Quick Overview
India has achieved record foodgrain production, making modern storage infrastructure critical to reduce post-harvest losses, ensure food security, and stabilize prices. Current storage systems involve the Food Corporation of India (FCI), warehousing corporations, private stakeholders, and traditional farmer-level storage. However, challenges such as high losses, economic burden, and dependence on outdated CAP storage remain. Initiatives like the Agriculture Infrastructure Fund, AMI scheme, PMKSY, and steel silos aim to modernize storage, improve farmer income, and strengthen supply chains. Addressing gaps in scientific storage, PPP participation, and regional coverage will be key to long-term food security.
Foodgrain Storage in India: Securing the Backbone of Food Security
Introduction
India’s food production has reached new heights, with 353.96 million tonnes of grains produced in 2024–25. Yet, the true challenge lies not in growing enough but in managing and storing this surplus effectively. Poor storage leads to wastage, economic loss, and weakened food security.
What is a Foodgrain Storage System?
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A network of facilities to preserve grains post-harvest.
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Ensures availability year-round for consumers and the Public Distribution System (PDS).
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Includes centralized warehouses, decentralized godowns, silos, and cold storage.
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Nearly 60–70% of grains are stored at the household level by small farmers using indigenous methods.
Types of Storage in India
Government Agencies
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Food Corporation of India (FCI): Manages silos, godowns, and CAP structures; 917.83 LMT capacity.
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Central Warehousing Corporation (CWC): Handles storage of farm produce and notified commodities.
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State Warehousing Corporations: Manage state-level storage.
Private & Other Stakeholders
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FCI rents from private warehouses.
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WDRA, Railways, and Civil Supply Departments play supporting roles.
Why is Storage Important?
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Reduces losses by protecting against pests, moisture, and spoilage.
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Ensures food security through buffer stocks and emergency reserves.
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Stabilizes prices by balancing supply and demand.
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Supports farmers’ income by reducing distress sales.
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Strengthens processing and exports by ensuring raw material flow.
Government Initiatives to Enhance Storage
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Agriculture Infrastructure Fund (AIF): Provides loans with interest subvention for post-harvest facilities.
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Agricultural Marketing Infrastructure (AMI) Scheme: Builds and renovates rural godowns.
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Pradhan Mantri Kisan SAMPADA Yojana (PMKSY): Boosts food processing, reduces wastage, supports exports.
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Other Schemes: Construction of steel silos, PEG scheme, and Central Sector “Storage & Godowns” for NE regions.
Challenges in Grain Storage
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High Post-Harvest Losses: 22% (~74 MT) lost annually.
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Storage-Specific Losses: 6.58% due to pests, rodents, moisture.
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Economic Burden: Annual losses worth ₹7,000 crore.
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Dependence on CAP: 90% of wheat in Punjab stored in vulnerable CAP.
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Regional Gaps: NE and tribal regions face storage shortages.
Measures to Improve Grain Storage
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Expand scientific storage (modern silos, warehouses).
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Promote better post-harvest practices (safe drying, cleaning).
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Encourage PPP investments with guaranteed returns.
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Empower PACS with computerized storage facilities.
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Focus on remote regions with tailored schemes.
Conclusion
India’s transformation from deficit to surplus production makes efficient storage indispensable. Strengthening silos, PACS, and cold chains will safeguard food security, ensure price stability, and protect farmer livelihoods. Without strong grain management, surplus production risks turning into waste.
CLAT/Exam Relevance Summary (Points)
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Food security depends more on storage & distribution than on production.
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Major agencies: FCI, CWC, State Warehousing Corporations.
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Key schemes: AIF, AMI, PMKSY, PEG, Steel Silo Projects.
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Challenges: 22% losses, CAP vulnerability, ₹7,000 crore annual losses.
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Measures: Scientific storage, PPPs, PACS computerisation.
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Mains angle: “India’s food challenge is grain management, not production.”