Foodgrain storage: Pvt participation gets rolling

Amid severe foodgrain storage crisis, the private sector has finally started showing interest in building warehouses and godowns.

Of the 5.7-million tonnes (mt) sanctioned storage capacity, 3.94 mt, or 12.46 per cent of the total current capacity of 31.6 mt, will be built by private players by the end of this financial year. The government plans to add 15 mt of storage space in a couple of years.

This is a big improvement, as till date just 7.43 per cent of the Food Corporation of India’s (FCI’s) total storage capacity belongs to private parties. The Centre recently approved an additional 1.42 mt of storage capacity that will be built by private players in a year.

 

Of the 5.7 mt, the Central Warehousing Corporation and State Warehousing Corporation are building 1.75 mt of storage space.

“The new approved storage capacities will also be constructed by private parties and are located largely in Maharashtra and Gujarat,” a senior government official said.

FCI has been facing flak for the last few years because of inadequate storage space. This year, too, the government is planning to procure 26 mt of wheat.

According to FCI’s assessment, till April 1, total rice and wheat stocks in the central pool stood at 44.18 mt, against the required buffer norms and strategic reserve of 21.2 mt. It had 28.8 mt of rice, against 14.2 mt, and 15.3 mt of wheat, against 7 mt.

This means a lot of grains from last year are lying in the warehouses and if adequate storage space is not created urgently, a lot of the grains procured from growers won’t have adequate storage facilities.