July 15, 2011

India to build new go-downs amid overflowing grain stock

Amid overflowing granaries and shortage of storage space in India, agri-lender NABARD has been asked to collaborate with private players for the construction of new go-downs.

The government go-downs have food grain stock of 65 million tonnes, compared to the storage capacity of only 62.23 million tonnes, according to India's Finance Minister Pranab Mukherjee.

Furthermore, the country is expecting a bumper crop of wheat and pulses in the 2010-11 crop year.

"To fill the gap in storage capacity requirements, NABARD should interact with private sector players," Mukherjee said, addressing the Foundation Day of National Bank for Agriculture and Rural Development, the apex bank for agriculture sector loans in the country.