Punjab to add 4.4 mt foodgrain storage space by next year

Punjab is all set to add 4.4 million tonnes of storage space for storing foodgrains procured for the public distribution system. This would be all scientific storage (covered storage) and would be implemented under PEG (private entrepreneur guarantee scheme) 2008.

The state has a total storage space of 205 lakh tonnes that includes 101 lakh tonnes covered and 104 lakh tonnes open plinth.

The additional capacities are likely to be created by the first quarter of year 2013. An estimated Rs 1,500 crore of investment would be mobilised through this.

The Food Corporation of India, in 2009, had identified a storage shortfall of 15 million tonnes across India, out of which eight million tonnes (80 lakh tonnes) were identified in Punjab.

 

Later, it was reduced to five million tonnes in case of Punjab.

According to sources in FCI, 4.4 million tonnes of space would be created under covered scientific storage, 0.5 million tonnes capacity silos will be created and remaining 0.1 million tonnes of covered space will be created.

The tenders for silos would be floated soon but the exact time has not been decided.

About 41 private players and three government agencies have been approved to create the additional storage capacities.

The storage space is coming up in the pockets where adequate storage space was not available. This is scattered in eight locations in the state and are mainly concentrated in Sangrur, Patiala and Batala.

Punjab is a major procuring state for wheat and rice and had an opening stock of 6.5 million tonnes on April 2012.

The state has an average 14 lakh tonnes of movement of foodgrain to the consuming states. The movement picked up this season due to higher demand from northeast and Maharashtra.

The state has a stock of 16.5 million tonnes of wheat and 6.5 million of rice as of now. Better movement of foodgrain is required to clear the stock.