🌾 Agri-Business Desk
Micro Cold Storage Cost & Subsidy in West Bengal: Small Cold Room Business Guide (2026)
The cost of setting up a 5–10 ton micro cold storage or solar cold room in West Bengal, the MIDH 35–50% subsidy, the horticulture department's SOPs, application steps and rental income math — the complete guide.
West Bengal is the country’s second-largest potato producer and a huge hub of vegetables and fruit — yet outside the big cold storages of Balasai, Baruipur or Rahara, storage is missing right where produce is grown. Prices crash at peak harvest, and growers are forced to sell at middling rates. Micro cold storage fills exactly this gap — small 5–10 ton cold rooms that sit at the farm gate, preserve vegetables and fruit, and bring growers’ storage fees in as steady income.
This guide brings together the full cost math, the MIDH subsidy route and the application steps.
At a glance: cost and subsidy
| Item | 5-ton hybrid | 10-ton solar-assisted |
|---|---|---|
| Project cost (approx.) | ₹12–15 lakh | ₹18–25 lakh |
| MIDH subsidy (35%, general area) | ₹4.2–5.25 lakh | ₹6.3–8.75 lakh |
| Effective investment | ₹7.8–9.75 lakh | ₹11.7–16.25 lakh |
| Daily power cost | Moderate | 60–70% lower (solar) |
| Payback period (approx.) | 5–7 years | 6–8 years |
These figures are approximate market rates — they fluctuate with panel specifications, refrigeration brand and the size of the solar array.
How does the MIDH subsidy work?
The Centre’s MIDH (Mission for Integrated Development of Horticulture) scheme gives capital support for post-harvest infrastructure — pre-cooling units, farm-gate pack houses, staging cold rooms and cold storages:
- 35% of project cost — in general areas
- 50% of project cost — in hilly and north-eastern areas
- In West Bengal, proposals go to the state horticulture department’s MIDH wing — the state government has also published project-based SOPs for “farm-gate pack house with standalone cold storage”, “integrated pack house” and “collection aggregation centres”
The subsidy is credit-linked and back-ended — that is, the money reaches the bank only after construction, inspection and bill verification. Do not trust anyone asking for money upfront to ‘lock in the subsidy’.
The solar cold room: why now?
A traditional cold storage’s biggest cost is electricity — and rural load-shedding damages crops. In a solar-assisted cold room:
- Daytime sunlight runs the refrigeration — the power bill drops 60–70%
- Battery-less hybrid designs use thermal storage (PCM/thermal storage) to bank the day’s cooling for the night
- Potential extra support from the state’s solar training routes and schemes like PM Surya Ghar — details in our solar section
From startups like Ecozen to local suppliers — India’s solar micro cold room market is growing fast, so before buying, get at least three quotations and inspect reference units.
Income math (approximate)
| Income source | Details |
|---|---|
| Storage charges | ₹1.5–3/kg/month (by crop) |
| Pre-cooling charges | ₹0.5–1/kg |
| Seasonal occupancy (7–8 months) | 70–90% occupancy in good areas |
| Gross annual return | 15–25% of capital |
Occupancy decides everything — so before setting up, speak with local growers, aratdars (traders) and FPOs to verify the area’s crop volumes. Starting with a collection-aggregation-centre model unit and expanding later is safer from a risk perspective.
Application steps
Submit a proposal at the district horticulture office with land deeds-khatian, power connection details and the DPR → departmental appraisal and approval → bank loan → construction to specification → inspection and bill verification → subsidy disbursement. Each step is described in the list above.
Next steps
- To learn solar array costs and subsidy, read the 3kW solar panel price & subsidy guide.
- Need a food processing unit subsidy? See the PMFME scheme guide.
🪜 Step-by-step guide
- Analyse the site and crop demand
Work out the available land, power connection (and solar potential) and which crops in the area need storage — for vegetables and fruit, pre-cooling plus short-term storage returns better on a micro unit than potato/onion.
- Decide capacity and technology
A 5-ton passive/hybrid cold room or a 10-ton solar-assisted unit — decide by budget and crop type; under Indian rules, cold storage projects must follow NHB/ministry-approved specifications.
- DPR and subsidy line
The MIDH route offers 35% (general areas) or 50% (hilly/NE areas) capital support on project cost — submit a project-based proposal and DPR per the state horticulture department's SOP.
- Submit the proposal to the horticulture department
Submit a farm-gate pack house + standalone cold storage or integrated pack house proposal at the district horticulture office — you'll need land deeds, khatian, power connection and the DPR.
- Approval and construction
After approval, take a bank loan (if credit-linked) and build the unit to the specified standards — PUF panels, refrigeration unit and (if solar) the PV array.
- Verification and subsidy disbursement
After construction, the department's committee inspects the unit; once vendor bills and photographic proof match, the subsidy goes to the bank/loan account.
❓ Frequently asked questions
What does a 5–10 ton micro cold storage cost?
Approximately ₹12–25 lakh — a 5-ton passive/hybrid cold room comes in at ₹12–15 lakh, and a 10-ton solar-assisted unit at ₹18–25 lakh. Adding a solar array raises the upfront cost, but running cost (electricity bill) drops by about 60–70%.
How much subsidy is available, and from where?
Through MIDH (Mission for Integrated Development of Horticulture), 35% capital support on project cost is available in general areas and 50% in hilly/north-eastern areas — in West Bengal, through the state horticulture department's MIDH wing, whose project-based SOPs include farm-gate pack houses and cold storages.
What income does a micro cold room generate?
Storage charges (₹1.5–3/kg/month depending on crop), seasonal rents and pre-cooling fees — a gross annual return of 15–25% on capital is possible, but it depends entirely on local crop demand and occupancy rates.
Why is a micro unit better than a big cold storage?
A large cold storage needs lakhs more in land and capital and depends mostly on potato occupancy. A micro unit sits at the farm gate — produce is pre-cooled fresh, vegetables and fruit can be sold in high-value markets, and local growers provide steady rent.
What does the power connection for this unit need?
A 5–10 ton unit usually needs a 5–10 kW connection — you must apply for a commercial/agricultural WBSEDCL connection. With solar assistance, daytime grid dependence drops sharply, a big advantage amid rural load-shedding.