Kisan Sabha Demands JPC Probe; Rajan Kshirsagar and Ravula Venkaiah Accuse Centre of Dismantling India’s Food Security Architecture
New Delhi : The All India Kisan Sabha (AIKS) has launched a blistering attack on the Narendra Modi government, alleging that India’s food security infrastructure is being systematically handed over to private corporate interests, particularly the Adani Group, through the Food Corporation of India’s (FCI) massive grain storage modernisation programme.
In a strongly worded statement issued by AIKS President Rajan Kshirsagar and General Secretary Ravula Venkaiah, the farmers’ organisation demanded an immediate parliamentary investigation into what it described as a “₹20,000-crore FCI silo scam”, alleging that anti-monopoly safeguards were deliberately removed to benefit a handful of private players. According to AIKS, an investigative report by The News Minute and Newslaundry has revealed that Adani Agri Logistics Ltd (AAL) and Leap India Food & Logistics Pvt Ltd (LIFL) secured 110 out of 134 contracts under FCI’s “Hub and Spoke” silo programme, accounting for more than ₹16,500 crore worth of projects. The two companies are expected to control around 46.5 lakh metric tonnes of grain storage capacity out of a total 60 lakh metric tonnes planned under the programme.
‘Anti-Monopoly Clause Was Killed’
AIKS alleges that the most controversial aspect of the programme was the removal of an anti-monopoly clause proposed by FCI itself. According to the organisation, FCI had sought restrictions to prevent a single company from cornering multiple projects. However, the proposal was reportedly opposed by NITI Aayog and the Department of Economic Affairs during discussions in 2022, paving the way for large corporations to dominate the bidding process.
The farmers’ body further alleged that the government adopted a series of policy decisions that effectively favoured large corporate bidders. These included increasing project bundle sizes, removing technical experience requirements, scrapping reverse auctions, and relying primarily on financial capacity as the key qualification criterion.
As a result, AIKS claims, Adani Agri Logistics secured 70 out of 80 contracts in Phase I, accounting for projects worth approximately ₹9,713 crore spread across multiple states including Punjab, Gujarat, Madhya Pradesh, Haryana, Uttar Pradesh, Bihar, West Bengal and Jammu.
‘Food Security Being Privatised’
The farmers’ organisation argues that the issue extends far beyond storage infrastructure and strikes at the heart of India’s food security framework.
AIKS contends that while the 2020–21 farmers’ agitation halted attempts to liberalise agricultural markets through the three farm laws, the government has allegedly resumed the process through administrative and policy changes. The organisation expressed concern over proposals to repeal the Warehousing Corporations Act, 1962, warning that such a move could weaken public-sector warehousing institutions and adversely affect MSP procurement operations.
According to the statement, small and marginal farmers could face greater dependence on private logistics and storage operators for grain procurement, movement and storage if public-sector capacity is weakened.
AIKS Seeks JPC, CCI Investigation
AIKS has demanded immediate suspension of contracts awarded to Adani Agri Logistics and Leap India pending an independent audit, a Joint Parliamentary Committee (JPC) investigation into decisions taken by NITI Aayog, the Department of Economic Affairs and the Ministry of Food, Restoration of public ownership of strategic grain storage infrastructure, a suo motu probe by the Competition Commission of India (CCI) into the alleged concentration of grain storage contracts and public disclosure of deliberations by PPPAC, SFC and the Cabinet Committee on Economic Affairs concerning the programme.
‘Policy Capture, Not Policy Error’
Launching a direct political attack, Rajan Kshirsagar alleged that the developments represented “policy capture” rather than a mere policy mistake. “India’s farmers are already fighting for land, water, seeds and MSP. Now the very infrastructure through which their grain moves is being concentrated in private hands,” he said.
Ravula Venkaiah described the programme as a long-term profit mechanism funded by public money, arguing that resources earmarked for private returns could instead have been invested in farmer-owned storage facilities, mandi infrastructure and procurement systems. The AIKS statement is likely to intensify the political debate over the role of private corporations in India’s agricultural supply chain, particularly as farmer organisations continue to raise concerns over procurement, storage and food security policies ahead of key political and economic decisions.
