FCI incurs storage cost of Rs 2713.4 crore in 2017-18
The current food grain storage capacity in the country is 877.37 lakh tonnes (covered - 749.90 lakh tonnes and Covered Area Plinth (CAP) - 127.47 lakh tonnes) with FCI and State agencies as on 31 October 2018. Depending on requirement in specific areas and for modernization of storage facilities, Government has been implementing various schemes for construction of godowns and silos in the country.Under Private Entrepreneurs Guarantee (PEG) Scheme, which was formulated in 2008, storage capacity is created by private parties, Central Warehousing Corporation (CWC) and State Government Agencies for guaranteed hiring by FCI. A capacity of 141.82 lakh tonnes has been created as on 31 October 2018. Under this scheme, no funds are allocated by Government for construction of godowns and full investment is done by the private parties/CWC/State Agencies by arranging their own funds and land. After a godown is constructed and taken over by Food Corporation of India (FCI), storage charges are paid to the investor for a guaranteed period of 9/10 years irrespective of the quantum of foodgrains stored.
Central Sector Scheme is implemented in the North Eastern States along with Himachal Pradesh, Jharkhand and Kerala. Funds are released by Government to FCI and also directly to State Governments for construction of godowns. A total capacity of 1.91 lakh tones has been completed by FCI and State Governments during last 5 years from 01 April 2013 up to 31 October 2018.
In addition to conventional godowns, construction of steel silos has been undertaken in Public Private Partnership (PPP) mode for modernizing storage infrastructure and improving shelf life of stored foodgrains. As on 31 October 2018, a capacity of 11.75 lakh tonnes silos has been created.
The storage cost incurred by FCI for storing different grains in godowns has increased from Rs 2127.57 crore in 2015-16 to Rs 2375.94 crore in 2016-17 and Rs 2713.4 crore in 2017-18.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
