Economics of Cold Storage Facilities in Assam: Issues of Availability and Requirement

This study first discusses the existing status of cold storage facilities in Assam followed by an analysis of the economics related to the availability of such facilities in the region. To achieve this, the study calculates the storage price margin, gross benefit, operational costs and return from selected farm-linked cold storage units. Both secondary and primary sources of data are considered for this study. The secondary sources of data are various directorate and government agencies of India and Assam. Relevant primary data are collected through structured interview schedules by employing a purposive sampling technique. The findings indicate that over the past two decades, there has been increase in the number as well as capacity of cold storages in Assam, driven primarily by the private sector. However, many government-owned cold storages are non-functional, and those that are functional are typically leased out to the private sector. Private sector cold storages predominantly store potatoes primarily sourced from other parts of India. From the primary sources of data, the study finds that the farmer-link cold storage facilities have successfully met their annual operational costs, with electricity constituting a significant portion of these expenses. Despite the high storage price margin associated with the cold storage business, the utilization of these facilities by farmers of the state remains limited, primarily due to the unavailability of storage space. From the service providers’ point of view, the study finds that direct selling of potatoes ensures realization of higher prices to the extent of 160.00 per quintal for the storage owner compared to merely providing storage space to farmers. Thus, by engaging in potato sales, the storage owner realizes greater benefits than through storage services alone. This dynamic contributes to the challenge faced by farmers in Assam who struggle to secure adequate storage space for their produce in cold storages in the state.