RATIN

From the editor: India, China prioritizing grain storage

Posted on June, 12, 2025 at 09:25 pm


Concerning grain’s role in global food security, much of the focus has always been centered on the production side — increasing yields, improving inputs, and expanding planted area. But post-harvest grain storage and handling is a critical piece to the puzzle that isn’t emphasized enough.

Inadequate and substandard storage causes more than 20% of the world’s grain harvest to spoil each year. That means approximately 500 million tonnes of harvested grain never make it to the grain processing plant, let alone the dinner table.

This problem is most acute in India and China, the world’s most populous countries and the largest producers of the two most consumed food grain crops — wheat and rice.

That’s why it’s noteworthy that China and India in recent years have allocated billions of dollars to significantly increase the number of grain storage facilities and the overall storage capacity in their countries. The Indian government last year pledged to invest $15 billion to boost its grain storage capability by 70 million tonnes over the next five years, with the eventual goal of having enough capacity to store 100% of the nation’s grain production. China has increased its storage capacity by 36% over the past 10 years with plans for further expansion. 

The impact already is being felt in China, where the amount of grain in its standard warehouses in good condition now exceeds well over 700 million tonnes.

As part of its effort, China has developed air-supported grain storage, or “inflatable silos,” which use pressurized air to maintain their shape and store large quantities of grain. These silos, developed by China Grain Reserves Group, are less expensive and offer increased energy savings compared to traditional storage units. The downside is they are not as durable as traditional steel bins or concrete silos, so questions remain regarding their long-term usefulness. 

China also is involved in constructing major grain storage facilities in another highly populated part of the world – Africa, which is projected to have the fastest growing population over the next 25 years. By investing in African agricultural infrastructure, including storage, the Chinese government aims to improve food production and reduce post-harvest losses, ultimately bolstering food security in Africa while also securing another source of grain for China.

India’s storage shortfall is estimated at nearly 50%, and much of the existing storage is antiquated, resulting in an unacceptable grain spoilage rate of up to 25% per year, according to the Indian government. Currently, India only has 3 million tonnes of modern steel bin storage capacity. Most of the country’s grain is stored in conventional warehouses and open storage structures, which are more susceptible to spoilage. 

Adding millions of tonnes of modern storage capacity will not only increase food security in these countries, but it gives them the option of exporting when stockpiles reach surplus levels. It’s easy to forget that prior to banning wheat exports in 2022, India exported a record 7 million tonnes the year before and stated that it would like to become a bigger player on the global market. 

India and China should be applauded for their recent investments in storage infrastructure that will reduce grain spoilage and make more grain available for processing.

Source: World Grain