KCC&I Pitches for Increased CS stores
Abrar Mattoo
SRINAGAR, Dec 21: The union territory produces more than 25 lakh metric tons of apples every year and contributes around 88 percent to the national apple production. However, the UT’s cold storage capacity, according to the data produced by the Kashmir Chamber of Commerce and Industries (KCC&I) is merely 2 lakh metric tons, thereby, explaining the need for increased cold storage capacity in Jammu and Kashmir.
Speaking with Kashmir Despatch, the general secretary of KCC&I, Farooq Amin, said “the government should encourage more and more establishment of Cold stores, so that the distress sale that we witnessed this year can be avoided in future.”
One unit of cold storage costs around Rs. 30 crores, of which the government provides a subsidy of around Rs. 7 to 8 crores. Further, as per the scheme of the Ministry of Food Processing, Govt. of India, there is a subsidy of 75% on investment in the Cold chain. In addition to that, the government also gives incentives up to Rs. 13 lakhs on the purchase of a reefer van.
“We need to save the horticulture which is the economic backbone of Jammu and Kashmir. Moreover, the increased cold storage capacity can help us boost our economy and local GDP,” Amin added further.
India rests its title of the 5th largest producer of apples in the world significantly on Jammu and Kashmir, and with the advent of high-density plantation in the UT, the production of apples as well as the market which is currently estimated at Rs. 10,000 crores according to a figure produced by the department of horticulture, is predicted to grow substantially in coming years.
The government of Jammu and Kashmir has brought 5,000 Kanals of horticulture land under high-density plantation and the target has been set at 110,000 Kanals. For this purpose, a 50 percent subsidy is provided to the orchardists who establish or switch to the high-density method.
“With the advent of high-density farming, the requirement for cold storage is expected to increase further, and when we are not able to even accommodate the current production of apples, how can we expect that we will manage the increased production in the future as well,” Amin added further.
At current production, Jammu and Kashmir should ideally have 4 lakh MTs of cold storage capacity, and at least 50 cold store clusters. Surprisingly, the UT’s storage capacity is at half of the minimum required.
While speaking with Kashmir Despatch, Mohammad Aslam Motta, a cold storage owner in Shopian, said, “though the government no doubt provides a huge subsidy on the establishment of cold stores, not many individuals are willing to set up one of their own. The reason primarily is the high cost of establishment and little return on investment (ROI). The government should come up with creative ways to encourage the establishment of more and more CA stores.”
The government of Jammu and Kashmir has time and again reiterated its commitment to taking the Kashmiri apple and other indigenous fruits to the international markets, and the experts say that increased cold storage is the first step to achieving that ambitious goal.
