Mar 5, 2020
Better prices of potatoes in spot marker has left the cold storage with empty spaces giving the cold storage industry with 30% capacity left under-utilized this season.
Better and higher compensation in potato this season has increased direct sales from farm gate to spot market while the flow of the produce to cold storage has shrunk to about 40% capacity utilization so far. Last year in the same period about 65% capacity of cold storage was used according to MP Cold Chain Industry Association.
Hasmukh Jain Gandhi, President MP Cold Chain Industry Association said, “This season flow of potatoes to cold storage have been less. Looking at initial trend, we capture not more than 70% of total cold storage capacity this season”. Last year around 80% of the cold storage were full. A likely drop in output and delayed new season harvest owing to the extended rainfall activity in the region has pushed potato prices from Rs. 13/kg to Rs.16/kg as against close to Rs.9/kg last year in corresponding period, said industry players.
Arvind Agarwal, a potato trader said, “Most farmers are selling directly through farms or from spot market because they are fetching better prices this season. Lesser supplies will go into cold storage because farmers prefer quick money and looking at the prices most of them are clearing stocks”.
According to industry players, cold storage capacity in Indore has almost doubled in past year as many new units have emerged while some existing players have expanded facilities. According to MP Cold Chain Industry Association there are 130 cold storages in Indore and Ujjain holding the total capacity of 10 lakh tons. Indore alone has more numbers of cold storage units around 100s while there are close to 250 cold storage in MP.