TANFED’s Koyambedu cold storage unit incurs Rs 25 lakh a month loss

C Shivakumar
Chennai:

The cold storage unit set up by Tamil Nadu Cooperative Marketing
Federation (TANFED) in Koyambedu is slowly dying as business has
fizzled out due to opening of cold chains by traders in Koyambedu
complex.



“Twenty years ago we used to get around 25,000 to 30,000 cases of
apples but now we hardly get even 5,000 cases of apple,” said an
employee on condition of anonymity.



The dilapidated looking building located between a petrol bunk and a
truck terminal lacks the hustle and bustle with employees fiddling
with their computer aimlessly.



The business has been running in loss. “TANFED was making profits from
1995 till 2002 but after that the cold storage has been in red,” a
TANFED official said.



“We used to store, potatoes, chillies, tamarind and apple but now
apart from apples that too occasionally, we are not getting much
businesses,” the official says.



It is learnt that every year the cold storage unit is suffering a loss
of Rs 25 lakh. “We have been trying to work out so many models but
success is elusive,” the official says.



Interestingly, the loss has been such that TANFED leased out six
grounds of their 21 grounds land to Indian Oil Corporation’s petrol
bunk. “We are getting atleast Rs 45 lakh from this deal yearly which
is helping us run the plant,” said the official.



The main issue for the cold storage unit loss is due to lack of
patronage. “Around 250 shops in the market have cold storage units.
They are eating away our revenues,” the official said.



The other cause of worry is the huge power bills which the cold
storage unit has to pay. “Every month it comes to Rs 1.5 lakh to Rs 2
lakh. We don’t get that much business also,” rues another official.



Interestingly, TANFED been seeking tenders to modernise the plant to
reduce the power cost. “We hope the cost of power is minimised so that
the losses are under control,” he said.