July 18, 2011

India to add 152 lakh tonnes of new grain storage capacity

India's government has approved additional food grain storage capacity of about 152 lakh tonnes for 19 states.

Out of this capacity of 72.65 lakh tonnes has been finalised for creation by private entrepreneurs Central Warehousing Corporation (CWC) and State Warehousing Corporations (SWCs). More capacity is likely to be finalised in the next few months. These new capacities are likely to come up in the next one year.

So far tenders have been approved to private investors for 53.32 lakh tonne while 5.31 lakh tonne capacity is being constructed by CWC and 15.01 lakh tonne by SWCs. The progress is being monitored by the FCI and the Ministry at the highest level on weekly basis. Meetings have also been organized with SWCs of the different states for monitoring the progress of constructions of godowns for the capacities allotted to them.

The department has also prepared a plan for augumention of storage capacity in the North Eastern States capacity totalling 5.4 lakh tonne. The Centre had announced a scheme for construction of godowns through private investors under a 7-10 years guarantee scheme. It was also decided that wherever CWC or SWCs have their own lands they will also construct godowns under the scheme. These efforts are expected to ensure better management for food grain storage in coming years.