Food Storage

Free PDF's     5th August 2023        

Context: The Union Cabinet approved the establishment and empowerment of an Inter-Ministerial Committee (IMC) for the facilitation of the “World’s Largest Grain Storage Plan in the Cooperative Sector”.


                                Government initiatives for augmentation of grain storage capacity 

  • National Policy on Handling and Storage of Food Grains 2000: To reduce storage and transit losses at farm and commercial levels, and to modernize the handling, storage, and transportation system of food grains in India. 
  • Gramin Bhandaran Yojana: Subsidy is provided for the construction/ renovation of rural godowns to create scientific storage capacity. 
  • The Warehousing (Development and Regulation) Act, 2007: It made the Warehousing Receipt a negotiable. Private Entrepreneurs Guarantee (PEG) Scheme: To augment the storage capacity of FCI in PPP mode. 
  • PM Kisan Sampada Yojana: For Development of cold storage facilities, specialised packaging units, warehousing facilities, etc.

Need for an effective food grain storage system 

  • Backward and forward linkages: An effective storage system aids farmers as well as forward linkage systems such as the food processing sector. 
  • Improper local storage systems: The household sector retains about 70% of the total production and substantial quantities of foodgrains are wasted due to improper storage at the farm level. 
  • Lack of storage management: Often the stock stored in the warehouses remains in storage for more than its shelf life and such long storage, makes grains prone to rodents, moisture, birds, and pests.
  • Lack of mechanised storage: About 80% of handling and warehousing facilities are not mechanized and traditional manual methods for loading, unloading, and handling food grains and other commodities are used. 
  • Insufficient number of storage facilities: The FCI has insufficient grain silos and covered godowns with adequate storage capacities. The country's current godown facilities can store only up to 47 percent of the produce. 
  • Issues with cold storage: India’s cold storage capacity is unorganized and dominated by traditional cold storage facilities. The distribution of cold storage is highly uneven with the majority of the cold storage is limited to Uttar Pradesh, Gujarat, Punjab, and Maharashtra.

Way forward 

  • Improve efficiency at farmgate: Building aggregation units (i.e. modern pack-houses and pooling points) at the village level with transport links should be promoted. 
  • Participation of States and local government: More responsibility can be shared with States which are performing well such as Haryana, Punjab, Andhra Pradesh, Chhattisgarh, Madhya Pradesh etc. 
  • Focus on drying, aeration, and temperature control: Moisture and temperature determine how long the grain can remain in storage without losing its quality. Therefore, altering storage methodologies and management in accordance with these indicators. 
  • Strengthening traditional means of storage methods: Traditional means of storage should be strengthened with modern inputs like Bamboo structures and Mud and earthen structures.
  • Phase out of Covered and Plinth (CAP) storage: CAP should be gradually phased out with no grain stocks remaining in CAP for more than 3 months. Silo bag technology and conventional storage should be used instead. 
  • Encouraging private participation: Government can also provide credit facilities for Farmer’s Producer Organizations (FPOS) to invest in storage warehouses, cold chain storage, etc. 
  • Modern and cutting-edge technology in food storage: Adoption of technologies like Internet of Things, Blockchain, and Artificial Intelligence can aid food grain management. Sensors-based data can be used to assess the quality of grains in real-time and maintain the temperature and moisture control variables accordingly.