Adani Agri Logistics

Limited: Blocking the Grain

Drain
 Indian Agricultural landscape
• Main sector of Indian economy.
• Accounts for 25% of India’s GDP.
• Employs 70% of the working
population.
• “Green revolution” started in 1960’s.
• Focused program to increase the
production of food grains.
• Superior yielding methods
• Disease resistant wheat varieties
• Better farming knowledge.
• Labour intensive sector.
• Procurement and distribution responsibility – Individual state govts.
• Food security – Central govt.
• Funding for food security came from Parliamentary budget.
• FCI – commissioned to store the food grains.
• Regulation of 5 key agriculture products- wheat, rice, pulses, sugar and
edible oil.
• Estd. MSP.
Conventional Agricultural supply chain
model
Adani Agri Logistics Limited(AADL).

• Founded in 2005, as a division of

Adani group of companies.
• PPP with FCI to execute national
project on bulk handling of food
grains – rice, wheat and coarse
grains.
• Act as custodian until delivery.
• Ensure quality and quantity
maintenance.
Food Corporation of India (FCI)
• Established under Food Corporation Act of 1964.
• To provide effective price support to farmers.
• Cater to the PDS.
• Maintain operational and buffer stock levels of food grains.
• Network of storage depots located all over India.
• During peak season, Punjab sents 50K tonnes of food grain a day to other states.
• Challenge of FCI – monitor pilferage, reduce wastage.
• 1700 warehouses, accounting 23 mn tonnes of storage capacity.
• An innovative “cover and plinth” (CAP) system
CHALLENGES AND INEFFICIENCES OF
CONVENTIONAL STORAGE SYSTEMS
• Serious problems with CAP.
New System
• National policy on bulk handling, Storage and transportation in June
2000.
• PPP – between FCI and AALL.
• Build – own – operate agreement to supply food grains for the PDS.
• 20-year service agreement signed on June 28, 2005.
• Covered all relevant processes and functions.
• AALL – custodian until delivery.
 PPP – PILOT PROJECT

• Absolute objective – providing food security to the nation.

• Bulk handling to be central – reduce human interface and intervention.
• Envisaged storing and transporting a minimum of 4L tonnes of food grains
possibly.
• AALL setup up 7 base and field depots across the country.
• Base depot – collect and receive the food grains.
• Field depots – dispersal.
• Facilities at AALL – fire hydrant systems, superior handling systems, full security
cover, watchtowers and wireless system.
• State-of-the-art technology to automate and monitor operations.
• Provide quality, accountability and transparency within the whole structure.
Operations at base depots
• The receiving system
• Pre storage
• Process tower
• Main storage
• Shipment