Punjab to witness additional storage capacity for foodgrains by 2012

If everything goes well, Punjab will witness an additional storage capacity of 4.5 million tonnes for foodgrains by next year. The Food Corporation of India (FCI) has already allotted tenders to the private players for creation of the storage capacity in the state under the Private Entrepreneur Guarantee Scheme(PEGS) scheme of the centre and the facilities is likely to commence operation by November 2012. Further, Pungrain the nodal agency appointed by FCI would very seen float a tender for creation of remaining 5,00,000 metric tonnes storage capacity, sanctioned by the Centre under the scheme.

It is worth mentioning that there is dire need of creation of additional storage capacity in the state, as it is a major contributor for wheat and rice to the central pool. Also, agriculture scientists in Punjab have evinced serious concerns over damage of foodgrain and its economic cost due to lack of storage facility. In order the address the issue, FCI has sanctioned about five million tonnes of new capacity addition under the PEGS scheme. Adding that Punjab is currently facing a shortage of storing almost 6- 8 million tonnes of food grain, senior official in the state mentioned that the private companies are interested in investing in storage sector.

At present, Punjab has a total storage space of two million tonnes. It has about 10 million tonnes of closed storage capacity but most of it is unscientific. Also, there is another 10.5 million capacity in form of open plinth which leads to large spoilage.

Sources in the Food Corporation of India (FCI) informed that applications for this were invited under the Private Enterprenuership Guarantee Scheme for creation of storage facilities across the state and final approvals have been sanctioned for creation of 4.5 million tonnes multi-commodity storage. The proposed infrastructure would likely to mobilise an investment of Rs 1,600 crore in the state which excludes the cost of the land. Further, the land cost would be the tune of Rs 225 crore.

Maximum storage facility in the state would be created by Soma Punjab Warehousing Pvt Limited, which would be setting up 12 agri godowns at different locations in the state with an investment of Rs 579.30 crore. The storage capacity would come up in Sangrur, Faridkot, Mansa, Bathinda, Moga, Patiala and Fatehgarh Sahib districts.

Further, sources in FCI added that the process of calling bids for the remaining 5,00,000 MT of storage in Punjab would very soon be floated by Pungrain.