A robust end to end and scientific storage infrastructure for Agriculture produce is essential for:
- Reducing food wastage
- Check volatility in prices and food inflation.
- Promote value addition and agri-exports.
- Reduce distress selling by farmers and securing incomes for farmers.
CHALLENGES OF AGRICULTURAL STORAGE
- Inadequate capacity relative to production: India has a storage capacity of 47 per cent of its total foodgrains production this leads to large gap between production of agricultural commodities and their safe & scientific storage leading to crop wastage.
- Skewed regional distribution of storage infrastructure: At the regional level, only a few southern states have a storage capacity of 90 per cent and above. In northern states like Uttar Pradesh and Bihar, it is below 50 per cent.
- Lack of adequate cold storage infrastructure: India is the world’s largest producer of perishable commodities like horticultural crops, dairy and meat products. However, India has only about 7 thousand cold storages and about 10,000 reefer vans. Most of these are operated by small cold storage and transport service providers. 60% of cold storage capacity is concentrated in UP and West Bengal and is used for one single product i.e., potatoes), with very low capacity in other states. This leads to damage to perishable food products and resulting inflation.
- Lack of end-to-end storage infrastructure: Even the limited Agri-storage infrastructure India has is concentrated near urban and semi-urban areas and not available close to farmgate.
- Lack of scientific storage: There is a over-reliance of cover and plinth storage where there is an open storage on a platform covered with tarpaulin. This leads to crop wastage.
- Governance issues: Issues like high cost of credit, delay in land procurement, multiplicity of schemes and authorities for incentivising warehousing.
- Limited coverage of WDRA: The number of storages under the regulatory ambit of WDRA is limited. WDRA compliance ensures certification ofstorage capacity and access to Negotiable Warehousing Receipts facility by farmers.
GOVERNMENT INITIATIVES FOR PROMOTING WAREHOUSING
At present, multiple government agencies, like the Food Corporation of India (FCI), Central Warehouse Corporation, Warehouse Development Regulatory Authority, Railways, and the civil supply departments of states are involved in grain management.
WAY FORWARD
- End-to-End storage & cold chain infrastructure: Incentivising development of storage infrastructure and cold storages near farm-gates by incentivising FPOs, Cooperatives and Panchayats to operate such infrastructure in rural areas.
- Phasing out CAP: There is a need to phase out cover & plinth storage structures and move towards scientific modern infrastructure.
- Technological interventions aimed at modernization of existing stores by introducing temperature-controlled storage, dehumidification of storage infrastructure, access to renewable energy (solar energy) by warehousing sector should be incentivized.
- Development of multipurpose storage infrastructure and not just focused on one commodity.
- Merging various smaller schemes into one comprehensive scheme for warehousing and cold- storage development in India.
- Encouraging private players to invest in warehousing and cold storage space particularly in rural areas.
- Third party assessment of storage infrastructure should be introduced to assess the quality of storage and food wastage.
- Expanding the number of warehouses under Warehousing Development and Regulatory Authority which give farmers access to e-Negotiable Warehousing Receipts and improve operating cycle of farmers.