Odisha Races to Add 10 Lakh Tonnes Storage as Paddy Glut Overwhelms Mandis

The Odisha government announced on Tuesday a proposal to develop an additional 10 lakh metric tonnes of storage capacity for rice under the Odisha State Private Entrepreneur Scheme (OSPEG) framework, responding to a massive paddy glut that has strained existing procurement and storage infrastructure across the state.

The decision comes amid record paddy arrivals at mandis, with official estimates indicating that current storage facilities are insufficient to handle the surplus. Under OSPEG, private entrepreneurs will be incentivized to build and operate warehouses, with the state government likely offering subsidies or land support. The scheme is designed to reduce post-harvest losses and ensure that farmers receive timely payments without distress sales. A senior official said the additional capacity would be created in a phased manner over the next two years.

The move is expected to ease pressure on government procurement centers and stabilize local rice prices, but challenges remain in ensuring private participation and last-mile connectivity. Farmer groups have welcomed the plan but demand transparency in the selection of entrepreneurs and timely execution. If successful, the model could be replicated in other paddy-growing states facing similar gluts, though critics caution that storage alone cannot address underlying issues of overproduction and market distortion.