The country may add about four million tonnes of foodgrain storage capacity by the end of this year for the central pool. This would be part of the 15 mt of additional storage capacity to be created, for which the Cabinet had given its mandate.
Sources in the Food Corporation of India (FCI) informed that applications for this were invited under the Private Enterprenuership Guarantee Scheme and final approvals have been sanctioned for nearly four million tonnes multi-commodity storage. This would mobilise an investment of Rs 1,200 crore and entail a rent of about Rs 320 crore per annum on FCI. FCI and state agencies have been in a controversy over the shortage of storage space and reports of rotting of foodgrain, especially in producer states.
Agriculture scientists in Punjab have evinced serious concern over damage of foodgrain and its economic cost. With a record grain stock of 64 mt this year against the storage capacity of 63 mt and growing requirement to match the allocation after implementation of the Food Security Bill, the FCI brass is leaving no stone unturned to expedite the creation of new capacities. Punjab and Uttar Pradesh remain front runners in private participation.
The State Warehousing Corporation in Maharashtra, Andhra Prade-sh, Karnataka, Punjab and Haryana are also likely to put up substantial capacities. There have been defaults to the tune of 150,000 tonnes in Andhra Pradesh, 170,000 tonnes in Tamil Nadu and 55,000 tonnes in Jammu and Kashmir, as the bidders could not arrange the land in the stipulated time of 90 days. They would forfeit a security deposit of Rs 140 a tonne.
