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HomePosts Tagged "National Bulk Handling Corporation"
Agribusiness, Opinions, Supply Chain, Warehousing

 By Abhay Dandwate, Chief Risk Officer & Head Strategy, National Bulk Handling Corporation

India’s agricultural value chain relies heavily on agri-warehousing to bridge the gap between year-round distribution and seasonal crop supply. Through the use of sustainable practices, innovation, and investment encouragement, the agri-warehousing sector may realise its full potential and make a substantial contribution to India’s agricultural growth narrative.

India’s agricultural sector, while progressing steadily, faces a significant challenge: the lack of modern and scientific storage facilities. With an annual food grain production of approximately 330 million tonnes and an agricultural warehousing capacity of around 201 million tonnes, a substantial storage gap of over 40 per cent persists. This shortfall contributes to an alarming annual loss of about 74 million tonnes of food, accounting for 22 per cent of total food grain production and 10 per cent of both food grains and horticultural produce. A major factor behind these losses is the inadequacy of storage infrastructure.

Recognising the need to address this issue, the Government of India has launched numerous initiatives to enhance the country’s storage capacity through the construction of warehouses, godowns, and silos. Presently, over half of India’s warehousing capacity is owned and managed by public sector undertakings such as the Food Corporation of India (FCI), Central Warehousing Corporation (CWC), State Warehousing Corporations (SWCs), and other state agencies. To complement these efforts, schemes like the Agricultural Marketing Infrastructure (AMI), the Private Entrepreneurs Guarantee (PEG) Scheme under a public-private partnership (PPP) model, the PM Krishi Sampada Yojana, and cooperative sector programmes aim to encourage private sector participation in developing storage infrastructure.

Landmark Initiatives in Storage Development

A key milestone in India’s agri-warehousing sector is the government’s announcement of the world’s largest grain storage plan within the cooperative sector. Over the next five years, this initiative seeks to establish a storage capacity of 70 million tonnes with an investment of Rs 1.25 lakh crore. This ambitious plan includes constructing small storage structures with a 2,000-tonne capacity at the block level to reduce food grain losses due to insufficient facilities.

The initiative also involves building thousands of warehouses and godowns nationwide and integrating Primary Agricultural Credit Society (PACS) godowns into the food grain supply chain. This integration, led by the National Cooperative Development Corporation (NCDC) and supported by NABARD, aims to reduce transportation costs and create storage capacity sufficient for 100  per cent of India’s grain production. The Warehousing Development and Regulatory Authority (WDRA) has waived registration fees for cooperative sector warehouses, incentivising farmers to use these facilities and secure better prices for their produce.

Aligning existing schemes such as the Agricultural Infrastructure Fund (AIF) with the storage initiative enables PACS to access subsidies and interest subvention benefits, significantly boosting infrastructure development. These measures collectively aim to strengthen the agricultural value chain and reduce post-harvest losses.

To read more click on:https://agrospectrumindia.com/e-magazine

 By Abhay Dandwate, Chief Risk Officer &

AgroPolicy, Warehousing

Fumigation being a key scientific component of the storage of Agri produce has been singled out for levy of GST, which will result in ‘cost burden on the agri value chain’

 Ramesh Doraiswami, Managing Director & CEO, National Bulk Handling Corporation has voiced his opinion on the recent GST levy on Fumigation services and that it should remain exempt. Fumigation is an integral part of the scientific storage of agri produce of mass consumption such as wheat, maize, pulses etc. The GST Council has recently announced the withdrawal of the Exemption on Fumigation of Agri produce in warehouses from 18th July 2022. Fumigation being a key scientific component of the storage of Agri produce has been singled out for levy of GST, which will result in ‘cost burden on the agri value chain’. It can also lead to a reduction in farmer realization or an increase in consumer price.

Importance of Fumigation of Agri Produce:

To maximize farm income and ensure continued food availability, storage for 6-9 months is imperative. Since infestation is common during such prolonged storage beyond 30-45 days, the desired and regulated procedure required is Fumigation. It is a process of subjecting the infested stocks/storage structures/containers to lethal fumes of fumigation in an enclosed atmosphere with sufficient concentration for appropriate exposure time. In a Warehouse, Fumigation is carried out by applying fumigant (ALP tablet or pouches) by covering the stack with gas-retaining plastic sheets used to hold fumigant gases inside a fumigation enclosure during the exposure period. Fumigation is a curative treatment and the only practical way to kill internal insects or insects dwelling deep within the grain mass.

Fumigation is a Regulatory requirement in most of the importing countries. The increase in demand for improved Food Safety Standards throughout the world has imposed the requirement for good and quality food products.  Fumigation plays a more important role in controlling and in the management of infestation in commodities stored in tropical countries like India, where climatic conditions are favourable for infestation of stored grain pests. This process of Fumigation is a mandatory quarantine requirement.

Storage Loss due to Infestation:

In India, 10 per cent of the total post-harvest losses happen because of unscientific storage. Annual storage losses have been estimated to be 14 million tonnes, which is a mounting an approx. Rs 7000 Crores, out of which the stored grain insect pests alone account for Rs 1300 crores.

Since fumigation and prophylactic treatment are an integral part of scientific storage, these services need to be carried out with precision, as even partial damage to quality due to insects can result in a complete loss of commercial value of food grains.  Additionally, there is a possibility that this additional levy could result in Fumigation Services being carried out in an unorganized manner by untrained operators, thereby resulting in safety hazards to the operator and also harming public safety.

Fumigation being a key scientific component of