CRISIL SME TRACKER: West Bengal cold storages run into rental wall

Cold storages in West Bengal are under stress owing to a cap on rentals, a CRISIL analysis of over 250 micro and small enterprises (MSEs) reveals. During the current fiscal, rentals including labour charges, were estimated at Rs 1,600 per tonne in the state, versus Rs 2,100 in Uttar Pradesh, its largest peer.
 
However, lack of pricing autonomy has squeezed the profitability of units and left them vulnerable. Besides renting out, these cold storages also provide advances to farmers and traders in lieu of cold storage receipts, which account for two-thirds of the assets of cold storages in Bengal.