World’s Largest Grain Storage Plan in the Cooperative Sector: Key Benefits

On May 31, 2023, the Government of India approved the "World’s Largest Grain Storage Plan in the Cooperative Sector," which is being implemented as a pilot project. Under this initiative, Primary Agricultural Credit Societies (PACS) will develop various agricultural infrastructures, including warehouses, custom hiring centers, and processing units. The plan is being executed in convergence with multiple existing government schemes, such as:

1. Agriculture Infrastructure Fund (AIF)
2. Agricultural Marketing Infrastructure Scheme (AMI)
3. Sub-Mission on Agricultural Mechanization (SMAM)
4. Pradhan Mantri Formalization of Micro Food Processing Enterprises Scheme (PMFME)

Progress under the Pilot Project:

In addition to the ongoing implementation, foundation stones have been laid for 500 additional PACS under this scheme. So far, 575 PACS have been identified across different States/Union Territories, with state-wise details provided in the annexure. The government is also working on a plan to establish and strengthen 2 lakh multipurpose PACS, dairy, and fishery cooperative societies across all panchayats and villages in the country. To facilitate this, a Standard Operating Procedure (SOP) has been issued. According to the SOP, 128 PACS have already been established in Karnataka, with a target of 218 PACS by FY 2028-29.

Increase in Storage Capacity and Key Benefits:

As part of the pilot project, a 1,000 metric ton (MT) capacity warehouse has been constructed at Primary Agriculture Cooperative Federation Limited, Ekamba, in Bidar District, Karnataka. So far, the project has resulted in the creation of 9,750 MT of decentralized storage capacity at the PACS level.

Key Benefits of the Scheme:

1. Enhanced Grain Storage Capacity – The construction of decentralized warehouses will help reduce food grain wastage.
2. Strengthening Food Security – Farmers will have adequate storage facilities for their produce.
3. Prevention of Distress Sales – Farmers can store their crops until they get fair prices in the market.
4. Better Price Realization – Farmers will have an increased chance of receiving competitive prices for their produce.
5. Reduction in Logistics Costs – PACS will operate as procurement centers and Fair Price Shops (FPS), minimizing transportation costs for food grains.

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