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I.C.CHADDA

DY. GENERAL MANAGER (TECHNICAL / R&D )

CENTRAL WAREHOUSING CORPORATION

NEW DELHI

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THE PRESENTATION

FOODGRAIN PRODUCTION SCENARIO

PRESENT STORAGE SYSTEM

BULK HANDLING

CONCLUSION

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FOODGRAIN PRODUCTION SCENARIO

DEMAND FOR FOODGRAINS LIKELY TOGROW @ 3.5% PER ANNUM

BY YEAR 2020, INDIA¶ S POPULATION

WILL BE AROUND 136 CRORES AND

FOODGRAIN REQUIREMENT IS LIKELY TO

BE MORE THAN 250 MILLION TONNES.

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150

200

250

300

2001-02 2006-07 2011-12 2016-17

M I L L I O N

T O N N

E S

400

600

800

1000

1200

1400

M I L L I O N

Production Requirement Population

PROJECTED REQUIREMENT OF FOODGRAINS

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213.9

174.77

213.46

198.36

208.6216.4 218

231

0

50

100

150

200

250

2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09

FOOD GRAIN PRODUCTION IN INDIA

(million tonnes)

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GRAIN HANDLING AT FARM & MANDILIMITATIONS IN EXISTING SYSTEM

Huge space required

Manual cleaning results in low quality

Grain loss is high An

inefficientsystem results in

losses

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PRESENT SYSTEM OF STORAGE

BAGGED STORAGE SYSTEM IS BEING ADOPTED AT

DIFFERENT LEVELS IN INDIA EXCEPT FOR SMALL

PORTION IN THE UNORGANISED RURAL AREAS WHERE

BULK STORAGE IS ALSO BEING CARRIED OUT.

IT IS GENERALLY IN THE FORM OF COVERED GODOWNS

WHICH IN THE WAREHOUSING SECTOR ARE

CONSTRUCTED BASED ON SCIENTIFIC DESIGN.

TEMPORARY STORAGE IN THE FORM OF COVEREDANDPLINTH STORAGE (CAP) IS ALSO UNDERTAKEN TO MEET

OUT SHORTAGE OF COVERED SPACE.

Contd««

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LABOUR INTENSIVE , MULTIPLE HANDLING, LEADING

TO HEAVY LOSSES.

AUTOMATION REQUIRED: SIMPLE MECHANICAL

EQUIPMENTS LIKE PORTABLE CONVEYOR AND FORK LIFT

TRUCKS CAN HELP IN REDUCTION OF STORAGE / TRANSIT

LOSSES AND INCREASE THE EFFICIENCY OF THE

OPERATION.

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INDIA IS 3RD LARGEST PRODUCER OF AGRI

COMMODITIES NEXT TO USA AND CHINA.

INDIA IS FEEDING 17% OF WORLD

POPULATION ONLY ON 3% WORLD¶S ARABLE

LAND.

INDIA IS THE SECOND LARGEST PRODUCEROF WHEAT AND RICE IN THE WORLD WITH ITS

SHARE OF 12.3% AND 21.9% RESPECTIVELY.

INDIA IS ONE OF THE MAJOR FOOD

PRODUCERS, BUT ACCOUNTS FOR LESS

THAN 1.5% INTERNATIONAL FOOD TRADE.

INDIA HAS HUGE OPPORTUNITIES TO BECOME

THE WORLDS FOOD BASKET ON THE BACK OF

NUMBER OF GOVT. INITIATIVES AND

INVESTMENT OPPORTUNITIES ACROSS

VARIOUS AREAS OF AGRICULTURE.

INDIA¶S STRENGTH

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EFFECTIVE PRICE SUPPORT OPERATIONS FOR

SAFEGUARDING THE INTERESTS OF THE FARMERS.

DISTRIBUTION OF FOODGRAINS THROUGHOUT THE

COUNTRY FOR PUBLIC DISTRIBUTION SYSTEM ; AND

MAINTAINING SATISFACTORY LEVEL OF

OPERATIONAL AND BUFFER STOCKS OF FOODGRAINS

TO ENSURE NATIONAL FOOD SECURITY.

FOOD POLICY

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0

5

10

15

20

25

30

35

40

45

50

2 00 0-01 20 01-0 2 20 02 -0 3 2 003 -04 2 00 4-05 20 05-0 6 2 00 6-07 200 7-08 200 8-0 9 20 09 -1 0

RICE

WHEAT

TOTAL

PROCUREMENT OF FOODGRAINS FOR CENTRAL POOL

(LAST TEN YEARS)

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BUFFER STOCK POLICY

INSPITE OF ADVANCED TECHNOLOGY AND INCREASED

PRODUCTION, AGRICULTURE IN INDIA IS SUSCEPTIBLE TO

VAGARIES AND UNCERTAINTY OF MONSOON.

CONCEPT OF BUFFER STOCK INTRODUCED DURING 4TH

FIVE YEAR PLAN 1969-1974.

SIZE OF BUFFER STOCK IS DETERMINED LARGELY ON

HISTORICAL EXPERIENCE AND JUDGEMENT OF DEMAND /

SUPPLY SITUATION AND THE PUBLIC DISTRIBUTION

REQUIREMENT.

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BUFFER STOCK NORMS

8 2

8

20

2 2

2

8

2

5 2

2

N U R R U O C T O B E R

WHEAT RICE TOTAL

S.NO COMMODITY QUANTITY

1. RICE 26.22

2.WHEAT 33.70

3. COARSE

GRAINS

0.45

GRAND

TOTAL :

60.37

FOOD GRAIN STOCKS IN CENTRAL POOL

AS ON 30.04.2010

(IN MILLION TONNES)

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STORAGE CAPACITY IN MILLION TONNES

AVAILABLE WITH MAJOR STORAGE AGENCIES

as on 31.03.2010

FCI CWC SWCS GRAND

TOTALOWNED 12.97 6.78 12.37 32.06

HIRED 12.01 2.13 7.35 20.95

CAP 2.73 1.62 0.88 06.02

TOTAL 27.71 10.53 20.60 59.03

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Farm Output

Mind-boggling post harvest losses

in foodgrains

Farm levelhandling MiddlemenConsumer

Approximately

20 million tonnes offoodgrains worth

Rs. 20,000 crore lostannually.

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THE CHALLENGES WORLD POPULATION IS PROJECTED TO RISE TO 9.1 BILLION

IN 2050 FROM CURRENT 6.7 BILLION, REQUIRE 70% INCREASE

IN FARM PRODUCTION (FAO).

ON THE 2008 GLOBAL HUNGER INDEX, INDIA RANKS 66 OUT

OF 88 COUNTRIES.

ENSURING FOOD SECURITY BY COST EFFECTIVE AND

EFFICIENT DISTRIBUTION

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TO MEET THE CHALLENGE OF

FEEDING ENTIRE NATION

INDIA WILL HAVE TO SUBSTANTIALLY IMPROVE ITSINPUTS AND TECHNOLOGY, SINCE THE ENTIRE GROWTHWILL COME FROM:

INCREASE IN YIELD,

AND

REDUCING INEFFICIENCY IN POST HARVEST

OPERATIONS.

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SYSTEM APPROACH TO MAXIMISE GRAIN

QUALITY.

PROVISION OF SUITABLE STORAGE SYSTEM

STRATEGY TO ACHIEVE.

- PROTECTION OF STORED GRAIN FROM WEATHER,

RODENTS, INSECTS, MYCOTOXINS AND PESTICIDE

RESIDUES.

- MINIMISE DETERIORATION PROCESS TO PREVENT

SPOILAGE, QUALITY DISCOUNTS , STORAGE COSTS

AND MAXIMISE RETURN TO CUSTOMERS.

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Most structures in the unorganised sector are not

rodent and moisture proof requiring periodic

maintenance.

Use of hooks and repeated handlings.

Non-availability of specially designed trucks/ wagons

Below specification stitching of the jute bags. Poor infrastructure at the despatching/ receiving end.

Limitations in traditional

storage

Results in considerable

losses in quality andQuantity

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GREATER STORAGE CAPACITY PER UNIT VOLUME SPACE.

LESSER CONTAMINATION OF GRAINS FROM RODENTS,

INSECTS, AND MICRO ORGANISMS.

LESSER USAGE OF PESTICIDES

LESSER DIFFICULTY IN LOADING AND UNLOADING.

NO COST OF BUYING GUNNY BAGS.

Contd««..

NEED FOR BULK HANDLING IN INDIA

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Contd««

GRAINS CAN BE STORED FOR LONGER PERIOD

MINIMISES OVERALL COST OF HANDLING AND

TRANSPORTATION.

REDUCES THROUGH PUT TIME, MECHANICAL HANDLING CAN

HELP IN HANDLING TO MT PER HOUR AGAINST AROUND

1 TONNES THROUGH MANNUAL OPERATIONS.

BETTER PRODUCTIVITY, BETTER QUALITY OF GRAINS AND

BETTER OPERATIONAL EFFICIENCY TO ENSURE

AVAILABILITY OF MORE GRAINS.

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ADOPTION OF MODERN TECHNOLOGY FOR HANDLING OF

11.6 MILLION TONNES OF THE GRAINS AT TOTAL

INVESTMENT OF 1.6 BILLION $ COULD LEAD TO SAVING OF

MORE THAN 260 MILLION $ PER YEAR.

WORLD BANK STUDY ( 1998 )

MOVEMENT OF BULK GRAINS IN CONTAINERS IS

CHEAPER THAN ITS TRANSPORTATION IN BAGS.

ADMINISTRATIVE STAFF COLLEGE HYDERABAD- 1976.

CONTD««..

ECONOMICS OF GRAIN BULK HANDLING

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CONTD««

THE COST OF OPERATION IN BULK WAS 40% LOWER THAN

THE CONVENTIONAL GODOWNS.

WIMBERLY ( 1983)

FAO STUDIES IN PAKISTAN HAVE INDICATED COST PER

TONNE OF PLINTH STORAGE TO BE $ 6 COMPARED TO

WAREHOUSES 13.9 $ AND CONCRETE SILOS $ 14.8. OVERALL

ANALYSIS RECOMMENDED USING BULK HANDLING

FACILITIES ESPECIALLY IN PORT, TO ENSURE EFFICIENTOPERATIONS.

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NATIONAL POLICY ON HANDLING, STORAGE

AND TRANSPORTATION OF FOODGRAINS

IN ORDER TO ENCOURAGE PRIVATE SECTOR

PARTICIPATION IN HANDLING, STORAGE AND

TRANSPORTATION OF FOODGRAINS IN THE

COUNTRY, THE GOVERNMENT IN 2000

ANNOUNCED A NATIONAL POLICY WHICH AIMS

AT : -

ENCOURAGEMENT OF MECHANIC HARVESTING

CLEANING AND DRYING AT FARM AND MARKET

LEVEL

CONSTRUCTION OF A CHAIN OF SILOS AT

RECEIPT AS WELL AS DISTRIBUTION POINTS.

MODERNISATION AND UPGRADATION OF GRAIN

HANDLING SYSTEM.

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THE MAIN THRUST OF THE POLICY

TRANSPORTATION OF GRAIN FROM SILOS TO

RAILHEAD AND THEREAFTER TO PRE-

DETERMINED DESTINATIONS BY SPECIALLY

DESIGNED TRUCKS/ RAIL WAGONS (WITH TOP

FILLING AND BOTTOM DISCHARGEMECHANISM) / DEDICATED TRAINS.

DECLARATION OF FOODGRAINS STORAGE AS

INFRASTRUCTURE

LOT OF INCENTIVES FOR PRIVATE SECTOR

PARTICIPATION LIKE AUTOMATIC APPROVAL

FOR FOREIGN DIRECT INVESTMENT (UPTO

100%), EXEMPTIONS IN CUSTOM DUTY AND

BENEFITS IN INCOME TAX.

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IMPROVING THE WAREHOUSING SYSTEM

THE NATIONAL POLICY ON BULK HANDLING, STORAGE

AND TRANSPORTATION OF FOODGRAINS IS UNDER

IMPLEMENTATION.

5.5 LAC METRIC TONNE CAPACITY FOR BULK HANDLINGHAS BEEN CREATED ON µBUILT ON OPERATE¶ (BOO) BASIS

THROUGH PRIVATE SECTOR PARTICIPATION.

THE WAREHOUSING (DEVELOPMENT AND REGULATION)

ACT 2007 HAS BEEN ENACTED TO ENSURE THAT THE

FARMERS ARE ABLE TO KEEP THEIR GOODS IN CERTIFIED

WAREHOUSE AND USE THE WAREHOUSE RECEIPT AS A

NEGOTIABLE INSTRUMENT.

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DIFFERENT TYPES OF BULK STORAGE SYSTEM

HORIZONTAL

BUNKER

VERTICAL

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FUTURE STORAGE

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A VIEW OF PORT HANDLING OPERATIONS

IN AUSTRALIA

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CONCRETE VERTICAL SILOS

AUSTRALIA

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DOME ORAGE

AUSTRALIA

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BENEFITS OF BULK HANDLDING AND STORAGE

1. BETTER FOODGRAIN MANAGEMENT SYSTEM.

. REDUCTION OF POST HARVEST LOSSES :-

IN HANDLING /TRANSPORTATION OF TO MILLIONTONNES OF FOODGRAINS IN THE ORGANISED SECTOR,

SAVING OF 1.4% TRANSIT LOSSES COULD BE AS HIGH

AS RS. 66 CRORES IN MONETARY TERMS.

THE LOSSES OF NEARLY 1 MILLION TONNES IN THEUNORGANISED SECTOR IF CONTROLLED CAN HELP TO

FEED 1 .7 MILLION PEOPLE OF OUR COUNTRY

AROUND THE YEAR.

3. BETTER QUALITY OF GRAINS.

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FUTURE NEEDS ?

FOOD GRAIN INDUSTRY IN INDIA REQUIRES INVESTMENT OF RS.

29,000 CRORES IN NEXT FIVE YEARS TO CREATE NECESSARY

INFRASTRUCTURE TO EXPAND FACILITIES AND STATE OF ART

TECHNOLOGY TO MATCH THE INTERNATIONAL QUALITY AND

STANDARDS.

IMPROVE QUALITY OF GRAINS BY CREATING NATIONAL

AWARENESS ABOUT QUANTITATIVE AND QUALITATIVE LOSSES

REDUCTION OF LANDING COSTS AT PORTS TO BE COMPETITIVE

IN INTERNATIONAL MARKET. ACCEPTANCE OF BULK STORAGE ASCONCEPT BY THE CONSUMER

UPGRADATION AND MODERNISATION OF THE INFRASTRUCTURE BY

INTEGRATING HANDLING, TRANSPORTATION OF GRAINS AT ALL

POINTS

.

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ACCEPTANCE OF BULK STORAGE AS CONCEPT BY

THE CONSUMER.

UPGRADATION AND MODERNISATION OF THE

INFRASTRUCTURE BY INTEGRATING HANDLING,

TRANSPORTATION OF GRAINS AT ALL POINTS.

PROMOTION OF FARM LEVEL BULK STORAGE

STRUCTURES WITH INCENTIVES WHICH WILL ALSO EASE

THE PRESSURE ON PROCUREMENT AGENCIES.

CONCLUSION

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