Modernizing Foodgrain Handling: The Role of Technology in Reducing Losses

India is one of the world’s largest producers of foodgrains, with output reaching a record 357.73 million tonnes in 2024-25. Yet a significant portion of this harvest never reaches the people who need it. Post-harvest losses – grain damaged or destroyed between the field and the consumer – remain one of the most serious and underreported challenges in Indian agriculture. The good news is that modern technology is now changing how foodgrains are handled, stored, and transported, cutting down these losses in ways that were not possible before.

The scale of the problem: why losses happen 🔗

Post-harvest losses in India are caused by a combination of inadequate infrastructure, outdated practices, and environmental factors. A large-scale study conducted by NABARD Consultancy Services (NABCONS) between 2020 and 2022 estimated that India suffers food losses worth approximately Rs. 1.53 trillion (USD 18.5 billion) every year across crops and agri-allied produce. This makes addressing post-harvest loss not just an agricultural priority, but an economic and food-security imperative.

Losses occur at multiple points – harvesting, threshing, drying, storage, processing, and transportation. When it comes to storage specifically, India’s Indian Grain Storage Management and Research Institute (IGMRI) estimates that insects alone account for 2 to 4.2 percent of all storage losses, followed by rodents at 2.5 percent, birds at 0.85 percent, and moisture-related damage at 0.68 percent. These figures reflect what happens when grains are stored using traditional, unscientific methods – mainly in jute bags stacked in conventional godowns.

Traditional bag storage, while practical at a small scale, comes with major drawbacks. Bags are vulnerable to moisture absorption, pest infestation, physical damage during handling, and pilferage. As the volume of grain procured by agencies like the Food Corporation of India (FCI) has grown, these limitations have become impossible to ignore. The shift toward modern technology is a direct response to this reality.

From bags to bulk: the rise of steel silos 🔗

The most transformative change in foodgrain storage in India is the shift from bagged storage to bulk storage in steel silos. A steel silo is a large, sealed, cylindrical structure – typically made from galvanized steel – where grains are stored loose in bulk rather than packed into individual bags. This seemingly simple difference has wide-ranging benefits.

FCI has planned to construct 111.125 lakh metric tonnes (LMT) of modern steel silo capacity at 249 locations across 12 states under a Hub and Spoke model, with a total investment of approximately Rs. 9,236 crore under a Public-Private Partnership (PPP) framework. These silos are being developed under DBFOO (Design, Build, Finance, Own and Operate) and DBFOT (Design, Build, Finance, Operate and Transfer) modes, bringing private sector efficiency into what was previously a purely government-run operation.

Key advantages of steel silos over conventional storage 🔗

Steel silos offer several clear improvements over traditional godown-based bag storage. First, they require far less land – a silo setup occupies roughly one-third the area of a conventional warehouse for the same storage capacity. Second, modern silos come equipped with automated aeration, temperature control, and discharge systems that actively maintain the right conditions for grain preservation. This controlled environment dramatically reduces losses from moisture, mold, and insect infestation.

Third, because grain is handled in bulk, there is no need for gunny bags, wooden crates, or tarpaulin covers, which saves costs and eliminates the losses that come from leaking or rotting bags. Importantly, silos also enable round-the-clock mechanized operations – loading and unloading do not depend on manual labor, which reduces turnaround time and human error. Modern silo facilities use Central Control Systems with PLC (Programmable Logic Controller) automation for loading, drying, cleaning, and discharging grain, along with high-end monitoring equipment that checks for moisture content, foreign matter, and live pest infestation in real time.

A well-maintained steel silo can remain operational for 25 to 40 years, making the initial investment highly cost-effective over the long run. For FCI, which manages buffer stocks to support the Public Distribution System (PDS) and national food security, this durability and reliability are critical.

Mechanized handling: reducing damage in transit 🔗

Losses do not only happen in storage – a significant portion occurs during the physical movement of grain. Traditional handling involves manual loading, unloading, and stacking of heavy bags, which leads to breakage, spillage, and exposure to weather. Mechanized handling systems replace this with conveyors, bucket elevators, pneumatic systems, and automated wagon loaders that move grain rapidly and efficiently with minimal human intervention.

Specially designed covered railway wagons, capable of top loading and bottom discharge of bulk grain, are now used to transport foodgrains from base storage depots to field distribution points. The automatic wagon loading system can load one full rake – consisting of 50 wagons – in under five hours without manual labor. This speed and precision sharply reduces transit losses from spillage, pilferage, and weather exposure that were common with bag-based transportation.

The National Policy on Handling and Storage of Food Grains, launched in the year 2000, was the foundational policy push for this shift. It envisaged the construction of integrated bulk handling facilities with silos at central locations, along with testing infrastructure for quality control. This policy set the direction that FCI’s current silo expansion program is now implementing at scale.

Automated systems and IoT-based monitoring 🔗

Beyond physical infrastructure, digital technology is transforming how grain is monitored inside storage facilities. IoT (Internet of Things) sensors deployed inside warehouses and silos continuously track critical environmental parameters – temperature, humidity, moisture levels, CO levels, smoke, and even unauthorized movement – in real time.

IoT sensors installed across storage facilities continuously capture environmental data around the clock, enabling storage operators to take timely action before spoilage sets in. When any parameter exceeds a safe threshold, the system triggers automatic corrective responses – fans switch on for ventilation, alerts are sent to warehouse managers via mobile apps, and, in advanced setups, fumigation or cooling systems are activated without waiting for a human inspection.

This kind of automated, real-time monitoring is a substantial upgrade over the traditional approach of periodic manual inspections, which often identified problems only after significant damage had already occurred. Research advances in this field now include prioritizing cost-effective drying and storage technologies that incorporate automation, IoT, and sensor-based systems, making these solutions increasingly accessible even for smaller facilities.

On a larger scale, the India IoT-based cold chain management market was valued at approximately USD 220.45 million in 2024 and is projected to grow robustly through 2033, reflecting strong adoption of smart technologies across agricultural storage and logistics.

Hermetic storage: a technology for smaller scales 🔗

While steel silos serve large procurement agencies, hermetic storage technology offers a practical solution at the farm and cooperative level. Hermetic bags and containers work by creating an airtight seal around stored grain, which cuts off the oxygen supply that insects and mold need to survive. This is a chemical-free approach – no pesticide application is needed – making it safer for farmers and consumers alike.

Hermetic bags are considered a safe, chemical-free “green” technology for rice storage that prevents insect infestation, mold growth, and quality deterioration while extending storage life. Studies from Bangladesh and other South Asian contexts have shown measurably lower storage losses with hermetic technology compared to traditional methods. For India, scaling up hermetic storage at the primary producer level – through farmer cooperatives and custom hiring centers – could make a significant dent in farm-level losses, which represent a large share of total post-harvest losses in the cereal supply chain.

Policy support and the path to modernization 🔗

Government policy has played a decisive role in pushing this modernization agenda. The Pradhan Mantri Kisan Sampada Yojana is one of the flagship schemes aimed at modernizing food processing infrastructure and reducing post-harvest losses across the supply chain. The scheme supports the creation of modern cold chains, primary processing centers, and agro-processing clusters that directly address the gaps in India’s post-harvest infrastructure.

The government’s “World’s largest grain storage plan in the cooperative sector,” launched by the Prime Minister in February 2024, aims to expand storage capacity by 70 MMT through Primary Agricultural Credit Societies (PACS). This initiative is designed to bring scientific storage infrastructure directly to the grassroots level – villages and farming communities – rather than concentrating it only in large urban or industrial hubs.

Beyond infrastructure, technology adoption is also being supported through Farmer Producer Organisations (FPOs), which enable smallholder farmers to collectively access combine harvesters, mechanical dryers, and storage facilities through custom hiring arrangements. Mechanical drying, in particular, reduces the risk of mycotoxin contamination during storage and minimizes the presence of foreign matter compared to traditional sun drying – a quality improvement that has direct implications for market value and export competitiveness.

Challenges that still need addressing 🔗

Despite the progress, significant challenges remain. Modern warehouses and cold chain facilities are concentrated in select states, and many farmers still rely on traditional or open storage, which leads to moisture damage, pest infestation, and quality deterioration. India’s logistics costs remain relatively high – at 14 to 18 percent of GDP, compared to a global average of around 8 percent – indicating that supply chain inefficiencies are still substantial.

Access to finance is another bottleneck. Small and marginal farmers often need to sell grain immediately after harvest to meet cash needs, leaving them unable to invest in better storage or wait for better market prices. The Warehouse Receipt System (WRS), which allows stored grain to be used as collateral for loans, is one mechanism that can address this – but it requires an adequate network of certified warehouses and accessible credit infrastructure to work effectively at scale.

High initial costs for modern equipment like hermetic storage systems and automated processing machinery remain a barrier for smallholders. The adoption of advanced food grain processing and storage technologies is significantly hindered by economic constraints, particularly in developing countries where high initial investment costs are often beyond the reach of small-scale farmers and processors. Addressing this requires a combination of government subsidies, cooperative models, and financial innovation.

The introduction of modern technology in foodgrain handling is not just about upgrading equipment – it represents a broader commitment to ensuring that the grain India grows actually reaches the people who need it, with minimal waste and maximum quality. Steel silos, mechanized handling, IoT-based monitoring, and hermetic storage are not futuristic concepts anymore. They are being deployed today, and their impact on reducing losses and supporting food security is increasingly measurable.

What do you think? With the technology to significantly cut post-harvest losses already available, what do you think is the biggest barrier preventing its widespread adoption among small and marginal farmers in India? And if India were to halve its current post-harvest losses, how might that change the food security landscape for millions of people who currently face hunger?

References

1. https://www.staragri.com/why-india-loses-crops-after-harvest-and-how-technology-can-prevent-it/
2. https://icrier.org/pdf/Policy_Brief_20.pdf
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6. https://technofabindia.net/blog/grain-storage-silos-in-india
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9. https://www.sciencedirect.com/science/article/abs/pii/S0022474X25002164
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