Cold Storage Project Cost in India 2026 — Complete Investment Guide

Nearly 30% of the agricultural produce is wasted in India on an annual basis due to the lack of proper storage infrastructure.
That’s not a problem for investors. That’s a chance!
At this time, one of the most stable and profitable industrial investments in India is cold storage.
Demand is expanding in agriculture, dairy, pharmaceuticals and food processing, while supply is still trying to catch up in Tier 2 and Tier 3 cities.

The first question you should ask when considering a cold storage project is – What is it going to cost?

This blog gives you real figures of the cold storage project cost guide, no guesswork.

What Affects The Cost of a Cold Storage Project in India?

Before looking at numbers, understand what drives the investment:
Storage Capacity —  The capacity of the storage facility is one factor. This is measured in tonnes. A larger capacity means costs for construction and machinery.

Type of Product Stored — The type of product being stored is another factor. Fruits and vegetables require a different temperature than dairy products or pharmaceuticals

Location —  The location of one of the facilities is also important. The cost of land, power and construction varies from state to state.

Technology Level — The level of technology used is another factor. Traditional systems are cheaper to set up. Modern energy-efficient systems can save you money in the long run.

Government Subsidies —Government subsidies can also reduce your investment. The National Horticulture Mission and the National Bank for Agriculture and Rural Development offer subsidies that can help.

Capacity-Wise Cold Storage Project Cost (5 MT to 500 MT)

Capacity	Type	Estimated Total Investment
5 MT – 20 MT	Small scale	₹8 lakh – ₹25 lakh
25 MT – 50 MT	Small to medium	₹25 lakh – ₹60 lakh
100 MT – 150 MT	Medium scale	₹70 lakh – ₹1.2 crore
200 MT – 300 MT	Large scale	₹1.3 crore – ₹2.2 crore
400 MT – 500 MT	Industrial scale	₹2.5 crore – ₹4 crore+

Type-Wise Cost Breakdown

Various products demand various temperature ranges and this makes a difference to your machinery and insulation cost:

• Fruits & vegetables: 0°C to 8°C — most common setup, moderate insulation cost.
• Dairy & milk products: 2°C to 4°C — needs accurate temperature control systems.
• Frozen food & meat: 0°C to +4°C — the next most expensive.Dairy products, cooked food, and eggs.
• Pharmaceuticals & vaccines: 2°C to 8°C – requires validated and precision controlled environment.
• Flowers & nursery products: 4°C — moderate setup, high demand in urban markets.

Government Subsidy Schemes You Must Know

This is the place where lots of investors miss out on money. There are two important schemes that can help you save a lot on your cold storage project cost in India

NHM — National Horticulture Mission

• Subsidy: up to 35% of the project cost
• Awarded to: fruits, vegetables and flower storage projects
• Implements through: State Horticulture Departments

NABARD — National Bank for Agriculture and Rural Development

• Provides back-ended capital subsidy for cold chain infrastructure
• Eligible projects: cold storage, refrigerated transport, pack houses
• Loan support available through NABARD-linked banks

To get these subsidies you need to have documentation and project reports from the beginning. Priti International can help you prepare these reports and get the subsidies you’re eligible for.

Monthly Operational Cost Estimate

Expense	Monthly Estimate
Electricity (refrigeration + lighting)	₹30,000 – ₹2 lakh
Manpower (3–10 staff)	₹40,000 – ₹1.5 lakh
Maintenance & spare parts	₹10,000 – ₹40,000
Insurance	₹5,000 – ₹20,000
Miscellaneous	₹5,000 – ₹15,000

Total monthly operating cost (100 MT plant): approximately ₹1 lakh – ₹3.5 lakh

ROI Timeline – When Will You Break Even?

• Break-even period: 3 – 5 years for a medium to large scale cold storage
• Business model: Monthly rental fees per MT (generally ranging from ₹150 – ₹500 per MT per month based on product and location)
• Revenue potential: ₹3 lakh – ₹10 lakh per month when the plant is 200 MT.
• Key advantage: There is a high occupancy rate in cold storage in Tier 2 cities and agricultural belts during the harvest seasons, resulting in high seasonal revenue.

Why Choose Priti International for Your Cold Storage Project?

We don’t just provide refrigeration equipment at Priti International, we provide a complete refrigeration facility ready to operate.
We offer end-to-end turnkey solutions with:

• Site assessment and capacity planning
• Civil and structural design
• Refrigeration plant procurement and installation
• Insulation panel and rack system setup
• Electrical and temperature control systems
• Subsidy documentation and government approvals
• Staff training and post-setup support

We are an ISO 9001:2015 and ISO 14001:2015 Certified turnkey project consultant from Kolkata and have completed cold storage and food processing projects in West Bengal, Bihar, Assam and beyond.

Get a Free Cold Storage Project Cost Estimate.

FAQs

Q1. What is the minimum investment to start a cold storage business in India?

A: A scale cold storage unit of 5-20 metric tonnes requires a minimum investment of ₹8 lakh to ₹25 lakh depending on the location, product type and technology used.

Q2. Can I get a government subsidy for my cold storage project?

A: Yes. Both the National Horticulture Mission and the National Bank for Agriculture and Rural Development offer subsidies of up to 35% of the project cost for cold storage projects.

Q3. How long does it take to set up a cold storage plant?

A: A scale cold storage project of 100-200 metric tonnes typically takes 3-5 months from order confirmation, to commissioning depending on the progress of civil work and equipment availability.