Bhopal (Madhya Pradesh): In pursuit of subsidies for building grain storage facilities, a large number of farmers and entrepreneurs across Madhya Pradesh invested heavily in private warehouses.
Initially considered a profitable venture, the sector is now facing a major crisis due to oversupply and delayed government rent payments.
A rough estimate suggests that the number of warehouses in the state is at least four times the required capacity. As a result, many private warehouses remain underutilised and owners are unable to earn sufficient rent to repay bank loans. With demand notices piling up, the situation has turned dire.
Manoj Kala, a resident of Ratlam district and once owner of 14 warehouses, was forced to sell seven of them. “I even sold my house for Rs 53 lakh to clear dues on one warehouse. The government’s warehouse policy is not favourable and must be revised,” he said.
Warehouse owners complain that payments against government grain storage are being delayed by years, leaving them financially stranded.
Navneet Raghuvansi, State President of the Association of Warehouse Owners, said the business has turned into a “sinking ship.” Despite raising the issue at multiple levels, he said the government has not offered a solution.
In Chandi village of Seoni district, Shashin Chaurasia owns two warehouses, but hasn’t received rent from government for the past two years. “Now it’s the third year. I exhausted all savings on loan repayments. I still owe Rs 3 lakh per month in EMIs and don’t know how I’ll manage going forward,” he said.
Meanwhile, NABARD has reportedly put a freeze on sanctioning new subsidy proposals for warehouse construction until the next budget is announced.According to officials of MP Warehouse Logistic Corporation, even state-run godowns are underused. The state’s procurement capacity stands at 77.74 lakh metric tonnes for wheat and 3.61 lakh metric tonnes for pulses. In contrast, the combined private and government warehouse capacity is around 4 crore metric tonnes—far exceeding actual storage needs.
Bearing the brunt
Warehouse numbers are 4x more than required
Owners unable to repay loan, facing bank notices
Many haven’t received payments for 2–3 years
NABARD halts fresh proposals until next budget
