Private solution: Rise in storage helps securing food from damage, loss

Given that the Food Corporation of India (FCI) has paid over Rs 5,000 crore in rent for storage houses between 2014-15 and 2019- 20 (Rs 1,000 crore was paid in 2019-20 itself), it is not surprising that India’s biggest corporate houses are making a beeline for the storage business.

Last week, Adani Agri Logistics announced that it bagged a contract to build four silos in Uttar Pradesh and Bihar.

A Business Standard analysis found ramping up capacity and engaging the private sector helped FCI's share in total storage to rise to over 50 per cent.

The rise in storage has helped contain losses incurred due to rotting/damage of foodgrains. Between 2014-15 and 2020-21, food losses at FCI reduced almost eight times to Rs 2.7 crore.