Foodgrains are provided by the Department of Food and Public Distribution under the scheme at
      BPL prices.
      Open Market Sale Scheme (Domestic)
           In addition to maintaining buffer stocks and for meeting the requirement of the Targeted
      Public Distribution System (TPDS) and Other Welfare Schemes (OWS), the FCI sells excess
      stocks of wheat and rice from the Central Pool at predetermined prices in the open market from
      time to time under Open Market Sale Scheme (Domestic) through e-tender to enhance the supply
      especially during the lean season especially in the deficit regions.
      Storage of Foodgrains
      Capacity of FCI and State Agencies
           FCI has its own grid of covered godowns in all states to safely stock the central pool
      foodgrains. In addition, it hires capacity from Central Warehousing Corporation (CWC) and state
      agencies like state warehousing corporations as well as private parties.
           Sufficient storage capacity is available and against 876.31 lakh MT capacity available, the
      Central stock of foodgrains stood at 627.13 lakh MT in July 2018.
      Augmentation of Storage Capacity
           In order to cope with increasing production and procurement of foodgrains, the Department
      is implementing private entrepreneurs guarantee (PEG) scheme for augmenting the covered
      storage capacity in the country. Under the PEG scheme, which was launched in 2008, godowns
      are constructed in PPP mode and the land and construction cost is borne by the selected partners.
      FCI on its part guarantees 10 year usage of storage capacities to the private investors and 9 years
      to CWC and SWCs. Locations for construction of godown are identified by the FCI on the basis
      of recommendations of state level committees to cover the gaps in storage. For consuming areas,
      the storage gap is assessed on the basis of the 4 months’ requirement of PDS and OWS while for
      procuring states the storage gap has been assessed based on the highest stock levels in the last
      three years, and keeping in view the potential of procurement. Under the Scheme, a capacity of
      141.47 MT was completed in 22 states by July 2018.
           As a part of the modernization of storage facilities, modern storage facilities in the form of
      steel silos are also being created in Public Private Partnership. Each silo will have capacity of
      25,000 or 50,000 MT. This will mechanize the existing supply chain and improve operational
      efficiency.
           A Central sector scheme for construction of godowns with focus on augmenting storage
      capacity is being implemented in North Eastern state. Under it, funds are also provided for
      construction of storage godowns to improve the supply chain logisties of PDS.
      Warehousing Development and Regulatory Authority
           For the growth and development of warehousing sector, to bring reforms in the agricultural
      marketing and to increase credit flow in the farm sector, the government introduced a negotiable
      warehouse receipt system in the country by enacting the Warehousing (Development and
      Regulation) Act, 2007 which is in place since 2010. The government constituted the