Lok Sabha Question No. 3026 (UNSTARRED), answered on 2026-03-11
Subject: Fund Allocation for FCI and CWC Operations
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: Thiru D M Kathir Anand

## GOVERNMENT OF INDIA

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

## LOK SABHA

UNSTARRED QUESTION NO. 3026

## TO BE ANSWERED ON lITll  MARCH, 2026

## FUND ALLOCATION  FOR FCI AND CWC OPERATIONS

## 3026. THIRLI D M KATHIR ANAND:

Will  the  Minister  of  C'ONSUN ll.:R  AFFAIRS.  FOOD AND  PLJB[.IC' DISTRIBUTION bc pleased to state:

- (a): whether the  Linion Go\'ernmcnt has taken appropriate measures to  ensure that  I food Corporation ol' India (PCI) and Central \\'al'ehousing Corporation (C\VC) are cftlcicntl}'  nlanagcd \\'ith  operational capabilities and if  so. the details thereof:
- (b): whether  the  Government has  inrplemented reforms  suggested by  the  Shanta Kumar C'omlnittee to  restructure PCI  ,Ind  C\VC-s  to  ilnpro\'c  its  llnancial  management and operational efilciency in procurement. storage  and distribution of foodgrdins:
- (C): if  so. the details thereof and if  not. the reasons therefor: and
- (d): the details of the funds allocated to l"CI and CWC' in Tamil  Nadu during the last ave years. \'ear\\-lSC  ?

## ANSWER

## MINISTER OF STATE FOR MINISTRY OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION

(SHRIM ATI NIMUBEN JAYANTIBHAI  BAMBHANIYA)

(a) to (c):  Yes. In reference to the recommendations made by the High-Level  Committee (HLC)  on restructuring of  the Food Corporation of  India  (FCI),  chaired by Hon'ble  Shri Shanta Kumar, PCI has implemented key recommendations relating to storage infrastructure and operations of FCI.

The  Committee  had recommended that  FCI  should  outsource its  stocking operations to Central Warehousing Corporation (CWC),  State Warehousing Corporations (SWCs), private investors under the Private Entrepreneurs  Guarantee (PEG) Scheme, and also to State Governments undertaking silo construction through private entities. It was further advised that such engagements be undertaken through  competitive  bidding  to enhance participation  and reduce storage costs.

The HLC  also emphasized the need for  each State especially those in deficit  and difficult terrain such as the North  Eastern States and Jammu &  Kashmir to maintain foodgrain storage equivalent to at least three months of their  consumption requirement.

In  this  regard, as on 01.02.2026, total  Covered Storage Capacity available with  FCI  is 470.67 LMT  (Owned -  147.20 LN4T + Hired - 323.47 LMT)  and 381.92 LMT  covered capacity is available with  the  State agencies for  storage of  Central Pool  foodgrain  stock across the country. This is utilized  to  meet procurement requirements, buffer  norms, and operational needs under the Public  Distribution System (PDS).

Storage capacities are continuously  assessed based on procurement levels and storage  gaps and are being augmented through the following  schemes:

- 1 Private Entrepreneurs Guarantee (PEG) Scheme
- 2 Central Sector Scheme (CSS) 2017-2025 (culminated on 31.03.2025)
- 3 Construction of Silos under PPP Mode
- 4 Hiring from CWCs/SWCs/State Agencies
- 5 Private Warehousing Scheme (PWS)
- 6 Creation ofgodowns  under Asset Monetization
7. Modified  PEG Scheme for  North  Eastern and Hilly States (with  a guarantee  period of  15 years)

These initiatives are aligned with  the recommendations of  the HLC and are being implemented in  a structured and region-specific manner to  ensure robust, scientific, and costeffective foodgrain storage  across the country.

Effective  measures being taken to increase storage  facilities  for developing efficient  storage system in the country as under:

PEG  Scheme 2008/09:  Under the PEG Scheme, construction of conventional godowns has been undertaken in 24 States by attracting private investment. PEG Scheme was initiated  in 2008. Total capacity sanctioned for  godowns as on  01.02.2026 is  151.58 LMT.  Out of  this,  148.61 LMT  has been completed.

PEG  Scheme II  (CAP  Phase Out):  in  order to create covered capacity in wheat procuring states specially Punjab and Haryana, new  Capacity was sanctioned in  Punjab and Haryana to  Phase out Open Storage i.e.  60 LMT  in Punjab and 30 LMT  in Haryana is envisaged under this Plan.

Modified  PEG Scheme for  NE and Hilly States: For creation of new capacities  in North Eastern/ Hilly states, suitable modifications were made in  the PEG Scheme to  attract investors to North Eastern/Hilly states. Total 4.32 LMT  capacity is assessed to be created under this scheme.

Construction of Silos under  PPP mode: To improve operational eftlciency in storage of food grains with  the participation  of private  sector, and to upgrade and modernize the storage  facilities, Government of  India has approved construction of  Steel Silos for bulk storage  of food grains across the country  under PPP mode.

Accordingly, Silos at 57 locations with capacity 32.25 Lakh MT  are functional (as on 31.01.2026).

Central Sector  Scheme (CSS):  For the augmentation of  godowns, under Central Sector Scheme (2017-25), Ministry  had approved the construction of godowns at 24 locations (15 in North-East and 9 in other than NE  region)  with  a total  capacity of  1,05,890 MT  in NE  regions and 54,760 in Other than NE regions.

Under this  scheme, a total  capacity of  1,23,970 MT  (72,550 MT  in NE  regions and 51,420 MT  in  Other  than NE  regions)  has been created by  FCI  from  01.04.2017 to  01.02.2026. This scheme is culminated  on 31.03.2025.

Asset Monetization:  Under this scheme, additional capacity is created on FCI's  owned exislling depots in PPP mode. Total 58,950 MT  capacity has been taken over as on 01.02.2026.

Hiring of  godown from CWC/ SWCs/ State Agencies/ Private parties: FCI hires  storage capacity from  CWC, SWCs, State Agencies and Private Parties (under PWS scheme) as per the requIrement.

Furthermore, the  godowns are  constructed by  FCI  in  accordance with the  BIS standards, CPWD  specifications and manuals issued by  CPWD  for  ensuring uniformity,  safety and compliance with  established  engineering practices.

(d): PEG, Silos, Asset Monetization capacities are being constructed under PPP (Public Private Partnership) mode where capital expenditure is made by private parties and rentals are paid by FCI.

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