Empowering Farmers, Ensuring Food Security: FCI’s Storage Triumph

Ensuring food security for our nation is a top priority, and it all starts with proper storage of food grains. As of July 1, 2023, the Food Corporation of India (FCI) has taken substantial measures to enhance its storage capacity, with a network of 1,923 warehouses across the country. These warehouses, both owned and hired, boast an impressive capacity of 371.93 LMT for the storage of central pool food grains. We understand the significance of this information for farmers like you, and that’s why we bring you a comprehensive overview of the FCI’s storage capacity and how it impacts food procurement, buffer norms, and the Public Distribution System (PDS) operations for rice and wheat.

Overview

The Food Corporation of India’s storage capacity is a critical aspect of ensuring food security and smooth distribution of food grains across the nation. This capacity is assessed based on the level of procurement, buffer norms, and the requirements of the National Food Security Act (NFSA) and Other Welfare Schemes (OWS) in different states. To bridge any storage gaps, the FCI undertakes various schemes, including the Private Entrepreneurs Guarantee (PEG) Scheme, Central Sector Scheme (CSS), construction of SILOs under PPP mode, and hiring of godowns from different agencies. These efforts aim to create sufficient storage facilities and facilitate the efficient distribution of food grains.

Key Points

1. Storage Gap Assessment: The requirement of storage capacity in FCI is closely linked to the level of food grain procurement, buffer norms, and PDS operations for rice and wheat. To determine storage gaps, FCI analyzes the highest stock levels in the past three years in procuring states and the four-month (six months for specific regions) requirements under NFSA and OWS in consuming states.
2. Creating Storage Capacities: To address the storage gap, FCI implements several schemes, such as the Private Entrepreneurs Guarantee (PEG) Scheme, where investors are granted a one-year timeframe, starting from the issuance of the letter of memorandum (LoM), to complete the construction of the godown. Additionally, the Central Sector Scheme (CSS) aims to complete ongoing projects by March 2025.
3. SILO Development: The FCI is actively involved in constructing SILOs under the Public-Private Partnership (PPP) mode. The development timeline for these SILOs includes 270 days for fulfilling condition precedents (CPs) and 18 months for construction.
4. Hiring from Central and State Agencies: FCI also hires godowns from Central Warehousing Corporation (CWC), State Warehousing Corporation (SWCs), and other state agencies to augment storage capacity promptly.
5. Private Warehousing Scheme (PWS): Under this scheme, FCI hires additional godowns from private warehousing service providers to efficiently manage the storage of foodgrains.

State-wise Storage Capacity

Let’s take a look at the state-wise covered storage capacity as of July 1, 2023:

• East Zone: Bihar, Jharkhand, Odisha, West Bengal, and Sikkim have a total storage capacity of 30.139 LMT, with Bihar leading the pack with 10.621 LMT.
• North East Zone: This zone, comprising states like Assam, Tripura, and Manipur, has a storage capacity of 8.259 LMT, with Assam having 5.483 LMT.
• North Zone: States like Punjab, Uttar Pradesh, and Rajasthan account for a substantial storage capacity of 237.853 LMT out of the total 371.937 LMT.
• South Zone: With a combined storage capacity of 50.333 LMT, states like Andhra Pradesh, Tamil Nadu, and Telangana play a crucial role in ensuring food security.
• West Zone: Gujarat, Maharashtra, and Chhattisgarh contribute significantly to the overall storage capacity of 45.352 LMT.

Conclusion

The Food Corporation of India’s extensive efforts to expand its storage capacity through various schemes and partnerships are instrumental in safeguarding our nation’s food security. With 1,923 warehouses boasting a total capacity of 371.93 LMT, the FCI is better equipped to manage food grain storage and distribution efficiently. As farmers, your collaboration in this endeavor is crucial, and together, we can ensure a resilient and well-fed nation. Let’s continue working towards a brighter and more secure future for all.