An economic analysis of cold storage units in Raipur district of Chhattisgarh

Abstract

The present investigation An economic analysis of cold storage units in Raipur district of Chhattisgarh was conducted in Department of Agricultural Economics, College of Agriculture, Indira Gandhi Krishi Vishwavidyalaya, Raipur, Chhattisgarh during the year 2022-23. In this research to analyzed the cost benefit of cold storage in Raipur. There was a total of 346 cold storages in the state, 93 of which were in Raipur alone. 10 out of these 93 cold storages were chosen based on their capacity of 5000 MT and received government funding for the current study. Using a timetable designed specifically for it, chosen cold storages provided primary data on cost-benefit analysis. Techniques like Benefit-Cost Ratio, Net Present Value, Internal Rate of Return, and Profit Ratio were used to analyses the productivity of investments. The measures adopted showed that all the cold storages under study were economically viable and profitable. Positive Net Present Values even before the project's life is over and more than unity Benefit Cost Ratios are both excellent signs of a viable enterprise. All the cold storages show the positive and good rate of Internal Rate of Return with an average of 47.2%. Profit rate was also more than 100 which is good for the any business. Additionally, the break-even period was calculated to be between 2 and 5 years, which is a relatively short time frame and a significant incentive for financial investment in the company. Since each of the 10 cold storages used for the research had previously achieved break even, there is no risk involved in operating these facilities.