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46-lakh tonne storage plan stuck, Punjab writes to Centre for easier norms
The chief secretary also questioned the insistence on matching the rates offered by the Central Warehousing Corporation (CWC), arguing that existing storage charges could not be compared with the rates applicable to newly constructed godowns
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With the Punjab government failing to make progress in creating additional 46 lakh tonnes of foodgrain storage capacity allotted to the state by the Union ministry of consumer affairs, food and public distribution in 2024, state chief secretary KAP Sinha has written sent to the Centre last week to simplify the procedure for allotment of godowns.
In the communication to the Union ministry, Sinha highlighted the difficulties faced by state agencies in executing projects under the 10-year guarantee scheme. He pointed out that a large number of bids and financial quotations submitted by prospective developers were being rejected by the state-level committee (SLC) and the high-level committee (HLC), delaying the creation of much-needed storage infrastructure.
“I would like to draw your attention towards tenders being floated by different agencies for the construction of covered godowns under the 10-year private entrepreneurs guarantee (PEG) scheme in Punjab, wherein the majority of offers and financial quotes from bidders are being rejected by the SLC or HLC,” the communication stated.
The chief secretary also questioned the insistence on matching the rates offered by the Central Warehousing Corporation (CWC), arguing that existing storage charges could not be compared with the rates applicable to newly constructed godowns. He suggested that fresh allotments should be linked to the Wholesale Price Index (WPI) to account for inflation and rising construction and operational costs.
Under the 2024 allocation, Punjab was sanctioned 46 lakh tonnes of additional storage capacity. Of this, 39 lakh tonnes were to be developed by the state’s food and civil supplies department, five lakh tonnes by the CWC and two lakh tonnes by the Food Corporation of India (FCI).
The CWC had offered storage charges of ₹67 per tonne per month in 2012-13, which increased to ₹102 per tonne per month in 2024-25, marking a rise of around 51%. The rates are expected to increase further in the coming years, the state government has pointed out.
According to officials, the seven-stage approval process involves floating tenders, scrutinising bids and examining the documents submitted by prospective developers. This is followed by a technical evaluation of proposals, including verification of land ownership or lease arrangements, location and project viability.
The remaining stages involve opening of financial bids, approval by the SLC and final clearance by the HLC, headed by the FCI chairman. State officials have described the multi-layered procedure as cumbersome, making it difficult to attract private investors and complete projects within a reasonable timeframe.
“Over the past two years, we have been able to initiate the process for developing only 13 lakh tonnes of storage capacity, while the other two agencies, CWC and FCI, have also failed to make a head start,” a senior state government official said.
The delay has come at a time when Punjab is facing mounting pressure on its existing storage infrastructure. The state has a total storage capacity of nearly 250 lakh tonnes but is currently holding around 265 lakh tonnes of wheat and rice from previous procurement seasons.
The situation is expected to become more challenging with the ongoing paddy procurement season, for which the state has set a target of 180 lakh tonnes. The procured paddy is expected to yield around 120 lakh tonnes of rice, with milling scheduled to begin on December 1.
With existing storage facilities already under strain, the state government is concerned about accommodating the additional rice stocks.
