February 18, 2002

'27'

COLD STORAGE PROJECTS UNDER CAPITAL INVESTMENT SUBSIDY SCHEME ABOUT TO MEET TARGET

    An in-house review of the Capital Investment Subsidy Scheme (CISS) for construction, modernisation and extension of cold storages for horticulture produce by the Department of Agriculture and Cooperation has found that most of the projects are multi-purpose and have been utilising their installed capacity ranging from 60 to 100 per cent. The study conducted by the Directorate of Marketing Inspection (DMI) has expressed satisfaction that almost all projects have been completed in time. It has suggested cutting delay in processing of final subsidy claims and also inspections by monitoring committees. The review has said that in case of implementation of project in the cooperative sector, the role of State Governments should be restricted to recommending cases to National Cooperative Development Corporation (NCDC) to avoid delay in processing. It also said that detailed examination of record of promotions should be carried out in respect of those cold storages which have been completed much before the dates of submission of application to recheck their validity for subsidy under the scheme.

    The study found that the Government’s latest decision to include ‘individuals’ as one of the beneficiaries under the scheme for setting up of onion storage in the country has been well received by the prospective beneficiaries, which include the small and marginal farmers/growers. The Government by providing back-ended subsidy, which is adjusted only on completion of the project, hardly leaves any chance for pilferage of Government’s funds, the study has found.

Under the CISS scheme, the Government has so far sanctioned 399 cold storage projects with a capacity of 19 lakh MT against a target of 20 lakh MT and an amount of Rs.133 crore has been released as subsidy by the National Horticulture Board to NABARD and NCDC. The scheme has also triggered off private investment worth Rs. 500 crore in cold storage infrastructure.

    Based upon the experience gained and the success of the scheme, the Department of Agriculture and Cooperation is re-formulating implementation of some of its schemes on the model of the cold storage scheme. The Department is considering implementing these schemes through back-ended capital investment subsidies in which projects come up fast and scope for misuse of subsidy is minimal.

    Government had constituted a Committee for management of post harvest losses under the chairmanship of Shri J.N.L. Srivastava. The Srivastava Committee had considered the status of cold storage industry, identified constraints and suggested fiscal and other incentives for the growth and development of this industry. The Committee had suggested creation/expansion of 12 lakh MT and rehabilitation/modernisation of 8 lakh MT of cold storage capacity and addition of 4.5 lakh MT of onion storage capacity in the country during the 9^th Plan. Based on the recommendations of the Committee, the Government approved CISS for implementation during 1999 to March 2002 at a cost of Rs.175 crore. The National Horticulture Board is implementing the scheme through NABARD and NCDC. Under the scheme, subsidy is provided @ 25% of the project cost not exceeding Rs.50 lakh per project and @ 33.33% of the project cost subject to a ceiling of Rs.60 lakh in case of the North-Eastern states.

    Horticulture sub-sector within the country is witnessing phenomenal growth in production of horticulture crops and expansion in crop acreage in the country. As of 1999-2000, with an annual production of 45.5 million tonnes of fruits and 91 million tonnes of vegetables, the country has emerged as the largest producer of fruits and vegetables in the world, contributing nearly 10% and 13% respectively to the total production in the world. India leads the world in the production of mango, banana, sapota and acid lime. The country has recorded the highest productivity in grapes. The benefits of higher production and productivity are, however, offset due to huge post harvest losses significantly varying from 8% to 37% of horticulture produce particularly due to high perishable nature of the produce. The country, in spite of a large base of production had faced situation of scarcity or glut especially in respect of onion and potato crops in the past. The price of onion soared to an unpredictable level during 1999 thereby shattering the family budget households. In addition to the post-harvest losses already being very high for these perishables, inadequate storage capacity for storing them to meet the consumers’ requirements round the year have also led to glut or scarcity of these crops. Improvements in the post-harvest infrastructure ensures a fair remunerative price to the growers and increase in the availability of per capita quantity of fruits and vegetables to the consumers. Reduction in post-harvest losses and adequate storage facilities countrywide could help save a significant proportion of horticulture produce which otherwise would deprive millions of mouth to be fed on it.