SPV for Management of Foodgrain Storage

GoI is just busy creating more and more layers of bureaucracy. Planning Commission created another evaluation office despite having one (criticised by Mint). Now is the turn of Ministry of Agriculture.

In a press release it says:

The Centre has decided to create a Special Purpose Vehicle to undertake studies of food grain storage, handling and its transport. It will also assess cold chain infrastructure requirements and will endeavour private sector participation in creation of such facilities. A comprehensive study is also being undertaken by the Planning Commission to suggest measures for creation of modern food grain storage infrastructure in the country. This was stated by Prof. K.V.Thomas, Minister for Consumer Affairs, Food & Public Distribution inaugurating the national Conference on Policy for Storage of Food Grains here today.

What is needed is actual work not another layer of government. Much of the work as the press release says is done/being done by PlanCom. More studies are always welcome but PlanCom can do them. Why float another SPV? 

The government also plans to make a regulator for regulating warehouse receipts:

Shri Thomas said the Food Ministry has also recently constituted Warehousing Developing and Regulatory Authority (WDRA) to introduce negotiable warehousing receipt system in the country. This would enable farmers to avail better credit facilities from banks for their financial needs and creation of quality warehousing in the rural areas. 

A little interaction with people tells me that this warehouse receipts thing is doing well. Hope the regulation helps develop the market further. But going by our history, it looks difficult.

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