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GOVERNMENT OF INDIA
MINISTRY OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION
DEPARTMENT OF FOOD AND PUBLIC DISTRIBUTION
RAJYA SABHA
UNSTARRED QUESTION NO. 1147
TO BE ANSWERED ON 10TH FEBRUARY, 2026
STEEL SILO-BASED STORAGE
1147: DR. ASHOK KUMAR MITTAL:
Will the Minister of Consumer Affairs, Food and Public Distribution be pleased to
state
(a): whether the emphasis on Steel silo–based storage has resulted in higher costs,
implementation delays or regional imbalances due to land availability, private participation
models or logistical constraints;
(b): whether traditional and decentralised foodgrain storage systems continue to face
neglect and inefficiencies despite repeated policy assurances on modernisation;
(c): whether Government has evaluated alternative storage solutions such as scientific
warehouses, upgraded CAP storage or modular and community-based facilities in
comparison to Steel silos; and
(d): the steps being taken to ensure that the chosen storage approach genuinely improves
food quality and availability for Public Distribution System beneficiaries?
ANSWER
MINISTER OF STATE FOR MINISTRY OF CONSUMER AFFAIRS,
FOOD & PUBLIC DISTRIBUTION
(SHRIM ATI NIMUBEN JAYANTIBHAI BAMBHANIYA)
(a): The steel silos are constructed under PPP (Public Private Partnership) mode which has
led to significant cost reduction due to risk sharing and private investment under this framework.
In some cases, there is delay in completion of silos mainly due to problems faced by private
parties in acquiring land for the project, force majeure incidents and approval from railways in
case of railway siding silos. Such factors have contributed to implementation delays rather than
systemic cost escalation or regional imbalance.
(b) to (d): ' The requirement of Storage capacity in FCI depends upon the level of procurement,
requirement of buffer norms and PDS operations for Rice and Wheat mainly. FCI continuously
assesses and monitors the storage capacity and based on the storage gap assessment, storage
capacities are created/hired through following schemes:-
1. Private Entrepreneurs Guarantee (PEG) Scheme
2. Central Sector Scheme (CSS) 2017-25
3. Construction of Silo’s under PPP mode4. Hiring of godown from CWCs/SWCs/State Agencies
5 Hiring of godown through Private Warehousing Scheme (PWS).
6 Creation of godowns under Asset Monetization
7 CAP Hiring Scheme -2025
8. Modified PEG scheme for NE & Hilly states with longer guarantee period of 1 5 years
Effective measures being taken to increase storage facilities for developing efficient storage
system in the country as under:
PEG Scheme - Under the PEG Scheme, construction of conventional godowns has been
undertaken in 24 States by attracting private investment. PEG Scheme was initiated in 2008. A
capacity of 148.61 lakh MT has been completed as on 3 1.12.2025.
PEG Scheme II- in order to create covered capacity in wheat procuring states specially Punjab
and Haryana, new Capacity was sanctioned in Punjab and Haryana to Phase out Open Storage
i.e. 60 LMT in Punjab and 30 LMT in Haryana is envisaged under this Plan.
Centre Sector Scheme (CSS) - This scheme is implemented in North Eastern States along with
Himachal Pradesh, Kerala, Jammu & Kashmir and Jharkhand. Funds are released by the
Government to FCI and also directly to the State Governments for construction of godowns.
During 12th Five Year Plan (2012-17), a capacity of 1,17,680 MT in North Eastern (NE) States
and 20,000 MT in other than NE States has been completed by FCI. A storage capacity of
46,495 MT has also been created by State Governments. This scheme was extended from
01.04.2017 to 31.03.2025. In this period, a capacity of 123970 MT has been completed. This
scheme is culminated on 31.03.2025.
Asset IVlonetization- Under Asset Monetization, godowns are constructed on FCI vacant land.
177 locations were identified for construction of 17.47 LMT storage capacity.
In addition to the above, the Government is taking various steps to modernize warehouses for
increasing effectiveness in infrastructural as well as operational: -
The SMART Warehouse uses loT technology in government warehouses to prevent
foodgrain losses. Monitoring parameters include temperature, humidity, gas levels, airflow, and
events such as unauthorized access, rodent, and insect activity. The pilot project is underway in
PCI godowns in phased manner.
Depot Darpan portal has also been introduced in the step of Modernization and Digitalization
of storage facilities in FC:1. The Portal facilitates self-assessment, rating, and grading of FCI and
CWC foodgrain depots.
Installation of Modern CCTV Cameras: Modern CCTV cameras are also installed in all FCI
& CWC godowns for continuous monitoring.
The Government is committed for quality assurance through a dedicated wing of Quality
Control officers and officials for procurement, preservation and distribution offoodgrains to the
consumers to provide maximum contribution to effective food security management. Following
norms are ensures
:• At the time of procurement: -
FCI follows well defined Quality specifications stipulated by the Govt. of India for
procurement of Fair Average Quality stock meant for distribution under public distribution
system and other welfare schemes.
FCI follows BIS methods of sampling and analysis of food grains to judge the quality of
foodgrains to ensure procurement of quality foodgrains.
• At the time of Storage:-
Scientific code of practices are adopted for safe storage of food grains.
Regular monitoring of health of food grains by way of periodical inspections.
Prophylactic (spraying of insecticides) and curative treatments (fumigation) are carried out
regularly and timely in godowns for the control of stored grain insect pests.
• At the time of Distribution:-
There is a well-defined procedure of joint sampling and inspection of food grain stock
by State Govt. and FCI to ensure that only good Quality food grains conforming to food safety
standards are issued under Public Distribution system and other welfare schemes.
In order to save precious foodgrains, transportation of foodgrains is carried out in
covered wagons/trucks covered with tarpaulin covers. To avoid any contamination to the stocks,
tarpaulin sheets in spread on the floor of wagons while loading into the wagons.
$8888