India Steel Grain Silo and Storage Market - Forecasts from 2022 to 2027
India’s steel grain silo and storage market is expected to witness healthy growth over the forecast period. Grain silos and Storage also identified as grain storage bins are productive and cost-effective grain managing facilities that provide prevention against outside insects and other effects of an efficient handling operation. A silo is a unit used to store bulk materials. Silos are used in agricultural production to store fermented feed called silage instead of grain bins, which are used to hold grains. Grain, woodchips, food products, and sawdust are all widely stored in silos. Nowadays, three types of silos are widely used: bunker silos, tower silos, and bag silos. A silo is a long vertical structure (wooden or steel) used for bulk material storage. Because it is a vertical configuration, it requires only one-third of the land covered for a storage facility of the same capacity. This vertical augmentation conserves valuable land resources and contributes to modernization, technological improvements, scientific grain management, and improved storage volume.
Driving forces behind the grain silos and storage market in india
The market's driving factors involve shifting grain prices, rising demand for higher storage, and increased investments and technological advancements. In India, for example, National Commodities Management Services Limited (NCML), the country's largest private-sector agribusiness post-harvest management firm, will open four storage facility silo facilities in Haryana in 2021. Because grain inventories increase year after year, there is a need for higher capacity, which is expected to drive the market in the region. Rising agricultural output through efficient and effective storage management and streamlined post-harvest maintenance is predicted to drive the growth of the grain silo and storage market. Furthermore, the rising government initiative to support farmers in the region is expected to drive the development of the market. Grain silo use is more prevalent in the country because farmers cultivate large-scale farmlands and store large quantities of crops for a more extended period.
Furthermore, market growth in the region is high due to the increased prevalence of farmers who can invest in setting up silos. There are numerous strong grain silo manufacturers in the area. The major players in the Grain Silo and Storage market are Adani Group, AGI, AGCO Corporation, CTB Inc., Bentall Rowlands Silo Storage Ltd., Rostfrei steels Private Limited, and others.
The market is impeded owing to the high setup cost associated with grain silo and storage in India.
The high capital investment and its installation hinder the demand across the country.
Small-scale farmers constitute a significant proportion of cultivators in India. They lack the necessary infrastructure and capabilities to produce maximum yields. These growers are progressively unaware of the significance of adequate grain storage and management. Small-scale farmers live in rural areas and have limited agricultural resources to build storage silos.
India grain silo and storage market and COVID-19.
The COVID-19 disease outbreak influenced the grain silo and storage market; there was no significant effect on the silos distribution network or operations. The grain silo and storage market was less damaged by the COVID-19 due to the exemption of agriculture and food offerings due to lockdown limitations. As a result of the disease outbreak, the grain silos and storage market moved slowly in 2020, with few instabilities. The market under consideration is sustained and gaining traction, with growing demands for grain silos due to improved economic circumstances. It is believed to have a perspective on the post-COVID-19 period.
As per the data of PIB, the total storage capacity available with the Food Corporation of India, Central Warehousing Corporation, and State Agencies (both owned and hired capacity) is 862.45 LMT (as of 2019), with 739.76 LMT in covered godowns and 122.69 LMT in cover and plinth storage, among which 85% of intermediate storage is being in use. Furthermore, FCI State that in 2021 grain storage capacity with FCI was 414.70 LMT and with state agencies was 403.26 LMT. The demand for grain silos and storage in India is expected to be boosted due to the grain's increased production and stock. There will be 591.51 LMT of rice and wheat supply in December 2021, with unmilled paddy accounting for 358.78 LMT and coarse grain accounting for 1.54 LMT.In May 2022, rice and wheat stocks increased 8% to 636. 14 LMT in stores. Rising crop production is predicted to drive the market for grain silos and storage in India.
In December 2021, the central government will install an advanced foodgrain storage capacity of steel silos. This makes grain storage more resilient to damage and thus more cost-effective. Steel silos planned for 249 can handle 11 million tonnes of food grains. They will be connected using a hub-and-spoke framework, with rail connections at a single large facility.
In July 2021, NCML, India's most significant private agriculture post-harvest business, opened its public Silo storage unit in Sonipat, Haryana. The four flat-bottom silos, each with a storage space of 12,500 MT, were built with an invested capital of INR 800 million and are located in Mohana, Sonipat, and Haryana.
In December 2020, The Adani Group was building high-tech silos in Panipat's Jondhan Kalan and Naultha villages to store foodgrain obtained by the Food Corporation of India (FCI). The FCI has collaborated with private investors to build high-tech silos equipped with advanced fumigation and preservation methodologies for food grains shipped in bulk via special trains across India.
Key Market Segments
Flat Bottom Tower Silo
By Grain Type
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