One of the major stumbling blocks in the food and medicine supply and distribution chain is proper storage and logistic shortcomings. While most of the farm-fresh food is produced in remote locations in under-connected rural areas, large-scale consumption areas are the big metropolitan cities. It is estimated that farmers lose close to 50% of their perishable farm produce due to lack of proper cold storage and processing facilities locally. Perishable produces include milk, fruits, fish, meat and vegetables.

If only cold storages can be established, most problems associated with selling farmers’ produce can be solved. Cold storage business in India, though in its nascent stage is considered as a sound business opportunity that is yet to be escalated and exploited by entrepreneurs on a large scale.

Cold storage investment is considered to be highly profitable though it entails bigger investment. It offers enormous potential in areas such as Belgaum, Goa, North Karnataka and South Maharashtra where farming is the principal source of income for many small and medium size farm households.
What is a Cold Storage?

Cold storages are more like huge refrigerators that keep the products cool at pre-determined temperatures (some commodities require temperatures as low as minus 25 degrees centigrade) until it is moved to consumption areas for sale to consumers.

There are vast numbers of cold storage types. Some of the common types of cold storages are:

Refrigerated containers. They are the most basic type of cold storage and ideally suited for short-term storage of small quantities of produce. Entrepreneur can offer refrigerated container storage if the quantity is small and requires to be transported to consumption areas without any transhipment.
Walk-in cold storages. Walk-ins are bigger types of cold storages (kind of insulated rooms that offer large space for storage over longer durations. Typically, such storages will contain large number of racks for better utilisation of vertical space. If products are the same or require a particular temperature then entrepreneurs can consider this as an option for providing services.
Combined cold rooms. Combined cold rooms are really variations of walk-in cold storages and the most prominent difference is that unlike a walk-in cold storage there are different storage zones within the facility. The advantage of a combined cold storage is that entrepreneurs can offer services that require different parameters.
Customised cold storages. These are cold storages that offer services for a specific purpose or produce. In building customised cold storages, entrepreneurs should a specific purpose and mostly cater to in-house requirements. Fish and meat producers prefer this type of cold storage. If you plan to invest in a cold storage in India specifically for fish-processing then a customised facility is recommended.

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