Wheat-silos capacity to triple in 3 years
India plans to expand wheat silo capacity from 2.8 MT to 9 MT in three years through a ₹9,000 crore project. Using PPP models, FCI is awarding contracts for modern silos across 250 locations. These state-of-the-art facilities aim to reduce wastage, improve logistics, and support food security, with pilot projects also testing rice storage silos.
The government is aiming to build 9 million tonne (MT) of wheat silos capacities over the next three years, from a current level of 2.8 MT of state-of-the-art grain storage facilities.
The Food Corporation of India (FCI) has invited bids for the construction of 2.5 MT of modern wheat storage facilities under through the public-private partnership (PPP) model.
Sources told FE that by February 2025, contracts for building this state-of-the-art grain storage facility would be awarded while 35 silos with a cumulative capacity of over 2.8 MT have been in operation.
In addition, contracts for constructing over 3.5 MT of modern storage facilities across 80 locations have been awarded to private entities. These will be likely to be ready over the next two years. “In the next couple of years total wheat silos capacity would be close to 9 MT,” an official said.
This is part of a Rs 9,000 crore project to build wheat silos with 9 MT of capacity, where FCI would store grain. These silos are spread around 250 locations across Punjab, Haryana, Madhya Pradesh, Uttar Pradesh, Rajasthan, Gujarat, Maharashtra, Bihar, West Bengal, Jammu, Uttarakhand and Kerala.
Sources said several private entities, including Adani Agri Logistics, KCC Infrastructure, National Collateral Management Service, Om Metals Infra project have been awarded the contracts.
The corporation will use these silos for storage of wheat through a lease of 30 years with private entities. Bidding parameters include fixed storage charges by the FCI to private entities on a per-tonne, per-year basis.
Currently, the silos are being built under the design, build, fund, own and transfer (DBFOT) mode, under which the FCI owns the land, and via the design, build, fund, own and operate (DBFOO) model, under which land belongs to private entities.
In 2005, under a pilot project to modernise storage infrastructure, the construction of 0.5 MT of wheat silos at 20 locations under the build, own and operate (BOO) model was carried out by Adani Agri Logistics.
The estimated cost of construction of 1 MT silos is around Rs 1,000 crore. Silos are sub-mandi yards, which could bring ease of procurement of grains for farmers and lead to a significant reduction in logistical costs.
Meanwhile, officials said a 12,500 tonne of steel silos for the storage of rice has been constructed at Buxar Bihar on a pilot basis, which would be used by the FCI next month.
This is part of the government’s pilot project to set up steel silos for rice to prevent cereal wastage during storage. Officials said that technology for silos to store rice is still being developed, as at these facilities, the grain has to be stored at 15 degrees celsius.
The FCI on an average stores 40-50 MT of rice and wheat annually for ensuring supplies to beneficiaries under the National Food Security Act. Silos ensure better preservation of food grains.
On the recommendation of a high-level committee, chaired by former food minister Shanta Kumar in 2015, construction of silos with railway sidings commenced. Then the food ministry approved a ‘hub and spoke’ model because of challenges faced in land acquisition for railway sidings.
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Source : The Financial Express
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