Impact of Cold Storage Facilities on Agricultural Production in Assam
1. Department of Humanities and Social sciences
Indian Institute of Technology Guwahati,
Guwahati-39
Baban Bayan
Roll No. 10224108
Under the Supervision of
Dr. Mrinal K Dutta
2. Introduction
Objectives
Data sources and Methodology
Findings
Conclusions & Policy Suggestions
Bibliography
3. Cold storage (CS) is the most important
infrastructure in the post harvest management of
agricultural output.
Post harvest losses due to inefficient handling and
poor storage structure account for an estimated
10% of food grains and production and 25% of
fruits and vegetables (Reshma, 2010).
CS facility coupled with adequate market linkage
helps in even distribution of marketable surplus, an
win-win outcome.
4. Growing urbanization and rising incomes are
responsible for transforming agriculture (Rao
et al. 2007).
Aswani (2005) observes that horticulture has
emerged in the last decade as the focal
commercial sector among all agricultural
activities in the country, while we have been
successful in producing, we have not done so
well in protecting what is grown.
Access to CS facility increases production of
both food crops and non-food crops.
5. Gill and Gill (1982) and Fugli (1999) remarks
that it is advisable for the farmers to avail
themselves of CS facilities and earn more
profits. There may be considerable scope for
improving the seasonal supply and price
stability in many developing countries
In Assam, vegetable crops are grown by
almost all the farm households in their kitchen
garden.
TMIDH was implemented in the state since
2001-02.
6. As the horticulture sector has gained
momentum during 2001-02 to 2010-11 and
massive CS capacity has also been created
during the same period, research priority has
been accorded to study linkage between the
compositional change in Assam’s agriculture
and availability of CS facility.
7. The specific objectives of the study are as follows
To assess the growth of CS capacity in Assam
To analyze the comparative changes of area,
production and productivity of major horticultural
crops and food crops in the state during the last
decade.
To examine the changes in the production portfolio
and volume of agricultural production
commensurate with increase in CS capacity in
Assam
To provide suggestions for development of
agriculture sector in the state.
8. Study makes use of both primary and secondary
data: a) Source of secondary data and b) Source of
primary data.
Primary data collected with the help of
questionnaire method for a sample Size of 60
farmer households.
Multistage sampling technique has been followed
in selecting the sample farmer households
For analyzing the data tabular analysis has been
followed using percentages and mean-variance
analysis wherever necessary
9. Importance of CS: Temperature is the single most factor in
maintaining quality after harvest.
Cold Storage Scenario in India: Total no. of CS is 5381 with a total
capacity of 24.45 million MT (as on 31.12.2009). UP and West
Bengal account for more than 60% of the CS capacity. Over 90% of
the CS capacity are in the private sector.
Sl. No. Commodity Capacity (MT) % of Total No. of CS
1 Potatoes 184,26,316 75.36 2862
2 Multi-Purpose 56,44,659 23.09 1584
3 Fruits and Vegetables 96,427 0.39 160
4 Meat and Fish 1,88,496 0.77 497
5 Milk and Milk Products 68,230 0.28 191
6 Other 26,524 0.11 87
Total 24450652 100 5381
10. CS scenario in Assam: till 2010-11, the total no.
of CS is 26 with total capacity of 1,09,540.9 MT.
Districts that own CS are
Cachar, Kamrup, Sonitpur, Tinsukia, Karimgan
j, Hailakandi, Golaghat, Jorhat, Nagaon, Goalp
ara, Barpeta, Chirang and Kokrajhar.
Only 4.11% of the total capacity are created
under govt. sector.
11. Year wise growth of CS capacity in Assam
17000
26400
0
5100
10000
16191.9
11237
3312
20300
2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10
12. Growth in area under total vegetables is 22.68%
(CAGR=2.30%) against the growth in area
under food grain crops 1.21% (CAGR=0.13%).
The CAGR in production of total food grain
crop is 2.82% during 2001-02 to 2010-11 while
during the same period CAGR in production of
all Kharif and Rabi vegetables is 6.96% and
4.41% respectively.
13. -10
-8
-6
-4
-2
0
2
4
6
8
2001-02 to
2002-03
2002-03 to
2003-04
2003-04 to
2004-05
2004-05 to
2005-06
2005-06 to
2006-07
2006-07 to
2007-08
2007-08 to
2008-09
2008-09 to
2009-10
2009-10 to
2010-11
CAGR
Total Foodgrains Total Vegetables
Fig: Compound Annual Growth Rate of Area under total Food Grain and Total
Vegetables during 2001-02 to 2010-11
14. Name of
Districts
Name of
Villages
Average
family
size
% of Male
Populatn
Literacy of
HH head
Educ.
Year/HH
head
Work
force (%)
Kamrup Singimari 5.2 61.5 80 7.8 44.2
Roumari 5.3 65.4 90 10.7 32.76
Dadara 5.8 50 100 10.7 32.76
Dolibari 4.9 55.1 60 6.4 38.78
Kamrup
Total
5.4 56.5 82.5 8.05 38.89
Barpeta Zamadarbori 7.2 62.5 40 2.2 45.83
Sengelia 6.1 49.2 60 3.3 24.19
Barpeta
Total
6.7 56.4 50 2.75 36.09
16. Size class
Singima
ri
Roumari Dolibari Dadara
Kamrup
total
Zamadar
bori
Sengalia
Barpeta
total
Marginal
(below 1.0)
3
(12.6)
2
(9.9)
2
(6.2)
7
(50.7)
14
(16.1)
2
(6.6)
4
(20.5)
6
(12.0)
Small (1.0-
2.0)
5
(45.9)
6
(57.4)
6
(43.8)
2
(22.4)
19
(44.3)
4
(30.1)
5
(49.1)
9
(37.5)
Semi
medium
(2.0-4.0)
1
(14.4)
2
(32.7)
1
(19.2)
1
(26.9)
5
(22.5)
4
(63.2)
1
(30.4)
5
(50.6)
Medium
(4.0-10.0)
1
(27.0)
0
(0)
1
(30.8))
0
(0)
2
(17.1)
0
(0)
0
(0)
0
(0)
Large (10.0
& above)
0
(0)
0
(0)
0
(0)
0
(0)
0
(0)
0
(0)
0
(0)
0
(0)
Total
10
(100)
10
(100)
10
(100)
10
(100)
40
(100)
10
(100)
10
(100)
20
(100)
Table: Village wise Distribution of Sample Households
by Different Size of Operational Holdings.
*Figures in brackets indicate percentages of holdings concentrated to various size classes
17. Cropping pattern at sample farms has been
studied in two ways, by examining the
frequency distribution of farms growing
various crops and by examining percent area
allocated to paddy and other important
horticultural crops.
Availability of CS facility (or absence of it) does
not seem to have any impact on the cropping
pattern of the sample farmers.
Main determinant in inter-village differences
in crop composition is micro variation in soil
type and largely location factor.
22. Kamrup
Name of Crop Average Market price
during harvesting
season
Average Market Price
during Slack Season
Gap in %
Paddy 696.43 1008.93 30.97
Mustard 2118.52 2974.07 28.77
Potato 681.58 1303.95 47.73
Tomato 662.5 2500 73.5
Brinjal 690.32 1677.42 58.87
Pumpkin 448.21 1066.07 57.96
Barpeta
Paddy 694.44 947.22 26.69
Brinjal 307.14 1771.43 82.66
Tomato 103.33 1893.33 94.54
Cabbage 111.76 1788.24 93.75
Cauliflower 250 1800 86.11
Jute 1316 1833.33 28.18
Table 4.10 Seasonal Average Price variation of some of the Important
Marketed Crops in Sample Farmer Households (Rs. per Quintal)
23. Higher transportation costs for farmers in Barpeta
makes farmers incur losses and also leads to
wastages of vegetables.
Village Push Cart
(Hired)
Push Cart
(Own)
Bicycle Hanging
Baskets
Auto
Van/Truck
Singimari 0 40 50 10 0
Roumari 0 40 40 10 10
Dadara 0 30 30 40 0
Dolibari 0 50 20 10 20
Zamadarbori 100 0 0 0 0
Sengelia 100 0 0 0 0
24. No visible impact of the CS
on farming practices of the
sample HHs in Kamrup
No access of CS resulted in
leasing out of the same to
private party
25. Reasons for not accessing the Cold
Store:
Too limited marketable surplus to access a
chamber of the CS
Immediate need of revenue after harvest and
problem of ‘distress sale’
Lack of information about probable gain after
using the CS
Easy marketing even though price is less
Lack of unity among farmers to jointly access
the CS
26. The hypothesis that “access to CS facility
leads to changes in composition of
agricultural production by shifting to high
value horticulture crops and increases
volume of production has been rejected.
Transportation and market access is more
crucial factor than the accessibility of cold
storage facility in a state like Assam
27. Formation of grower’s cooperative society.
Exploring more vegetable growing zone in
Assam and induce farmers to cultivate
providing necessary assistance.
Improvement of road communication and
transport system.
The selection of location to establish CS has to
be based on market linkage scenario and extent
of marketable surplus.
Emphasis should be more on ‘cold chain’
concept in the context of Assam instead of CS.
28. Aswani, p. (2005), Commodity Portfolio Management of Cold
Storage units in Hyderabad (AP). An unpublished Ph. D
thesis submitted to University of Agricultural
Sciences, Dharwad
Borah, R. and R. Savapandit (2008), ‘Economics of
Vegetable Crops Cultivation in Assam: A Study in
Nagaon and Jorhat Districts’ in Deshpande R. S. et al.
(eds.), Glimpses of Indian Agriculture: Macro and Micro
Aspects (Vol.2), Academic Foundation, New Delhi
Chand, R. (1999), Agricultural Diversification in India, Mittal
Publication, New Delhi
De, U. K. (2003), Economics of Crop Diversification, Akansha
Publishing House, New Delhi
29. Dorjee, K. S. Broca and Prabhu Pimgali (2007),
‘Diversification in South Asian Agriculture: Trends and
Constraints’ in Joshi P. K. et al. (eds.), Agricultural
Diversification and Smallholders in South Asia,
Academic Foundation, New Delhi
Gill, D. S. and Gill, G. S. (1982), ‘An Economic Analysis of
Potato Marketing in Punjab.’ Agricultural Marketing 24 (2);
pp. 25-28
Government of Assam (2010-11), Economic Survey,
Directorate of Economics and Statistics
Government of Assam (2010), Statistical Handbook, 2010,
Directorate of Economics and Statistics
30. Government of India (2010), Status of Cold Storage in India,
accessed from
www.indg.in/agriculture/crop.../status_of_cold_storages_i
n_india.pdf on 06.03.2012
Jairath, M. S. (2010), Agricultural Marketing Infrastructural
Facilities in India. pp. 5, accessed from
www.cosamb.org/downloads/MISINDIA-Cosamb(F).doc
on 06.03.2012
Fugli, K. O. (1999), ‘Economics of Potato Storage: Case Studies’,
paper presented at the Symposium on Potato Storage,
Processing and Marketing’, Global Conference on Potato,
New Delhi, India, December 7-9
Rao, V. M. and K. C. Hiremath (2010), ‘Agricultural Policy
Reviews: A Synthesis’ in Asian Development Bank (ADB),
Agriculture, Food Security and Rural Development, Oxford
University Press, New Delhi pp.8-9
31. Ray, D. (1998), Development Economics, Oxford University
Press, New Delhi, Fifth Impression
Reshma, A. (2010), ‘Agriculture Marketing- From
Livelihoods to Enterprise’, State of India’s Livelihood
Report 2010, Sage Publications India Pvt. Ltd., New
Delhi
Sengupta, K. (2010), Determinants of Marketed Surplus in a
Backward Economy, Concept Publishing Company Pvt.
Ltd., New Delhi
Joshi, P. K. (2010), ‘Crop Diversification in India: Nature,
Pattern and Drivers’ in Asian Development Bank
(ADB), Agriculture, Food Security and Rural Development,
Oxford University Press, New Delhi. pp.211