On May 31, 2023, the Government approved the “World’s Largest Grain Storage Plan in Cooperative Sector,” a significant pilot project aimed at addressing food grain storage shortages.
This initiative involves the creation of various agricultural infrastructures at the Primary Agricultural Credit Society (PACS) level, including warehouses, custom hiring centers, processing units, and Fair Price Shops (FPS).
It integrates multiple existing government schemes such as the Agriculture Infrastructure Fund (AIF), Agricultural Marketing Infrastructure Scheme (AMI), Sub Mission on Agricultural Mechanization (SMAM), Mission for Integrated Development of Horticulture (MIDH), and Pradhan Mantri Formalization of Micro Food Processing Enterprises Scheme (PMFME).
The plan is being executed by the National Cooperative Development Corporation (NCDC) with support from NABARD, NABARD Consultancy Services (NABCONS), the Food Corporation of India (FCI), and the National Buildings Construction Corporation (NBCC) across various states and union territories.
The cost of establishing these agricultural infrastructures varies based on regional factors like topography, labour costs, and project components.
Benefits of the New Storage Facilities:
- Enhanced Storage and Flexibility: Farmers can store their produce in PACS godowns, access bridge finance for the next crop cycle, and choose when to sell their produce. Alternatively, they can sell their entire crop to the PACS at Minimum Support Price (MSP), avoiding distress sales.
- Access to Agri Inputs and Services: Farmers will receive various agricultural inputs and services at the Panchayat or village level.
- Additional Income: Diversification of business opportunities at the PACS level will provide farmers with additional income sources.
- Expanded Market Reach: Integration with the food supply chain will enable farmers to expand their market and achieve better prices for their produce.
- Reduction in Post-Harvest Losses: Adequate storage capacity at PACS will minimize post-harvest losses, leading to better prices for farmers.
- Cost Savings: Operating PACS as procurement centers and FPS will reduce transportation costs associated with moving food grains to and from procurement centers.
- Food Security: The plan will contribute significantly to national food security.
Minister of Cooperation Amit Shah highlighted these points in a written reply to a question in the Rajya Sabha.