The rise in food production has compelled the government to increase storage capacity with the aid of private players With increasing food grain production, storage capacity at the home turf is unable to meet the farmers’ requirements. As a result, food grains are being damaged for being kept in the open, which is likely to affect availability of food grains in the coming months. Heavy monsoon showers have led to floods in major wheat producing states of Punjab and Haryana, which are damaging food grains stored in the godowns. This is one of the key reasons for hike in food prices forcing consumers to purchase products at high prices despite rise in production of food grains this year.
 Like every year, climatic conditions have proved to be both a friend and foe to the farmers. Due to favourable climatic conditions, production of food grains has been high. However, with the continuous monsoon showers, food grains that are left in the open are liable to rot, thereby leading to huge losses for farmers as well as exporters. Therefore, adequate store houses should be constructed at an elevated platform to prevent rainwater from entering the godowns.In this context, Arjun Mehra, director of Soham Limited, a mid-sized exporter and supplier of agro products in Jaipur, says, “Immediate measures should be undertaken to construct store houses that are well-equipped with latest machines to dry food grains, thereby preventing further wastage.”
Food grains could also be exported as a temporary solution in order to prevent any further loss. This would help farmers to get rid of the excess food grains, which are lying in the open plinths as well as help exporters to earn high profits.
Govt initiatives
Being concerned about food grains being wasted, the government has decided to increase the storage capacity by collaborating with private players. The latter would be constructing storage facilities under a 7-year guarantee scheme in order to ensure successful implementation of the initiative to be undertaken by the government.
Anil K Choudhary, managing director and CEO of National Bulk Handling Corporation (NBHC), while speaking to a FoodProcessing360 correspondent, says, “We need to hasten the process so as to achieve adequate storage space to fill the demand-supply equilibrium. The move to incentivise, organise and invite private players in ‘storage creation’ has come at the right time. The warehousing storage capacity has to grow at a double-digit rate over the next 4-5 years in order to fill in the existing gap and cater to future demand. Commensurate growth in the warehousing industry will have a positive cascading effect across the country, thereby supporting numerous other industries. This will create adequate investor interest further giving the economy as well as the industry a much needed fillip.”
Mr Choudhary further added that in the next 5-7 years, NBHC will increase warehouse/commodity management capacities to 12-15 million tonnes. In fact by 2011, NBHC would have a storage capacity of 5 million tonnes, under various strategic formats.
By involving private players and implementing the aforementioned measures, storage capacity can be increased to prevent wastage of food grains, thereby controlling food inflation in the country.
Sabrina Mitchell |
