Government Approves Ambitious Plan Of 1 Lakh Crore to Enhance Grain Storage and Boost Rural Employment

Union Cabinet sanctions Rupees 1 lakh crore programme for world’s largest cooperative grain storage capacity

The Indian government has unveiled a groundbreaking initiative aimed at creating extensive grain storage capacity in the cooperative sector. With an investment of Rupees 1 lakh crore, this program is set to establish the largest grain storage capacity in the world. The primary objective is to minimise crop damage, prevent distress sales by farmers, and reinforce the nation’s food security.

The government has outlined plans to create a staggering 700 lakh tonnes of grain storage capacity within the cooperative sector over the next five years. This ambitious endeavor will not only fortify the storage infrastructure but also generate numerous job opportunities in rural areas. Anurag Singh Thakur, the Information and Broadcasting Minister, revealed that the Cabinet has granted approval for this colossal grain storage plan.

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Investment and Implementation Strategy

The program will commence with an initial expenditure of approximately Rupees 1 lakh crore. Under the proposed plan, each block will establish a godown capable of holding 2,000 tonnes of grains. This strategic move will bolster the cooperative sector, enabling Primary Agricultural Credit Societies (PACS) to diversify into food grain storage. Out of the 1 lakh PACS in the country, around 63,000 are currently operational.

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PACs ग्रामीण अर्थव्यवस्था की महत्त्वपूर्ण धुरी हैं। इस योजना से देश को खाद्यान्न सुरक्षा मिलेगी और सहकारिता से जुड़े करोड़ों किसानों को लाभ पहुँचेगा।

इस योजना से पैक्‍स भंडारण के साथ-साथ कई अन्‍य कार्य, जैसे – फेयर प्राइस शॉप व कस्‍टम हायरिंग केन्‍द्रों की तरह भी काम कर पाएँगे। pic.twitter.com/p9uIVc39Q8

— Amit Shah (@AmitShah) May 31, 2023

Thakur highlighted the existing disparity between India’s food grain production, estimated at 3,100 lakh tonnes, and its storage capacity, which currently stands at only 47 percent of the total output. In contrast, developed economies possess higher storage capacities than their output. When questioned about the funding source, Thakur mentioned that available funds from the ministries of agriculture, food processing, and food and consumer affairs would be utilised.

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Benefits and Reduced Costs

The creation of decentralised storage capacity at the local level will significantly reduce food grain wastage and enhance the country’s food security. Furthermore, this initiative will substantially diminish the expenses associated with transporting food grains to procurement centers and subsequently moving stocks from warehouses to ration shops, resulting in substantial cost savings.

Implementation and Inter-Ministerial Committee

The Cabinet has approved the establishment of an Inter-Ministerial Committee (IMC) to facilitate the world’s largest grain storage plan in the cooperative sector. This committee will bring together various schemes from the Ministry of Agriculture, Ministry of Consumer Affairs, Food and Public Distribution, and Ministry of Food Processing Industries. The Ministry of Cooperation will implement a pilot project in at least ten selected districts across different states and union territories, offering valuable insights for nationwide implementation.

To ensure efficient and consistent implementation, the IMC will be chaired by the Minister of Cooperation, with the participation of the Ministers of Agriculture, Consumer Affairs, Food and Public Distribution, and Food Processing Industries, along with relevant secretaries. The committee will modify guidelines and implementation methodologies as required, within the approved outlays and goals, to create infrastructure such as godowns for agriculture and allied purposes at selected viable PACS.

Utilising Existing Schemes for Implementation

The identified schemes from respective ministries will be converged and utilised for the successful implementation of this plan. The Ministry of Agriculture will contribute schemes such as the Agriculture Infrastructure Fund (AIF), Agricultural Marketing Infrastructure Scheme (AMI), Mission for Integrated Development of Horticulture (MIDH), and Sub Mission on Agricultural Mechanisation (SMAM).

The Ministry of Food Processing Industries will provide the Pradhan Mantri Formalisation of Micro Food Processing Enterprises Scheme (PMFME) and Pradhan Mantri Kisan Sampada Yojana (PMKSY). The Ministry of Consumer Affairs, Food and Public Distribution will incorporate programs related to food grain allocation under the National Food Security Act and procurement operations at Minimum Support Price (MSP).

This comprehensive plan aims to address the shortage of agricultural storage infrastructure by facilitating the establishment of godowns at the PACS level. Additionally, PACS will be enabled to undertake various activities such as functioning as procurement centers for state agencies and the Food Corporation of India (FCI), operating as Fair Price Shops (FPS), establishing custom hiring centers, and setting up common processing units for agricultural produce, including assaying, sorting, and grading units.

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