs.1,20,000/-
Total profit will be A +B = Rs.6,30,000/- + Rs.1,20,000/= Rs.7,50,000/
NOTE : Farmer will store the product as per permutation & combination (Rs.0.30/kg/day).
Gross Expenditure to be be deducted
