Karnataka's horticulture industry is facing challenges due to limited cold storage infrastructure and a recent increase in diesel prices. With only 221 cold storage facilities available to handle large volumes of perishable goods annually, the sector is under strain. The $0.024 per liter diesel price increase is expected to exacerbate difficulties for farmers, impacting storage and transportation expenses.
Most cold storage units and approximately 80% of refrigerated transport vehicles operate on diesel. Farmers report that the price hike will elevate operational costs by 15-20%, affecting the storage and movement of crops like grapes, mangoes, tomatoes, and flowers, which Karnataka exports extensively.
These 221 cold storage units are government-managed, while the transportation from farms to storage facilities and beyond is handled by marketing chains and private traders. Farmers express concerns over their lack of bargaining power following the diesel price increase. "With the diesel price hike, transporters are now increasing freight charges, reducing the frequency of pickups, and in some cases, refusing smaller loads," stated Hemanth Rudregowda from the Karnataka Grape Growers Association. He noted that farmers, already stretched thin, face rising costs. "With less existing storage facilities, we are now also risking losses because of timely access," he added.
Dr. SV Hittalmani, a retired Additional Director of the Horticulture Department, emphasized that while not all crops need cold storage, those reliant on transportation will be impacted by the diesel price hike, affecting both farmers and consumers. To offset losses, farmers anticipate raising wholesale prices. They stress that the price increase is driven by necessity, not profit.
Produce like tomatoes, grapes, and mangoes, already subject to seasonal price changes, may see further cost increases, according to Devaraj S from the Farmers Association. He noted that the rise in fuel prices could alter consumer behavior, with potential reductions in purchases, especially in urban markets. Traders might also decrease bulk buying from farmers if transport costs rise, affecting retail market availability.
Farmers highlight the limited capacity and infrastructure of existing godowns and cold storages as a major issue. Although most are government-operated, inadequate infrastructure and distance from farms reduce their effectiveness. "Even when we manage to store our produce, the facilities can only hold produce for 15 days — after that, the quality drops," Devaraj remarked.
Source: The New Indian Express