India's Food Procurement Program Hit by Storage Space Shortage

The Indian government's food procurement program is facing a severe shortage of storage space due to the Centre buying more grain than it distributes. During the 2025-26 crop year, the country procured 871.03 LMT (rice and wheat), which is far higher than the 592 LMT needed for annual welfare programs.

Punjab, India's food bowl, is struggling to deal with this issue as it has to handle 170 LMT to 200 LMT of wheat arriving all at once during the harvest season. The storage capacity in Punjab accounts for 23% of national capacity, while Haryana holds 12%. However, the current storage capacity of the central pool is insufficient to accommodate existing procurement volumes.

The Centre's new 'Foodgrain Storage Policy' aims to address this issue by expanding storage capacity and introducing alternative preservation methods. The policy recommends creating an additional 180 LMT of storage capacity for the central pool in a phased manner. It also introduces advanced preservation methods such as 'Hermetic Cocoon Bags' and 'Mobile Storage Units' to bypass traditional civil construction hurdles.

Ranjit Singh Jossan, vice president of the Punjab Rice Millers Association, said that the policy's aim to enhance storage capacity is the need of the hour and will further strengthen India's food security. However, the implementation of this policy remains a challenge as it requires significant investment in infrastructure and logistics.