Gujarat has 536 cold storages, of which 396 are dedicated for potatoes, while the rest 140 are multi-commodity cold storages.
Industry representatives have urged the state government to reduce electricity duty on cold storages. They claim that cold storages form a critical part of the entire supply chain in the food sector and is a crucial link between the producer and the consumer; therefore, the government should give incentives and reduce duties.
In a recent letter to the petroleum and energy department of the state government, the Gujarat Chamber of Commerce and Industry (GCCI) drew the department's attention to the fact that the government has classified the logistics sector as an industry. The rate of electricity duty on industries is 15%, while that on cold storages is 20% for low-tension connections and 25% for high-tension connections.
"It's been about 10 months that the logistics sector was given the status of industry, but still, the old duty structure is applicable. We are simply demanding the implementation of the government's decision," said Ashish Guru, president of Gujarat Cold Storage Association.
Gujarat has 536 cold storages, of which 396 are dedicated for potatoes, while the rest 140 are multi-commodity cold storages. In the potato category, Deesa has 201 cold storages, the largest number in the state, followed by Sabarkantha (66), Kheda (57), Dehgam (42) and Vijapur (30). The cold storages catering to potatoes have a total capacity of 5.75 crore katta (one katta equals 50kg). However, only 4.18 crore katta worth of capacity is being utilised.
"For the past two years, 28% capacity has remained unutilised and so, there is no optimum monetisation of the resources," said Guru.
GCCI president Durgesh Buch said that cold storages need to be promoted. "Under the existing circumstances, it is very necessary to provide support to cold storages. This sector will play a critical role in the country's achieving the goal of $5 trillion GDP," said Buch.
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