Detailed Project Report on cold storage for potato and onions

COLD STORAGE FOR POTATO AND ONIONS
 [CODE NO.3281]


Onion, being high in water content, is a delicate commodity to store and requires special procedure and parameters, giving rise to the concept of Onion cold storage. The proposed project envisions setting up of an onion cold storage unit in Gujarat to tackle the problem of post harvest storage. It will be an essential infrastructure for onion exporters, both in private and public sector. CA Cold storage is used to Onions and Potato. Once  they are kept in the cold storage, they do not get spoiled even after many months. Some times, in production season of certain  vegetable  or  fruit crop, the  demand  for  that  thing decreases, which in turn decreases they consumption  in  surplus amount of that particular item is kept in a cold storage. So  this  item, when needed, can be taken from the cold storage & can be made available to consumers very easily.

Onion is an important vegetable crop grown in India and forms a part of daily diet in almost all households throughout the year. It is also used for medical purpose. But due to non-availability of appropriate post-harvest storage facilities, 20-25% of the total produced onions are wasted, which in terms of value amounts to crores of rupees.

Building up of the cold storage unit would minimize the waste upto the level of 3 to 4% that would in turn help the onion growers, and stabilize onion prices in market for all types of consumers.
A major challenge in India is potato storage as potato production that takes place in the cold months of October-November to February-March (about four-fifths of total production) is followed by hot summer months; this makes refrigeration necessary for storage. 2 Cold storage takes place on a large scale. It is estimated that there were about 3,400 cold storage facilities in the beginning of the 2000s in India (CIP, 2006) but they had increased to 5,386 units in 2008 that could store over eighteen million tons of crops.3  Most of the cold storages in India are used towards potato storage. CIP (2006) estimates that approximately three-fifths of potatoes in cold storages are table potatoes, intended for consumption, while the other two-fifths are used for seed. Using average storage fees from our survey (and assuming 80% of cold storage use by potatoes), it is estimated that about 0.4 billion USD is spent yearly by traders and farmers on storage for these potatoes in India, indicating the considerable size of this business.
Selection of location for the cold storage is a very important task. So, this should be done very carefully. While selecting a location for the cold storage the following factors should be accounted for:-

1. Market and production field should be near the cold storage so that the expenditure incurred in to and for transportation is less and it is convenient also.   

2. Cold storage should be near a highway so that the transportation to other cities is not difficult.

3. At the site of the cold storage, the cost of the land should be less.

4. There should be a convenient arrangement of water and electricity at the location, where cold storage is to be established.

COST ESTIMATION

Plant  Capacity                                             :    5000 MT Cold Storage                   
Land & Building (68.80 Sq.Mtr)                  :    Rs. 03.04  Cr
Plant & Machinery                                        :    Rs. 2.61   Cr
Working Capital for 1 Month                       :    Rs. 11.92 Lacs
Total Capital Investment                              :    Rs. 5.94  Cr
Rate of Return                                               :    13%
Break Even Point                                          :    69%

•    INTRODUCTION    
•    USES    
•    B.I.S. SPECIFICATIONS    
•    MARKET SURVEY    
•    SELECTION OF LOCATION FOR THE COLD STORAGE    
•    QUICK COOLING METHODS    
•    TECHNICAL NOTE    
•    SELECTION OF THE REFRIGERATION PLANT CAPACITY & MACHINERY    
•    COMPLETE PLANT SUPPLIERS ON TURNKEY BASIS OF COLD STORAGES (CONTROLLED ATMOSPHERE)    
•    SUPPLIERS OF PLANT AND MACHINERY FOR COLD STORAGE PLANTS    
•    LIST OF COLD STORAGES    
•    SUPPLIERS OF RAW MATERIALS    
•    LIST OF MACHINERY AND EQUIPMENTS    
•    SWOT ANALYSIS    
                
        
APPENDIX – A:

 1.      COST OF PLANT ECONOMICS      
 2.      LAND & BUILDING                                      
 3.      PLANT AND MACHINERY                                  
 4.      FIXED CAPITAL INVESTMENT                             
 5.      RAW MATERIAL                                         
 6.      SALARY AND WAGES                                     
 7.      UTILITIES AND OVERHEADS                              
 8.      TOTAL WORKING CAPITAL                                
 9.      COST OF PRODUCTION                                   
10.      PROFITABILITY ANALYSIS                               
11.      BREAK EVEN POINT                                     
12.      RESOURCES OF FINANCE                           
13.      INTEREST CHART                                       
14.      DEPRECIATION CHART                                   
15.      CASH FLOW STATEMENT                                   
16.      PROJECTED BALANCE SHEET