The Union Cabinet has given its approval to a scheme worth INR 1 trillion, aimed at increasing the foodgrain storage capacity. According to a PTI report, this scheme aims to add 700 lakh tonnes of storage capacity in the cooperative sector.
The plan seeks to unify and integrate multiple programs from the Ministry of Agriculture and Farmers Welfare, Ministry of Consumer Affairs, Food and Public Distribution, and Ministry of Food Processing Industries, with the goal of achieving convergence.
According to Union Minister Anurag Singh Thakur, the current grain storage capacity in the country is approximately 1,450 lakh tonnes. However, over the next five years, the storage capacity is set to increase to 2,150 lakh tonnes.
“The Union Cabinet chaired by the Prime Minister Shri Narendra Modi, today approved the constitution and empowerment of an Inter Ministerial Committee (IMC) for facilitation of the ‘World’s Largest Grain Storage Plan in Cooperative Sector‘,” a PIB release said.
In order to guarantee the efficient and consistent execution of the plan, the Ministry of Cooperation will commence a pilot project in a minimum of ten selected districts spanning various states and Union Territories. This pilot project will offer valuable insights into regional needs, which will then be integrated into the nationwide implementation of the plan, ensuring its success at a larger scale.
The committee, led by the Minister of Cooperation, will consist of the Minister of Agriculture and Farmers Welfare, the Minister of Consumer Affairs, Food and Public Distribution, the Minister of Food Processing Industries, and relevant secretaries as its members.
The committee will be responsible for revising guidelines and implementation approaches for the schemes of the respective ministries, as required, while adhering to the approved budgets and specified objectives. This will be done to support the realization of the “World’s Largest Grain Storage Plan in the Cooperative Sector.”
The primary focus of the plan is to establish infrastructure, specifically godowns, at feasible Primary Agricultural Credit Societies (PACS) to cater to the needs of agriculture and related sectors.
The plan will make use of the allocated funds from specific schemes implemented by the respective ministries. These schemes encompass the Agriculture Infrastructure Fund (AIF), Agricultural Marketing Infrastructure Scheme (AMIS), Mission for Integrated Development of Horticulture (MIDH), Sub Mission on Agricultural Mechanization (SMAM) from the Ministry of Agriculture and Farmers Welfare, and the Pradhan Mantri Formalization of Micro Food Processing Enterprises Scheme (PMFME), Pradhan Mantri Kisan Sampada Yojana (PMKSY) from the Ministry of Food Processing Industries.
Furthermore, the convergence will also encompass the Ministry of Consumer Affairs, Food and Public Distribution’s allocation of food grains under the National Food Security Act and procurement operations at minimum support price.
The plan encompasses various dimensions, aiming to address the scarcity of agricultural storage infrastructure through the establishment of godowns at the PACS level. This initiative will empower PACS to engage in diverse activities, such as functioning as procurement centers, fair price shops, custom hiring centers, and establishing common processing units. By decentralizing storage capacity at the local level, the plan will effectively decrease food grain wastage, enhance food security, mitigate distress sale of crops, and reduce transportation expenses.
The implementation of the proposal will adhere to a specified timeline. Within one week of cabinet approval, a national-level coordination committee will be formed, and comprehensive implementation guidelines will be issued within 15 days. Additionally, a portal for linking PACS with the government will be rolled out within 45 days, concurrent with the initiation of plan implementation.
The Ministry of Cooperation has set a goal to revitalize primary agricultural credit societies (PACS) and transform them into thriving and prosperous business enterprises. The plan prioritizes the development of agri-infrastructure, including warehouses and processing units at the PACS level, with the aim of enhancing food security, minimizing wastage, and augmenting farmers’ income. With a significant number of over 1,00,000 PACS and a membership base exceeding 13 crore farmers, this initiative aims to harness the potential of PACS to drive the transformation of India’s agricultural and rural sectors, contributing to the overall growth of the economy.