UP to raise warehousing capacity to 6.5 mt in private, public sectors

Uttar Pradesh is looking at total warehousing capacity of over 6.5 million tonnes (mt) in near future to keep pace with robust foodgrain production in consecutive crop seasons and commensurate procurement by government agencies.

The capacity increment will be done both in the public and private sectors. The fresh capacity would ensure the foodgrain is stored in closed warehouses and does not rot in the open.

Currently, the consolidated warehousing capacity in UP stands at about 4.659 mt, including 2.393 mt with UP State Warehousing Corporation (UPSWC), 1.492 mt with Food Corporation of India (FCI) and rest with other agencies.

Under Private Entrepreneur Guarantee (PEG) Scheme 2008, 1.860 MT of fresh warehousing capacity will be added in the state soon, primarily in the private sector.

The entrepreneur would be offered guaranteed lease of their premises by FCI and UPSWC for nine years. The private parties would themselves arrange funds for setting up their warehouses, however, banks and financial institutions would be willing to offer them credit based on the guarantee.

The state is witness to bumper kharif season this year with total production estimated at over 17 mt compared to about 15 mt last year. Likewise, the state is expecting a significant spurt in rabi production, especially in the backdrop of Green Revolution Project underway in 28 districts in eastern UP.

In July this year, UP was feted as the country’s ‘Best Performing State’ in food grain production clocking 47.138 mt during 2010-11.

Recently, cooperatives minister Naseemuddin Siddiqui laid the foundation of 7 UPSWC warehouses in Shahjahanpur, Hardoi, Sant Kabir Nagar, Balrampur, Maharajganj and Chhatrapati Sahuji Maharaj Nagar districts.

The total warehousing capacity of these units totals 37,000 tonnes and another 10,000 tonnes capacity would added in the vacant land of UPSWC.

He said under PEG scheme, the Centre had already approved warehousing capacity of 1.376 mt in UP and private entrepreneurs had already started civil works.

Last year, UPSWG had stored 2.956 mt of wheat, of which 6,97,000 tonnes was left in the open. In current year, the Corporation has stored 2.174 mt of wheat, of which 3,81,000 tonnes was left in the open due to lack of space.