Guj needs 400,000 tonne of additional storage capacity

Even as Gujarat has recorded 10.7 per cent agricultural growth during the last decade, the state requires additional 400,000 tonnes of additional storage capacity, National Bank for Agriculture and Rural Development (Nabard) noted.

As per a note by Nabard, in the year 2010-11, Gujarat produced an estimated 9.35 million tonnes of food grains. "Considering the agricultural produce and available storage capacities in the state, it is estimated that around 400,000 tonnes of capacity to be created with an investment of around Rs 200 crore," said Mukesh Kumar Mudgal, chief general manager (CGM), Nabard. Around 35 million tonnes of warehousing capacities are required in the country in the next 5-10 years.

Nabard noted that the gap in storage is significantly high in the districts of Sabarkantha in north Gujarat, Godhra and Anand in central Gujarat, Bhavnagar in Saurashtra and Surat in south Gujarat. Hence, most of the new investments will be made in these districts.

The 'National Warehousing Scheme' 2013-14 announced by union finance ministry will provide financial assistance in the form of direct loans by Nabard to public and private sector developers. The centre has created a storage infrastructure corpus of Rs 5000 crore to equip Nabard to provide loans. The tenure of loan could be for seven years or above, and up to a maximum of 15 years.

Loans will be provided under the scheme for projects involving construction of warehouses, silos, cold storage, frozen units, bulk coolers and vans. The state government agencies will be assisted under the scheme by way of loans on the lines of Nabard's another project, Rural Infrastructure Development Fund (RIDF).

Notably, for the year 2013-14, Nabard has sanctioned total loan of Rs 393 crore under RIDF - XIX up to September 30 to the Gujarat government. Out of this, Rs 217 crore has been sanctioned for improvement & modernization of Ukai-Kakrapar Right Bank Main Canals project. The project has the command area of 3,31,557 hectares covering five districts of the state including Bharuch, Surat, Tapi, Navsari & Valsad.