FCIK calls for collaborative approach to promote cold storages in J&K

12 November 2024

Srinagar: The Federation of Chambers of Industries Kashmir (FCIK) has emphasized the need for a strategic, collaborative approach to build a sustainable and demand-driven cold storage network in Jammu & Kashmir.

In a statement isaued to Ziraat Times, the Chamber said that such infrastructure was critical for reducing agricultural waste, supporting farmers and operators, and strengthening the region’s competitive edge in both national and global markets.

In the statement, FCIK highlighted the growing significance of cold storage in the agriculture and horticulture sectors, describing it as a cornerstone of the region’s farming economy.

“Cold storage is particularly crucial for preserving crops like apples, enabling farmers to avoid distress sales during market surpluses. By storing produce until prices stabilize, cold storage helps stabilize farmers’ incomes, reduce post-harvest losses, improve seasonal planning, and broaden market access,” stated President FCIK Shahid Kamili.

However, he also pointed out significant challenges facing the sector, particularly the gap between the capacity of cold storage facilities and actual demand. If not addressed, this mismatch could undermine the sector’s growth and sustainability.

Currently, 86 Controlled Atmosphere (CA) storage units are operational in the region, with 14 additional facilities under development which may go operational by the next year. FCIK observed that the unevenly growing expansion of cold storage infrastructure has outpaced demand, leading to suboptimal utilization of existing facilities.

“Underutilization of cold storage units risks straining financially operators and deterring future investment. The high fixed costs associated with underused facilities pose a significant threat to the long-term economic viability of the cold storage industry,” the President FCIK cautioned.

Another challenge that Chamber has underlined was the difficulty operators face in accessing government incentives.

“Many existing cold storage units are unable to benefit from new policies due to issues such as missed registration deadlines or other such pretexts, resulting in delays or denial of incentives”, observed the Chamber.

In light of these challenges, FCIK has called for more strategic policymaking , better facilitation from the government and incentives that benifited both farmers and operators which could only be possible by incorporating feedback from grassroots organisations Jammu & Kashmir Fruits and Vegetables Processing and Integrated Cold Chain Association (JKPICCA) which happens to be a constituent of FCIK.

While extending heartfelt congratulations to the newly elected office bearers of JKPICCA, the apex Chamber expressed hope that the association, in close collaboration with FCIK, will play a pivotal role in providing constructive feedback to the government aimed at addressing current policy challenges and helping mitigate the issues faced by the segment of industry.

The recent elections for JKPICCA were held on Saturday at the Directorate of Horticulture, with oversight from officers across various departments, including former FCIK President M. D. Qureshi, IGC Lassipora President Mukhtar Ahmad Khan, and others. FCIK expressed satisfaction with the election’s fairness and transparency, which was conducted by an election commission comprising Irshad Ahmad Bhat, Ashiq Shangloo, and Mushtaq Ahmad Dar.

FCIK extended strong support to the newly elected JKPICCA leadership, President Bashir Ahmad Naik, Vice President Mohammad Arif Mir, and General Secretary-Treasurer Ishfaq Ahmad Malik congratulating them on their victory in a genuinely democratic process that garnered overwhelming support from general members of the segment.