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Centre mulls world-class storage system

the central government is working on a comprehensive plan of creating a world class storage system and standardisation of warehouses
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In an effort to strengthen post-harvest supply chain across the country and ensure better returns to the farmers in a big way, the central government is working on a comprehensive plan of creating a world class storage system and standardisation of warehouses complying with the requirements of the Warehousing Development and Regulation Authority (WDRA).

A sure and silent change is sweeping the country which is going to help the farmers in a big way and these changes will not only strengthen post-harvest supply chain but will also improve the returns to farmers in many ways, said sources in the Food Ministry.

Department of Food & Public Distribution has pushed for an ambitious plan through Food Corporation of India (FCI) for the development of about 100 silos with capacity of 35.875 LMT (Lakh Metric Tonnes), which will be road fed and will work on ‘Hub and Spoke’ model. A road map of the same is already in place and work has started in all sincerity, said the sources.

Hub and Spoke model will be efficient and complexities related to land acquisition for rail siding silos are bypassed since road fed silos, near to procurement areas will help in direct bulk grain procurement from farmers, reduced turn-around times for farmers and quick intake and offtake of food grains.

Incentives at various stages of the project have been incorporated in the bid documents for Hub and Spoke to attract private investment. These in-build incentives shall incentivise the Concessionaire to expedite project implementation in an efficient manner.

A world class storage system in the country would need standardisation of all the warehouses under various undertakings and an integrated warehouse management.

In an endeavour to ensure high standards of warehouse construction and maintenance, registration of all warehouses of Central Warehousing Corporation (CWC) and Food Corporation (FCI) with the WDRA has already commenced with the deadline of April 30 for completion of registration, said a senior official.

Around 161 CWC warehouses have already been registered and the remaining 178 will be done by March 31, the official added.

Registration fees, security deposit and net worth conditions have been reduced for warehouses and staggered slabs, linked to capacity introduced to promote registration for small farmers, cooperatives, small warehouses businesses etc.

Source: SME Times

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