FCI studies consultant's grain storage suggestions

The Union government may soon issue its awaited report on combining with private business to establish grain silos.

Mott MacDonald, the management and engineering consultants hired by the Planning Commission for a feasibility study on setting storage for two million tonnes (as announced by the finance minister of India in Union Budget 2011), has given an interim report.

It is being discussed by a sub-committee of the Food Corporation of India, which is to send its observations to top FCI officials this week. This would be then sent to the food ministry and the Planning Commission.

A Commission panel under member Abhijit Sen is to prepare a policy framework on the issue.

FCI sources say the report suggests silos in consuming states; at present, these are mostly in the producer states of the north. It has also made a comparative analysis of silos in the US, China, Australia and Canada and suggested a suitable model for Indian requirements.

With a record procurement of 26.2 mt of wheat expected this year (last year’s was 22.5 mt), the additional capacity creation is high priority with the food ministry. However, the total foodgrain stock (wheat and rice) in the central pool was 65.6 mt in June, according FCI.

The government has tried to get private investors interested in creation of food storage but there have been problems.

For instance, a silo of 50,000-tonne capacity put up by L T Foods at an investment of Rs 36 crore has been unutilised in Amritsar district of Punjab for two months due to procedural hiccups, say company officials. Punjab government officials would not comment.