Punjab faces storage crisis as grain silos hit capacity ahead of wheat season

Choked grain storage capacity in Punjab is threatening to derail both rice delivery schedule and the upcoming wheat harvest.

Rice millers are struggling to find storage space, delaying custom milling of rice and subsequent supply to the Food Corporation of India (FCI) in the national pool. While the rice delivery deadline ends on March 31, only 25% of milling has been completed in the over 5,000 mills in the state till the first week of Feb.

Rice millers are looking towards the FCI to move the grains by deploying special trains. Confronted by the lack of storage space, they are slow to continue with the milling operations.

Punjab’s nearly 180 lakh metric tonne grain storage capacity, including godowns, cover and plinth (CAP), and silos, is full of grains from the previous seasons. Some stocks from as far back as 2023–24 still occupy warehouse space.

“Going by the full storage capacity and slow movement to other states, Punjab is heading towards serious storage issues. After March-end, when the temperatures start soaring, the yield starts decreasing. The central and state govts must intervene to avoid a crisis-like situation in March–April,” said Akhil Bharatiya Rice Sheller Sangh president Prem Goel.

Millers from the Malwa region said they are forced to hold quantities of paddy for extended periods. “There is no clear roadmap for lifting rice for the 2025–26 season. Unless old stocks are evacuated on priority, managing fresh wheat arrivals will be extremely difficult,” they said.

An FCI official said, “Any delay creates a chain reaction on storage, milling, and fresh procurement. The storage space could prove adequate if movement is smooth through the year.”

Officials from the food and civil supplies department said the matter pertaining to slow movement to other states was raised with the central govt.

As Punjab procured 156 lakh tonne paddy, 105 lakh tonne rice (67% rice is delivered after custom milling of paddy) is to be delivered by millers. After the March 31 deadline, wheat arrivals normally start from the middle of April. Punjab expects to procure 130 lakh tonne wheat.

In all, 240–250 lakh tonne foodgrain (wheat and rice) is procured in Punjab in a year, which may increase or decrease depending on yield and procurement in kharif and rabi marketing seasons in any particular year.

This article has been republished from The Times of India.