FCI to create food storage with private help in Punjab

Under pressure due to the lack of scientific food grain storage capacity in Punjab, the Food Corporation of India (FCI) is planning to rope in private investors for setting up Silos at eight locations with the capacity of 50,000 metric tonnes each. Besides, it is also planning to set up Silos on its own with railway siding facility and has identified six locations.

Punjab has about 14.6 million tonnes (mt) of covered and 11.7 mt of open capacity for storage. Requirement of storage has come down since 8.8 mt of wheat has been stored in open storages in September this year against 11.6 mt in September 2012.

Speaking to Business Standard, Kumar Rahul, general manager-Punjab, FCI, said: "It has been planned to create more covered capacity in Punjab to reduce the dependence of wheat on open storage. Recently, some godowns have been set up with the help of private entrepreneurs under the private entrepreneurs guarantee (PEG) scheme, 2008. Since the inception of the scheme, godowns of about 4.5 mt capacity have been sanctioned for construction, out of which about 3.85 mt have already been constructed and put to use. This has resulted in an investment of over Rs 1500 crore by private investors. Capacity of 850,000 tonnes will be constructed in the near future for which tenders have been floated by our nodal agency Pungrain."

He further said :"In addition to this, modernisation of storage capacity has been initiated by FCI and constructions of steel silos with railway siding facility both at storage point and receipt points have been envisaged for Punjab. Silos would be constructed at eight locations - Batala, Barnala, Sangrur, Patiala, Jalalabad, Dhuri, Kila Raipur and Cheharta- with a capacity of 50,000 tonnes each through private investors. FCI will float a tender for this purpose very soon and the guarantee of assured rental would be provided by FCI."

He also said importance is being given to reduce storage and transit losses. During 2014-15, storage losses are 0.18 against the target of 0.2 per cent.

He said, "We also have plans to set up Silos by our own. We have identified six locations - Patiala, Dhuri, Nabha and Kotakpura, among others - where there is railway siding facility for the purpose."

The siding facility will help move food grains to other states by rail. In the current financial year, liquidation to the extent of 1.75 mt per month is being done (both Wheat and Rice). The pace of liquidation has increased from about 1.35 mt in 2010-11 to 1.65 mt during 2013-14.

FCI in Punjab functions through its regional office located at Chandigarh and 13 district offices located at Amritsar, Bathinda, Chandigarh, Faridkot, Firozpur, Gurdaspur, Hoshiarpur and Jalandhar, among others.