Government Subsidy for Cold Storage Construction – NHB & MIDH Scheme Explained (pdf)

The Scheme for Construction of Cold Storage aims to promote sustainable post-harvest management and reduce wastage of perishable produce in India.
Through credit-linked back-ended subsidies, the government supports entrepreneurs, farmers, and cooperatives in building or modernizing cold storage facilities with advanced technology and energy-efficient systems.

1. Subsidy for Construction of Cold Storage - Scheme
Overview and Financial Assistance
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Introduction
The Scheme for Construction of Cold Storage has been introduced to strengthen India’s post-harvest
infrastructure and reduce wastage of perishable commodities. This initiative provides financial
assistance and subsidy for construction of cold storage, including modernization and expansion, under
the National Horticulture Board (NHB) and Mission for Integrated Development of Horticulture
(MIDH).
The scheme plays a crucial role in ensuring proper preservation, enhancing farmers’ income, and
promoting efficient supply chain logistics across the country.

Objective of the Scheme
 To promote credit-linked cold storage projects for fruits, vegetables, spices, and other
perishable produce.
 To support the establishment of energy-efficient, multi-chamber cold storage units.
 To reduce post-harvest losses and stabilize the prices of agricultural commodities.
 To encourage modernization and upgradation of existing cold storage facilities.

Components Covered
Under the subsidy for construction of cold storage, the following types of projects are eligible:
 Cold Storage including Controlled Atmosphere (CA) Stores and their modernization.
 Multi-Chamber Cold Storages with advanced cooling, humidity control, insulation, and
automation technologies.
 Cold Storage for specialized crops like onions, dry spices, raisins, and temperate fruits (e.g.,
apple, walnut, kiwi).
 Modernization projects including upgradation of refrigeration, insulation, and safety systems.

2. Eligibility Criteria and Capacity Norms
 Minimum capacity: 5,000 MT (up to 10,000 MT).
 For North Eastern and Hilly States, projects with a capacity of 1,000 MT or more are eligible.
 For subsidy calculation, 3.4 cubic meters (120 cubic feet) of chamber volume is treated as 1 MT
of storage capacity.

Special Provisions
 Large-scale Hi-Tech Cultivation Projects (e.g., apple, cashew, kiwi) are eligible for assistance up
to ₹200 lakh per project.
 Credit-linked back-ended subsidy ensures that only financially viable and bank-approved
projects are supported.
 Technology compliance and adherence to NHB-approved standards are mandatory for all
applicants.

Impact and Benefits
The subsidy for construction of cold storage brings wide-ranging benefits to India’s agri-value chain:
 Reduction in post-harvest losses by up to 25-30%.
 Improved price realization for farmers through extended shelf life.
 Enhanced market access and export potential for horticultural produce.
 Promotion of energy-efficient infrastructure for sustainable growth.
 Increased employment generation in rural and semi-urban areas.

Conclusion
The subsidy for construction of cold storage is a strategic initiative to modernize India’s agricultural
infrastructure and empower producers through technology-driven post-harvest management. By availing
this financial assistance, stakeholders can contribute to reducing food wastage, increasing profitability,
and promoting a sustainable cold chain ecosystem.