The cold storage industry is staring at a deep crisis. Owners are now demanding urgent government intervention, including a 20% rebate on power bills and a 30% incentive on potato exports, to keep their businesses afloat. The sector, vital for preserving perishable goods, is buckling under soaring energy costs and market disruptions.
Why the Cry for Help?
Cold storage facilities are among the most energy-intensive operations in the agricultural supply chain. With electricity tariffs rising and operational margins shrinking, many owners say they are operating at a loss. The proposed rebate would directly reduce monthly overheads, offering immediate relief.
On the export side, potato farmers and storage owners are struggling with oversupply and falling domestic prices. A 30% export incentive would make Bangladeshi potatoes more competitive globally, helping clear surplus stock and stabilize the local market.
The Sector's Pain Points
- High energy costs: Power bills account for up to 60% of operating expenses in some cold storage units.
- Oversupply glut: A bumper potato harvest has flooded the market, depressing prices.
- Inadequate cold chain infrastructure: Many facilities are outdated, leading to higher spoilage and inefficiency.
What the Owners Are Asking For
In a formal representation to the government, the Bangladesh Cold Storage Association has laid out a clear set of demands. Apart from the power rebate and export incentive, they are seeking low-interest loans to upgrade equipment and better access to international markets.
“Without immediate support, many cold storage units will have to shut down, which would devastate the entire agricultural supply chain,” said a representative.
The owners argue that the sector supports millions of farmers and traders, and its collapse would trigger food waste and price volatility.
Government Response and Next Steps
So far, the government has not issued a formal response. However, officials have acknowledged the sector's importance and hinted at possible negotiations. Industry experts say a decision is needed before the next storage season begins, or the crisis could deepen.
Meanwhile, some owners are exploring alternative energy solutions, such as solar power, to reduce dependence on the grid. But the upfront costs remain a barrier for many small and medium operators.
Key Takeaways
- Cold storage owners are demanding a 20% power bill rebate to offset high electricity costs.
- A 30% potato export incentive is sought to tackle oversupply and boost international sales.
- The sector's crisis could lead to food waste and supply chain disruptions if not addressed.
- Government action is awaited as the industry braces for the next storage season.
Zyra