Government Improves Storage Solutions for Farmers, Says Ministry of Agriculture & Farmers Welfare

In order to improve storage facilities, Government is implementing Agricultural Marketing Infrastructure (AMI), a sub-scheme of the Integrated Scheme for Agricultural Marketing (ISAM) under which assistance is provided for the construction/ renovation of godowns/ warehouses in the rural areas in the States to enhance the storage capacity for agriculture produce. Under the scheme, Government provides subsidy at the rate of 25% and 33.33% on capital cost of the project based on the category of eligible beneficiary. Assistance is available to Individuals, Farmers, Group of farmers/growers, Agri-preneurs, Registered Farmer Produce Organizations (FPOs), Cooperatives, and state agencies etc. The scheme is demand driven.

Since inception of scheme i.e. from 01.04.2001 and up to 30.06.2024, a total of 48,512 storage infrastructure projects (Godowns), with storage capacity of 93.99 Million MT have been sanctioned under the scheme and subsidy of Rs. 4,734.73 crore has been released. The State-wise progress of Storage Infrastructure is at Annexure-I.

Further, Agriculture Infrastructure Fund (AIF) scheme was launched in July 2020 with an objective to mobilize a medium – long-term debt financing facility for investment in viable projects for post-harvest management Infrastructure and community farming assets through incentives and financial support in order to improve agriculture infrastructure in the country.  Under the scheme, Rs. 1 Lakh Crore is provided by banks and financial institutions as loans with interest subvention of 3% per annum and credit guarantee coverage under CGTMSE for loans up to Rs. 2 Crores. Under the AIF Scheme, a total number of 13353 warehouses have been set up with the sanction of Rs 11258 cr by Banks and other lending institutions as on 18.07.2024.  As per guidelines, the AIF Scheme has not earmarked special allocation for setting up storage facilities. As per the Impact Assessment study by Agro Economic Research (AER), Department of Agriculture and Farmers Welfare (DA&FW), the average storage capacity is 7000 MT per storage project.

As informed by the Department of Food & Public Distribution, Ministry of Consumer Affairs, Food and Public Distribution, Government of India, as on 01.07.2024, Covered Storage Capacity available with FCI and State agencies for storage of Central Pool foodgrain stock is 837.68 Lakh MT against stored stock of 604.02 LMT. The details are annexed as Annexure-II.

                                                                                                                                   ANNEXURE-I

Progress of Storage Infrastructure assisted under AMI as on 30.06.2024

(Since inception i.e. 01.04.2001)

ANNEXURE-II

The requirement of Storage capacity in FCI depends upon the level of procurement, requirement of buffer norms and PDS operations for Rice and Wheat mainly. FCI continuously assesses and monitors the storage capacity and based on the storage gap assessment, storage capacities are created/hired through the following schemes:-

1. Private Entrepreneurs Guarantee (PEG) Scheme
2. Central Sector Scheme (CSS)
3. Construction of Silo’s under PPP mode
4. Hiring of godown from CWCs/SWCs/State Agencies
5. Hiring of godown through Private Warehousing Scheme (PWS)
6. Creation of godowns under Asset Monetization

Effective measures being taken to increase storage facilities for developing efficient storage system are as under:

1. Silo- In order to upgrade and modernize the storage facilities, Government of India approved Action Plan for construction of steel silos on PPP (Public Private Partnership) mode in the country.  Under this plan Silos with capacity of 23.75 LMT at various locations throughout country are under implementation. Out of which a capacity of 16.25 LMT are completed and remaining 7.50 LMT are under various stages of development. In addition to above, silos of 5.5 LMT capacity at 7 location have already been constructed and put to in use in 2007-09 under circuit base model.

Further, silo capacity of 111.125 LMT in PPP mode is proposed under Hub & Spoke model to be implemented in 3 phases. In phase –I tender for 10.125 LMT at 14 locations on FCI own land has been awarded and 24.75 LMT at 66 locations on private land have been awarded.

2. PEG Scheme- Under the PEG Scheme, construction of conventional godowns has been undertaken in 24 States by attracting private investment. PEG Scheme was initiated in 2008 and is in its last phase.  Total capacity sanctioned for godowns as on 01.07.2024 is 151.95 LMT.Out of this, 147.01 LMT has been completed, 3.94 LMT is under construction & 1.0 LMT is yet to start.
3. Centre Sector Scheme- Government of India through FCI has been constructing Food grain Storage Depots (FSDs) under Central Sector Scheme at hilly/difficult states where private investor do not come forward.  A capacity of 78,770 MT was created at 16 locations from 2017 onwards. The State-wise details of godowns constructed and in progress since FY 2017-18 is enclosed at Annexure-III.
4. Asset Monetization- Under Asset Monetization, godowns will be constructed on FCI vacant land. 177 locations were identified upon which 17.47 LMT can be constructed. In principle approval has been granted by Govt. of India (DFPD).
5. Phasing out of Covered and Plinth (CAP) – Traditionally, wheat is also stored in CAP by State Agencies/FCI in procuring regions. However, a policy decision was taken by Govt. to phase out CAP. Detailed Action Plan was prepared by FCI after deliberations with State Governments, which was approved by Government of India (DFPD). HLC approved the 31 locations for Punjab (9 LMT) and 10 locations at Haryana (4 LMT) under 10 year guarantee Scheme.

ANNEXURE-III