Apply same power cost as applied to allied agro activities
In a bid to address the issue of dwindling cold storages across Odisha, the Department of Cooperation (DoC) has moved the Odisha Electricity Regulatory Commission (OERC) to cover these facilities under the ‘Allied Agriculture Activities’.
Interestingly, the cost of the electricity for cold storage units covered under the Agro Industrial Activities has increased by 25 per cent in the last four years while energy charges for Allied Agriculture Activities has remained stable.
The cold storages of which 20 per cent are in the Government and co-operative domains are facing a tough time. The move to include them under the ‘Allied Agriculture Activities’ will definitely prove beneficial for the cold storages, said a senior official of the DoC.
There are around 60 cold storage facilities operating in the State and due to increase in operation costs, many have stopped operating. Now, the financial viability of maintaining these cold storages is being questioned, admitted the official.
The State Government has decided to support the setting up of cold storage facilities by providing subsidy as these services are helpful for the horticulture sector, added the official. Horticulture provides excellent opportunities for the farmers to augment their income. As most of the horticulture crops are perishable, setting up of more cold storage conveniences will go a long way in helping the farmers improve their earnings.
But common cold storage facilities in the State are inadequate to keep finished products at the time of distress and price fluctuation in international market. Moreover, for augmenting income from foreign exports, it is essential to establish cold storage and ice factories as per EU norms. Notably, FISHFED has encouraged establishment of cold storages to scale up fish export. However these facilities require continuous and reliable power supply at affordable prices.
While power tariff applicable for Allied Agro-Industrial Activities (AAIA) is applicable to cold storage facilities in Odisha, it is much higher than Allied Agricultural Activities (AAA). Tariff for AAA was 120 paisa per Kilowatt-Hour (KWH) in 2011 continues at same level in 2014, whereas tariff for AAIA was 320 paisa KWH in 2011, risen to 400 paisa KWH in 2014.
Cold storage promoters have all along objected to such discriminatory policy of keeping tariff of agro-processing industries low while increasing the cost of electricity to cold storage facilities. Several States including Punjab, West Bengal, Gujarat, Chhattisgarh and Tamil Nadu are providing several incentives to the cold storage facilities.
Keeping these factors in view, Cooperation Commissioner-cum-Secretary Bishnupada Sethi urged the OERC to consider extending the tariff applicable to Allied Agricultural Activities to cold storage facilities in the State in interest of the farmers.