Punjab to Receive Major Storage Boost Under Central Scheme
In a significant move to alleviate persistent storage challenges, Punjab is set to acquire 60 lakh metric tonnes (LMT) of new covered storage capacity under the PEG Scheme II. Union Minister of State for Consumer Affairs, Food and Public Distribution, Nimuben Jayantibhai Bambhaniya, made this announcement during a session in the Rajya Sabha on Tuesday.
Addressing the Wheat Storage Crunch
The state of Punjab has been grappling with a severe storage crunch due to holdover wheat stocks, which has strained existing infrastructure. Currently, Punjab possesses 9.25 LMT of silo capacity. The proposed expansion under PEG Scheme II aims to gradually phase out open storage methods, enhancing efficiency and reducing potential grain losses.
Neighboring Haryana has also been allocated an additional 30 LMT capacity under the same scheme, indicating a broader regional effort to modernize storage facilities across northern India.
National Storage Development Under PEG Scheme
Under the PEG Scheme, conventional godowns have been constructed across 24 states through private investment. As of December 31, 2025, a total of 148.61 lakh MT of storage capacity has been completed, showcasing the scheme's extensive reach and impact on national food security infrastructure.
Minister's Response to Parliamentary Queries
Responding to questions from Punjab-based Rajya Sabha members Vikramjit Singh Sahney and Ashok Kumar Mittal, Minister Bambhaniya detailed the Food Corporation of India's (FCI) storage strategy. She explained that FCI's storage requirements are determined by procurement levels, buffer norms, and Public Distribution System (PDS) operations for rice and wheat. The corporation continuously reviews its storage position and creates or hires capacity based on identified gaps to ensure optimal management.
Steel Silos and Implementation Challenges
The minister highlighted that steel silos constructed under Public-Private Partnership (PPP) mode have helped reduce costs through risk-sharing and private participation. However, she acknowledged delays in some projects, attributing them to:
- Land acquisition issues faced by private players
- Force majeure events
- The need for railway approvals in silo projects requiring rail sidings
She emphasized that these factors contributed to implementation delays rather than systemic cost escalation or regional imbalance, addressing concerns raised about the focus on steel-silo storage.
Grain Loss and Infrastructure Support
In response to specific inquiries, Minister Bambhaniya stated that there is no report of disproportionate grain loss in Punjab attributable to inadequate storage infrastructure. This assurance comes amid questions about grain damage in FCI stocks over the past three years and steps to prevent such losses.
Additionally, she noted that the Ministry of Food Processing Industries (MoFPI), under the cold chain component of the Pradhan Mantri Kisan Sampada Yojana (PMKSY), supports the creation of cold chain infrastructure. This initiative aims to further strengthen storage capabilities and reduce wastage, aligning with modernization efforts.
Broader Implications for Food Security
The expansion of covered storage in Punjab and Haryana under PEG Scheme II represents a critical step toward enhancing food security in the region. By phasing out open storage and integrating modern silos, the government aims to:
- Minimize grain spoilage and financial losses
- Improve efficiency in procurement and distribution
- Support farmers through better post-harvest management
This development underscores the ongoing commitment to upgrading India's food storage infrastructure, ensuring that surplus production is preserved effectively for national needs.
