Grain Storage Capacity Tenders Awarded Transparently: Union Minister Prahlad Joshi

GG News Bureau
New Delhi, 7th August. Union Food and Public Distribution Minister Prahlad Joshi addressed concerns about grain storage capacity and the privatization of Food Corporation of India (FCI) godowns in the Lok Sabha on Wednesday. Joshi’s remarks were in response to questions raised by Trinamool Congress (TMC) MP Sudip Bandyopadhyay.

Bandyopadhyay had expressed concerns over the adequacy of storage at FCI godowns and the role of private entities in the sector. He highlighted the construction of sophisticated silo godowns, primarily in Maharashtra and Gujarat, by private companies and questioned if the government intended to transfer FCI operations to these entities.

In his response, Joshi clarified that the total storage capacity currently stands at 837.68 lakh metric tons (LMT), with 650-700 LMT of foodgrains typically stored. “Today, there is no shortage of storage capacity. This issue may have existed during your time but it does not exist now,” Joshi asserted.

Joshi emphasized the transparency of the tendering process for enhancing storage capacity, noting that tenders are awarded through an online process. He detailed the plans for the first phase of the hub-and-spoke model, which includes a capacity of 34.87 LMT silos at 80 locations. Of this, 10.125 LMT at 14 locations will be developed under the DBFFO (Design, Build, Finance, Fund, Own) mode on FCI land, while 24.7 LMT at 66 locations will be on private land, also awarded through DBFFO mode.

The Minister also addressed the allegations of favoritism, stating, “I don’t know which company has received the contract but it is done through the most transparent tendering process.”