c
 

With the area under wheat, pulses and oil seeds going up
substantially in India, the government may experience storage problems and wastage of food.

The total storage capacity of FCI or Food Corporation Of India, the official hoarder of India is pegged at
28.84 million tons as on April 1 2010.

This year, as wheat acreage has gone up by almost 9 lakh hectares from a year ago, the government is
expecting a bumper harvest to the tune of 82 million tons. Previous year, the figure stood at 80.17
million tons.

Also, pulses acreage has gone up from 11.11 lakh ha to 14.8 lakh ha and the government has been
expecting output to the tune of 16.5 million tons.

Oil seeds acreage has jumped by 3.23 lakh ha.

Under this circumstance, Open Market Sale Scheme of grains may not work out, it is feared. As per this
scheme, produce are sold through at very cheap rates in open market.

Earlier reports in November said that the central government has been seeking increased participation
of private sector in food grain storage.

This measure would augment the current FCI facilities for storage of grains.

Interestingly, FCI facilities for food grain storage are more expensive when compared to private storage
arrangements.

There was tremendous response to tenders floated by the FCI for private sector warehousing space.
Total storage capacity offered by private sector in various tenders was 165 lakh tons.

Distributed storage is also under consideration where storage facilities would come up in places of
consumption. Under this policy, districts that do not have enough of storage facilities for four months,
will get priority.