Introduction to 5000 MT Cold Storage Project Report for construction in India: India is the largest producing country for fruits and vegetables when compared to other countries in the world. But the availability of fruits and vegetables is not so high because of Post-Harvest losses that account for 25% to 30% of production. Apart from that, even the quality is compromised and even reduces it is purchased by the consumer. Our farmers continue to be poor even after they take up the challenging task and risk to grow high-value fruits and vegetables every year. Introduction of Cold storage / Cold room units will aid them in bifurcating the risk of distress sale thereby will provide better returns. The lack of cold storage / cold room spaces is one of the chief reasons that lead to starting this business and make use of this potential segment. Therefore, starting cold storage/cold chain facilities in the country will aid the horticulture farmers economically and you will also gain good returns.
In Orissa, about 70% of people depend on agriculture for their living. Encouragement and support of those people will enhance the overall status of the region. If compared to developed regions of our nation, the economic scenario of farmers in our state is wretched. The economic situation of most of the farmers is down. In the total farmers, around 47 to 48 percent of people grow beans, cabbage, sweet potato, onion, Brinjal, pea, etc. that have a limited shelf life. Same with that of fruits after they are harvested. Post-harvest cooling quickly removes field heat, decreases respiratory – activity, decreases internal water, wilting, obstructs the microorganism growth, and lowers the production of natural ripening chemicals such as ethylene. Post-harvest cooling also permits the farmers to sell fruits and vegetables at the most suitable time. The unavailability of cooling and storage units makes it essential to market the product as soon as they harvest and may not prove good for returns or profits. This can be beneficial to cultivars who supply their produce to hotels or vegetable stores and even small growers who stand to accumulate truckload for carriage to another place. Post-Harvest cooling is an essential aspect that will provide proper quality vegetables to the consumer.
A guide to 5000 MT Cold Storage Project Report for construction in India
What is the need for a Cold Storage unit?: The financial status of the farmers does not allow to arrange cold storage with 5000 MT which is used to store 50,000 quintals of the products in the facilities that consume crores of rupees while establishing. The concept of the cold room is preferred for vegetables, fruits, and flowers for a shorter time for a farmer can keep products there and sell them without any product damage and keeping them fresh. Farmers will also acquire the proper amount of the product. As the capital incurred for setting a unit of 5000 MT capacity is comparatively low, a farmer can plan to establish a store for his surplus vegetables and fruits.
Basis and presumptions of the 5000 MT Cold Storage Unit
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The capacity utilization for cold storage for fruits and vegetables is commonly around 70% because of the short shelf life of the vegetables and availability of vegetables for storage for 365 days in a year. Commonly, cold storage works only for 300 days a year.
The cold storage space of the planned business is meant primarily for storing fruits and vegetables for a short term of about 1- 4 weeks. Such cold storage provision will allow them to bargain for a better cost of their produce wholesale markets available weekly or bi-weekly.
Income: Now you will understand how you will generate revenue using cold rooms in the next section.
(a) The hirers of cold storage space will be paying rent on a daily charge basis. It is expected that space rent could be Rs.0.30p per Kg on daily basis.
(b) Income can be generated also by obtaining and trading fruits and vegetables.
(c) So, the above two ways can be used or even by planning 50% by own trading and 50% by rent basis.
Loading and Unloading of vegetables and fruits
Loading of vegetables in the cold chamber and again their unloading is performed by contract laborers, the expenses will be incurred and are used from the income generated from the space hirers.
Salary & wages:
One operator is enough for cold room operations who will charge about Rs. 50,000/- per month as salary.
For a 5000 MT capacity unit, the size of the chamber could be 10000’-0”x 8000”-0”x 8000-0”. The storage racks could be built by M.S. channels and angles.
60 mm thick PUF panel is included for insulating the cold room walls and ceiling.
80 mm EPS slab, PCC & KOTA stone is installed for floor insulation. For strong insulation, chicken wire is mainly preferred.
R-22/ R 404A refrigerant is necessary for the cooling unit. Room temperature of 2°C to 6° C is sufficient to be sustained inside the store. The total cooling capacity will be around 20,000 BTU/hr for 5000 MT capacity cooling units.
Electric load for a unit with 5000 MT capacity will be about 2000 KW. The power supply needed will be 23000 Volt/1Ph/5000 HZ.
Electrical work shall include main power distribution switchboard, feeder switches necessary in cooling units, power distribution cables, capacitors, electric lighting, and provision for earthing for the entire unit.
Stand by Generator:
The facility must be there for a stand-by Generator during power cuts to sustain the continuous power requirements. The generator must begin automatically while there is a shortage of power.
Methods to store fruits and vegetables in 5000 MT Cold Storage Unit
Refrigeration (cold store) – The perfect environmental condition for storing fresh fruits and vegetables is the lowest temperature that does not damage the product due to the chilling condition. Thus, temperature regulator in cold storage has significance. For mechanical refrigeration, the refrigerated Gas (e.g. Ammonia, Freon, etc.) pulls out the heat from the store while it expands. The expanded gas is now compressed and the heat is released from the compressed gas using running water or circulating air on the tubes having the hot gas. The gas gets liquefied and this cycle is repeated. With this precise mechanism, the temperature is regulated.
Specification of a Cool Chamber/Cold Room
The storage life of fruits and vegetables even at low temperatures commonly differs between 2 – 4 weeks excepting for a few fruits like apples, potatoes, oranges, cabbage, etc. In the case of cold rooms, long period storage is not encouraged and the duration of storage is about 1 to 4 weeks.
The objective of the Scheme:
(i) To set up a small capacity cold room/cool chamber in vegetable markets or close to farmer’s cultivation lands where the fruits/vegetables will be grown.
(ii) To store the extra quantity of vegetables in the daily market that can be used for selling the products later.
(iii) To decrease the pain of selling rotten vegetables in the market.
(iv) To establish the cold chain provision in the concerned area
(v) To enhance the income of farmers.
To complete the aforementioned goals, the following techniques will be implemented.
i) Most suitable system will be used to decrease the distress sale of vegetables.
ii) Farmers will gain profits after selling the vegetables in the market in the following days.
iii) Capacity building of farmers and field functionaries will be carried out by training and demos with the active participation of refrigerated firms.
The pattern of Assistance:
a) Subsidy is provided @ 40% of the total cost of the project with a maximum limit.
b) The rest 60% amount is taken care of by the beneficiary.
The implement organization will have the below functions:
(a) To disburse financial support to the beneficiary following the PHM scheme.
(b) To provide utilization certificates and regular progress reports.
(c) To release financial support after the date of installing the equipment.
5000 MT Cold Storage Project Report/ Economics of 5000 MT Cold Storage Unit in India
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Land and land development: Rs. 1,30,00,000
Building and civil works: Rs. 1,20,00,000
Plant & machinery: Rs. 1,53,00,000
Utilities: Rs. 23,00,000
Technical requirements: Rs. 2,00,000
Misc. fixed assets: Rs. 20,00,000
Pre-operative expenses: Rs. 17,00,000
Contingencies: Rs. 13,00,000
Margin money: Rs. 12,00,000
Total: Rs. 5,00,00,000.
A. Products stored on a rented basis = 3500 MT
Revenue will be collected Rs. 0.40 / kg / day = Rs.350000 x 0.30 x 300 = Rs.4,20,00,000
B. Products will be stored by own trading = 1000 MT (8 rotations in a year)
Average profit of mixed vegetables = Rs.5 / kg
Profit for 5000 MT vegetable = 10,00,000 x 5 x 8 = Rs.4,00,0000
Total profit will be A +B = Rs. 4,20,00,000 + Rs. 4,00,00,000 = Rs. 8,20,00,000.
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