New Delhi, August 01, 2023: The Union Cabinet, during its meeting on May 31, 2023, granted approval for what is set to become the “World’s Largest Grain Storage Plan in the Cooperative Sector.” This monumental initiative will be rolled out as a Pilot Project and will involve the establishment of various agricultural infrastructure components at the Primary Agricultural Credit Societies (PACS) level. These components include warehouses, custom hiring centers, processing units, Fair Price Shops, and more. The plan is designed to leverage a “whole-of-Government” approach, utilizing the approved allocations from several Government of India (GoI) schemes dedicated to the creation and modernization of infrastructure facilities at the PACS level.
The ministries involved in this endeavor include the Ministry of Agriculture and Farmers Welfare, the Ministry of Food Processing Industries, and the Ministry of Consumer Affairs, Food and Public Distribution. To ensure the effective implementation of this ambitious project, the Ministry of Cooperation has formed an Inter-Ministerial Committee (IMC) led by the Hon’ble Home and Cooperation Minister, with Hon’ble Ministers and Secretaries from the concerned ministries serving as members. This committee has been granted the authority to adapt guidelines and implementation methodologies of the identified schemes for convergence, as needed, within their approved budgets and prescribed objectives to facilitate the Pilot Project.
Additionally, the Ministry of Cooperation has constituted a National Level Coordination Committee (NLCC), chaired by the Secretary (Ministry of Cooperation). The NLCC is responsible for overseeing the overall implementation of the plan and reviewing its progress, among other responsibilities.
At the state level, States and Union Territories have formed State Cooperative Development Committees (SCDC) and District Cooperative Development Committees (DCDC). These committees, chaired by the Chief Secretary at the state level and the District Collector at the district level, are instrumental in monitoring the Pilot Project’s implementation and ensuring its seamless integration with existing policies and programs. They comprise members from various departments, including Revenue, Agriculture, Horticulture, as well as representatives from NABARD, State Cooperative Banks (StCB), Food Corporation of India (FCI), and others. These committees will evaluate the storage gap, assess existing storage facilities, capacity utilization, proposed godown capacities, PACS viability, project locations, logistics, market linkages, and more.
The National Cooperative Development Corporation (NCDC), with support from NABARD, NABARD Consultancy Services (NABCONS), Central Warehousing Corporation (CWC), Food Corporation of India (FCI), and other stakeholders, is spearheading the Pilot Project in 24 PACS across 24 different states and union territories. Construction has already commenced at five PACS, one each in Tripura, Haryana, Tamil Nadu, Uttar Pradesh, and Madhya Pradesh. Detailed Project Reports for the remaining PACS are currently in preparation.
The creation of decentralized storage capacity ranging from 500 MT to 2000 MT at the PACS level is expected to significantly reduce food grain wastage, enhance national food security, prevent distress sales of crops, and enable farmers to command better prices for their produce. Furthermore, the dual role of PACS as procurement centers and Fair Price Shops (FPS) will result in cost savings, as the transportation of food grains to and from these locations will be streamlined.
The estimated project cost for each PACS will vary based on factors such as storage capacity and the need for custom hiring centers and processing units. Interest Subvention under the Agriculture Infrastructure Fund will complement the subsidies available under the identified schemes for the construction of warehouses and other agricultural infrastructure at the PACS level.
The Minister of Cooperation, Shri Amit Shah, made this announcement in a written reply to a question in the Lok Sabha, underlining the significance of this groundbreaking initiative in India’s cooperative sector.
