Unveiling the World’s Most Extensive Grain Storage Plan

The plan to build the world’s most extensive grain storage system in the cooperative sector involves the convergence of eight existing schemes currently spread across three different ministries.

• The eight schemes chosen for convergence include:

(a) Ministry of Agriculture and Farmers Welfare:

1. Agriculture Infrastructure Fund (AIF),
2. Agricultural Marketing Infrastructure Scheme (AMI),
3. Mission for Integrated Development of Horticulture (MIDH),
4. Sub Mission on Agricultural Mechanization (SMAM)

(b) Ministry of Food Processing Industries:

5. Pradhan Mantri Formalization of Micro Food Processing Enterprises Scheme (PMFME),
6. Pradhan Mantri Kisan Sampada Yojana (PMKSY)

(c) Ministry of Consumer Affairs, Food and Public Distribution:

7. Allocation of food grains under the National Food Security Act,
8. Procurement operations at Minimum Support Price

• The plan's budget is around one lakh crore, and the pilot project will first be implemented in 10 districts by the Ministry of Cooperation.
• Initially, the pilot project will be carried out in 10 districts to ensure the plan is implemented professionally and within the set timelines.

Understanding the Inter-Ministerial Committee (IMC)

• The Inter-Ministerial committee will be chaired by the Minister of Cooperation. Its members include ministers from Agriculture and Farmers Welfare, Consumer Affairs, Food and Public Distribution, Food Processing Industries, and secretaries. These officials will adapt and implement the guidelines and methodologies of schemes according to necessity.
• The plan will involve the creation of infrastructure for agriculture and allied services at viable Primary Agricultural Credit Societies (PACS).

The Necessity of the Plan

• The multi-pronged plan aims to address the shortage of agricultural infrastructure such as godowns in PACS. Additionally, it intends to enable PACS to undertake other activities such as:
  • Serving as procurement centers for State Agencies/ Food Corporation of India (FCI);
  • Functioning as Fair Price Shops (FPS);
  • Establishing custom hiring centers;
  • Setting up common processing units, including assaying, sorting, grading units for agricultural produce, etc.
• The creation of a decentralized local storage system will help prevent wastage of food grains and strengthen food security.
• The plan will also help to avoid distress sales by farmers and enable better price discovery.
• The plan will help reduce the transportation costs associated with moving food grains from procurement centers to fair-price shops.
• The plan will also fortify the role of the primary agriculture credit society and diversify business activities, which will improve farmers' income.

Budgetary Allocation and Scheme Convergence

• While the plan does not have a separate budgetary allocation, it will be implemented through the convergence of the above-mentioned eight existing schemes.
• These schemes cover agricultural infrastructure, marketing, horticulture development, agricultural mechanization, food processing, and food distribution.

Benefits of the Grain Storage Plan

The grain storage plan offers several benefits:

• Reduction in Post-harvest Losses: Improved storage facilities will help reduce post-harvest losses, preserving the quality and quantity of food grains.
• Cost-effective Handling and Transportation: Efficient storage infrastructure will reduce handling and transportation costs associated with food grain distribution, making the supply chain more economical.
• Empowering Farmers: Farmers will have the freedom to sell their produce at the right time based on market conditions, reducing distress sales and ensuring fair returns.

Integrated Facility Structure

• The integrated modular PACS will be built on around 1 acre of land and will consist of various facilities.
• These include a custom hiring center, a multi-purpose hall, procurement centers, primary processing units, storage sheds, and container storage and silos.
• Each PACS will have the capacity to store 1,000 metric tonnes of grain, while certain selected PACS will serve as hubs with a larger capacity of 2,000 metric tonnes.

Additional Services

• As part of the plan, PACS that participate will have the opportunity to offer various services.
• These include procurement services for state agencies and the Food Corporation of India (FCI) , acting as fair price shops, establishing custom hiring centers, and setting up common processing units for agricultural produce.

Conclusion

• The establishment of the Inter-Ministerial Committee for the world’s largest grain storage plan in the cooperative sector marks a significant step toward enhancing India’s food security.
• By leveraging the extensive network of primary agricultural credit societies, the plan aims to bridge the gap between farm produce and consumer demand, ensuring a stable and efficient food supply chain.