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India's Grain Storage Comes Up Short
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With only 63 million metric tons of food storage facilities and 75 metric tons of foodgrains stocks after the 2012 harvest season, India faces an acute shortage of storage capacity. About 3-4 million tons of additional capacity are planned by May or June 2012, and 11 million tons in 2013, according to India's Food Ministry, but more capacity will be needed this year. If not corrected this could mean that about 8 million tons of foodgrains could rot out in the open or in makeshift conditions. This is a major problem as about 200 million people in India are considered to be food-insecure, and an estimated 42% of children suffer form malnutrition.
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A law from the 1980's to protect the jute industry based in Kolkata and jute workers is now hampering the storage of wheat before the monsoon season in 2012, as the jute bag manufacturers cannot cope with demand. Jute bags are the sole storage bags mandated under the law, and only 20% of bags can be made of plastic materials under legislation from the 1980's. This risks damaging some of the harvested wheat. Make shift storage facilities only complicate the problem further. It highlights the problems India faces in modernizing its economy with bureaucratic and political inaction.
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Linked Articles
Wall Street Journal 06/23/2012
India's Grain Storage Comes Up Short
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How a law from the 1980's requiring use of jute bags for storage creates problems for food storage in India (1)
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