Question : WAREHOUSING FACILITIES FOR AGRO- PRODUCTS



(a) whether the Government proposes to formulate a plan for providing adequate storage capacity for agriculture produce;

(b) if so, the details thereof;

(c) whether the Government proposes to encourage private sector participation in creating such storage facilities in the country; and

(d) if so, the details thereof?

Answer given by the minister


MINISTER OF STATE IN THE MINISTRY OF AGRICULTURE AND MINISTER OF STATE IN THE MINISTRY OF CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION (PROF. K.V. THOMAS)

(a) to (d): The Government is implementing the following schemes for providing adequate storage capacity for agriculture produce in the country through private participation.

The Ministry of Consumer Affairs, Food and Public Distribution through Food Corporation of India (FCI) has planned to establish new godowns of 3.41 lakh MT for an estimated construction cost of Rs.164.00 crore, without land cost, in various States during XI Five Year Plan to manage procurement/ maintenance of adequate stocks for supplies in the Public Distribution System (PDS) and other Welfare Schemes against the likely budget allocation of Rs.125 crores by Govt. of India. The details of this shelf of projects are given in the enclosed Annexure-I. The actual number of godowns taken up out of this will depend on the availability of funds during the XI Plan period and suitable land from State Governments. Under the Private Entrepreneur Godowns – 2008 Scheme of Department of Food and Public Distribution, High Level Committee has approved a capacity of 126.35 lakh MT during the current financial year in the country. The details are given in Annexure-II.

Central Warehousing Corporation is in the process of constructing 1.45 lakh MT additional Storage space during 2009-10 for storage of foodgrains.

Ministry of Agriculture is also implementing a Capital Investment Subsidy Scheme of Construction of Rural Godown since 1/4/2001. The main objectives of the Scheme include creation of scientific storage capacity with allied facilities in rural areas to meet out various requirements of farmers for storing farm produce, processed farm produce, agricultural inputs, etc., and prevention of distress sale by creating the facility of pledge loan and marketing credit. Under this scheme, subsidy @ 25% is given to all categories of farmers, Agriculture graduates, cooperatives & CWC/ SWCs. All other categories of individuals companies and corporations are eligible for subsidy @ 15% of the project cost. In case of NE States/hilly areas & SC/ST entrepreneurs and their cooperatives and Women Farmers, subsidy shall be 33.33%. Since the inception of the scheme, 20689 rural godowns with a capacity of 240.87 lakh MTs involving release of eligible subsidy of Rs.553.80 crore have been sanctioned under the scheme upto 30th June, 2009 .