The government has decided to fully modernise post-harvest management and marketing of foodgrains, eliminating agents and mandis.
It plans to introduce cooperative or private sector ventures for handling, transportation and storage of wheat and rice.
Private investment, including foreign investment through joint ventures, will be sought in transportation and storage of foodgrains. The new system, based broadly on the Australian model of wheat marketing, will involve mechanisation of harvesting and post-harvest handling of grains in bulk m.
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Farmers will dispose of their produce at the village level itself. The grains will go from villages directly to silos for storage and further transportation to consumption centres in specially designed wagons and trucks.
The new system has been conceived by the food ministry's steering committee on the introduction of modern technology in food management headed by joint secretary Balbir Singh.
The report of the committee has been accepted by the government.
A task force has been set up under the chairmanship of the food secretary R S Mathur to implement the recommendations.
It has representation from the ministries of finance, railways, commerce, transport, besides organisations like the Planning Commission, the Food Corporation of India (FCI) and the Central Warehousing Corporation.
Besides the steering committee report, a separate detailed proposal submitted by Singh on a phased switchover to handling, transportation and storage of grains in bulk is also under consideration of the task force.
This will be tried out in Punjab where three silos already exist in the intensive wheat growing zone.
According to Singh, a sub-project under the Indo-Australian agreement on capacity building was recently approved which would facilitate the introduction of the integrated bulk grain management system.
Funded largely by Australia, this sub-project, approved after the Pokhran nuclear tests, involves training and visit of Indian officials to Australia to study the food management system there. The pilot project for bulk handling of grains in Punjab will also be part of this sub-project.
Singh said he envisaged stiff resistance to the new system of marketing and handling of grains from the vested interests, including commission agents and mandi boards.
"But a firm stand needs to be taken to prepare the country for the next century when it can emerge as a net grain exporter," he said.
"If we can save the estimated 20 million tonnes of foodgrains that go waste at various stages of post-harvest handling because of outdated practices, the country can export cereals even now," he added.