As India prepares to harvest a record grain crop for the second year in a row, fears are rising that its state granaries won't be able to handle the surplus and food that could feed the nation's starving millions will go to waste.

Two years ago, Parliament erupted in chaos as the opposition slammed the government over the issue of rotting grains due to lack of sufficient storage space, and early indications are that this year may be no different.

Food ministry officials say the government will add between 3 million tons and 4 million tons of storage capacity by May or June, just ahead of this year's wheat harvest, and a further 11 million tons by the end of next year.

But in the past, red tape has delayed such plans, leaving food out in the open to rot.

"There will be a serious storage problem this year if proper steps are not taken on time," Farm Minister Sharad Pawar said in an interview.

India produces enough food to feed its 1.2 billion people and the government purchases millions of tons of grains from farmers, offering them minimum prices and using the food for its subsidy programs.

But corruption and bureaucratic inefficiencies means that food doesn't always reach the most needy. Failure to meet promises to improve storage and distribution networks has compounded the problem.

As a result, there are more than 200 million food-insecure people in India, the most of any country. The International Food Policy Research Institute's 2011 Global Hunger Index ranked India 67th out of 81 countries.

In mid-January, Prime Minister Manmohan Singh called India's malnutrition problem a national shame after a survey revealed that 42% of the nation's children are underweight.

India's storage system is likely to come under even greater pressure in years ahead as India embarks on a multi-billion-dollar plan to funnel millions of tons of extra subsidized grain to its poorest people. India's cabinet last year approved a food security law and Parliament is expected to debate the legislation later this year.

"What if there's a drought once the food security law is in place. We can't rely on imports. We have to have storage capacity," said Parul Soni, executive director at the New Delhi office of consultancy Ernst & Young.

The combination of plentiful monsoon rains and high minimum purchase prices for wheat and rice means the country is forecasting an all-time-high grain production of 250.42 million tons in the crop year ending June 30.

The government says it will have 75 million metric tons of grain stocks by June, but state-run warehouses have a capacity of no more than 63 million metric tons.

Food Minister K.V. Thomas, in an interview, said the government was taking steps to reduce stockpiles, including allowing traders last year to export wheat and rice surpluses and increasing food allocations for poor people.