Knowledge Bank

Onion Storage Structures

10. Dos and Don'ts

In order to safeguard the interest of bankers and borrowers, it would be necessary to take certain precautionary measures. As a ready reckoner, some of the important aspects are shown in the form of Dos and Don'ts in Annexure IV for success of the scheme.

11. NABARD's role

NABARD provides refinance support to various eligible financing banks for financing onion storage structures under its normal refinance programme, the guideline for which are issued from time to time. A cheklist to be used by the bankers for submitting the proposal for refinance is given at Annexure V.

Government of India has sanctioned a capital investment subsidy scheme for construction/ modernization/ expansion of cold storages and storages for horticultural produce. The details of the scheme are placed at Annexure VI. NABARD has been made a nodal agency for promoting the activity through credit delivery system.

Annexure I


1 Land requirement 6.5 m X 7.0 m
2 Storage space requirement 4.5 m X 6.0 m
3 Technology preferred Natural or forced ventilation maintaining a temperature between 25 and 30 o C with a relative humidity range of 65 to 70 %.
4 Clearance of storage platform from the ground 60 cm
5 Height of the storage platform 90 to 150 cm
6 Cost of construction 45000 ( unit cost of 1800 per MT)
7 Capacity 25 MT
8 Capacity utilization 100%
9 Weight loss in onion upto 3 months 12.50%
10 Onion sold upto 3 months 50%
11 Weight loss in onion from 3rd to 6th month 12.50%
12 Onion sold between 3rd and 6th months 50%
13 Sale price:  
  (a) Sale price of onion sold at the time of harvest 2.00 per kg
  (b) Sale price of onion sold upto 3 months 3.50 per kg
  (c) Sale price of onion sold between 3rd and 6th months 5.50 per kg
14 Handling/ transport/ grading/ sorting charges 0.90 per kg
15 Interest loss to the farmer on 45000 14%
16 Life of the storage structure 15 years
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