Lok Sabha Question No. 196 (STARRED), answered on 2018-07-31
Subject: Warehouses and Storage Facilities for Crops
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: BIDYUT BARAN MAHATO, T. RADHAKRISHNAN

## GOVERNMENT OF INDIA

## MINISTRY OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION DEPARTMENT OF FOOD AND PUBLIC DISTRIBUTION

## LOK SABHA STARRED QUESTION NO. 196 31 ST   JULY, 2018

## WAREHOUSES AND STORAGE FACILITIES FOR CROPS

*196.  SHRI BIDYUT BARAN MAHATO: SHRI T. RADHAKRISHNAN:

Will the Minister of CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION miHkksDrk ekeys] [kk| vkSj lkoZtfud forj.k ea=h be pleased to state:

- (a) the number of warehouses registered under the Warehousing Development and Regulatory Authority along with their capacity at present;
- (b) whether the steep increase in the Minimum Support Price (MSP) for kharif  crops  may  lead to a  storage problem in some States and if so, the details thereof along with the corrective measures taken/being taken by the Government in this regard;
- (c) whether the Union Government has requested the State Governments to set up storage space in crop growing States, preferably near mandis and if so, the details thereof along with the response of the State Governments thereto;
- (d) whether the Central Warehousing Corporation also empanels private players and signs MoUs in this regard and if so, the details thereof; and
- (e) the funds allocated by the Union Government  for creation of warehousing  in  the  country  during  each  of  the  last  three  years  and  the current year, State/UT-wise?

A N S W E R MINISTER OF  CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION (SHRI RAMVILAS PASWAN)

(a)

to (e): A Statement is laid on the table of the House.

***

## STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (e) OF THE STARRED QUESTION NO. *196 DUE FOR ANSWER ON 31.07.2018 IN THE LOK SABHA

- (a): As  on  23 rd   July  2018,  732  warehouses  with  aggregate  storage capacity of 59.02 Lakh Metric Tonnes (LMT) are registered with Warehousing Development and Regulatory Authority.
- (b): On the basis of peak stock requirement during normal procurement season, the overall storage capacity required for central pool food grains in the  country  is  about  650  LMT.  Against  this,  the  total  storage  capacity available with Food Corporation of India (FCI), Central Warehousing Corporation (CWC) and the State Agencies (both owned and hired capacity), is 855.98 LMT as on 30.06.2018 comprising 724.74 LMT in covered godowns and  131.24  LMT  in  Cover  and  Plinth  (CAP)  storage.  As  such,  there  is sufficient  capacity  for  storage  of  central  pool  foodgrains  at  the  national level.

Normally, peak stock of foodgrains in the central pool occurs around 1st  June  of  every  year.  The  total  storage  capacity  available  with  FCI  and State Agencies as on 1st June during the last three years with corresponding stock position in central pool is given below:

(Figures in LMT)

| As on      |   Storage capacity owned by FCI |   Storage capacity hired by FCI |   Storage capacity with State gencies |   Total Storage capacity |   Stock position |
|------------|---------------------------------|---------------------------------|---------------------------------------|--------------------------|------------------|
| 01.06.2016 |                          154.15 |                          208.32 |                                449.47 |                   811.94 |           534.29 |
| 01.06.2017 |                          154.25 |                          207.45 |                                421.47 |                   783.17 |           555.4  |
| 01.06.2018 |                          154.44 |                          226.62 |                                474.92 |                   855.98 |           680.25 |

Thus, on the overall, there is sufficient capacity for storage of food grains in the country and increase in Minimum Support Price (MSP) may not result in storage problem.

- (c): Depending on requirement in specific areas and for modernization of the  storage  facilities,  Government  has  been  implementing  the  following schemes for construction of godowns and silos in the country:
- (i) Private Entrepreneurs Guarantee (PEG) Scheme: Under this Scheme, which was formulated in 2008, storage capacity is created by private parties, Central Warehousing Corporation (CWC) and State Government  Agencies  for  guaranteed  hiring  by  FCI.  A  capacity  of 141.37 LMT has been created as on 30.06.2018.  Under this scheme, no  funds  are  allocated  by  the  Government  for  construction  of godowns and full investment is done by the private parties/CWC/State Agencies by arranging their own funds and land. After a godown is constructed and taken over by FCI, storage charges are paid to the investor  for  the  guaranteed  period  of  9/10  years  irrespective  of  the quantum of foodgrains stored.

- Central Sector Scheme: Under this scheme, funds are released to FCI for  construction  of  godowns  in  the  North  Eastern  States  and  a  few other States. Funds are also released to State Governments of North Eastern States and Jammu and Kashmir for construction of their own godowns. A capacity of 1,42,700 MT has been completed by FCI and 48,380 MT by State Governments during last 5 years from 01.04.2013 up to 30.06.2018. This scheme is fully funded by the Government and
- (ii) amount of funds provided per annum is about Rs 60 Cr.
- (iii) Construction  of  Steel  Silos:  In  addition  to  conventional  godowns, construction  of  steel  silos  has  been  undertaken  in  Public  Private Partnership (PPP) mode from 2016 for modernizing storage infrastructure  and  improving  shelf  life  of  stored  foodgrains.  As  on 30.06.2018, a capacity of 6.25 LMT silos has been created. There are two  modes  of  PPP  for  constructing  silos.  In  the  case  of  silos constructed in Viability Gap Funding (VGF) mode, land is provided by the  Government  and  investment  for  construction  is  done  by  the private party and there is a provision for seeking grant up to 20% of the  total  project  cost  from  the  Government.  In  non-VGF  mode,  full investment including provision of land is done by the private party. After a silo is constructed and taken over by FCI, the storage charges are  paid  to  the  private  party  for  the  guaranteed  period  of  30  years irrespective of the quantum of foodgrains stored.
- (d): Central Warehousing Corporation (CWC) hires godowns from private parties as per requirement by entering into lease agreement. As on 1st July, 2018, CWC has a hired capacity of 7.56 Lakh MT.
- (e): Funds are released by the Union Government to FCI and also to State Governments for construction of godowns under the Central Sector Scheme 'Storage & Godowns (focus on North East)'. The State-wise and year-wise details are annexed.

***

## ANNEXURE REFERRED TO IN REPLY TO PART (e) of STARRED QUESTION NO. 196 DUE FOR ANSWER ON 31.07.2018 IN THE LOK SABHA

## Table-1

State-wise  and  year-wise  details  of  funds  allocated  by  the  Union Government to State Governments (for last three years and the current year) for construction of godowns

(Figures in Rs. crore)

Table-2

| Sl    | Name of the State   |   2015-16 |   2016-17 |   2017-18 |   2018-19 (Upto 30.06.2018) |   Cumulative amount |
|-------|---------------------|-----------|-----------|-----------|-----------------------------|---------------------|
| 1     | Assam               |      0    |      0    |      9.57 |                           0 |                9.57 |
| 2     | Arunachal Pradesh   |      1.11 |     10.36 |      8.04 |                           0 |               19.51 |
| 3     | Mizoram             |      0    |      1.64 |      0    |                           0 |                1.64 |
| 4     | Nagaland            |      0    |      4.25 |      0    |                           4 |                8.25 |
| 5     | Sikkim              |      0    |      0    |     11.71 |                           0 |               11.71 |
| 6     | Tripura             |     10.5  |      0    |      0    |                           0 |               10.5  |
| Total | Total               |     11.61 |     16.25 |     29.32 |                           4 |               61.18 |

## Year-wise allocation of funds (in Rs. Crore) to FCI

|   2015-16 |   2016-17 |   2017-18 |   2018-19 (Upto 30.06.2018) |   Cumulative amount |
|-----------|-----------|-----------|-----------------------------|---------------------|
|      67.7 |     35.75 |      23.5 |                          31 |              157.95 |

State-wise and year-wise details of funds spent by FCI (Figures in Rs. Cr)

| Sl          | Name of the State           | 2015-16                     | 2016-17                     | 2017-18                     | 2018-19 (Upto 30.06.2018)   | Cumulative amount           |
|-------------|-----------------------------|-----------------------------|-----------------------------|-----------------------------|-----------------------------|-----------------------------|
| A.          | North East including Sikkim | North East including Sikkim | North East including Sikkim | North East including Sikkim | North East including Sikkim | North East including Sikkim |
| 1           | Assam                       | 23.25                       | 48.08                       | 11.72                       | 5.78                        | 88.83                       |
| 2           | Arunachal Pradesh           | 3.94                        | 0.42                        | 2.09                        | 0.72                        | 7.17                        |
| 3           | Manipur                     | 0.63                        | 3.22                        | 14.50                       | 0.00                        | 18.35                       |
| 4           | Meghalaya                   | 0.54                        | 0.39                        | 0.23                        | 0.00                        | 1.16                        |
| 5           | Nagaland                    | 4.90                        | 1.72                        | 3.08                        | 0.00                        | 9.70                        |
| 7           | Tripura                     | 3.14                        | 0.54                        | 11.00                       | 0.00                        | 14.68                       |
| Total (NE)  | Total (NE)                  | 36.40                       | 54.37                       | 42.62                       | 6.50                        | 139.89                      |
| B.          | Other than North East (ONE) | Other than North East (ONE) | Other than North East (ONE) | Other than North East (ONE) | Other than North East (ONE) | Other than North East (ONE) |
| 1           | Kerala                      | 0.91                        | 2.08                        | 5.05                        | 0.75                        | 8.79                        |
| 2           | Himachal Pradesh            | 0.00                        | 0.00                        | 0.82                        | 0.56                        | 1.38                        |
| Total (ONE) | Total (ONE)                 | 0.91                        | 2.08                        | 5.87                        | 1.31                        | 10.17                       |
| Grant Total | Grant Total                 | 37.31                       | 56.45                       | 48.49                       | 7.81                        | 150.06                      |