LT Foods Limited, formerly known as LT Overseas, the leading processor and exporter of packaged basmati rice has forayed into scientific storage of wheat and has set up its maiden venture in Punjab. The company with an investment of Rs 36 crore has developed 50,000 tonne capacity silos in Amritsar for bulk storage of wheat.
This will add to the existing two million tonne silos put up by Adani Group in Punjab.
LT Foods Ltd entered into public-private partnership (PPP) with PUNGRAIN (the nodal agency on behalf of the Punjab government) for a 30-year lease agreement to store the grain at the rate of Rs 1400 per tonne per annum for the grain procured by the government agencies. The silo has been set up in an area of eight acre, whereas under the conventional storage to store 50,000 tonne of wheat an area of 20 acre is utilised.
LT Foods Limited Chairman and Managing Director V K Arora said a quantity of 50,000-60,000 tonne is procured in one marketing yard so they aim to cater to the needs of farmers of at least one marketing yard.
According to Arora they would like to consolidate their operations in storage by participating in similar projects undertaken by the states or the central government. It may be recalled that the Planning Commission has hired consultants to set up 20 million-tonne capacity silos and private investment is likely to be mobilised for this. LT Foods, as told by Arora, would scout for such opportunities. Till date Adani group had been the only player in India to set up silos of two million tonne each at Moga and Kaithal. The rising wheat procurement for the last few years has been adding to the grain storage problem in Punjab.
To counter this, IFC was appointed as Consultants and Transaction Advisors by PUNGRAIN (Punjab government’s nodal agency). Based on their advice, tenders were issued calling for bids for building and operating silos in the PPP mode. LT Foods, with its strong track record in the agri business segment, won the tender to build-own-operate silos for a period of 30 years, said Arora.
“Under the PPP model with PUNGRAIN we have built silos which are now ready in Mulechak, near Amritsar to receive wheat from this year’s harvest. Also, the government is preparing a blueprint for developing more silos,” Arora said.
