World’s Largest Grain Storage Plan in Cooperative Sector

India has embarked on a transformative journey to strengthen rural agricultural infrastructure by launching the World’s Largest Grain Storage Plan in the Cooperative Sector. As part of this initiative, the government aims to enhance storage capacity at the grassroots level through Primary Agricultural Credit Societies (PACS), thereby addressing issues related to grain wastage, post-harvest losses, and market accessibility for farmers.

Background

Primary Agricultural Credit Societies (PACS) form the foundation of India’s rural cooperative credit system. However, many PACS lack modern storage and processing facilities. To address this gap, the Government of India has initiated a pilot project under the grain storage plan, with godowns already completed in 11 PACS across 11 states.

Significance

The plan is crucial for minimizing post-harvest losses, improving price realization for farmers, and enhancing the resilience of the food supply chain. By empowering PACS, which are deeply rooted in rural areas, the initiative strengthens decentralized agri-logistics, reduces farmers’ dependence on middlemen, and supports the broader goal of food security.

Objectives

• To create modern grain storage infrastructure at the PACS level.
• To establish multi-purpose cooperative societies including dairy and fisheries cooperatives.
• To digitally modernize PACS through computerization for better governance and service delivery.
• To ensure universal PACS coverage across all panchayats and villages in five years.

Key Features

• Construction of godowns, custom hiring centers, food processing units, and Fair Price Shops through the convergence of multiple central and state schemes.
• Support from stakeholders such as NABARD, state governments, and union territories.
• Over 500 PACS identified for godown construction, targeted to be completed by December 2026.
• Government approval of over ₹2,925 crore for computerization of functional PACS to streamline operations.

Impact

This initiative is expected to,

• Improve grain storage efficiency and reduce wastage.
• Enhance farmers’ bargaining power by providing localized storage.
• Generate rural employment through the construction and operation of agri-infrastructure.
• Promote self-reliance in food distribution and cooperative governance.