Reducing Food Waste, Increasing Farmer Income: Big Boost for Farmers & Startups

Here’s an up-to-date guide to Cold Storage Subsidy Schemes in India for 2025–26, covering central and state-level programs, objectives, benefits, and how to apply:


Central Government Schemes

1. MIDH (Mission for Integrated Development of Horticulture)

  • Offers credit-linked, back-ended subsidies for cold storages up to 5,000 MT.
  • Subsidy: 35% of project cost in general areas; 50% in North-Eastern, hilly, and scheduled areas.

2. NHB (National Horticulture Board)

  • Covers construction, expansion, modernization of cold storages between 5,000–10,000 MT.
  • Subsidy: 35% in general areas (max ₹30 lakh); 50% in NE/hilly/scheduled areas (max ₹37.5 lakh).

3. PMKSY – Integrated Cold Chain & Value Addition Infrastructure

  • Under the Pradhan Mantri Kisan Sampada Yojana (PMKSY), supports integrated cold chain setups including transport and processing.
  • Subsidy (Grant-in-aid):
    • General Areas: 35% (storage); 50% (value addition, irradiation)
    • NE/Himalayan/ITDP/Island areas: 50% (storage); 75% (value addition, irradiation)
    • Max: ₹10 crore per project

4. Agriculture Infrastructure Fund (AIF)

  • Offers collateral-free term loans up to ₹2 crore for post-harvest infrastructure including cold storage.
  • Includes a 3% interest subvention on such loans.

5. SFAC – Small Farmer Agri-Business Consortium (via ISAM)

  • Subsidy as part of integrated value-chain projects (cold storage not exceeding 75% of total cost).
  • Subsidy: 25% (max ₹2.25 crore) in general areas; 33.33% (max ₹4 crore) in NE/hilly areas.

6. APEDA (Agriculture Export Promotion)

  • Supports cold chains for export-oriented, scheduled products.
  • Subsidy: 40%, up to ₹75 lakh.

State-Level Initiatives

7. Odisha Cold Storage Scheme (2025–26 to 2029–30)

  • Capital investment subsidy of 60% (≤ ₹6.5 crore) for SC/ST, women, transgender entrepreneurs; 50% (≤ ₹6 crore) for others.
  • Other support:
    • Interest subvention: 6% (3% AIF + 3% state top-up)
    • Electricity tariff subsidy: 50% for up to 7 years
    • Revival assistance: Up to ₹1.5 crore for distressed units

8. Uttar Pradesh – Infrastructure through PPP

  • A public-private partnership model under which:
    • Cold storage, grading, processing, and marketing infrastructure will be developed
    • Collaboration includes private players like Ninjacart and Agristo Masa
    • Target: reduce waste, increase market access, and boost farmer income

Why These Schemes Matter

  • Reduce post-harvest losses, boosting farmer income and food security.
  • Encourage investment in cold-chain logistics with financial incentives.
  • Support modernization, integration, and expansion of cooling infrastructure.
  • Promote regional equity and inclusivity, especially in NE, hilly, tribal areas.
  • Enable entrepreneurship, including women-led and marginalized groups.

At-A-Glance Comparison

Scheme / RegionCoverageSubsidy / Support Details
MIDH≤ 5,000 MT storages35% general; 50% NE/hilly areas
NHB5k–10k MT storages35% (₹30L cap) general; 50% (₹37.5L cap) NE/hilly
PMKSY (Cold Chain)Integrated cold chain projectsGrants 35–50% for storage; 50–75% for value-add (₹10 crore max)
AIFAny cold storage infrastructureLoan up to ₹2 crore + 3% interest subvention
SFAC / ISAMIntegrated value-chain projects25% (₹2.25 cr cap) general; 33.33% (₹4 cr cap) NE/hilly
APEDAExport-focused cold chains40% subsidy up to ₹75 lakh
Odisha State SchemeOdisha private/public venturesCapital subsidy 50–60%, interest, electricity, revival support
UP PPP ModelInfrastructure via PPPDevelopment of cold storage/storage & processing infrastructure

How to Apply

  1. Identify the right scheme based on your location, capacity, and infrastructure needs.
  2. Submit proposal via respective nodal bodies:
    • MIDH: State/UT Horticulture Mission
    • NHB: Online to NHB for In-Principle Approval
    • PMKSY: Respond to EOIs via MoFPI
    • Others: Apply through AIF portal, SFAC, APEDA, or state agencies
  3. Prepare documentation: project reports, cost estimates, environmental/compliance clearances.
  4. Ensure eligibility conditions, like technology standards, capacity norms, regional priorities (e.g., NE/hilly).
  5. Monitor approvals and release schedules, especially for back-ended or installment-based subsidies.

Summary

India in 2025–26 offers a robust suite of central and state-level incentives to bolster cold storage infrastructure—from small local units to large integrated cold chains. With support ranging from 35% to 75% and additional financing and subsidy options, this is an opportune time for stakeholders—farmers, entrepreneurs, FPOs, and cooperatives—to invest in reducing food waste, enhancing value chains, and increasing rural incomes.

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Disclaimer :

The information provided on Cold Storage Subsidy Schemes 2025–26 is compiled from government notifications and reliable sources. While every effort has been made to ensure accuracy, policies, eligibility, and subsidy amounts are subject to change as per official guidelines. Readers/investors are advised to verify details with the respective government departments, nodal agencies, or authorized portals before making financial or business decisions. Neither the author nor this platform shall be held responsible for any losses or liabilities arising from the use of this information.

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