🔆 Decentralised Grain Storage Plan in Cooperative Sector
📍 Why in News?
🟢 The Ministry of Cooperation highlighted the progress of the Decentralised Grain Storage Plan, launched as a pilot in May 2023.
🟢 By July 2026, godowns had been completed in 313 PACS, creating over 1.80 lakh metric tonnes (LMT) of storage capacity.
📍 Why does India need decentralised storage?
🟢 India’s foodgrain production is estimated at 376.563 million tonnes in 2025-26, while the National Food Security Act, 2013 covers around 80 crore people.
🟢 Storage closer to production centres can:
🟢 Reduce post-harvest losses and wastage
🟢 Lower transportation costs
🟢 Reduce distress sales by giving farmers flexibility to store produce
🟢 Improve procurement, distribution and food security
📍 What is the Plan?
🟢 A cooperative-led initiative to create integrated infrastructure at the Primary Agricultural Credit Society (PACS) level.
🟢 It links storage, processing, procurement and distribution closer to agricultural production centres.
🟢 It began with pilot projects in 11 PACS across 11 States, creating 9,750 MT of capacity.
📍 What infrastructure can PACS create?
🟢 Godowns and silo-based storage of 50 MT, 100 MT and 200 MT
🟢 Custom Hiring Centres for agricultural machinery
🟢 Primary processing units for cleaning, sorting and drying
🟢 Procurement centres for State agencies and FCI
🟢 Fair Price Shops and local distribution facilities
🟢 Thus, PACS are envisioned as integrated rural service hubs, rather than merely credit institutions.
📍 Convergence-Based Model
The Plan does not operate as an isolated scheme. It converges existing programmes:
🟢 Agriculture Infrastructure Fund (AIF): Financing and interest subvention for post-harvest infrastructure
🟢 Agricultural Marketing Infrastructure (AMI): Capital subsidy for storage infrastructure
🟢 Sub-Mission on Agricultural Mechanization (SMAM): Custom Hiring Centres and machinery access
🟢 PMFME Scheme: Promotion of micro food-processing units
📍 Implementation Architecture
🟢 NCDC is the implementing agency
🟢 Inter-Ministerial Committee (IMC): Overall monitoring
🟢 National Level Coordination Committee (NLCC): Operational coordination
🟢 State and District Cooperative Development Committees: Implementation and coordination
🟢 PACS are identified under the Margdarshika/SOP, based on local storage demand.
📍 Making Projects Financially Viable
🟢 AMI subsidy enhanced from 25% to 33.33%
🟢 Margin money requirement reduced from 20% to 10%
🟢 NABARD refinance and AIF interest subvention reduce the effective interest rate for eligible PACS projects to 1%
🟢 FCI can provide assured hiring of eligible godowns, improving commercial viability.
📍 Case Study: Nerpingalai PACS, Maharashtra
🟢 Constructed a 3,000 MT warehouse
🟢 Around 300 farmers are storing nearly 32,000 bags of soybean
🟢 About ₹4.5 crore in advances has been provided against stored produce, reducing farmers’ dependence on distress sales
🟢 Demonstrates how storage can improve both farmer liquidity and PACS’ income base. Press Release- Press Information Bureau(8).pdf
📍 Challenges Ahead
🟢 Ensuring commercial viability of smaller PACS projects
🟢 Maintaining scientific storage and quality standards
🟢 Building managerial and technical capacity within PACS
🟢 Preventing infrastructure from becoming underutilised
🟢 Ensuring effective coordination between PACS, FCI, NABARD, States and local institutions
🟢 Strengthening transparency through regular inspections, audits and monitoring. Press Release- Press Information Bureau(8).pdf
✎ MAINS PRACTICE QUESTION
“Decentralised grain storage can transform PACS from credit institutions into integrated rural economic hubs.” Examine the significance of the Decentralised Grain Storage Plan in Cooperative Sector for food security, farmers’ incomes and agricultural supply-chain resilience. What challenges must be addressed for its effective implementation?
15 Marks | 250 Words
#cooperatives
5September 5, 2026 2.1K 15
