Lok Sabha Question No. 1460 (UNSTARRED), answered on 2019-02-12
Subject: Storage Capacity of FCI
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: LAKHAN LAL SAHU

## GOVERNMENT OF INDIA

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

## LOK SABHA UNSTARRED QUESTION NO. 1460 TO BE ANSWERED ON 12 th  FEBRUARY, 2019

## STORAGE CAPACITY OF FCI

## 1460.   SHRI LAKHAN LAL SAHU:

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  status  of  storage  of  different  foodgrains/food  items  including wheat, rice, pulses, edible oil, sugar etc. in the country;
- (b) whether the Government has paid attention to the fact that a huge quantum of foodgrains get wasted every year due to lack of storage capacity of foodgrains in the country, if so, the details thereof;
- (c) the steps taken by the Government to make adequate arrangements for  storage  of  foodgrains  in  view  of  shortage  of  storage  capacity  in  the country;
- (d) the  details  of  such  States  which  have  more  storage  capacity  than their requirement at present; and
- (e) whether  additional  foodgrains  storage  capacity  has  also  become  a reason  for  crisis  in  some  States  and  if  so,  the  details  thereof  and  the remedial  steps  taken/  proposed  to  be  taken  by  the  Government  in  this regard?

## A N S W E R

## MINISTER OF STATE FOR  CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION (SHRI C. R. CHAUDHARY)

(a) to (e): On  the  basis  of  peak  stock  requirement  during  normal procurement season, the overall storage capacity required for central pool foodgrains in the country is about 650 Lakh Metric Tonnes (LMT). Against this,  the  total  storage  capacity  available  with  Food  Corporation  of  India (FCI),  Central  Warehousing  Corporation  (CWC)  and  State  Agencies  (both owned  and  hired  capacity),  is  851.54  LMT  (as  on  31.12.2018)  comprising 724.79 LMT in covered godowns and 126.75 LMT in Cover and Plinth (CAP) storage.  As  such,  there  is  sufficient  capacity  for  storage  of  central  pool foodgrains at the national level.

The  foodgrains  are  stored  scientifically  with  various  preservation measures like fumigation and treatment with pesticides. In spite of taking necessary care and precautions, small quantities of foodgrains may become non-issuable  due  to  various  reasons  like  natural  calamities,  damages  in transit, negligence of officials etc.

Accrual of  damaged foodgrains in FCI during the last 3 years and the current year is as given below:

| Year                       |   Offtake quantity/ Quantity handled (excluding De- Centralized Procuring States) (LMT) |   Quantity of Damage Accrued (LMT) | % of Damaged foodgrains against Offtake Quantity   |
|----------------------------|-----------------------------------------------------------------------------------------|------------------------------------|----------------------------------------------------|
| 2015-16                    |                                                                                  490.15 |                              0.03  | 0.01%                                              |
| 2016-17                    |                                                                                  473.31 |                              0.09  | 0.02%                                              |
| 2017-18                    |                                                                                  452.16 |                              0.027 | 0.01%                                              |
| 2018-19 (up to 01.01.2019) |                                                                                  350.93 |                              0.04  | 0.01%                                              |

Depending on requirement in specific areas and for modernization of storage facilities, Government has been implementing 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  142.12 LMT has been created as on 31.12.2018 since the inception of this scheme.
- ii. Central Sector Scheme (earlier 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 2,01,200  MT  has  been completed by FCI and State Governments during last 5 years from 01.04.2013 up to 31.12.2018.
- iii. Construction of Steel Silos: 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 31.12.2018, steel silos of 6.25 LMT capacity have been created.

The storage capacity available for central pool foodgrains is utilised optimally as per requirement.  The utilization of storage capacity depends upon  the  level  of  procurement,  movement  and  offtake/  distribution  of foodgrains etc. which may differ from time to time. In procuring States, the capacity  utilization  is  maximum  during  procurement.  Subsequently,  the stock  is  moved  to  deficit  regions  in  order  to  create  space  for  next procurement season.  Similarly, in recipient (consuming) States, the storage capacity is optimally utilized by continuous induction and replenishment of stocks to facilitate uninterrupted offtake under different schemes.  Thus, as such storage capacity is as per requirement.

Further, FCI monitors and assesses the storage capacity periodically and  takes  steps  to  create  additional  storage  capacity  in  case  of  storage gap. It also resorts to hiring of capacity through various state agencies and private sector in case of requirement.

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