India, June 19 -- The Food Corporation of India (FCI) is facing an additional logistics cost of at least Rs.100 per quintal for storing wheat in steel silos across Punjab. With a total silo storage capacity of 9.85 lakh tonnes in the state, the cost hike could amount to nearly Rs.100 crore, officials familiar with the development said.

The increase in costs follows a decision by the FCI to reduce the commission, known as "dami", paid to arhtiyas (commission agents) for storing wheat in silos. The commission has been halved, from Rs.46 per quintal to Rs.23 per quintal.

Steel silos, which are designed to extend the shelf life of wheat for up to five years by storing it in vacuum-like conditions, have been a key part of the FCI's grain man...