As the government’s once again grapples to create additional storage space before paddy procurement starts in full swing, its ambitious programme to create an additional over 18 million tonnes of storage space seems to have made insufficient progress in Jharkhand and West Bengal, the two eastern states, which produce significant quantities of paddy.
The progress has also not been very impressive in Gujarat, Kerala and Uttarakhand.
According to data, provided by the Food Corporation of India (FCI) till August 31, 2012, not a single completed warehouse has been handed over in West Bengal despite the government granting approval for creation of 156,600 tonnes of storage space in the state under the Private Enterprise Guarantee (PEG) scheme.
The data showed that in West Bengal, tenders have been floated for construction of just 29,600 tonnes of storage space, mere 19% of the total sanctioned capacity, while none has been completed as yet. Officials are hopeful that as construction is going on for this 29,600 tonnes space, some quantity would surely come on board by December 2012.
In Jharkhand, too, of the 175,000 tonnes of storage capacity approved by a high level committee, construction of just 40,000 tonnes is in progress. However, the saving grace in case of Jharkhand is that almost 35,000 capacities for which construction is in progress are expected to be completed by December 2012.
West Bengal along with Jharkhand is among India’s largest rice producing states.
Overall, across the country, officials said of the around 18 million tonnes of additional storage space approved for creation in the next few years, around 2 million tonnes or 11% has been taken over by the government.
Construction work is on in another 5.72 million tonnes or 32% of the total approved quantity, the data showed.
Under the PEG scheme, the Food Corporation of India gives a guarantee of 10 years of assured hiring to private entrepreneurs.
Storage Capacity By Central & State Warehousing Corporations and
Pvt Investors Under PEG Scheme (in metric tonnes) As On August 31, 2012
| State | Capacity Approved | Under Construction | Completed | Handed Over |
| Jharkhand | 175,000 | 40,000 | 0 | 0 |
| West Bengal | 156,000 | 29,600 | 0 | 0 |
| Kerala | 15,000 | 5,000 | 0 | 0 |
| Gujarat | 80,000 | 4,800 | 0 | 0 |
| Uttarakhand | 25,000 | 0 | 0 | 0 |
| Andhra Pradesh | 4,51,000 | 2,09,700 | 1,05,800 | 1,00,800 |
| Punjab | 49,99,000 | 24,07,034 | 12,10,534 | 7,77,970 |
| Haryana | 40,06,000 | 4,87,761 | 5,90,390 | 5,57,060 |
| All India | 1,81,08,440 | 57,23,435 | 25,90,434 | 19,95,910 |
(NOTE: The total All India figures might not match as all states have not been included)
In the 2012-2013, rice marketing season that has started from October 1, the government has fixed a target of purchasing around 40 million tonnes of rice from farmers.
This is 5 million tonnes more than the rice purchased in 2011-2012 season. However, with stocks of wheat already in warehouses, it once again faces a big challenge in storing the newly procured paddy, mainly in major producing states.
As on September 1, the government had around 72 million tonnes of wheat and rice in the central pool as against a buffer stock and strategic reserve norm of 21.2 million tonnes. The grains are stored in around 66-67 million tonnes of storage space, which includes those available with state governments.
However, with rice procurement expected to gather steam in the coming weeks, experts believe the space crunch could worsen.
Meanwhile, the data showed that maximum progress in creating new storage space has been in Punjab, Haryana and Andhra Pradesh.
In Punjab, of the around 5.0 million tonnes of storage space sanctioned till August 31, 2012, around 780,000 tonnes has already been handed over the government, while in Haryana, of the 4.0 million tonnes sanctioned capacity, 557,000 tonnes has been handed over.
In Andhra Pradesh, of the total 451,000 tonnes of storage space sanctioned, already 100,800 tonnes has been handed over for use
