Building Resilient Infrastructure for Storage of Food Grains

A Record Harvest Meets an Achilles' Heel: The Storage Crisis in India

India's foodgrain production touched an unprecedented 353.96 million tonnes in 2024-25, driven by favourable monsoons and interventions under schemes like the Agriculture Infrastructure Fund (AIF). Yet, the critical question remains unanswered: can India store what it produces without significant waste? Despite increased allocations and ambitious plans, the reality of India's storage infrastructure is weighed down by logistical bottlenecks, outdated warehouse facilities, and uneven implementation.

Breaking the Pattern: A Record Crop But Persistent Deficits

Production records are often celebrated, but what they obscure is the systemic undercapacity to store these bumper harvests. While the government has launched initiatives like the World's Largest Grain Storage Plan in the Cooperative Sector, aimed at strengthening grassroots infrastructure, field reports from rice-producing states like Punjab and Haryana reveal glaring storage shortages. For instance, rice stocks have reportedly piled up due to slow movement to consumer states, with a backlog exacerbated by low demand from these regions.

The reliance on open plinth storage—a method where grains are stored outdoors under tarpaulin—remains a vulnerability. According to FCI data, as of mid-2025, approximately 20% of its stored grains are housed in this outdated and climate-vulnerable format. It is a contradiction that even as steel silos promise enhanced shelf life and quality control, vast reserves remain exposed to monsoonal rains and humidity.

The Institutional Machinery: Grounded by Inefficiencies

A closer examination of the Food Corporation of India's (FCI) operations reveals multiple cracks. The agency procures grains at Minimum Support Price (MSP) to maintain buffer stocks for the Public Distribution System (PDS) and the National Food Security Act (NFSA). With 177 locations identified for modern godowns under asset monetization efforts, there was hope for a streamlined shift. However, as of July 2025, only 50 of these locations had become operational. The implementation timeline is proving ambitious, given the dual need for land acquisition and private participation under schemes like the Private Entrepreneurs Guarantee (PEG) introduced in 2008.

Several states, particularly in the Northeast, have benefited from Central Sector allocations like the ₹379.5 crore earmarked exclusively for the region. Yet, ground-level audits in Assam and Meghalaya show sporadic use of funds, with outdated cold storage facilities still dominating the storage landscape. Modern infrastructure promised under schemes like the Capital Investment Subsidy Scheme for Controlled Atmosphere (CA) storages has been slow to translate into tangible benefits.

The Data Speaks, and It Doesn't Paint a Pretty Picture

The government's narrative has leaned heavily on quantitative achievements under programs such as the Pradhan Mantri Kisan SAMPADA Yojana. Official statements claim this scheme has modernized 500 cold storages since its inception. Yet, NITI Aayog assessments point out that less than 30% of these cold storages comply with scientific norms critical for temperature-sensitive grains and perishables.

Post-harvest losses remain a national embarrassment. According to FICCI estimates, India's percentage of foodgrain loss due to poor storage hovers between 6–10%, translating into nearly 20 million tonnes wasted annually—enough to feed roughly 70 million people. The Agriculture Infrastructure Fund may offer interest subvention and credit guarantees, but its lack of robust monitoring mechanisms raises doubts about its efficacy in arresting these losses.

The Uncomfortable Questions: Who Bears the Final Responsibility?

While India's storage crisis is often framed as a logistical issue, the structural limitations of federalism complicate matters. The Centre’s dominance through FCI has often alienated state governments, especially in regions relying on decentralized storage through PACS and rural godowns. States are frequently underfunded or ill-resourced to maintain storage infrastructure, creating delays when grains must be handed over to FCI.

Additionally, the cooperative sector storage plan raises concerns about regulatory capture. PACS-level godowns are often controlled by politically affiliated cooperatives, which could prioritize local electoral agendas over operational efficiency. Will these grassroots godowns follow scientific processes, or will they devolve into storage hubs with minimal oversight? Transparency remains elusive.

The International Contrast: Lessons from South Korea

South Korea, facing a similar bump in rice production in 2018, adopted a targeted infrastructure overhaul. The Korean government invested heavily in climate-controlled silos while incentivizing farmers to adopt cooperatively owned cold storages. Critically, implementation was tied to local stakeholder accountability instead of top-heavy bureaucratic models. The result? Post-harvest losses in South Korea dropped below 1%, highlighting the lag in India's approach to linking infrastructure investments with operational transparency.

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