Odisha has long been a major paddy producer, and the recent rise in the minimum support price has pushed procurement volumes to record levels. In response, the state government has announced a plan to create an additional 10 lakh metric tonnes of rice storage capacity through a public‑private partnership model.
The expansion will occur in two phases under the Odisha State Private Entrepreneur Scheme (OSPEG). The first phase will add 4 lakh metric tonnes of storage, followed by a second phase adding 6 lakh metric tonnes. The initiative, part of the Odisha State Private Entrepreneur Guarantee Scheme 2026, aims to strengthen the food supply chain.
Procurement figures illustrate the urgency of the project. Total paddy procurement rose from 70.88 lakh metric tonnes in 2023‑24 to 97.94 lakh metric tonnes in 2025‑26, with the state spending ₹30,126.24 crore on purchases. From 26.27 lakh metric tonnes of rice received from custom millers, the Food Corporation of India collected 28.84 lakh tonnes in 2024‑25 and lifted 8.12 lakh tonnes in 2025‑26. After public distribution system usage, the state is left with a large surplus that current storage cannot accommodate.
Presently, the Odisha State Civil Supplies Corporation Limited operates about 160 godowns with a combined capacity of roughly 6.73 lakh metric tonnes. The Food Supplies and Consumer Welfare department has warned that existing infrastructure will be strained by continued procurement growth. Guidelines call for storage capacity in surplus districts to be a percentage of total procurement, while consuming districts should maintain enough stock to meet PDS and welfare scheme demands. New godowns under the scheme must have a minimum capacity of 2,500 metric tonnes, and will be developed, operated, and maintained by private entrepreneurs in line with prescribed scientific storage standards.
