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Business

The India food
story
  • Agriculture contributes 15% to India's GDP, supporting 500 million livelihoods.
  • Recent agricultural GDP growth is 350% higher than the previous 30 years.
  • CAP storage lacks climate control, leading to grain loss.
  • India's agricultural exports were $38B in FY19, projected to reach $44B in FY20 and $100B by 2022.
  • Food wastage and inflated prices drive food inflation, with selling prices up to 250% of farm costs.

Supporting

500 +

Million
Livelihoods

GDP Growth of

350 %

In Last
30 Years

Food Inflation Causing

250 %

Food
Prices

Agri Exports

100 B+

by 2022

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Grain storage
  • FCI manages 1900+ godowns with 30.5 MT capacity, focusing on modernization.
  • Post-harvest loss amounts to ~$7.5B annually, with over 20% cereals, 40% fruits/vegetables wasted due to infrastructure.
  • Annual wheat loss in India is ~21 MT, equivalent to Australia's production, due to storage issues.
  • Farmers travel ~12 km to markets, lacking facilities, contrary to 5 km recommendation.
Towards Food Security

The traditional agri infrastructure in India has strategically located storage capacities across the country, however most of them are shabbily maintained or in dilapidated state, leading to rotting of food-grains due to

  • Pest attacks & lack of favourable environment for preservation
  • Exposure to floods, rains and leakages in the godowns
  • Lack of adequate quality control measures leading to procurement of poor-quality stocks
  • Negligence on the part of the persons concerned in taking precautionary measures
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Modern Silos offer multiple advantages over traditional warehouses

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  • Increased shelf life
    • Controlled fumigation & in-built temperature control mechanism
    • Increases shelf life by > 5 years
  • Quicker turn-around-time
    • Mechanised loading and un-loading of grains
    • Packing and unpacking of grains not required in initial stages
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  • Reduced wastage & Bulk handling
    • Efficient and mechanized handling of food-grains
    • Specialized transport wagons for Movement of Grain in bulk
  • Lower land requirement and reduced fixed costs
    • ~ 4 times lower land requirement than the traditional silos
    • ~ 35% reduction in storage cost to FCI
    • ~ 95% reduction of grain handling cost to FCI

Transforming Grain Storage with Advanced Technology

    Modern silo terminals utilize advanced technology for efficient and reliable grain storage & logistics, setting new standards for preservation and efficiency.
  • Design: Silo terminals load and unload grains from wagons and trucks, connecting to silos via conveyors and integrating with bagging systems for outflow.
  • Technology: PLC-driven automation systems manage aeration, fumigation, temperature monitoring, and grain transport.
  • Temperature Monitoring: Multipoint sensors ensure control of aeration operations.
  • Aeration Systems: Regulate temperature and moisture, doubling as fumigation systems for pest control.
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Social Impact
  • Leap’s terminals feed ~11.6 million people (~ 1% of the total targeted population of the country) annually.
  • Annual savings of ~ USD$ 7.3 million in storage costs to the Government of India.
  • Bulk movement of grain from procurement centers to distribution centers resulting in 50% reduction in grain handling costs.
  • Creates employment for ~725 people directly & ~2,900 people indirectly.
  • Provides Grain storage for over ~ 0.4 million farmers.
  • Yields higher income to farmers by elimination of middlemen.