CM urges Centre to increase rates of cap storage

Bhopal: Chief Minister Shri Shivraj Singh Chouhan has urged the Union Government to revise rates for cap storage in the state so that wheat procurement in the ensuing Rabi season can be made in a profitable way.

In a letter to Union Minister of State for Food Shri K.V. Thomas, Shri Chouhan has said that the Union Government has been revising rates for covered storage from time to time every year since 2004-05 while cap storage rates have been revised only once in year 2010-11 after year 2004-05, which are totally inadequate.
In his letter, Shri Chouhan said that wheat production has increased in an unprecedented way in the state during last some years. As a result, procurement of wheat on support price has also increased. Wheat procurement was to the tune of 85 lakh metric tonnes in Rabi-2012-13, which may increase to 120 lakh metric tonnes in year 2013-14.
Shri Chouhan said that the state is short of storage capacity in spite of all the measures and arrangements taken up for increasing it. Despite constant improvement in storage capacity, it will take some time. He said that 22 lakh metric tonnes of wheat was stored in caps last year. During Rabi season this year, 45 lakh metric tonnes of wheat is estimated to be stored in caps whereas storage capacity was increased by about 14 lakh metric tonnes last year.
Shri Chouhan wrote that the Union Government has been revising rates for covered storage from time to time. Per metric tonne rates for covered storage have been revised every year. The rates were upwardly revised by Rs. 38 in 2004-05, Rs. 41.20 in 2005-06, Rs. 41.40 in 2006-07, Rs. 42.60 in 2007-08, Rs. 49 in 2008-09 and Rs. 54.60 in 2009-10.
Rates of cap storage were not increased accordingly. Rates for cap storage were fixed at Rs. 18.40 per metric tonnes in 2004-05. It was revised to Rs. 20.80 per metric tonne and is static since then. It is totally inadequate.
Shri Chouhan said that the actual cost of setting up cap storage is Rs. 900 per metric tonne, which is used for estimated five years. Therefore, the construction cost comes to around Rs. 180 per metric tonne. Besides, preservation cost is around Rs. 450 per metric tonne per annum. Cost of storage is around Rs. 630 per metric tonne per annum and Rs. 52.25 per metric tonne monthly. Whereas Madhya Pradesh has received only Rs. 20.80 per metric tonne per month.
Shri Chouhan said that reimbursement rate of cap storage is only 38 percent of the godown storage rate while storage cost is equal. Therefore, rates of cap storage need to be increased with immediate effects.