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India to triple wheat silos capacity in three years to strengthen food security

13 January 20252 min reading

India is set to expand its wheat storage capacity, with plans to increase silo capacity from the current 2.8 million tonnes (MT) to 9 MT over the next three years. This ambitious project, reported by The Financial Express, aims to enhance the country’s ability to manage its growing wheat stocks and contribute to its food security goals.

The Food Corporation of India (FCI), the main agency responsible for food grain procurement and distribution, has initiated a public-private partnership (PPP) model to construct 2.5 MT of modern wheat storage facilities. The FCI has invited bids for the construction of these facilities, which are expected to be awarded by February 2025. As of now, 35 silos with a total capacity of over 2.8 MT are already operational across various locations in the country.

In addition to the government’s efforts, contracts for the construction of over 3.5 MT of modern wheat storage facilities have been awarded to private entities. These projects, spread across 80 locations, are anticipated to be completed within the next two years, further strengthening India’s wheat storage infrastructure.

This initiative is part of a larger $1.1 billion project to build a network of wheat silos across the country. These silos will be spread across approximately 250 locations in key agricultural states, including Punjab, Haryana, Madhya Pradesh, Uttar Pradesh, Rajasthan, Gujarat, Maharashtra, Bihar, West Bengal, Jammu, Uttarakhand, and Kerala. This widespread expansion is expected to boost India’s wheat storage capacity, making the country more resilient in managing its food grain stockpiles. 

The FCI plans to lease these silos to private entities for a period of 30 years, with fixed storage charges on a per-tonne, per-year basis. The storage facilities will be constructed under two models: the Design, Build, Fund, Own, and Transfer (DBFOT) model, where FCI owns the land, and the Design, Build, Fund, Own, and Operate (DBFOO) model, where private entities will own the land.

As the world’s second-largest wheat producer and consumer after China, India’s wheat production plays a crucial role in maintaining domestic food security and stabilizing global markets. For the 2023-24 season, India’s wheat production reached an all-time high of 113 million tonnes, surpassing the previous year’s production of 110.5 million tonnes.



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