DEVELOPMENT OF SPICES IN THE NORTH EASTERN STATES
 
Construction Of Warehouse Cum Cold Storage
 
Working Procedure
Introduction

Scientific storage and warehousing is necessary to store the spices for a longer period under hygienic conditions. This also helps the farmers to insulate themselves from the adverse impacts of the seasonal price fluctuations. Since ginger and turmeric are seasonal crops, the market will be offered large quantities during the harvesting season and farmers are forced to sell at very low prices. If scientific warehousing and cold storage facilities are available, the farmers could store the produce and sell them during off season at a much better price. This will also make available the produce round the year. Since spices are grown by small and marginal farmers, they cannot afford to have such infrastructural facilities on their own.

Keeping this in view, Spices Board supported setting up of two warehouse cum cold storage in Assam and Mizoram during IX Plan with the help of State Agricultural Marketing Board / Horticultural Department. These two warehouses are under construction. During the Xth Plan, the Board proposes to assist setting up of 4 more cold storages with a total capacity of 3000 tons at a financial outlay of Rs. 450 lakhs, @ Rs. 112.50 lakhs per one cold storage. Spices Board will bear 75% of the cost as subsidy. The balance 25% has to be contributed by local stake holders – the State Government agencies or farmer groups. Administrative and recurring costs should be the responsibility of the local promoter partner and should be recovered through levy of user charges.

The cold storage should have a minimum capacity of 750 ton and there should be required warehousing/stocking facility for a minimum of 250 tons. The estimated cost and rate of subsidy are as follows:-

Sl.No.
Warehouse cum cold storage
Estimated cost
(Rs. in lakhs)
Maximum subsidy
(Rs. in lakhs)
1.
With 750 ton capacity (500 ton capacity of cold storage and 250 ton capacity of warehouse
150.00
112.50
The amount of subsidy will be released in instalments on a reimbursement basis as follows:-
Warehouse cum cold storage
»
1st installment of 25% on completion of site development and construction reaching plinth level and expenditure incurred exceeding 25% of the estimated project cost.
»
2nd installment of 25% when the construction reaches roof level and the cumulative total expenditure exceeds 50% of the estimated project cost.
»
3rd installment of 40% after receipt of machinery at site and when the total cumulative expenditure exceeds 90% of the estimated cost.
»
4th installment i.e. balance 10% after commissioning and trial running. The total grant will be limited to 75% of the actual cost of implementing the project or 75% of the estimated cost, whichever is less.
 
Eligibility

The subsidy facility is available to the State Agricultural Market Committees, Agricultural Marketing Boards, Agro Industries Corporation, Agri / Hort Departments or Registered farmers’ groups in any of the NE States.

Applications in the prescribed form have to be submitted to the Spices Board. On receipt of the application, Board may consider the application on the basis of the necessity, feasibility and capability of the agency to undertake the programme and thereafter require the agency to submit Detailed Project Report (DPR), Plan and estimate, specifications etc. approved by an Engineer not below the rank of an Executive Engineer of the State/Central Warehousing Corporation/ State or Central PWD. Board may stipulate other terms and conditions and require the agency to execute an MOU before issuing permit orders.