"The setting up of silos would give proper protection to about 10 million tonne of wheat which is now being stored in the open and eliminate the cost of replacing damaged gunny bags worth Rs 10 crore every year," said managing director, Markfed, DS Bains, and added "it would assure the quality of grains for upto five years."

The project would also eliminate use of wooden crates for storing gunny-filled grains, saving Rs 12 crore annually. He said since 75 per cent of wheat was now being stored in the open. Silos for an equal amount have been proposed to be constructed, mainly in marketing yards and at railway junctions, from where wheat was moved to other states.

He said the amount involved would be roughly Rs 6,000 crore, for moving from the bag system to bulk transportation. However, about Rs 7,017 crore worth of wheat was lying in the open right now, and 50 per cent of this stock would keep lying there for two years and another 30 per cent for upto four years. He said part of the funds would be arranged from the World Bank, adding that the proposal was for Central and State governments to modernise one-third of the requirements and rope in the private sector for the remaining investments. MrBains said the private sector would have to be encouraged to enter the project by allowing free trade in foodgrains within a bandwidth of prices. Making even 10 per cent of the stock available for the public would help keep prices in check, he added.

Alternatively the grains from this account could help create an annual export market of Rs 1,100 crore. The setting up of silos would facilitate long-term preservation of grain by control of moisture and temperature, he said.

Effective storage of wheat in silos would further help in setting up other industries, like branded atta, bread, bakery noodles and pasta.

MrBains advocated the use of silos storage system on an all India basis as the "World Bank had estimated the annual nation-wide wastage of foodgrains to be 20 million tonne, worth Rs 10,000 crore." The system would also help introduce the warehousing receipt concept, whereby the farmer could store his wheat in the private or cooperative silo and receive 60-70 per cent payment upfront within a day of storage, he added.

(PTI)