Unlocking full potential Agri-warehousing industry to contribute to agricultural growth

India's agricultural value chain relies heavily on agri-warehousing to bridge the gap between yearround distribution and seasonal crop supply. Through the use of sustainable practices, innovation, and investment encouragement, the agri-warehousing sector may realise its full potential and make a substantial contribution to India's agricultural growth narrative.

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India's agricultural sector, while progressing steadily, faces a significant challenge: the lack of modern and scientific storage facilities. With an annual food grain production of approximately 330 million tonnes and an agricultural warehousing capacity of around 201 million tonnes, a substantial storage gap of over 40 per cent persists. This shortfall contributes to an alarming annual loss of about 74 million tonnes of food, accounting for 22 per cent of total food grain production and 10 per cent of both food grains and horticultural produce. A major factor behind these losses is the inadequacy of storage infrastructure.

Recognising the need to address this issue, the Government of India has launched numerous initiatives to enhance the country’s storage capacity through the construction of warehouses, godowns, and silos. Presently, over half of India’s warehousing capacity is owned and managed by public sector undertakings such as the Food Corporation of India (FCI), Central Warehousing Corporation (CWC), State Warehousing Corporations (SWCs), and other state agencies. To complement these efforts, schemes like the Agricultural Marketing Infrastructure (AMI), the Private Entrepreneurs Guarantee (PEG) Scheme under a public-private partnership (PPP) model, the PM Krishi Sampada Yojana, and cooperative sector programmes aim to encourage private sector participation in developing storage infrastructure.

Landmark Initiatives in Storage Development

A key milestone in India’s agri-warehousing sector is the government’s announcement of the world’s largest grain storage plan within the cooperative sector. Over the next five years, this initiative seeks to establish a storage capacity of 70 million tonnes with an investment of Rs 1.25 lakh crore. This ambitious plan includes constructing small storage structures with a 2,000-tonne capacity at the block level to reduce food grain losses due to insufficient facilities.