Lok Sabha Question No. 3823 (UNSTARRED), answered on 2019-07-16
Subject: Inadequate Storage Capacity
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: Jai Prakash, Arun Sao

## GOVERNMENT OF INDIA

## MINISTRY OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION

## DEPARTMENT OF FOOD AND PUBLIC DISTRIBUTION

## LOK SABHA UNSTARRED QUESTION NO. 3823

TO BE ANSWERED ON 16 TH  JULY, 2019

## INADEQUATE STORAGE CAPACITY

†3823. SHRI JAI PRAKASH: SHRI ARUN SAO:

Will  the  Minister  of  CONSUMER  AFFAIRS,  FOOD  AND  PUBLIC DISTRIBUTION उपभोक्ता त मल , ाखतद्ा औा तावर्ज�ाका्औता  मं be  pleased  to state:

- (a) whether  there  is  huge  wastage  of  foodgrains  every  year  due  to inadequate storage capacity of foodgrains in the country and if so, the details thereof;
- (b) whether  the  country  does  not  have  sufficient  capacity  for  the storage  of  foodgrains,  if  so,  the  reasons  therefor  and  if  not,  the  total number of warehouses in the country along with the foodgrains storage capacity thereof;
- (c) the names of the States which have storage capacity of foodgrains more than their requirement;
- (d) whether  extra  storage  capacity  of  foodgrains  in  some  States  has turned into a problem;
- (e)
- if so, the details thereof; and
- (f) the details of the corrective measures taken/proposed to be taken by the Government in this regard?

A N S W E R PUBLIC DISTRIBUTION

MINISTER OF STATE FOR MINISTRY OF CONSUMER AFFAIRS, FOOD & (SHRI   DANVE  RAOSAHEB   DADARAO)

(a) to (f):  Against total stocks of 741.41 LMT (as on 01.06.2019), 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 862.45 LMT (as on 31.05.2019) comprising 739.76 LMT in  covered godowns and 122.69 LMT in Cover and Plinth (CAP) storage. As such, there is sufficient capacity for storage of central pool foodgrains at the national level. As on 31.05.2019, FCI has total 2068 depots/godowns in India (both owned and hired).

Depending on requirement in specific areas and for modernization of storage  facilities,  Government  implements  the  following  schemes  for construction of godowns and silos in the country for central pool stock of foodgrains:

- 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 Food Corporation of India (FCI). A capacity of 142.62 Lakh MT (LMT) has been created as on  31.05.2019.    Under  this  scheme,  no  funds  are  allocated  by Government for construction of godowns and full investment is done by the private parties/CWC/State Agencies.
2. ii.
3. Central  Sector  Scheme  (erstwhile  Plan  Scheme):    This  scheme  is implemented  in  the  North  Eastern  States  along  with  a  few  other States.  Funds  are  released  by  the  Government  to  FCI  and  also directly  to  the  State  Governments  for  construction  of  godowns.  A total capacity of 1,84,175 MT has been completed by FCI and State Governments during the 12 th  Five Year Plan (2012-17). This scheme has  been  extended  for  3  years  from  01.04.2017  to  31.03.2020.  A capacity of 49,375 MT has been created by FCI & State Governments from 01.04.2017 to 31.05.2019.
- iii. Construction  of  Steel  Silos:    In  addition  to  conventional  godowns, Government of India has also approved an action plan for construction of steel silos in the country for a capacity of 100 LMT in Public Private Partnership  (PPP)  mode  for  modernizing  storage infrastructure and improving shelf life of stored foodgrains. Against this,  as  on  31.05.2019,  steel  silos  of  6.75  LMT  capacity  have  been created.

The  utilization of  storage  capacity  depends  upon  the  level  of procurement, movement of foodgrains etc., which may differ from time to time.  In  procuring  regions,  the  capacity  utilization  is  maximum  at  the time  of  procurement  but,  subsequently,  the  stock  is  moved  to  deficit regions.  This leads to liquidation of stock and the utilization of capacity also  goes  down  hence,  the  capacity  temporarily  becomes  surplus  at micro level but overall, i.e., at macro level, the capacity with FCI is as per requirement.

FCI  monitors  and  assesses  the  storage  capacity  periodically  and steps are taken to create additional storage capacity if there is a storage gap. FCI also hires godowns through various State Agencies and private sectors in case of requirement.

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