Revolutionizing Indian food security with grain storage innovations

India is taking pioneering steps in upgrading its grain storage infrastructure through private-public partnerships. Two rice silos have been built in Bihar, with plans to construct wheat silos in 196 locations.

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Two rice silos with a combined capacity of 25,000 tonnes have been constructed by the National Commodity Management Services Ltd (NCML) in Buxar and Kaimur, Bihar, under the design-build-finance-operate-transfer (DBFOT) model through a private-public partnership (PPP) with the Food Corporation of India (FCI). This initiative marks the first of its kind in India for rice storage. The silos are designed to store rice at 15 degrees Celsius, aimed at preventing cereal wastage during storage.

An official stated that the construction of 2 million tonnes (MT) of silos has been completed and is currently in use, while 1 MT capacity silos are expected to be handed over to the FCI next month. Additionally, the construction of 3.4 MT of silos was sanctioned six months ago, and construction is anticipated to commence shortly.

The estimated cost for constructing 1 MT of silos is approximately Rs 1,000 crore. This is part of a larger Rs 9,000-crore project to establish wheat silos with a total capacity of 9.4 MT over the next three to four years, also under the PPP model. These silos will be distributed across 196 locations in various states.

Simultaneously, the FCI is working to complete the construction of 3 million tonnes (MT) capacity wheat silos across the country by November under the PPP model. These silos are being built under the DBFOT mode, with land owned by the FCI, and they operate through the design, build, fund, own, and operate (DBFOO) model where land belongs to private entities. The FCI will lease these silos for 30 years. 

Fixed storage charges are determined based on a per-tonne, per-year basis, with escalations tied to 70% of the wholesale price index and 30% of the consumer price index.