Bangladesh cold storage owners may go on strike over unfeasible rental tariff

Operations at temperature-controlled potato warehouses in West Bengal are likely to be affected during the 2024-25 season as rent revision has not been resolved and owners are contemplating a strike. West Bengal Refrigeration Association officials said its members are likely to discuss the issue at a meeting on Monday.

Association officials cited the government’s years of “ignorance” of rent adjustments as the main reason for the drastic measure. A total of 6.5 million tons of potatoes stored in facilities across the state could die if a strike occurs. Tuber production this year is expected to be 110 million tons.

“Despite repeated appeals and sound advice, the government has failed to address the widening gap between recommended and approved rents,” said a Cold Storage Association official, who declined to be named ahead of the official outcome of the important meeting. “This has caused huge financial losses to the operators, with cumulative losses exceeding Rs 31.30 per quintal in the past two years, severely hampering operational efficiency and modernization,” the official told PTI.

The operating expenses of cold storage in West Bengal are significantly lower at Rs 168 to 172 per quintal compared to the rents in neighboring countries which range from Rs 230 to Rs 270 per quintal. Sources said the strike may be averted if the government revise the tariff to at least Rs 190-194 per quintal.

The association warned that inaction could cause irreparable damage to the cold storage industry, exacerbate existing economic challenges and jeopardize livelihoods in potato-growing regions such as Hooghly, Burdwan, Bankura and Medinipur. Operators urge the government to intervene promptly to avoid crises and safeguard the interests of various stakeholders.

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(This story has not been edited by News18 staff and is published from associated news agency – PTI)

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