OPPORTUNITY FOR DEVELOPING MICRO WAREHOUSES IN RURAL AREAS

India’s economy is mostly dependent on the agricultural sector which contributes about
17% of the nation’s GDP. About 60% of India’s rural population depends directly on agriculture.
India produces around 260 million tonnes of food grains every year, but has a total storage
capacity of just 115 million metric tonnes (MMT). While state-run Food Corporation of India
(FCI), the Central Warehousing Corporations (SWC) together account for around 85 MMT of
warehousing capacity, and the private sector chips in with about 30 MMT.

Micro-warehouses storage structure was made by concrete, bricks, iron and cement. It
was especially scientifically constructed and management for the protection of the quantity and
quality of the stored products for longer period of time. It is managed by professionals. Here,
there is low risk to rodent because grain bags are store inside the micro warehouses in sequences
and regular spraying for protection from rodents and insect attack.

However, small and marginal farmers rarely use any of these modern warehousing
facilities. They either sell marketable surplus immediately after harvest because or use more
traditional storage facilities by covering heaps of grain with husks, clay, or other materials. Such
storage methods are subject to rodent attack and infestation leading to high wastage and quality
deterioration. Losses due to post-harvest is constant at 10%, around 6% of the total losses are due
to proper storage facilities and lack of knowledge regarding proper storage. Due to which all
farmers was struggling due to poor post-harvest management. And due to lack of storage
facilities, most farmers would end up selling their crops at distress sale prices. Some goods are
produce particular in the year but their demand are throughout the year at that time it helps in
stabilization of prices by adjusting demand and supply.

The establishment of micro warehouses in rural areas can be control post-harvest losses
and farmers can earn more profit and also enhance their livelihood. Scientific storage structures
(micro warehouse) play a major role in minimizing post-harvest losses stage. The traditional
storage structures used by the farmers in rural area which is not provide adequate protection
against the spoilage of food grains. While adopting these methods of storing food grain, due to
which farmer faces many losses, it is estimated that around 10 to 15% losses every year occurred
only due to proper storage of food grains. The efforts made till now have resulted in motivating
the farmers to use of scientific storage practices however the programmes has been working well
in certain areas in the country and this efforts are also needed in other areas. It is not easy for
construct micro warehouses to each farmer in rural area because its manufacturing cost is so
high. Apart from that we can aware him about micro warehouse facilities and also convenience
all the farmers to use micro warehousing facilities of other private companies that already work
in that particular area. It is very easy to store their grain in private warehouse at low rental charge
of grains that farmers can paid easily and they can sell their produce when they get high price in
the market. But there is a major problem of transporting facilities in rural area. So, warehousing
facilities should situated within a range of 3 to 4 km from the farmers locations.

Let, the MSP cost of 1 MT wheat is Rs.18000 (approx.)

The rental cost of 1 MT wheat is Rs. 100 (for 1 month)
If farmer will sell their produce after 6 month,
Then, the total rental costs will Rs. 600
After 6 month, the MSP cost of 1 MT wheat will be Rs.21000 (approx.)
Then, the actual cost will increase 21000-18000 = Rs. 3000
The actual profit of 1 MT wheat will 3000-600 = Rs. 2400.
Hence, the total profit receive by farmer is Rs. 2400 per MT after use of micro warehouse. The
profit depends upon the price of commodity. It can be increase or decrease.

I work 4 months field work in Samastipur district, I observed that many farmers unable to
use micro warehouse due to lack of awareness and insufficient storage facilities available in their
location. They understand that faces many losses while adopting traditional method of storage,
they unable to get fare price at the time of cultivation because at that time bulk amount of grain
produce and demand is constant so they does not get fair prices. At the time of harvesting huge
amount of food grains are collected and present number of warehouses gets insufficient for
storage of those grains. So, need to aware him about micro warehouses and its benefits, and also
need to established new warehouses in villages where it require. Farmers are required to be more
sensitized towards the use of micro warehouses in rural areas.