dpr on cold store having capacity of 5000 mt - apicol…apicol.co.in/images/model dpr on cold...
TRANSCRIPT
DPR ON COLD STORE HAVING CAPACITY OF 5000 MT
INTRODUCTION: Assistance for setting up of new cold storage infrastructure
will be available only to multi-chamber cold storage units with technologies
which are energy efficient with provision for thermal insulation, humidity
control, advanced cooling systems, automation, etc., having specifications and
standards approved by the Ministry. Cold storages (Long term storage and
distribution hubs) upto 5000 MT capacity will be promoted under
NHM/HMNEH sub-schemes. In this context, for cold storages, 3.4 cubic metres
(cum.) (120 cubic feet (cft.) of chamber volume shall be considered equivalent to
one MT of storage capacity.
Assistance will be available to individuals, Group of farmers/ growers/
consumers, Partnership/ Proprietary firms, Self Help Groups (SHGs), Farmers
Producer Organization (FPOs), Pvt. Limited Companies, Corporations,
Cooperatives, Cooperative Marketing Federations etc through either
NHM/State Agriculture Policy' 2013.
Proposed Planning
The entire planning process has been based on the following
methodology followed for the project:
a. Analysis of Project Activities
b. Proposed Backward Linkages for Project
c. Planning of Activity, Area & Equipment Requirements
d. Marketing & Forward Linkages for Project
e. Location Advantages
f. Utilities & Pollution Control
g. SWOT Analysis
a) Analysis of Project Activities
The project is planned to undertake the following activities:
1) Multi-Chambered and Multi-Commodity Cold Storage with 4 nos
cold rooms each with 1250 MT capacity. (Total Capacity 5,000 MT)
2) Registration with NCDEX for facilitating forward trading activity.
3) Introducing the concept of Warehousing Receipt for providing easy
finance against stored stocks of Potato & other products to farmers,
traders etc.
1) Multi-chambered and multi commodity cold storage
Four Cold Rooms are proposed to be built each with a capacity of 1250
MT and a total capacity of 5,000 MT preservation of fresh horticulture
produce by proper cold storage practices. This will reduce losses in
supply chain which is at present estimated anywhere between 30% to
40% of the total produce. Modern cold stores are multi-chamber, multi-
commodity stores that use energy-efficient refrigeration equipment and
DPR ON COLD STORE HAVING CAPACITY OF 5000 MT
energy-conserving thermal insulation. Most horticultural produce (with a
few exceptions like - onions) require high RH levels and, therefore, good
humidification systems are essential. In addition, means to reduce
ethylene levels are required and so are specialized equipment to kill air
borne pathogens and bacteria. Besides fruits and vegetable, these
modern cold stores can be used for dry fruits, spices, pulses, milk
products etc. The desire to reach more distant markets, prolong storage
life, and market a product that better satisfies consumers has a critical
requirement of cold chain right from farm gate to distribution and selling
point. Changes in Packing, Handling, Transportation, Marketing and
Distribution of horticultural crops directly influence the Cooling
requirements and results. The primary purpose of refrigeration is to aid
preservation with a view to reduce wastages and at the same time bring
economic prosperity to the growers. Since each fruit or vegetable is
sensitive to various conditions in their own unique way, specific systems
have to be designed to deliver optimum parameters in each chamber of
the store. Good temperature management, is the single most important
factor in delaying product deterioration; prompt cooling and
maintenance of proper temperatures are both essential. For many
products, this means maintaining a low temperature as much as possible
without danger of freezing. It has been said that every hour saved from
the moment of harvest and removal of the field heat can add a day to the
useful shelf life of the product. Hence, location of cold storage facility in
close proximity to the production belts is an obvious advantage. The
desire to reach more distant markets, prolong storage life, and market a
product that better satisfies consumers has a critical requirement of cold
chain right from farm gate to distribution and selling point. Changes in
Packing, Handling, Transportation, Marketing and Distribution of
horticultural crops directly influence the Cooling requirements and
results. The primary purpose of refrigeration is to aid preservation with a
view to reduce wastages and at the same time bring economic prosperity
to the growers. The proposed technology for the multi-chamber cold
store has been selected based on the following key parameters required
for obtaining the best results for the stored produce:-
• Rapid & Uniform Cooling
• Flexibility in Temperature Management across various chambers
• Humidity Management for High Humidity in Cold Rooms
• Ethylene Scrubbers for mixed storage of fruits & vegetables in
cold room
DPR ON COLD STORE HAVING CAPACITY OF 5000 MT
• Efficient Power management for minimizing power consumption
2) Registration with NCDX National Commodity & Derivatives
Exchange Limited (NCDEX) is an online commodity exchange based
in India. It provides a commodity exchange platform for market
participants to trade in commodity derivatives NCDEX POTATO
FUTURES provide a hedging platform to those who are natural
physical traders of the commodity. Speculators who have knowledge &
a view about the commodity can take positions in the Potato futures.
Even arbitrages in calendar spread as well as cash & carry, can be done
in Potato futures.
Benefits to Farmers and Traders:
• Farmers and traders will become familiar with computers and
online auctions.
• Farmers will have greater bargaining power versus traders.
• Farmers become more aware of crop quality specifications.
Quality consciousness among farmers will increase.
• Farmers will have better understanding about banking. Literacy
among farmers about bank transactions / operations will increase.
• Direct electronic fund transfer from buyers to sellers.
• Maintenance of Mandi trading records has become computerized.
• Greater transparency at every stage of transaction within an
Electronic trading system allows buyers to bid in real time even
when they are not physically present at the Mandi. E-auctioning
system has enabled sellers to participate irrespective of proximity
to the Mandi location.
• Tender results are announced daily at 1:00 pm so farmers do not
face uncertainty. Platform for e-Procurement NSPOT provides
unique e-Procurement platform for primary procurement
activities. Availability of real time information and simple
delivery process ensures that farmers are the direct beneficiaries
of this trading platform. The users in the value chain can have
simultaneous access to the Exchange on the buy side and procure
at the best possible price. NSPOT has facilitated the state
government agencies and farmer producer organizations (FPOs)
to procure various agricultural commodities in the last couple of
years.
DPR ON COLD STORE HAVING CAPACITY OF 5000 MT
b) Proposed backward linkages for the project
The primary grading of vegetables will be carried out in the field or at
the Cold Store. Tamarind is suitable for long term storage in the cold
store as well as for utilization in the fruit processing plant. Graded
vegetables will be put in field crates and palletized for storage in the
Cold Store. Tamarind will be stored in cold store for longer period for
tamarind concentrate preparation and any surplus will be released into
the market during the late “off-season” period of March to June. The
proposed business model for the Integrated Cold Store will be captive as
well as paid services for quality grading-packing of mango and tamarind
brought by farmers and traders on rental basis. Due care needs to be
taken to ensure minimization of post harvest losses during this entire
chain of handling of fresh fruits and vegetables. Sufficient area needs to
be provided for rapid unloading of harvested produce being brought into
crates from field. This requires parking and movement area for trucks at
the unloading point and an unloading platform. To minimize the risk of
damage of potato, tamarind etc. and to speed up the process, mechanized
forklift trucks need to be used for loading, unloading and stacking
purpose. Provisions for storage area of packing material, office area and
tool room etc are to be kept in the cold storage complex.
c) Planning of activities, area & equipment requirement
The linking of facility to producers and onwards to markets is based on
detailed planning for various activities to be carried out and scale of
operations. The requirement of area and equipment for the proposed
facility is envisaged as follows:-
i. Rooms & capacities
The number of Cold Rooms have been worked out based on the
proposed stacking pattern for fruit, vegetables and capacities desired.
Four Cold Rooms are proposed to be built, each with a capacity of 1250
MT with a total capacity of 5,000 MT.
ii. Rapid cooling in rooms
Room cooling is proposed to be carried out for the Fruits to allow for
storage of the produce in the same rooms based on a 3 - 4 day cycle. The
proposed stacking pattern, refrigeration system and air circulation
system (complete with VFD) have been planned accordingly.
Pressurized air flow within the room proposed to ensure forced
movement through the crates is planned with high CFM fans in
DPR ON COLD STORE HAVING CAPACITY OF 5000 MT
evaporator units to meet the guidelines of NHB. Each of the rooms
would require to maintain high humidity levels of 90 - 95% RH which is
essential for sensitive produce & ripening activity which is proposed to
be achieved by installation of adiabatic humidifiers complete with
nozzles, RO and pressure pump. Display and control units for
temperature, humidity, ethylene and CO2 levels in the ripening rooms,
are proposed to be installed so as to ensure proper monitoring of these
levels.
iii. Temperature & humidity management
The refrigeration system has been planned for accurate management and
display of temperature & high humidity (90-99% RH) in all the rooms.
Humidification system based on adiabatic type, with nozzles capable of
delivering droplets of 10 micron size suitable for maintaining high
humidity Levels as Indicated In the following table.
Temperature & Relative Humidity Requirement for Different Produces
PRODUCT TEMP. RANGE IN o
C
RELATIVE HUMIDITY IN
%RH
BEANS 4-7 90-95 BRINJAL 0-20 85-90 CABBAGE 0 95-99 CARROTS 0-20 98-99 CAULIFLOWER 0-20 90-95 CUCUMBER 7-10 90-95 LETTUCE 0 95-99
LEMON 7-10 90-95 ONION 0-2 65-75 ORANGES 0-10 85-90 PUMPKIN 10-13 70-75 POTATO 1.5-4 90-95 WATER MELON 2-4 80-90 TOMATOES 13-21 85-90
Source: USDA
iv. Insulation & doors It is proposed to install PUF sandwich panels of suitable thickness for
ceiling and walls, which are suitable for the positive temperature
ripening rooms. The floor insulation is proposed with laying of PUF slab
of suitable thickness complete with tar felt sheets and bitumen below the
flooring. Each room shall be leak proof. The doors planned for the
ripening rooms are insulated doors of sliding type to allow for ease of
stuffing and de-stuffing of rooms. The insulation system planned for the
DPR ON COLD STORE HAVING CAPACITY OF 5000 MT
Cold rooms consists of insulated composite structural panels with core
insulation of polyurethane of suitable thickness.
v. Accessories
The accessories required for managing operations in the Ripening cum
Cold Store include mezzanine floor for holding of fruit, Pallets for
stacking of crates or boxes, Electronic Weighing Platform for weighing
of fruits, Carton Strapping Machine for Packed Fruit Cartons ready for
dispatch to markets, Hand Pallet Trucks for movement of crates within
Cold rooms, Trolleys for movement of Packed Fruit Cartons, Power
Back up system with Generator set.
d) Marketing & forward linkages for project
In absence of storage facilities in the locality, potatoes and other
vegetables are mainly marketed in weekly markets and a portion is
transported to other destinations by train/road. Transportation of
vegetables to the markets is made by truck. The markets are located at a
distance of 5-35 km from major production belts in the district. The
arrival of vegetables during Kharif season is usually August to
November while Rabi vegetables are marketed from December to May.
The market potential for Premium fruits and vegetables in India can be
categorized between Fresh fruits sold “fresh” during the season and
Store produces stored in Cold or Cold Store to be sold in “off season”.
The market potential for such fruits in India has two dimensions –
Seasonal Sale of Top quality fruits which are duly washed, graded and
packed for sale in the fresh market; and Off-Season Sale of quality
Indian fruits taken out of Cold Store or Cold Store and Imported fruits
which are being imported for sale during this period. The marketing of
Cold Store services to farmers & traders has excellent potential given the
absence of similar facilities in the entire region. The benefits of Cold
Store are now well recognized in terms of better product quality & price
realization.
e) Location advantage
The site proposed for Cold Store in Odisha along with a proposed
integrated market complex with fruit processing unit and farmers’
education information centre would provide a holistic single window
platform for the farmers as well as the traders. There are many big
farmers who can take up high value crops provided market infrastructure
is created.
DPR ON COLD STORE HAVING CAPACITY OF 5000 MT
f) UTILITIES AND POLLUTION CONTROL
One 50,000 litre overhead tank and two 6” diameter functional bore
wells have been proposed to be installed in the complex, Three Phase
electricity line is also essential to ensure proper power supply. Cold
store is a non –polluting industry (falling under Green category) as it is
largely a service industry catering to storage of perishables like fruits
and vegetables. No toxic or industrial waste is generated in the process.
The waste-water does not contain any toxic elements and can be released
in the septic tank and soak pit to be constructed within the project. DG
set for power back-up is to be installed complete with sound-proof
enclosure adhering to CPCB guidelines. The height of the stack will be
suitable for emission of smoke etc. at permissible limit and reduce noise
pollution. Safety provisions in terms of protective masks and hygienic
clothing covers will be provided to workers. Fire fighting and detection
systems will be installed within the factory building. Green cover will be
provided within the building periphery by planting of trees and approach
road will be macadamized.
g) S-W-O-T ANALYSIS
A SWOT analysis is to be made for the proposed cold storage unit in the
district in the following manner.
STRENGTH:
• Availability of required quantity of raw material, market, land
(non-agriculture high land), electricity (HT Line passing nearby),
water
• Proximity to a railway station, National High Way, markets and
production centres.
• Willingness of the farmers and businessman for storage.
• Availability of organization, manpower and funds to run the unit.
• Cheap Labour.
WEAKNESS:
• Need of a dumping yard for rotten products.
• Higher cost of storage.
• Higher electrical tariff
• Farmers not aware about utility of cold storage.
OPPORTUNITY:
• Large number of nearby markets.
DPR ON COLD STORE HAVING CAPACITY OF 5000 MT
• Opportunity for increasing crop productivity and production in
the locality.
• Scope for outside procurement and storage by the traders.
• Hike in Electricity charges.
• Change in Government regulatory policy.
ECONOMIC ANALYSIS Considering the SWOT analysis and the facilities already available it is
justified to go for a new cold storage unit in the area. From the location
point of view and possibility of forward and backward linkage the
proposed unit should be technically feasible. Product flow and market
flow go in favour of the plant.
Possible Alternatives
There are various options available for the proposed project.
Option-1: A 5000 MT cold storage is established and run on a rental
model. Which means farmers/ traders can store their produce mainly
potato. In such situation, 100% capacity utilization is not possible
though the potato producers would be benefited. Because, the local
produce if stored on rental basis may be taken out any time within 7 – 8
months. But remaining period of the year, the space will be unutilized
whereas the electricity charges and manpower cost etc., is to be met for
the whole year. Which means the rental earning of 7-8 months will be
utilized for maintaining the cold store for the whole year.
Option-2: A 5000 MT cold storage is established and run on a combined
model of rental and trading. This means certain percent of storage space
will be used as rental where as remaining space can be utilized by
promoter to store potato by way of procuring at reasonable price during
harvest period and selling out beyond the season at a higher price. This
option is therefore more attractive proposition than the previous one.
Economic Analysis
To take appropriate investment decision the economic analysis of all the
options have been worked out and given here under. For this purpose, a
break even analysis of the proposed cold store with installed capacity of
5000 MT for Cold Storage with and without provision of trading are
given in tables below.
DPR ON COLD STORE HAVING CAPACITY OF 5000 MT
Assumptions for analysis Power consumption : a. Consumption 200 Unit per hour. b. The unit will run 80% time in a day. c. Cost of power @ Rs 4.40 per unit. 2. Trading Margin: a. The Cold store owner will have a margin of Rs 2.50 if it buys @ Rs 5.00 per KG during harvest and sells @ Rs. 9.00 per KG.
Break Even Analysis for 5000 MT Cold Store to be run on different models
Ratio of training vs.
Rental
30/70 40/60 50/50 0-100
Capital Cost 46837000 46837000 46837000 46837000
Cost of storage per MT for 1 year
4734815 4734815 4,734,815.00 4734815
Revenue from Rent @ 100% utilisation
7500000 7500000 7,500,000.00 7500000
Revenue from Trading of potatos (Rs 2.50 per KG)
3750000 5000000 6,250,000.00 00.00
Total Revenue 11250000 12500000 13750000 7500000
Profit during one year 6515185 7765185 9015185 2765185
Break even (No of year) 7.18 6.03 5.19 16.93
As per the calculation above, it may be seen that the proposed unit will
attain break even after 16.93 years of installation if the unit will be
operated on fully rental model i.e. the space will be utilized by
producers/traders on payment of rents @ Rs150 per quintal.
• The project will attain breakeven in 5.19 years if 50% of the
storage space will be used for own trading and remaining 50%
used for rental.
DPR ON COLD STORE HAVING CAPACITY OF 5000 MT
• The unit will reach break-even point in 6.03 years if it will be
operated on 40% own trading and 60% rental model.
• Similarly, the unit will attain breakeven in 7.18 years if it will be
operated on 30-70 model of own trading vs rental. It may be noted
that the electricity charges assumed in the calculation is Rs 4.40
per unit i.e. the current rate. However, if the subsidy on electricity
charges as recommended by task-force on potato is made
available to the project, the viability would improve substantially.
PROJECT OUTLAY AND IMPLEMENTATION SCHEDULE Considering the SWOT analysis and the available facilities it may be
decided to whether to go for a new cold storage unit. If the location point
of view and possibility of forward and backward linkage are positive
then the proposed unit is technically feasible. Product flow and market
flow should go in favour of the plant.
Project Cost
The Tentative Capital outlay for the Project is estimated at Rs 483.37
lacs asper details given below.
Particulars Rs. In Lakhs
Land Nil
Building 325.51
Insulation & Refrigeration for Cold Room 116.50
Contingency 10.34
Deposit 2.00
Pre-operative Exp 14.02
Margin Money for Working Capital 15.00
Total 483.37
The installed capacity is 5000 MT for Cold storage, about 70% of the
commodities will be stored on rental basis and 30% from own
procurement. Existing rental charges of the cold storages varies between
Rs.150/- to Rs 175/- per quintal of potato for a storage period of 7-8
months.
Land
The promoter should have own land measuring 2 acre.
Source of Finance
The Project is proposed to be funded, through a mix of Owned Corpus
funds and financial support from Banks. Subsidy as admissible from
Government of India under “Mission for Integrated Development of
DPR ON COLD STORE HAVING CAPACITY OF 5000 MT
Horticulture (MIDH) Scheme or APICOL for setting up of Cold Store or
from any other sources may be ascertained.
Implementation Schedule
The land for project has all the necessary amenities & utilities. Approach
road, water & power are readily available at the site of the project. The
proposed facility is being planned using faster construction techniques
for structure and PUF panels which will facilitate a shorter execution
time. Equipments are readily available in the country and the contractors
/ vendors are willing to supply all the necessary equipment within the
required schedule. The following time schedule of 9 months (36 weeks)
is proposed for making the project operational:
Sl.
No
Activity Time & Farmer
1 Approval for
Financial Grants
4 weeks
2 Civil Work, Electrical &Site Development 20 week
3 Procurement & Installation of Equipment for Refrigeration, Insulation, Fruit and Vegetable Sorting, Ancillary Equipment
30 weeks
4 Utilities & Finishing Work 2 week
5 Trial Runs & Commissioning 2 week
Note: Activities listed at serial no.2, 3 and 4 can be undertaken simultaneously.
Hence, the total project can be completed in a time span of 36 weeks.
SOCIO-ECONOMIC AND ENVIRONMENTAL BENEFITS OF THE PROJECT
DPR ON COLD STORE HAVING CAPACITY OF 5000 MT
The project is likely to provide wide-spread social benefits to the
farmers in the region which are discussed below:
• Development of value addition centre for the fruits and vegetable
growers in the region.
• Promotion to uniform quality and graded fruit and vegetables
which is likely to fetch better realization for farmers.
• Introduction of transparent dealings and fair practices.
• Facility can function as Resource centre and provide farmers
training in post harvest handling to ensure high quality and
distribute kits.
• Minimization of Post harvest losses can result in value creation
for the farmers with resultant economic benefit.
• Direct and indirect employment opportunities for local population
as the project starts operations.
• Benefits of Cold Store will facilitate improved market linkages of
farmers and their produce with major markets of the country.
• Cold Storage Technology has been proven in Indian context, an
improvement in price realizations of 50% to 100% as compared to
fresh fruit sales. Farmers can have the option to store & market
their produce as per the market opportunities available rather than
resort to panic selling.
• Project has entered into direct service and marketing linkages with
large group of farmers in the belt which will facilitate better price
recovery mechanism for such farmers. The proposed project will
fulfill the potato requirement in the district, as every month the
district importing potato from nearby district and states after its
potato harvesting season.
• The Proposed project will provide the healthy and safely ripened
banana which is proposed to be ripened through natural ripening
technology by using ethylene generators. The proposed location
is free from any environmental problem such as polluted water
and air. Space can be created for dumping of rotten produce
without any environmental impact on the community. Thus the
plan is justified from environmental point of view.
Annexure-I