Ministry of Agriculture &
Farmers Welfare
Cold Storage Facilities for Perishable Crops
Posted On:
22 JUL 2025 6:07PM by PIB Delhi
Government is implementing various schemes under which financial assistance is available for setting up of cold storage for perishable horticultural produce throughout the country.
Department of Agriculture & Farmers Welfare is implementing Mission for Integrated Development of Horticulture (MIDH) under which financial assistance is provided for various horticulture activities including Construction/Expansion/ Modernization of cold storages of capacity up to 5000 MT in the country on the basis of Annual Action Plan (AAP) received from States/UTs. The component of Cold Storage is demand/entrepreneur driven for which Government assistance in the form of credit linked back ended subsidy is available at the rate of 35% of the project cost in general areas and 50% of the project cost in North Eastern & hilly States and scheduled areas through respective State Horticulture Missions.
Under the scheme, assistance is available for individuals, Groups of farmers/ growers/ consumers, Partnership/ Proprietary firms, Self Help Groups (SHGs), Farmers Producer Organization (FPOs), Companies, Corporations, Cooperatives, Cooperative Marketing Federations, Local bodies, Agricultural Produce Market Committees (APMCs) & Marketing Boards and State Governments.
Besides, National Horticulture Board (NHB) is implementing a scheme namely “Capital Investment Subsidy for Construction/Expansion /Modernization of Cold Storages and Storages for Horticulture Products”. Under the scheme, credit linked back-ended subsidy at the rate of 35% of the capital cost of the project in general areas and 50% in case of North East, hilly & scheduled areas for construction/expansion/modernization of cold storage and Controlled Atmosphere (CA) storage of capacity above 5000 MT and up to 20000 MT is available.
Ministry of Food Processing Industries (MoFPI) implements a Scheme for Integrated Cold Chain, Food Processing and Preservation Infrastructure as one of the components of Pradhan Mantri Kisan Sampada Yojana (PMKSY) with the objective of reducing post-harvest losses of horticulture and non-horticulture produce and providing remunerative price to farmers for their produce. Under the scheme, Ministry provides financial assistance in the form of grant-in-aid at the rate of 35% for general areas and 50% for North East and Himalayan States, Integrated Tribal Development Programme (ITDP) areas and Islands for storage and transport infrastructure and at the rate of 50% and 75% respectively for value addition and processing infrastructure subject to a maximum grant-in-aid of Rs. 10.00 crore per project for setting up of integrated cold chain projects including irradiation facility. Standalone cold storages are not covered under the Scheme.
All the above schemes are demand/entrepreneur driven through commercial ventures for which government assistance is in the form of credit linked back ended subsidy/grant-in-aid and is provided based on the proposals received from the States/entrepreneur.
Further, to strengthen agriculture infrastructure in the country, Government has launched Agriculture Infrastructure Funds (AIF) of Rs. 1.00 lakh crore. Under AIF, there is provision for collateral free term loan upto Rs. 2.00 crore and interest subvention of 3% on the term loan availed for creation of post-harvest infrastructure including establishment of cold storages.
Department of Agriculture & Farmers Welfare is implementing a Central Sector Scheme i.e. Pradhan Mantri Fasal Bima Yojana (PMFBY). PMFBY offers comprehensive risk coverage for crops from pre-sowing to post-harvest stages in areas notified by the State Governments. It safeguards farmers against losses due to widespread natural calamities such as floods, droughts, cyclones, hailstorms, and pest attacks, as well as localized risks like landslides, cloudbursts, and inundation. The scheme also covers post-harvest losses caused by events like unseasonal rains and cyclones, along with risks related to prevented sowing.
Further, the Government has taken several steps to make the Pradhan Mantri Fasal Bima Yojana (PMFBY) more effective and farmer-friendly. These include introduction of technology-based tools like YES-Tech (Yield Estimation based on Technology) for yield estimation mechanism for Crop Loss assessment and Yield estimation, WINDS (Weather Information Network & Data System) to create a strong database of hyper-local weather to use for all farmer and farming oriented services, and the Digi-Claim Payment Module for real-time tracking of claims. In addition to that, AIDE (App for Intermediary Enrolment), a mobile app, has been launched for door-step enrolment of farmers, while the Krishi Rakshak portal and toll-free helpline (14447) enable easy grievance redressal. Operational Guidelines have been revised based on stakeholder feedback in 2018, 2022, and 2023. Additionally, IEC campaigns like Meri Policy Mere Hath and Fasal Bima Pathshala have been undertaken to increase awareness and transparency, ensuring financial protection and trust among farmers.
Ministry of Agriculture & Farmers Welfare is implementing Paramparagat Krishi Vikas Yojana (PKVY) for promoting the organic farming in all the States/UTs except North Eastern States and Mission Organic Value Chain Development for North Eastern Region (MOVCDNER) for the North Eastern States. Both schemes stress on end-to-end support to farmers engaged in organic farming i.e. from production to processing, certification and marketing. Primary focus of the schemes is to form organic clusters, with preference to small and marginal farmers, to create a supply chain. Both the schemes are implemented through State/UT Governments.
Under PKVY, assistance of Rs. 31,500 per ha in 3 years is provided for promotion of organic farming. Out of this, assistance of Rs. 15,000 per ha is provided to farmers through Direct Benefit Transfer for on-farm/off-farm organic inputs including organic compost. Financial assistance of Rs. 4,500/ha for 3 years is provided for marketing, packaging, branding, value addition etc. Rs. 3,000/ha for 3 years is provide for certification and residue analysis. Assistance is also provided @ Rs. 9,000/ha for 3 years for training, awareness & capacity building.
Under MOVCDNER, assistance of Rs. 46,500 per ha in 3 years is provided for creation of Farmers Producer Organization, support to farmers for organic inputs etc. Out of this, assistance @ Rs. 32,500 per ha is provided to farmers for off-farm/on-farm organic inputs under the scheme including Rs. 15,000 as District Benefit Transfer to the farmers. Financial assistance of Rs. 10,000 per ha in 3 years is provided for activities of ICS management, training and certification (NPOP). Financial assistance of Rs. 4,000 per ha in 3 years is provided for value chain marketing at State level.
There is no proposal under consideration to increase the financial assistance beyond what is presently provided under the two schemes of PKVY & MOVCDNER.
This information was given by the Minister of State for Agriculture & Farmers’ Welfare Shri Ramnath Thakur in a written reply in Lok Sabha today.
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RC/KSR/AR
(Release ID: 2146934)