FCI Aims to Increase Silo Capacity by 5 Million Tonnes Over Two Years

05-Jun-2026 04:42 PM

New Delhi: The Food Corporation of India (FCI), an agency under the Central Government, has formulated a plan to increase its silo capacity for food grain storage by 5 million tonnes (50 lakh tonnes) over the next two years. These silos are planned to be constructed under the Public-Private Partnership (PPP) model, which will facilitate the storage of rice and wheat.

According to official sources, since 2021, private companies have completed the construction of silos with a total storage capacity of 3.9 million tonnes (39 lakh tonnes) across 76 locations in the country. Each silo has a storage capacity ranging from 25,000 to 50,000 tonnes. The FCI requires additional silos, particularly for the safe storage of wheat; consequently, the corporation is engaging private companies, which are showing keen interest in silo construction.

Reports indicate that the construction of silos with a total capacity exceeding 2.35 million tonnes (23.50 lakh tonnes) is currently underway at 38 locations, while modern storage facilities with a capacity of over 2.72 million tonnes (27.20 lakh tonnes) are slated for construction over the next two years.

For the past three to four years, the FCI had been procuring 30 million tonnes (300 lakh tonnes) or less of wheat annually from farmers at the Minimum Support Price (MSP) for the central pool; however, procurement has now risen to over 35 million tonnes (350 lakh tonnes).

A significant portion of this procurement consists of lower-quality wheat—characterized by discoloration, lack of luster, and broken or shriveled grains—which has been acquired under the URS (Under Relaxed Specifications) scheme.

The FCI's total silo capacity is expected to reach 9 million tonnes (90 lakh tonnes) by 2028, significantly strengthening its storage infrastructure. In addition to wheat, the FCI also procures large quantities of paddy from farmers.