Establishment of Food Grain SILOS In Punjab


Due to the continuous increase of wheat production in Punjab, from 15.6 million MT in 2008 to almost 20 million MT in recent years, the volumes to be procured by the Punjab Food Department are reaching record heights of average 3.4 million MT over the past five years. The Government of Punjab wants to expand its wheat storage capacity by constructing two (02) million MT Near Farm Wheat Silos of 10,000 MT storage capacity each based on Punjab Food Department guaranteed storage volumes and annual payments of service charges for a period of ten years.


Forty (40) sites all over Punjab

Proposal Type

Solicited proposal on Built Own Operate (BOO) basis

Project Cost

PKR 4,012 million

Concession Period

10 Years

Concerned/Sponsoring Agency

Food Department, Government of the Punjab

Current Status

Two sites of ‘Notak’ district ‘ Bhakkar and ‘Head Varary’ District Layyah have been awarded to M/s Chashma Sugar Mills. Ground breaking ceremony was held on 11-10-2018

Salient Features

  • Steel silos( 4 bins of 2,500 MT or 2 bins of 5,000 MT)
  • Fully integrated pre‐cleaning systems
  • Fully integrated weighing system
  • Fumigation technology
  • Aeration and re‐circulation
  • Temperature monitoring and control systems
  • Level indicator system
  • Sampling and screening systems

Role of Government Agency

  • Procurement and transportation of wheat
  • The Government will make monthly payments of fixed service charges as per agreed KPIs

Role of Private Party

  • Investment, Designing, Construction, Operation and Maintenance (O&M).
  • Private party will bear all costs and expenses related to the acquisition of land and construction