15.2 mn tonne new foodgrain storage capacity to come up soon

Amid reports of huge quantity of foodgrain rotting in open due to limited storage facilities across the country, the government has approved additional storage capacity of about 15.2 million tonne for 19 states.

Out of this, capacity of 7.265 million tonne has been finalised for creation by private entrepreneurs, Central Warehousing Corporation(CWC) and State Warehousing Corporations (SWCs), an official statement said here today. 

"More capacity is likely to be finalised in the next few months," it added. These new capacities are likely to come up in the next one year, the statement said.  

Foodgrain stocks in the government godowns are at an all time high of 65.4 million tonne, while the current storage capacity stands at 62.36 million tonne.

So far tenders have been okayed to private investors for 5.332 million tonne while 0.531 million tonne capacity is to be constructed by CWC and 1.501 million tonne capacity by SWCs.

The progress is being monitored by the FCI and the Ministry of Food and Consumer Affairs at the highest level on weekly basis. The ministry has also prepared a plan for augmentation of storage capacity of 0.54 million tonne in the North-Eastern states, with an allocation of Rs 568 crore, the statement said.

The Centre had announced a scheme for construction of godowns through private investors. It was also decided that CWC or SWCs having their own lands can construct godowns under the scheme.

These efforts are expected to ensure better management for foodgrain storage in coming years.