Odisha to create additional paddy storage to accommodate the paddy overflow

File photo for representational purposes only. | Photo credit: Srinath M.

As Odisha has seen a massive paddy harvest over the years and the purchase of rice has surged after the increase in the Minimum Support Price (MSP), the state government has decided to create additional scope to reduce rice consumption by 10 million metric tonnes in the state through the Public Private Partnership scheme.

“To strengthen the food supply chain, Odisha Government proposes to develop 10 million metric tonnes of additional storage capacity under the Odisha State Private Entrepreneur Scheme (OSPEG) through PPP mode. While 4 million metric tonnes of storage will be created in the first phase and 6 million metric tonnes will be created in the second phase, State Guarantee (Opnougtrencingisha State Guarantee), Scheme, 2026.

According to the government, public procurement in the state has seen a significant increase in recent years. Total procurement increased from 70.88 Lakh Metric Tonnes (LMT) in 2023-24 to 97.94 LMT in 2025-26, along with a significant increase in the number of farmers participating in the procurement process. The state government spent ₹30,126.24 crore on public procurement.

Out of 26.27 lakh metric tonnes of rice received from its own millers, Food Corporation of India has raised 8.12 lakh metric tonnes of rice in 2025-26. FCI has collected 28.84 lakh tonnes of rice in 2024-25. After the use of rice in public distribution system schemes, the state government is left with a huge stock of rice. According to the government, the state does not have enough storage space to accommodate the excess rice.

Currently, procurement, warehousing and supply chain management activities are carried out through Odisha State Civil Supplies Corporation Limited (OSCSC). The company currently operates around 160 branches (owned and leased) across the state with a combined storage capacity of about 6.73 lakh tonnes.

“Given the continuous increase in purchase volumes and the likelihood of further growth in purchase in the coming years, the existing storage infrastructure is expected to face considerable pressure. Hence, there is an urgent need to expand the existing storage capacity in a systematic and planned manner to ensure safe storage of food grains and ensure timely distribution under PDS and other welfare schemes,” the Food2026 department said in a Consumer Welfare notice in October.

According to the guidelines, storage capacity in surplus districts should be planned as a percentage of total district procurement, and in consumption districts, storage capacity may be determined based on the number of months of stock required to meet the demand for PDS and other welfare schemes.

Godowns should allow for scientific storage of rice while no drop under this system would be less than 2500 MT capacity, the government has made it clear.

The state government proposes to facilitate the creation of additional scientific storage capacity through the participation of private entrepreneurs. Under this approach, private entrepreneurs will develop, operate and maintain scientific storage facilities in accordance with prescribed specifications.

Published – 06 Oct 2026 11:53 IST