India Expands World’s Largest Grain Storage Plan in Cooperative Sector

India Expands World’s Largest Grain Storage Plan in Cooperative Sector

1. Overview of the Initiative
   • India is expanding the world’s largest grain storage plan within the cooperative sector.
   • Pilot phase completed with godowns constructed at Primary Agricultural Credit Societies (PACS) across 11 states: Maharashtra, Uttar Pradesh, Tamil Nadu, Karnataka, Gujarat, Madhya Pradesh, Uttarakhand, Assam, Telangana, Tripura, and Rajasthan.
   • Total storage capacity achieved in pilot phase: 9,750 metric tonnes.
2. Stakeholders and Implementation
   • National Cooperative Development Corporation (NCDC), National Bank for Agriculture and Rural Development (NABARD), and NABARD Consultancy Services (NABCONS) are key implementing agencies.
   • Three godowns retained for PACS’ own use (Maharashtra, Rajasthan, Telangana).
   • Three godowns hired out to state/central agencies (Uttar Pradesh, Madhya Pradesh, Gujarat), demonstrating dual utility for local and institutional storage needs.
3. Expansion Plans
   • Encouraged by pilot success, government plans to construct over 500 additional PACS godowns nationwide.
   • Objective: strengthen grassroots-level storage infrastructure and reduce post-harvest losses.
4. Financial Support and Incentives
   • Agriculture Infrastructure Fund (AIF): 3% interest subvention on loans up to ₹2 crore; repayment tenure of 7 years (2+5).
   • Agricultural Marketing Infrastructure Scheme (AMI): 33.33% subsidy for godown construction; margin money requirement reduced from 20% to 10%.
   • Ancillary infrastructure (boundary walls, drainage) eligible for subsidy up to one-third of godown subsidy or actual cost, whichever is lower.
5. Significance and Policy Implications
   • Strengthens food security by increasing storage capacity at the cooperative level.
   • Supports smallholder farmers and PACS, empowering local agricultural communities.
   • Reduces dependence on private or centralized storage, enhancing resilience of the food supply chain.
   • Integrates cooperative movement with national agricultural policies, aligning with National Food Security Act, AIF, and broader rural development initiatives.
6. Potential Challenges
   • Effective management and maintenance of godowns at PACS level.
   • Ensuring timely utilization of subsidies and loans by small cooperatives.
   • Monitoring dual-use facilities to balance local farmer needs and government storage requirements.
7. Conclusion
   • The initiative exemplifies India’s focus on cooperative-led agricultural infrastructure, bridging gaps in storage, reducing post-harvest losses, and promoting inclusive growth in rural economies.
   • Expansion plans are likely to enhance agri-value chain efficiency and strengthen India’s position in global food security frameworks.
     
     Updated - 4 Dec 2024 , 10: 23 PM | DD News