First Rice Silos through PPP to be Commissioned in November 2023
In a milestone achievement, the country is set to commission its first rice silos developed under the Public-Private Partnership (PPP) mode in November.
This initiative underscores the government’s dedication to modernize agriculture, improve storage efficiency, and prevent post-harvest losses.
The first rice storage silos in the nation, constructed through a private-public partnership (PPP) with the Food Corporation of India (FCI), would be put into service the following month.
The National Commodity Management Services Ltd (NCML) has constructed two rice silos with a combined capacity of 25,000 tonne in Buxar and Kaimur in Bihar using the design-build-finance-operate-transfer methodology.
As part of a trial programme, the government has installed steel silos for rice to avoid cereal waste while being stored. According to officials, technology for rice storage in silos is still being developed since at these facilities the grain must be held at a temperature of 15 degrees Celsius.
An estimated Rs 1,000 crore will be needed to build one MT of silos. This is a part of a Rs 9,000 crore project to construct 9.4 MT-capacity wheat silos over the next three to four years using the PPP model.
196 places throughout Punjab, Haryana, Madhya Pradesh, Uttar Pradesh, Rajasthan, Gujarat, Maharashtra, Bihar, West Bengal, Jammu, Uttarakhand, and Kerala would be home to these silos.
Rice, being one of the staple foods, plays an essential role in the country’s food security. For years, the traditional method of storing rice in sacks in warehouses has been predominant.
A “hub and spoke” approach was authorised by the food ministry due to difficulties in acquiring land for railway sidings.
According to representatives from the food ministry, losses from theft, pilferage, and transportation would be minimal if food grains were stored in silos and shipped in bulk as opposed to those that are kept in warehouses.
To provide supply to recipients under the National Food Security Act, the FCI stocks 40–50 MT of rice and wheat on average. Silos guarantee improved grain preservation.
However, these methods often lead to significant post-harvest losses due to factors like pests, mold, and improper storage conditions. Recognizing these challenges, the idea of building state-of-the-art rice silos was conceived.
The PPP model was chosen as the driving force for this project because of its ability to combine public oversight with private sector efficiency.
Under this model, the government provides necessary regulatory support, and the private entity manages the investment, construction, and operational aspects. This synergy ensures that the project not only remains viable but also adheres to global standards.
The rice silos are designed to store substantial amounts of rice, ensuring there’s a steady supply even in times of fluctuating production or demand.
These silos are equipped with state-of-the-art machinery that enables seamless loading, unloading, and proper ventilation to maintain rice quality.
Due to their design and technology, the silos reduce wastage from pests, humidity, and other environmental factors.
The silos are anticipated to reduce storage costs significantly. Additionally, they provide employment opportunities both during construction and in their operation.
The rice silos will ensure that there’s a buffer stock available, strengthening the country’s food security strategy.
Reduced post-harvest losses and efficient storage mean that the country can make the most of its rice production, ensuring better returns for farmers and stable prices for consumers.
Modern silos tend to have a lower environmental footprint compared to traditional storage methods.
Finding suitable land that is both logistically viable and free of legal entanglements was a significant hurdle. As this was the country’s first foray into rice silos through the PPP model, there was initial resistance from certain quarters worried about privatization.
Adhering to international standards meant that meticulous planning and specialized expertise were required.
As the rice silos built through the PPP mode prepare for their commissioning in November, they stand as a testament to what can be achieved when the public and private sectors collaborate.
If successful, this could pave the way for more such partnerships in various sectors, further boosting the country’s growth and development trajectory.
commissioning of the first rice silos in the country under the PPP model is a significant step towards modernizing agriculture storage solutions and ensuring food security.
It serves as a blueprint for similar future endeavors and is a testimony to the boundless possibilities that can arise from collaborative efforts.
