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The Wheat Bowl Overturns

Not just hi-tech silos but cost-effective storage geared to India's rail transport system needed

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Part of a public-private pilot project with the fci, the silos have been built by Adani Agrilogistics Ltd at Dagru (in Punjab’s Moga district) and Solumajra (in Kaithal district of Haryana). Constructed at a cost of Rs 640 crore, the two circuits have a capacity of 5.5 lakh tonnes and can keep foodgrain in controlled temperatures for up to five years without spoilage. According to Adani, these clusters minimise losses to 0.2 per cent against on-ground figures of 11 per cent.

That’s because the handling of foodgrain is carried out in bulk in these clusters. The base depots in Punjab and Haryana are linked to the supply depots (having smaller silos) in Chennai, Bangalore, Navi Mumbai, Coimbatore and Hooghly by rail. Especially designed covered wagons carry the grain from the silos to the distribution points.

If it’s all so good, then why is the procurement machinery not so enthused about the silos? It could have something to do with the depots being designated as grain markets. The farmers bring their produce directly to the depots, thereby eliminating the commission agents. Since all handling is done mechanically, it also eliminates labour. And therein lies the problem.

Clearly, there’s potential for upsetting the strong trader-politician-procurement agency nexus. Of course, there are other reasons: Planning Commission member Prof Abhijit Sen feels high-cost silos cannot be India’s only answer to storage problems. "While there is huge industry pressure for modern silos, what is required is adequate, least cost-effective storage. The Indian system has to be geared to rail transport which will permit wagons to carry other products on the return journey, which is not possible with high-tech silo container movement." It’s not surprising that Adani officials say they don’t have expansion plans.

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