Food waste due to inadequate storage has been a persistent problem in India. Storage is the major  cause of post-harvest losses for all kinds of food in India, which is estimated at around 15% by the  Food Corporation of India.

According to the National Academy of Agricultural Sciences, 4.6 to 6% of  the produce is lost every year, though experts warn that the loss could be much higher. If we talk  about wheat, out of the 1,000 lakh MT of wheat produced every year, around 10% is lost due to  improper storage methods. 

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Currently, the two main methods for storing grains in India are underground loose storage at farms  and storage in bags. Central procurement and warehousing agencies such as FCI and Central  Warehousing Corporation(CWC) have widely adopted the bag (jute bags) storage in warehouses  where the grain is packed in jute bags and stacked inside covered structures called warehouses or  godowns or outdoor storage with bags stacked on plinths and covered by tarpaulins also known as  Cover and Plinth (CAP) method.

The problem with bag storage is that most of the wheat /grains stored  in bags get affected by spillage, rodent attacks, bird droppings, theft/pilferage, etc. leading to huge  losses.  

Holding grain in bulk in underground granaries is an age-old method of rural storage. At the farm, level  grain is often stored in bulk in small outside granaries or in woven baskets or containers made from  wood, metal, or concrete, which are located under or inside the house.

These structures are simple  underground dig-outs up to a depth of 5 m varying in size to hold from a small quantity up to 50 t. The  problem with underground loose storage methods is the lack of correct temperature and moisture in  the storage area negatively impacts grain quality often leading to product degradation and waste.  

To combat the menace of post-harvest losses a strong thrust towards modern and scientific means of  grain storage is essential.

The use of metal silos has shown a reduction in post-harvest losses in grains  in many developing countries. When properly used, metal silos are very effective in reducing crop loss  to almost zero. It ensures better preservation of food grains and enhances their shelf life. If food grains  are stored in Silos and transported in bulk, losses due to theft, pilferage and transportation would be  negligible compared to food grains storage in bags in conventional warehouses.  

Steel Silo storage with a bulk handling facility is a highly mechanized and modernized way of storing  food grains in bulk. Since land availability in existing FCI godowns is scarce, it would be prudent to shift  to the storage of food grains in Silos as it requires approximately 1/3rd of land as compared to  conventional storage warehouses.

Moreover, Silos can be operated round the clock thus bringing in  more flexibility and improving the overall efficiency in the grain handling operations. The construction  of Silos will therefore help in creating an efficient Food Supply Chain Management System. 

To modernize the system of handling, storage, and transportation of the food grains procured by the  Food Corporation of India (FCI) and to build and operate infrastructure for the introduction of bulk  handling, storage, and transportation of food grains in the country, National Policy on Handling and  Storage of Food Grains was launched in the year 2000.

The policy envisages construction of integrated  bulk handling facilities with silos of large capacity for wheat along with testing facilities for quality  control at about 20 identified central locations.  

The recent initiative of the Food Corporation of India (FCI) for the construction of modern steel silos  under the DBFOO (Design, Build, Finance, Own and Operate) mode can be termed as steps in the right  direction.

FCI plans to construct steel silos with a capacity of 111.12 lakh tonnes at 249 locations  spread across 12 states under the public-private partnership (PPP) mode with an investment of Rs  9,236 crore in the next 3-4 years under the Hub and Spoke model in three phases.

The proposed silos  would be built in two modes: DBFOO and DBFOT (Design, Build, Finance, Operate, and Transfer),  wherein the private entities are responsible for the construction and operation of the modern silos  for a pre-defined period. Under the DBFOT mode, the land is provided by FCI while in the case of  DBFOO, the land is to be acquired by private entities. 

The main challenge to the adoption of metal silos by smallholder farmers is the high initial cost  depending on the storage capacity. However, the cost is offset by the accruing benefits over 10-20  years of use of the metal silos.

A well-maintained, airtight grain silo is not only cost-effective, but it  also lasts for several decades, lowering the actual costs of ownership. Furthermore, it provides the  best conditions for grain storage currently. Many silos don’t need significant repairs for more than 25  years. 

For India, bulk storage in metal silos is important for the effective maintenance of the buffer stocks  for national food security. Currently, the capacity for bulk storage in silos is around 0.2 MMT while the  USA has more than 310-million-ton silo storage capacity.

Promotion and development of an efficient,  integrated, and mechanized bulk handling, storage and transportation system in the country is a  crucial post-harvest tool in the battle against hunger and ensuring food security.

A congenial policy  environment aiding the proliferation of Silos is the need of the hour. From giving infrastructure status  to warehousing with all financial benefits like cheap loans, and tax benefits to the implementation of  a hub and spoke system, there is an urgent need to address the issues which are hindering the  expansion of Silos in the country. Without a sufficient and efficient storage system, the high  productivity of grains does not have much meaning.

By, Sanjay Gupta MD and CEO NCML