“This move will increase the price of stored items by Rs2.50 per KG as the motors are installed in the cold stores, which are registered as industry entities,” Rehman explained.
After the government decided to charge commercial tariffs for industrial energy connections to cold storages, a fruit and vegetable crisis may be on the horizon. The issue was raised at an All Pakistan Cold Storage Association meeting (APCSA).
Until recently, cold storages received electricity and power at reduced rates rather than the standard commercial tariff. Cold storage facilities are an important part of the country’s perishable goods supply chain. The government’s recent decision to increase revenue by charging storage facilities commercial tariffs has sparked outrage in the industry.
As a result, a relatively unknown organisation has come forward to demand that the government reverse its decision. Rehman Aziz Chan, Central Chairman of the Pakistan Cold Storage Association (APCSA), urged the government to reverse its decision to convert industrial connections to commercial tariffs.
“This move will increase the price of stored items by Rs2.50 per KG as the motors are installed in the cold stores, which are registered as industry entities. “This sector is 100 years old, and this association has come forward with its demands for the first time after being registered,” Rehman explained.
“With this measure, vegetable and fruits will become many times more expensive, and farmers will not store vegetables and fruits, creating food security issues in the country and a new crisis after flour.” In Pakistan, cold storage is already many times less, and instead of increasing, it is decreasing. “The government must address this issue immediately,” he lamented.
He stated that food security is currently a major issue in the country, with approximately 2 million metric tonnes of potatoes stored in cold storage for one year. “Apart from this, other fruits and vegetables are also stored in the cold stores, which is a huge number for the food security of Pakistan.” “The All Pakistan Cold Stores Association has set a rate of Rs 980 for the entire country of Pakistan for the first time in its history.”
“This rate is subject to an escalation clause. That is, if the increase in the electricity rate exceeds 5%, farmers will be charged an additional rate. “This rate will be evaluated every three months, and these fruits and vegetables will be stored in it for one year,” he concluded.