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The benefit of cold storages: Evidence from Bihar

  • Minten, Bart
  • Reardon, Thomas
  • Singh, K.M.
  • Sutradhar, Rajib

The Indian government has provided large subsidies to stimulate the take-off of the cold storage sector. However, the impact of this policy is not well understood. In a case study of the potato sector in Bihar, we find that there have been dramatic increases and rapid up-scaling of cold storages, seemingly driven by these government subsidies among others. Wealthier farmers participate more directly and relatively more in cold storages, especially towards the commercialization of potatoes. Small farmers benefit relatively more indirectly, i.e. through the higher prices in the harvest period, as well through the cheaper storage of seed potatoes. However, more competition in the cold storage sector in Bihar is desirable as to drive down the relatively high cost of storage as well as to improve services delivery in input, output, and financial markets from these cold storages that especially the smaller farmers might benefit from.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 54345.

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Date of creation: 01 Dec 2010
Date of revision: 14 Dec 2010
Handle: RePEc:pra:mprapa:54345
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  1. Williams,Jeffrey C. & Wright,Brian D., 2005. "Storage and Commodity Markets," Cambridge Books, Cambridge University Press, number 9780521023399.
  2. Mittal, Surabhi, 2007. "Strengthening Backward and Forward Linkages in Horticulture: Some Successful Initiatives," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 20(2007).
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  8. Forhad Shilpi & Dina Umali-Deininger, 2008. "Market facilities and agricultural marketing: evidence from Tamil Nadu, India," Agricultural Economics, International Association of Agricultural Economists, vol. 39(3), pages 281-294, November.
  9. Delgado, Christopher L. & Narrod, Clare A. & Tiongco, Marites M. & Barros, Geraldo Sant'Ana de Camargo & Catelo, Maria Angeles & Costales, Achilles & Mehta, Rajesh & Naranong, Viroj & Poapongsakorn, N, 2008. "Determinants and implications of the growing scale of livestock farms in four fast-growing developing countries:," Research reports 157, International Food Policy Research Institute (IFPRI).
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