BENGALURU: Karnataka’s horticulture sector faces a double blow — a severe shortage of cold storage facilities and a fresh hike in diesel prices. With only 221 cold storages available to handle tonnes of perishable produce annually, the sector is already under pressure. Now, the recent Rs 2 per litre increase in diesel prices is set to further strain farmers, who say rising fuel costs will significantly drive up storage and transport costs.
With most cold storages and nearly 80% of refrigerated trucks running on diesel, farmers say that the price rise will increase operational expenses by at least 15-20%, making it costlier to store and move crops like grapes, mangoes, tomatoes, and flowers, which Karnataka exports in large volumes.
While these 221 cold storage facilities are managed by the government - the transportation of the produce - from the land to the nearest warehouse and cold storage facilities and then to other districts and states - is handled by marketing chains and private traders, which the farmers say, leaves them with no bargaining power after the recent hike.
“With the diesel price hike, transporters are now increasing freight charges, reducing frequency of pickups, and in some cases, refusing smaller loads,” said Hemanth Rudregowda from Karnataka Grape Growers Association. He added that farmers, already thin stretched, are left with higher expenses. “With less existing storage facilities, we are now also risking losses because of timely access,” he said.
While not every crop requires cold storage, those that rely on transport - and the diesel price hike will have a brutal impact, hitting both the ends of the chain - farmers and consumers, said Dr SV Hittalmani, retired Additional Director of the Horticulture Department.
To make up for the losses, farmers say they will be forced to raise prices at wholesale level. The price rise, they say, is not profit-driven - it is survival.
Produce such as tomatoes, grapes, and mangoes — which already see price fluctuations due to seasonality — could become more expensive, said Devaraj S from Farmers Association, adding that the hike in fuel prices will change consumer behaviour. He mentioned that consumers may begin reducing purchases of items, especially in urban markets. Traders, too, may cut back on bulk buying from farmers if transport costs continue to climb, disrupting availability and access in retail markets.
A major gap, farmers point out, is the limited capacity and infrastructure in existing godowns and cold storages. While most are managed by government departments, poor infrastructure and distance from farms limit their utility. “Even when we manage to store our produce, the facilities can only hold produce for 15 days — after that, the quality drops,” Devaraj said.