India expands local grain storage network amid record grain production

India is expanding its decentralized grain storage network amid rising production. More than 180 thsd tons of new storage capacity has already been created under the government’s Decentralised Grain Storage Plan.

Launched in 2023, the program provides for the construction of grain storage facilities through the network of Primary Agricultural Credit Societies (PACS). During the pilot phase, 9.75 thsd tons of capacity was created across 11 states. As of July, warehouses had been completed at 313 cooperatives, bringing total new capacity to more than 180 thsd tons.

The infrastructure expansion comes as India’s grain production continues to increase. According to the latest estimate from the Department of Agriculture & Farmers Welfare, the country’s total food grain production is estimated at 376.5 mln tons, up 18.8 mln tons year-on-year.

India is the world’s second-largest wheat producer and the largest producer of rice. According to FAS USDA, the country is expected to harvest a fourth consecutive record wheat crop of 120 mln tons in 2026/27, while rice production is forecast at 147 mln tons.

Indian authorities expect the development of local storage facilities closer to production areas to reduce transportation costs between procurement and storage centers, minimize grain losses and improve the efficiency of the country’s food supply system.

Tags: grain, India, grain storage