There have been dramatic increases and rapid upscaling of modern cold storages in Bihar, one of the poorest states in India and an area where smallholders dominate. These investments have been triggered by market reform, investment subsidies, and better overall public service provision and governance. Almost all potato farmers, small and large, participate in cold storage and the availability of cold storages is associated with improved efficiency in value chains because of lower wastages even as a number of these cold storages have become involved in input, output, and especially credit markets. The increasing availability of modern cold storages has therefore led to important changes in potato value chains, with significant implications for smallholders.
