Pilot Phase of the World’s Largest Grain Storage Plan in the Cooperative Sector

The World's Largest Grain Storage Plan's initial phase has already seen godown constructions in the PACS spread over 11 States in India. PACS is at the village level in a three-tier cooperative credit structure, the second tier being the State Cooperative Banks (SCB).  Pilot Phase of the World’s Largest Grain Storage Plan in the Cooperative Sector is one of the important steps toward increasing the effectiveness and productivity of grain storing in India. It is like any other project that has been embarked on by the Cooperative Sector to enhance food security, enhance the quality of storage facilities as well as increase the productivity of the agricultural sector.

Core Elements of the Plan: 

• Achieved by encouraging decentralization of storage from large central warehouses or storage centres to more localized centres at the PACS level. 

• This offers several benefits: 

• Less Cost Incurred in Transportation: The produce of the farmers is stored nearer to farms, hence cutting down the costs of transportation.
• Reduced Post-harvest Losses: This way crop preservation is fast thus reducing spoilage and wastage of crops.
• Increased Accessibility: For storage of produce, the units proved conveniently located and readily accessible, especially to farmers in remote areas.

Empowering PACS:

• The plan examines the aspects of PACS revival by expanding their functions and setting perspectives related to credit delivery, increasing financial stability, and rural development.

Convergence of Schemes:

• In case of financial support for the plan implementation, the PACS has been planned to approach the government-sponsored schemes like the Agriculture Infrastructur km e Fund (AIF) and Agricultural Marketing Infrastructure (AMI) which can support for PACS operations to minimize the duplicity of arranged actions.

Multi-faceted Infrastructure:

• Other agri infrastructures besides godowns to be promoted by PACS include warehouses, processing units, and custom hiring centers to strengthen the sector.

Financial Support:

• The package includes several subsidies and subventions on interest:

• In AIF, PACS is given 3% interest on every loan up to ₹2 crores with 7 years payback period of AIF.

• In AMI, PACS’ receives a 33.33% subsidy for storage units building.

Key Supporting Agencies

• National Cooperative Development Corporation or NCDC

• National Bank for Agriculture and Rural Development is the acronym of NABARD.

• NABARD has its own consulting wing, NABARD Consultancy Services (NABCONS), for consultation with government agencies, other institutions, and banks and for developing institutional capabilities.

Other Efforts for Grain Storage Infrastructure Development:

• Gramin Bhandaran Yojana (Rural Godown Scheme): Another element of the subsidy programme is extension of storage facilities for grains and pulses by building or renovating rural godowns, in addition to improving the storage capacity at the farm level.

• Central Warehousing Corporation (CWC): Having strength of over 400 warehouse all over India to provide scientific storage and scientific handling facilities for agricultral products.

• National Center for Cold Chain Development (NCCD): Specializes in the construction of chilling facilities to avoid perishing of horticultural produces.

Conclusion

The pilot phase of the world’s largest grain storage plan marks a significant step in enhancing India's food security and agricultural infrastructure. By decentralizing storage facilities to PACS at the village level, this initiative not only reduces transportation costs and post-harvest losses but also increases accessibility for farmers, particularly in remote areas. The plan’s integration with government schemes like the Agriculture Infrastructure Fund (AIF) and Agricultural Marketing Infrastructure (AMI) further strengthens its foundation. With the support of agencies like NABARD and NCDC, this initiative is set to empower rural development, improve storage capacities, and foster long-term growth in India’s agricultural sector.