Question : Foodgrains Storage Capacity

(a) the total foodgrain storage capacity required and available in the country;
(b) whether the Government has taken cognizance of the fact that huge stocks of foodgrains are damaged every year due to rains, unavailability of adequate storage capacity and shortage of godowns in the country and if so, the details thereof along with the steps taken to prevent the wastage of foodgrains;
(c) the names of the States that have more storage capacity of foodgrains than they need at present;
(d) whether additional storage capacity in some States has resulted in a crisis and if so, the details thereof;
(e) the corrective steps taken/ proposed to be taken by the Government in this regard; and
(f) whether the Government has any proposal to set up new FCI Godowns for storing foodgrains and if so, the details thereof, State/UT-wise?

Answer given by the minister

MINISTER OF STATE FOR CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION
(SHRI C. R. CHAUDHARY)
(a): On the basis of peak stock requirement during procurement season, the overall storage capacity required for central pool food grains in the country is about 600 Lakh Metric Tonnes (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, was 735.46 LMT as on 31.01.2018. This comprised 611.31 LMT covered godowns and 124.15 LMT covered plinth storage. As such, there is sufficient capacity for storage of central pool food grains at the national level.
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(b): No damage of foodgrains can be attributed to lack of proper storage facilities. The foodgrains are also stored scientifically with various preservation measures like fumigation and treatment with pesticides.
In spite of taking necessary care and precautions, small quantities of foodgrains become non-issuable or rotten due to various reasons like:
i. Transit damages viz enroute damage in wagon/truck due to contamination, wagon roof leakage etc.
ii. Due to natural calamities like cyclone/flood/heavy rains.
iii.Possibility of down gradation of grains which are procured under relaxed specifications.
iv. In some cases due to negligence of officials/ officers, for which suitable disciplinary action against defaulters, where ever found guilty, are invariably taken.
It is not correct to say that huge stocks of foodgrains get damaged due to rains every year. Only a small quantity of 4 MT got damaged in the stock held by FCI due to rains, during 2017-18 as on 01.02.2018.
(c): Total storage capacity available is as per requirement. The utilization of storage capacity depends upon the level of procurement, movement of foodgrains etc. and may be differ from time to time. In procuring regions, the capacity utilization is maximum when procurement operations are going on 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.
(d): No such issues have been reported.
(e): Does not arise.
(f): The Government has been setting up new FCI godowns under Central Sector Scheme “Storage and Godowns” with focus on the North Eastern States. Funds are released by the Government to FCI as equity for construction of godowns. This scheme is being continued for next 3 years i.e. upto 2020, in the North Eastern States along with Himachal Pradesh, Jharkhand and Kerala. The state-wise details are in Annexure. A capacity of 4,590 MT has been completed by FCI upto 31.01.2018 in the current financial year.
In addition, depending on requirement in specific areas and for modernization of the storage facilities, the Government has been implementing the following schemes for construction of godowns and silos by private parties, which are then taken on guaranteed hiring by FCI:
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i. Private Entrepreneurs Guarantee (PEG) Scheme: Under this Scheme, which was formulated in 2008, storage godowns are constructed by private parties, Central Warehousing Corporation (CWC) and State Government Agencies for guaranteed hiring by FCI. A capacity of 140.62 lakh MT has already been completed as on 31.01.2018
ii. Construction of steel silos: Government of India has also approved action plan for construction of steel silos in the country for a capacity of 100 LMT, for modernizing the storage infrastructure and improving shelf life of stored food grains. As on 31.01.2018, tenders have been awarded for a capacity of 38.50 LMT and a capacity of 6.25 LMT silos has already been added under the above action plan. However, contract for one project of 0.50 LMT capacity has been cancelled by FCI due to failure on the part of concessionaire to provide the performance security.
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ANNEXURE
ANNEXURE REFERRED TO IN REPLY TO PART (f) OF THE UNSTARRED QUESTION NO. 1818 DUE FOR ANSWER ON 06.03.2018 IN THE LOK SABHA.
Capacity of godowns planned to be constructed by FCI under Central Sector Scheme
The state-wise details of capacity of godowns planned for construction during the next three years is as given below:
(capacity in MT)
SL
States
2017-18
2018-19
2019-20
Total
1
Assam
10000
20000
12500
42500
2
Arunachal Pradesh
5010
1120
0.00
6130
3
Manipur
20000
5000
0
25000
4
Meghalaya
2500
5000
0.00
7500
5
Mizoram
0
0
10000
10000
6
Nagaland
4590
0
0
4590
7
Sikkim
0
0
3500
3500
8
Tripura
0
10000
10000
20000
Total North East (NE)
42100
41120
36000
119220
9
Himachal Pradesh
3980
5580
1660
11220
10
Kerala
15000
0
0
15000
11
Jharkhand
0
15000
50000
65000
Total Other than North East (ONE)
18980
20580
51660
91220
Total (NE + ONE )
61,080
61,700
87,660
2,10,440
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