Danish investment to reduce massive grain loss in India
In India, lack of storage facilities causes a significant waste of grain. Therefore, the Danish Investment Fund for Developing Countries (IFU) now invests DKK 95 million in Leap India Food & Logistics, which will build 700,000 tonnes of grain storage capacity in India.
It is estimated that approx. 40% of India’s grain production is lost every year. The grain is often stored under open sky and is therefore not protected from weather conditions and agricultural pests. The lack of proper storage conditions is one of the primary causes of what the Indians themselves call “the paradox of plenty” – an insufficient supply of grain despite sufficient production in the country, where more than 190 million people continue to be malnourished.
200 new storage facilities in supply
he huge loss of food also affects the Indian government’s food program, where one-third of the country’s grain production is bought and distributed to low-income families at subsidised prices. The Indian government has therefore launched a large-scale project, which invites private companies to finance, construct and operate new storage facilities throughout the country. Specifically, the state-owned company Food Corporation of India (FCI) is offering the construction of more than 200 modern storage terminals with a total capacity of 10 million tonnes.
Danish fund invests DKK 95 million
The Danish Investment Fund for Developing Countries (IFU) has invested DKK 95 million in Leap India Food & Logistics – one of the market leaders in the field.
– Our investment in Leap India contributes to streamlining logistics in agriculture and reducing grain waste. In doing so, we also fight malnutrition in India, says Deepa Hingorani, IFU’s Vice President for South Asia.
The investment was made in collaboration with Neev Fund – a capital fund focused on infrastructure and sustainable development in India’s poorest states. The fund has the State Bank of India and the UK’s Development Program Department for International Development (DFID) as main investors.
– We welcome IFU as a partner and investor in Leap India. It strengthens our efforts in relation to the SDG’s and contributes to reducing poverty, because through greater food security in India we can also double the income of farmers, said Manav Bansal, CIO of Neev Fund.
Supports realisation of Sustainable Development Goal
The investment contributes, among other things, to the realisation of the UN’s Sustainable Development Goal 12.3, which aims to halve global food waste by 2030 and to reduce food loss in production and supply chains, including crop losses after harvest
Builds steel silos and infrastructure
Leap India’s first storage facility will already be operating later in 2020. Each storage facility consists of modern steel silos and additional infrastructure such as roads and railways. The silos have a sophisticated monitoring system that ensures careful quality control of the stored grain. Each facility has a capacity of 50,000 tonnes, and its operation is based on a 30-year lease with FCI with guaranteed rental payment regardless of capacity utilization.