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Odisha plans major rice storage expansion to manage paddy surplus

The Odisha government is moving to bolster its rice storage infrastructure by creating an additional 10 lakh metric tonnes of capacity. The expansion will be developed through a private enterprise framework to address growing paddy production.

LSN India · 6 October 2026

Odisha plans major rice storage expansion to manage paddy surplus

Odisha is undertaking a significant expansion of its rice storage facilities to manage surplus paddy production in the state. The initiative aims to create 10 lakh metric tonnes of additional storage capacity, addressing constraints in the current infrastructure that have limited the state's ability to handle bumper crops.

The storage expansion will be implemented under the Odisha State Private Entrepreneur Scheme, or OSPEG framework. This approach leverages private sector participation to develop the necessary infrastructure while allowing the government to manage broader supply chain needs.

Odisha, one of India's major rice-producing states, has faced logistical challenges in recent years as agricultural productivity has increased. The shortage of adequate storage facilities has constrained the state's capacity to procure paddy from farmers and manage rice reserves effectively.

The enhanced storage capacity is expected to provide multiple benefits including better price support mechanisms for farmers, improved procurement operations, and greater stability in rice distribution across the state. The project reflects growing recognition of the need to modernise agricultural infrastructure in India's eastern regions to match production growth.