Question : Storage Capacity of FCI

(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?

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.
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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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