Punjab to get 60 LMT covered storage under PEG Scheme II

Bathinda: Facing a persistent storage crunch due to holdover wheat stocks, Punjab is set to get 60 lakh metric tonnes (LMT) of new covered storage under PEG Scheme II, Union minister of state for consumer affairs, food and public distribution Nimuben Jayantibhai Bambhaniya informed the Rajya Sabha on Tuesday. The state currently has 9.25 LMT of silo capacity, and the proposed expansion aims to gradually phase out open storage. Haryana has been earmarked for an additional 30 LMT capacity under the same scheme.Under the PEG Scheme, conventional godowns have been taken up for construction across 24 states through private investment, with 148.61 lakh MT of capacity completed as of December 31, 2025.
Responding to two separate questions by Punjab-based Rajya Sabha members Vikramjit Singh Sahney and Ashok Kumar Mittal, the minister said FCI's storage requirement is determined by procurement levels, buffer norms and PDS operations for rice and wheat. The corporation continuously reviews its storage position and creates or hires capacity based on identified gaps.She added that steel silos constructed under the PPP mode have helped reduce costs through risk-sharing and private participation. Delays in some projects, she said, stemmed from land acquisition issues faced by private players, force majeure events and the need for railway approvals in the case of silo projects requiring rail sidings—factors that contributed to implementation delays rather than any systemic cost escalation or regional imbalance.In response to another question, the minister said there was no report of disproportionate grain loss in Punjab attributable to inadequate storage infrastructure. She also 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.Mittal had sought details on whether the focus on steel-silo storage had led to higher costs, delays or regional imbalance, and whether traditional and decentralised foodgrain storage systems were being neglected despite repeated assurances on modernisation.Sahney asked whether the Centre had assessed grain damage in FCI stocks over the past three years, including its monetary value; the extent of losses due to insufficient godown capacity; steps taken to prevent such damage; and whether the government planned to strengthen cold chain facilities and modern silos in Punjab to reduce wastage.