Bottlenecks Affecting Cold Storage Entrepreneurs and Capacity Utilization of Cold Storage Facilities

Abstract

This study is significant as it highlights the major problems faced by cold storage entrepreneurs in a key chilli-producing region of Telangana. The cold storage entrepreneurs experience challenges such as the high cost of investment, interest, maintenance, and electricity, along with issues of heavy competition and fire risk. By analysing capacity utilization patterns across large, medium, and small cold storages, the study provides valuable insights into the efficiency and sustainability of cold storage operations. These findings are important for policymakers, entrepreneurs, and stakeholders in designing strategies to reduce losses, optimize storage capacity, and improve the profitability of cold storage enterprises in agricultural regions. Khammam, one of the largest chilli-producing districts in Telangana, hosts a considerable number of cold storages that face financial and operational challenges. To assess these issues, 39 cold storage units were studied, including 13 large (130,000 bags), 17 medium (100,000 bags), and 9 small (80,000 bags) units. Data collected over the last five years were analysed using the Likert scale technique. The study revealed that high investment cost, interest rates, electricity charges, and maintenance expenses were the major financial problems, while heavy competition and fire risk were general concerns. Despite these constraints, large, medium, and small units recorded average capacity utilization of 90.5%, 88%, and 96% respectively. The findings indicate that although capacity utilization remains high, addressing financial and infrastructural issues is essential to improve the long-term sustainability of cold storage enterprises in the region.