India Needs More Warehouses Than More Production: NITI Aayog’s Ramesh Chand Calls for Urgent National Push in Scientific Storage

India’s farm output is rising fast, but storage capacity isn’t keeping pace. The country is now the world’s second-largest producer of agri-commodities, and foodgrain output reached 354 million tonnes in 2024–25, according to the report and speakers cited.

At a PHD Chamber of Commerce and Industry (PHDCCI) panel discussion in New Delhi, NITI Aayog member Prof. Ramesh Chand said the bigger need is scientific, scalable warehousing rather than simply pushing production higher. He argued that modern storage is tied to food security, price stability, buffer stocking, and protecting the value of harvests.

A PHDCCI report released at the event projects a 69 MMT deficit in scientific foodgrain storage by 2030. It notes that while policy frameworks have been strengthened through schemes such as PEG, AIF, and PPP-driven silo projects, major hurdles remain, including contractual norms, land availability, financing, and operational viability.

Other panelists pointed to climate and market pressures shaping the storage debate, including erratic weather, the need for climate-resilient storage technologies, and calls for smoother regulations and deeper private participation. Industry voices also flagged high insurance premiums, GST structure issues, interest costs, and payment challenges linked to 174-MT stack size norms in PEG facilities, while pushing for priority-sector status for agri-warehousing to improve access to finance.

The report also projects the foodgrain warehousing storage market will grow from ₹37,336 crore in 2025–26 to ₹43,953 crore by 2030–31, driven by procurement needs, PPP silo projects, and private warehousing. It anticipates wider use of technologies such as IoT-based climate monitoring, automated grain quality labs, blockchain traceability, and digital twins for predictive maintenance.

Why it matters

• Record and rising production can lose value without enough scientific storage, increasing the risk of post-harvest losses.
• A projected 69 MMT storage deficit by 2030 could strain procurement, buffer stocking, and household food security goals.
• Financing, land, and operational barriers could slow needed investment even as demand for warehousing grows.

What to do next

• Watch for follow-up work between PHDCCI and NITI Aayog, including the proposed workshop and a complementary cold storage analysis.
• Track policy and market signals on warehousing finance and regulation, including proposals tied to priority-sector lending and digital systems like e-negotiable warehouse receipts.

Source

Original reporting by agriculturepost.com: https://agriculturepost.com/agribusiness/india-needs-more-warehouses-than-more-production-niti-aayogs-ramesh-chand-calls-for-urgent-national-push-in-scientific-storage/