Various modes of Storage

Scientific Storage- Need of the hour• Food Security & Food Production are equally

important for inclusive growth• India lays maximum emphasis on increasing

production, but unfortunately follows a tardy policy on food grain storage

• Little has been done on improving storage conditions in our country

• Covered Space with FCI & State Agencies: 37 Million Tons

• Their Procurement: 50-55 Million Tons p.a.• Storage Gap: 13-18 Million Tons

CAP Storage (is it really “Storage” ?)

• Loaded with a storage gap of 13-18 Million Tons, Govt is left with no option but CAP Storage, that are just “open to sky dummy depots” inviting rains, pests & insects to attack grains at their sweet will.

• Result: Rotten Grains, inedible even by animals, leading to huge losses.

Estimated Storage Losses

• Losses from “Harvest to Household”:• a) Covered Godown Storage 10%• b) Open CAP Storage 20%• c) Silo Storage Negligible

• Source: FAO

Evolution of Bulk Handling from Evolution of Bulk Handling from Conventional Bagged StorageConventional Bagged Storage

• India not new to silos – First silos in 1970s

• Next Initiative – National Policy on Storage,

Handling and Transportation of Food Grains

in 2000.

• - Bulk storage, handling and transportation

- Public Private Partnership (PPP)

- Build Own and Operate (BOO)

Agri Economy During Eighties• With parliament enactment during sixties the

procurement & distribution became State Govt’s responsibility and Food Security was by Central Govt.

• Food Corporation of India (FCI) was given a mandate for the storage of the foodgrains on behalf of Central Govt.

• Through Parliament budget all funding for food security

was made possible.

• All the post harvest and storage losses were to the account of the Central Govt.

• Cyclic foodgrains surpluses started bothering Central Govt. looking for better storage infrastructure.

• Industrialization too picked up during this phase.

Agri Economy During Nineties• India became self dependent for its foodgrains

production.

• Industrialization could cope up with educated employments, which resulted in lesser dependence on agri based employment

• For infra related developments the Govt. started encouraging the Public Private Partnerships which resulted in win win situation for businessmen and the Govt. which inevitably generated lot of productive employment

• Farm level foodgrains production started reaching its saturation levels

Sensibility for Bulk Storage & Handling

• Fresh initiative – National Policy on Storage, Handling and Transportation of Foodgrains (2000)

- Bulk storage, handling and transportation

- Private participation

• Under this policy, FCI invited Global Tenders & set up state of art Silo Storage of 6 Lac Tons through Private participation

• FCI’s this pilot project is operating successfully

• Need to replicate such projects at Farm Level, Storage Level & Port Level to create an efficient supply chain in India

• China has already adopted Silos as prime storage medium. Even developing countries like Brazil & Argentina have also gone for Silo Storage

Various types of Silos

• Hopper Bottom Silos, ideally suited for Farm Level Storage and Mandi Level Storage

• Capacity: 500 MT- 1250 MT

• Flat Bottom Silos, suitable for Long Term Storage at Rail Heads and Ports

• Also ideal for Strategic Reserves

• Wide range of capacities available viz.,1500 MT-16500 MT

Advantages of Silo Storage• Space required in Silo facility is 1/3rd against

conventional storage• Quick transaction of farmer’s produce in most efficient

& transparent manner• Lesser threat from weather & hence lesser possibility of

grain spoilage• Efficient clearing of mandis during season & usage of

silos as storage point after the procurement season is over

• Economical linkages to Rail heads• No glut in mandis• Elimination of unproductive operations & reduced losses

Contd…

• Scarcity of labour & inefficient labour operations further justify need for silos

• Right from farm till its sale in mandi, foodgrains are handled in bulk. Hence Silo Storage is best match for mechanical bulk handling in mandis

• Some existing storage facilities in Punjab/ Haryana are far from procurement as well as Rail heads resulting in excessive transportation cost.

Contd…..• 90% of wheat arrives in Punjab/ Haryana Mandis in

just 20 days resulting in choking of mandis• Increasing arrivals require expansion & upgradation of

Mandis• Horizontal expansion needs heavy investments in land• Many mandis are situated in commercial areas, where

further expansion may not be feasible. Alternately, these can be profitably used for other commercial ventures

• Booming economy & more employment opportunities in labor surplus states like Bihar, UP, Orissa has created labor shortage in Punjab/ Haryana

Contd…• Inefficient manual operations carried out in mandis

at present cannot cope up with peak marketing requirements of state

• Limited resources of transporters result in non lifting of stocks on day to day basis causing choking of mandis during peak season

• Unpredictable weather during season threatens procurement process besides spoiling the stocks lying in open yard

• Present manual operation creates lot of environmental problems

• Weighment & Quality Check System in present mandis is not effectively implemented due to inherent limitations of the manual system

Alternate Storage Techniques: Silo Bags

Thank you