Major shortage of space for storing foodgrains may continue to haunt Punjab with High Level Committee headed by FCI Chairman approving creation of just 13 lakh Metric Tonne(MT) of storage space by private entrepreneurs out of total bids received for 50.52 lakh MT.
"The (High Level) Committee has given nod for creation of 13 lakh MT of storage facilities in Punjab out of the total offers received," a senior FCI official said.
The storage facilities, for which bids have been accepted, would come up in Sangrur, Faridkot, Mansa, Bathinda, Moga, Patiala and Fatehgarh Sahib, he informed.
Punjab, which has been facing shortage of storing almost 80 lakh MT of foodgrain, had received a record 521 bids for the sanctioned creation of 50.52 lakh MT of new storage space last year. Central warehousing and state government had to build four lakh MT of storage facilities on their own out of the 50.52 lakh MT.
The process of calling fresh bids for the remaining 33 lakh MT of storage would start afresh and will take several months before finalisation, official sources said.
Notably, it took over five months for the committee to approve the current bids since the start of bidding process last year, a senior official of Punjab Food and Civil Supplies department pointed out.
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Low rate approved by Centre for creation of godown facilities is said to be the main reason behind approving merely 13 lakh MT of new facilities out of 50.52 lakh MT capacities.
Private entrepreneurs had quoted weighted average rate of Rs 6.20 per quintal per month as bid for storage creation against which the committee approved bids less than Rs 5 per quintal per month.
The committee accepted lower rate from offers and counter offers despite the fact that Punjab government had asked it to accept bids even at higher rate keeping in mind the huge deficit in food grain storage capacity in the state.
"They (committee) have to understand the fact that the land prices in Punjab are quite high and it is not feasible for a private entrepreneur to build storage facility if he gets low rate," asserted Punjab official.
He said there was an urgent requirement for creation of bigger storage facilities to ensure smooth lifting of wheat and paddy.