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
Conventional 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, • Flat Bottom Silos,
ideally suited for Farm suitable for Long Term
Level Storage and Storage at Rail Heads
Mandi Level Storage and Ports
• Capacity: 500 MT- 1250 • Also ideal for Strategic
MT 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