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.
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