A recent combined study by industry body Assocham and Yes Bank points out that currently 70 per cent of the total warehousing capacity of 112 million tones is owned by the government. Additional 35 million tones of storage capacity is required in the 12th Five Year Plan (2012- 17) period.
Their study report further points out that around 30-40 percent
food grain is stored in an unprofessional manner during the peak
marketing season in India. According to one spokesperson of Assocham,
around 20-30 per cent of total food grain harvest is wasted. Each
grain bag was handled at least six times before it was finally opened
The report clearly spells out that there is a death of food grain
storage capacity of about 35 million tones and there is an urgent
need to augment modern and scientific storage facilities to keep pace
with the marketable surplus.
Basing the above, Government must accord priority to enhancing the
storage of food grain warehouses in the country.
A couple of solutions to the above issue could be as follows:
There are some numbers of small scale industries and large
scale industries scattered in different parts of the country which
have got huge spaces but are not using them to the optimum capacity
due to some obvious reasons. Such spaces could be leased out to
Government agencies after creating nice doable infrastructure kind
of facilities for storing bulk quantities of food grains and other
food crops. Government agencies may wish to agree to pay a decent
rental for using such facilities.
It is often reported that Railways are having a good chunk of
land with them which are not utilized to the optimum. Railways can
be encouraged to come out with innovative modern way of storing food
grains on their surplus lands which can be leased out to Food
Corporation of India (FCI) and other similar agencies for storage of
bulk quantities of food grains. This will result in additional
revenue for the Railways and also solve the issue of FCI to a great