Ministry of Consumer Affairs, Food & Public Distribution | Agro Warehouses in the Country

PIB News Update: Minister of State for Consumer Affairs, Food & Public Distribution, Shri. Danve Raosaheb Dadarao has informed that Against total stocks of 642.32 LMT (as on 01.10.2019), the total storage capacity available with     Food Corporation of India (FCI), Central Warehousing Corporation (CWC) and the State Agencies (both owned and hired capacity), was 753.93 LMT (as on 30.09.2019) comprising 624.13 LMT in covered godowns and 129.80 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 30.09.2019, a total of 2131 godowns and silos (including both owned and hired) are available with FCI for stocking Central Pool foodgrains. The State/UT-wise details are at Annexure.

However, depending on requirement in specific areas and for modernization of the storage facilities, the Government implements the following schemes for construction of godowns and silos for storage of Central Pool Stocks in the country:

Private Entrepreneurs Guarantee (PEG) Scheme: Under this Scheme, which was formulated in 2008, storage capacity is created by private parties, CWC and State Government Agencies for guaranteed hiring by FCI. A capacity of 143.08 LMT has been created as on 30.09.2019.  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.

Central Sector Scheme (erstwhile Plan Scheme): This scheme is implemented in the North Eastern States along with a few other States. Funds from annual budgetary allocation are released by the Government of India to FCI and also 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 12th 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 30.09.2019.

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 30.09.2019, steel silos of 7.25 LMT capacity have been created. In the case of silos constructed in Viability Gap Funding (VGF) mode, land is provided by the Government/Government Agencies and full investment for construction is done by the private party. However, there is a provision for seeking grant up to 20% of total project cost from the Government in the bidding stage. In non-VGF mode, full investment including provision of land is done by private party. In both cases, after silos are constructed and are taken over by Government Agency, storage charges are paid to private party for the guaranteed period as per the Concession Agreement.

IV. Warehousing Development and Regulatory Authority (WDRA) regulates only the warehouses registered with it. If any warehouse intends to issue Negotiable Warehouse Receipt (NWR), it is mandatory to obtain certificate of registration from WDRA. However, no such registration is required for warehouses which do not propose to issue NWR. The NWRs issued by the warehouses help farmers to seek loan from banks against NWRs to avoid distress sale of agricultural produce.

ANNEXURE

State/UT-wise number of storage godowns & silos available with Food Corporation of India (FCI) (both owned & hired) for storage of Central Pool Stock of foodgrains (as on 30.09.2019) is given below: