Cold storage units can be used to store either a single commodity or multiple commodities. Depending on the entrepreneur’s financial health; it can be planned to store the produce entirely owned by him or on a rental basis or in a combination of the two. NABARD usually encourages cold storages where 70% of the capacity is available to farmers for storage on rentals. Financial viability of a unit depends upon the intended pattern of use and rental rate prevalent in an area. However, units entirely to be used by the owners are also considered for sanction. Considering 70:30 utilization of the capacity for rentals and own use, a 5000 MT capacity unit is considered as viable with the assumptions as indicated at Annexure II.
To set up a 5000 MT capacity cold storage unit although one acre of land may be adequate, it is always better to have two acres of land to take care of future expansions and waste management. While selecting the site care should be taken to select a site at an elevation free from inundation and well connected by road and other communication facilities to both production and consumption centers. The land should be of non-agricultural type and the soil at the site should be firm enough to carry the weight of the building and storage racks.