November 25, 2010

India to add two-million-tonne storage capacity in 2010-11

The Indian government has fixed a target of creating more storage capacity of two million tonnes this fiscal under the rural godown scheme and has allotted INR100 crore (US$21.9 million) for the project.

"During the year 2010-11, the target for the entire country is 20 lakh tonnes storage capacity with a budgetary allocation of INR100 crore (US$21.9 million)," Minister of State for Food and Agriculture K V Thomas said Tuesday (Nov 23).

He said the rural godown scheme is demand driven and applicable to all states and UTs and hence no state-wise targets are fixed or fund allocations made.

To create additional storage capacity, the government has also formulated a scheme for construction of storage godowns involving private entrepreneurs.

Under the scheme, the Food Corporation of India would now give a guarantee of 10 years for assured hiring. It has fixed a target of creating storage space of 15 million tonnes with the involvement of private entrepreneurs.