Location: Telangana, India
Client: Government of Telangana
Supplier: Famsun Storage Engineering Company Limited (proposed)
Project: Modern grain silo network at 20 locations across 10 paddy-producing districts
Capacity: 50,000 metric tonnes (initial phase)
Status: Proposal under review
The Telangana government is planning to establish a network of state-of-the-art grain silos at 20 locations across 10 major paddy-producing districts, with an initial storage capacity of 50,000 metric tonnes, to modernise the state’s grain storage infrastructure and reduce post-harvest losses.
The proposal was reviewed by Irrigation and Civil Supplies Minister N Uttam Kumar Reddy during a meeting with representatives of leading grain storage and logistics companies, including Famsun Storage Engineering Company Limited. The minister has directed the companies to submit detailed proposals identifying suitable locations, storage capacities, and implementation strategies.
Addressing a costly problem
Telangana currently suffers losses of approximately IN₹5000 crore (US$530 million) annually due to grain spoilage, theft in the rice milling system and defaults by millers. The government aims to recover the entire project cost within one year by preventing these inefficiencies.
The proposed silo network would complement, not replace, the existing procurement infrastructure involving Self-Help Groups (SHGs), IKP centres and Primary Agricultural Cooperative Societies (PACS), which will continue to play a key role in paddy procurement. “The new system would complement not replace the existing procurement ecosystem,” the minister clarified, adding that the government would examine the costs involved before taking a final call.
Technology-driven storage
Under the proposed model, the silo system would automate the entire grain handling process:
- Intake and quality testing: Grain is sampled, tested and digitally approved before unloading.
- Automated storage: Mechanised systems transfer grain into storage facilities, significantly reducing manual handling.
- Digital monitoring: Sensors continuously track temperature, moisture and storage conditions.
- Scientific preservation: Automated aeration and pest-control systems maintain grain quality for extended periods.
The technology is expected to reduce vehicle turnaround time from several days to nearly one hour, easing congestion at procurement centres. This is particularly significant given the manpower shortages frequently experienced during the peak Rabi procurement season in April and May, when extreme heat wave conditions affect labour availability.
Strategic infrastructure
A key feature of the proposal is dedicated railway connectivity to enable seamless transportation of grain from surplus-producing regions to consumption centres across the country.
During the discussions, representatives highlighted modern paddy storage infrastructure developed in Bangladesh as a successful example of large-scale grain management. The Bangladesh model, comprising multiple modern storage facilities with a combined capacity of about 150,000 tonnes, demonstrates how scientific drying and storage systems can preserve grain safely for extended periods.
The minister said the government aims to modernise grain procurement, storage, transportation and distribution systems to provide better services to farmers and consumers while preparing Telangana’s agricultural marketing network for future needs.
