FCI to build more godowns to boost storage capacity

Neeraj Mohan

New Delhi, January 6

Aiming to tackle the issue of rotten foodgrain in open plinths, the Food Corporation of India (FCI) is going to boost its storage infrastructure in key foodgrain producing states, including Punjab and Haryana, by constructing more godowns.

Tenders floated

• Godowns will be developed in collaboration with state agencies. The tenders have already been floated for the godowns
• The FCI plans to create 117.75 lakh MT of storage capacity in the country under a proposed five-year guarantee scheme
• The Consumer Affairs Ministry said the initiative aligned with evolving storage requirements

With a combined capacity of 13 lakh MT – including 9 lakh MT in Punjab and 4 lakh MT in Haryana, these godowns will be developed in collaboration with state agencies such as PUNGRAIN in Punjab and HAFED in Haryana, the Union Ministry of Consumer Affairs, Food and Public Distribution said in a statement.

The tenders have already been floated for the godowns in Haryana and Punjab, it said. These godowns will be the part of a proposed five-year guarantee scheme under which the FCI plans to create 117.75 lakh MT of storage capacity in the country to address the changing storage landscape and avoid rotting of foodgrain stored in open plinths, the statement stated.

Moreover, the FCI will enhance its storage infrastructure with a strategic plan for the development of 111.125 lakh MT silos across 249 locations in the country. Adopting a phase-based approach, the FCI aims to implement the “Hub and Spoke” model, emphasising road-fed connectivity to avoid complexities associated with land acquisition for rail-siding silos.

The initial phase involved constructing a silo capacity of 34.875 lakh MT at 80 locations, with 10.125 lakh MT under the Design, Build, Finance, Operate, and Transfer (DBFOT) mode on the FCI’s own land at 14 locations and 24.75 lakh MT under Design, Build, Finance, Own and Operate (DBFOO) mode at 66 locations. Tenders for Phase 2, covering 30.75 lakh MT silos at 66 locations, have been floated and are currently in the technical evaluation stage.

This initiative not only modernises storage facilities but also aligns with evolving storage requirements, ensuring efficient and sustainable solutions for food grain storage in the country.

Traditionally, wheat is stored in Cover and Plinth (CAP) by state agencies and the FCI mainly in procuring regions. However, a policy decision was taken to phase out this capacity of CAP nearly 180 lakh MT Detailed Action Plan was prepared by the FCI after deliberations with state governments, which was approved by the Centre. Storage in CAP had cost heavily as around 62,000 tonnes of foodgrain was damaged in warehouses between 2011 and 2017. Even the figures by the Haryana government revealed that 44,700 MT of wheat stored in open plinths got spoiled in 2018-19 and 2019-20 periods due to excessive rainfall.