Foodgrains Collection in Rural India

Project:       Foodgrains Collection in Rural India - Punjab

Client:         Punjab State Co-op Marketing Federation (Markfed) & Cdn Int'l Dev (CIDA)

Location:     India

IFC -- Punjab, India

CMCEngineering was awarded the contract for a techno-economic feasibility study to develop foodgrains collection, storage, processing and distribution in the State of Punjab.

The major objectives were aimed at the following:

  • Develop options for a modern, privately owned grain handling and merchandising model suitable for the State of Punjab that could be replicated throughout various districts in Punjab and adjacent states.
  • The model(s) must be economically viable and implementable within the framework of a heavily government-subsidized system.
  • The model to be applied in the District of Ludhiana or Moga in the market area of Baghapurana or Khanna, which have the largest wheat arrivals in the range of 120,000 to 160,000 tonnes.
  • Maintain or improve price paid to farmer for good quality wheat.
  • Millers would initially be the exclusive clients of the new facility.  Millers would be supplied with consistent quality wheat at a price comparable to that paid at the present time for FAQ.
  • Value added services would be supplied at a price for premium/high quality wheat, cleaning, laboratory services, procurement services and on-time delivery.
  • Identify partner for PPP agreement.

The study was concentrated in the State of Punjab and particularly in three large districts:  Ludhiana, Moga, and Sangur.  The focus was to analyse the foodgrains collection infrastructure, the foodgrain losses, storage facilities, transportation infrastructure, employment, and environmental issues.  The demographics of the study area were analysed with regard to density, literacy, and workforce.  The agricultrual profile was reviewed in terms of cropping density, climate, land use classification, and operational holdings together with cropping patterns, irrigration, fertilizer consumption, and yields.  The storage capacity was tabulated together with marketing arrivals at Mandis, and the corresponding procurement patterns for private consumption and for the central pool.

Several economic models with various storage capacities were developed and analysed ranging from 75,000 to 150,000 tonnnes.

Business plans were developed and MOU prepared for Markfed to negotiate the JV Agreement with private sector investors.