Additional Foodgrain Godowns To Be Created In 19 States

By W Rorrkychand Singh,

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The government is planning to construct foodgrain storage capacity of 151 lakh tons in 19 states, said Minister of Consumer Affairs, Food and Public Distribution K.V. Thomas informed the Parliament Tuesday.

"To strengthen the functional areas, like Quality Control, Storage etc., the Government carried out the organizational restructuring of FCI in the year 2010. Further to reduce the storage under Cover and Plinth ( CAP ), the Government formulated a Scheme for construction of storage godowns through private entrepreneurs, Central Warehousing Corporation (CWC) and State Warehousing Corporations (SWCs)," said the Minister.

"Out of this tenders have been finalized for creation of storage capacity of about 89 lakh tonnes as on 15.02.2012 by the private entrepreneurs. CWC and SWCs are constructing 5.4 and 14.75 lakh tonnes respectively under the Scheme, out of which a capacity of about 5 lakh tonnes has already been completed by CWC/SWCs," the minister said in a written reply.

Under the scheme, the Food Corporation of India would give a guarantee of ten years for assured hiring to the private entrepreneurs, he added.

Stating the steps taken by FCI to prevent food grain damage, the Minister said, "Prophylactic and curative measures are carried out regularly for the control of insects/pests. Effective rodent control measures are also undertaken. Regular quality checks are conducted to ensure proper preservation of foodgrains in storage. Adequate dunnage is provided for the foodgrain stocks stored in CAP."

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing Commodities
Referenced Stocks: CAP

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