**Executive Summary:**
This document outlines the Indian government's schemes and initiatives to support agriculture and farmers' welfare. It details financial assistance for cold storage facilities, enhancements to the Pradhan Mantri Fasal Bima Yojana (PMFBY), and support for organic farming through Paramparagat Krishi Vikas Yojana (PKVY) and Mission Organic Value Chain Development for North Eastern Region (MOVCDNER). The document addresses concerns raised in Lok Sabha Unstarred Question No. 395 on July 22, 2025.
**Key Points / Main Content:**
**Cold Storage Facilities:**
* Financial assistance is available for establishing cold storage for perishable horticultural produce nationwide through various schemes.
* The Mission for Integrated Development of Horticulture (MIDH) provides credit-linked, back-ended subsidies for cold storage construction/expansion/modernization up to 5000 MT capacity. Subsidy rates are 35% of project cost in general areas and 50% in North Eastern/hilly states and scheduled areas.
* Eligible entities include individuals, farmer groups, SHGs, FPOs, companies, cooperatives, local bodies, APMCs, marketing boards, and state governments.
* The National Horticulture Board (NHB) offers a Capital Investment Subsidy for cold storage construction/expansion/modernization above 5000 MT and up to 20000 MT capacity. Subsidy rates match MIDH.
* The Ministry of Food Processing Industries (MoFPI) provides grants-in-aid under the Pradhan Mantri Kisan Sampada Yojana (PMKSY) for integrated cold chain projects (excluding standalone cold storages).
* The Agriculture Infrastructure Fund (AIF) provides collateral-free term loans up to Rs. 2.00 crore with a 3% interest subvention for post-harvest infrastructure, including cold storages.
**Pradhan Mantri Fasal Bima Yojana (PMFBY):**
* PMFBY offers comprehensive risk coverage for crops from pre-sowing to post-harvest stages in notified areas.
* Coverage includes losses from natural calamities, localized risks, and post-harvest losses.
* The government has introduced technology-based tools like YESTech, WINDS, and DigiClaim Payment Module to improve the scheme's effectiveness.
* The AIDE app and Krishi Rakshak portal/helpline (14447) facilitate farmer enrolment and grievance redressal.
* Operational Guidelines have been revised based on stakeholder feedback in 2018, 2022, and 2023.
* IEC campaigns such as Meri Policy Mere Hath and Fasal Bima Pathshala have been implemented.
**Organic Farming:**
* The Paramparagat Krishi Vikas Yojana (PKVY) and Mission Organic Value Chain Development for North Eastern Region (MOVCDNER) promote organic farming.
* Both schemes offer end-to-end support, focusing on organic clusters and supply chain creation.
* Under PKVY, assistance of Rs. 31,500 per ha in 3 years is provided, including direct benefit transfer for organic inputs, marketing, packaging, branding, certification, residue analysis, training, and capacity building.
* Under MOVCDNER, assistance of Rs. 46,500 per ha in 3 years is provided, including support for FPOs, organic inputs, ICS management, training, certification, and value chain marketing.
* There are no plans to increase financial assistance beyond the current levels provided under PKVY and MOVCDNER.
**Impact Analysis:**
**Farmers/Growers/Consumers:**
* *Impact:* Access to financial assistance for cold storage, crop insurance, and organic farming, potentially leading to reduced post-harvest losses, financial security, and increased income.
* *Action Required:* Explore and apply for relevant schemes based on their needs and eligibility criteria. Engage with State Horticulture Missions, NHB, MoFPI, and relevant agricultural departments.
**State Governments/UTs:**
* *Impact:* Responsible for implementing MIDH, PKVY and MOVCDNER, identifying beneficiaries, and monitoring scheme progress.
* *Action Required:* Prepare and submit Annual Action Plans (AAPs) for MIDH. Implement PKVY and MOVCDNER effectively. Disseminate scheme information to farmers.
**Entrepreneurs/Private Companies/Cooperatives/FPOs:**
* *Impact:* Opportunity to establish and modernize cold storage facilities and participate in organic farming value chains, with government subsidies and grants.
* *Action Required:* Develop project proposals for cold storage facilities and integrated cold chain projects. Participate in the organic farming sector through FPOs and other entities.
**Agricultural Produce Market Committees (APMCs)/Marketing Boards:**
* *Impact:* Potential to upgrade infrastructure with financial assistance for cold storage facilities.
* *Action Required:* Explore opportunities to modernize existing facilities and improve post-harvest management through available schemes.
Key Entities Referenced
Pradhan Mantri Fasal Bima Yojana: A Central Sector Scheme implemented by the Department of Agriculture Farmers Welfare, offering comprehensive risk coverage for crops from presowing to postharvest stages.
Department of Agriculture Farmers Welfare: The department implementing various schemes related to agriculture and farmers' welfare, including cold storage facilities and crop insurance.
Mission for Integrated Development of Horticulture: A scheme under which financial assistance is provided for various horticulture activities, including the construction, expansion, and modernization of cold storages.
National Horticulture Board: An organization implementing the Capital Investment Subsidy for Construction/Expansion/Modernization of Cold Storages and Storages for Horticulture Products.
Ministry of Food Processing Industries: The ministry implementing the Scheme for Integrated Cold Chain, Food Processing and Preservation Infrastructure as part of Pradhan Mantri Kisan Sampada Yojana.
Pradhan Mantri Kisan Sampada Yojana: A scheme aimed at reducing postharvest losses of horticulture and nonhorticulture produce and providing remunerative prices to farmers.
Agriculture Infrastructure Funds: A fund with a corpus of Rs. 1.00 lakh crore to strengthen agriculture infrastructure in the country, including provisions for cold storages.
Paramparagat Krishi Vikas Yojana: A scheme for promoting organic farming in all States/UTs except North Eastern States.
O.I.H
GOVERNMENT OF INDIA
MINISTRY OF AGRICULTURE AND FARMERS WELFARE
DEPARTMENT OF AGRICULTURE AND FARMERS WELFARE
LOK SABHA
UNSTARRED QUESTION NO. 395
TO BE ANSWERED ON THE 22TH JULY, 2025
COLD STORAGE FACILITIES FOR PERISHABLE CROPS
†395. SHRI DILIP SAIKIA:
Will the Minister of AGRICULTURE AND FARMERS WELFARE
कृ िष एवं िकसान क(cid:670)ाण मं(cid:361)ी be pleased to state:
(a) whether the Government has any scheme to increase cold storage facilities
for perishable crops, if so, the details thereof;
(b) whether any steps are being taken by the Government to make the Pradhan
Mantri Fasal Bima Yojana more useful and effective, if so, the details thereof;
(c) whether the Government proposes to increase financial assistance to farmers
for practicing organic farming; and
(d) if so, the details thereof?
ANSWER
THE MINISTER OF STATE FOR AGRICULTURE AND FARMERS WELFARE
कृ िष एवं िकसान क(cid:670)ाण रा(cid:475) मं(cid:361)ी (SHRI RAMNATH THAKUR)
(a): Government is implementing various schemes under which financial assistance
is available for setting up of cold storage for perishable horticultural produce
throughout the country.
Department of Agriculture & Farmers Welfare is implementing Mission for
Integrated Development of Horticulture (MIDH) under which financial assistance is
provided for various horticulture activities including Construction/Expansion/
Modernization of cold storages of capacity up to 5000 MT in the country on the
basis of Annual Action Plan (AAP) received from States/UTs. The component of
Cold Storage is demand/entrepreneur driven for which Government assistance in
the form of credit linked back ended subsidy is available at the rate of 35% of the
project cost in general areas and 50% of the project cost in North Eastern & hilly
States and scheduled areas through respective State Horticulture Missions.
Under the scheme, assistance is available for individuals, Groups of farmers/
growers/ consumers, Partnership/ Proprietary firms, Self Help Groups (SHGs),
Farmers Producer Organization (FPOs), Companies, Corporations, Cooperatives,
Cooperative Marketing Federations, Local bodies, Agricultural Produce Market
Committees (APMCs) & Marketing Boards and State Governments.Besides, National Horticulture Board (NHB) is implementing a scheme
namely “Capital Investment Subsidy for Construction/Expansion /Modernization of
Cold Storages and Storages for Horticulture Products”. Under the scheme, credit
linked back-ended subsidy at the rate of 35% of the capital cost of the project in
general areas and 50% in case of North East, hilly & scheduled areas for
construction/expansion/modernization of cold storage and Controlled Atmosphere
(CA) storage of capacity above 5000 MT and up to 20000 MT is available.
Ministry of Food Processing Industries (MoFPI) implements a Scheme for
Integrated Cold Chain, Food Processing and Preservation Infrastructure as one of
the components of Pradhan Mantri Kisan Sampada Yojana (PMKSY) with the
objective of reducing post-harvest losses of horticulture and non-horticulture
produce and providing remunerative price to farmers for their produce. Under the
scheme, Ministry provides financial assistance in the form of grant-in-aid at the rate
of 35% for general areas and 50% for North East and Himalayan States, Integrated
Tribal Development Programme (ITDP) areas and Islands for storage and transport
infrastructure and at the rate of 50% and 75% respectively for value addition and
processing infrastructure subject to a maximum grant-in-aid of Rs. 10.00 crore per
project for setting up of integrated cold chain projects including irradiation facility.
Standalone cold storages are not covered under the Scheme.
All the above schemes are demand/entrepreneur driven through commercial
ventures for which government assistance is in the form of credit linked back ended
subsidy/grant-in-aid and is provided based on the proposals received from the
States/entrepreneur.
Further, to strengthen agriculture infrastructure in the country, Government
has launched Agriculture Infrastructure Funds (AIF) of Rs. 1.00 lakh crore. Under
AIF, there is provision for collateral free term loan upto Rs. 2.00 crore and interest
subvention of 3% on the term loan availed for creation of post-harvest infrastructure
including establishment of cold storages.
(b): Department of Agriculture & Farmers Welfare is implementing a Central Sector
Scheme i.e. Pradhan Mantri Fasal Bima Yojana (PMFBY). PMFBY offers
comprehensive risk coverage for crops from pre-sowing to post-harvest stages in
areas notified by the State Governments. It safeguards farmers against losses due
to widespread natural calamities such as floods, droughts, cyclones, hailstorms, and
pest attacks, as well as localized risks like landslides, cloudbursts, and inundation.
The scheme also covers post-harvest losses caused by events like unseasonal
rains and cyclones, along with risks related to prevented sowing.
Further, the Government has taken several steps to make the Pradhan
Mantri Fasal Bima Yojana (PMFBY) more effective and farmer-friendly. These
include introduction of technology-based tools like YES-Tech (Yield Estimation
based on Technology) for yield estimation mechanism for Crop Loss assessment
and Yield estimation, WINDS (Weather Information Network & Data System) tocreate a strong database of hyper-local weather to use for all farmer and farming
oriented services, and the Digi-Claim Payment Module for real-time tracking of
claims. In addition to that, AIDE (App for Intermediary Enrolment), a mobile app,
has been launched for door-step enrolment of farmers, while the Krishi Rakshak
portal and toll-free helpline (14447) enable easy grievance redressal. Operational
Guidelines have been revised based on stakeholder feedback in 2018, 2022, and
2023. Additionally, IEC campaigns like Meri Policy Mere Hath and Fasal Bima
Pathshala have been undertaken to increase awareness and transparency,
ensuring financial protection and trust among farmers.
(c) & (d): Ministry of Agriculture & Farmers Welfare is implementing Paramparagat
Krishi Vikas Yojana (PKVY) for promoting the organic farming in all the States/UTs
except North Eastern States and Mission Organic Value Chain Development for
North Eastern Region (MOVCDNER) for the North Eastern States. Both schemes
stress on end-to-end support to farmers engaged in organic farming i.e. from
production to processing, certification and marketing. Primary focus of the schemes
is to form organic clusters, with preference to small and marginal farmers, to create
a supply chain. Both the schemes are implemented through State/UT Governments.
Under PKVY, assistance of Rs. 31,500 per ha in 3 years is provided for
promotion of organic farming. Out of this, assistance of Rs. 15,000 per ha is
provided to farmers through Direct Benefit Transfer for on-farm/off-farm organic
inputs including organic compost. Financial assistance of Rs. 4,500/ha for 3 years is
provided for marketing, packaging, branding, value addition etc. Rs. 3,000/ha for 3
years is provide for certification and residue analysis. Assistance is also provided @
Rs. 9,000/ha for 3 years for training, awareness & capacity building.
Under MOVCDNER, assistance of Rs. 46,500 per ha in 3 years is provided
for creation of Farmers Producer Organization, support to farmers for organic inputs
etc. Out of this, assistance @ Rs. 32,500 per ha is provided to farmers for off-
farm/on-farm organic inputs under the scheme including Rs. 15,000 as District
Benefit Transfer to the farmers. Financial assistance of Rs. 10,000 per ha in 3 years
is provided for activities of ICS management, training and certification (NPOP).
Financial assistance of Rs. 4,000 per ha in 3 years is provided for value chain
marketing at State level.
There is no proposal under consideration to increase the financial assistance
beyond what is presently provided under the two schemes of PKVY & MOVCDNER.
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