World’s Largest Grain Storage Plan in 2023

Context

The Ministry of Cooperation has recently approved the “World’s Largest Grain Storage Plan in 2023 to address the shortage of food grain storage capacity in India.

 Key Highlights

• Infrastructure facilities: It envisages introduction of diverse agricultural infrastructure at  Primary Agricultural Credit Societies (PACS) level, consisting of warehouses, custom hiring centre, processing devices, Fair Price Shops, etc
• Convergence of Existing Schemes: The plan leverages an whole-of-Government method through integrating current schemes.These are
  • Agriculture Infrastructure Fund (AIF)
  • Agricultural Marketing Infrastructure Scheme (AMI)
  • Sub Mission on Agricultural Mechanization (SMAM)
  • Pradhan Mantri Formalization of Micro Food Processing Enterprises Scheme (PMFME)
• Financial Support and Subsidies: PACS can avail subsidies and interest subvention advantages for building godowns and other agri infrastructure.
  • NABARD refinances PACS at highly subsidized rates (around 1%) after incorporating the benefits of the 3% interest subvention below the AIF scheme for projects as much as Rs. 2 Crore.

Implementation

• The Pilot project has been carried out by National Cooperative Development Corporation (NCDC) with the help of NABARD, Food Corporation of India (FCI), Central Warehousing Corporation (CWC), NABARD Consultancy Services (NABCONS) in coordination with States/ UTs concerned.
• Further, the pilot is being prolonged in 500 more PACS with the help of State Governments, NCCF, National Buildings Construction Corporation (NBCC), etc.
• The Ministry of Cooperation has constituted an IMC to make certain effective implementation. The IMC can regulate guidelines and methodologies as needed.

Benefits 

• Food Security: By increasing the storage capability for grains, the plan ensures a greater stable supply of food, reducing the danger of shortages and contributing to national food security.
• Reduction in Wastage: Proper storage facilities help limit the wastage of food grains because of spoilage, pests, and other factors, retaining precious sources.
• Fair Pricing for Farmers: It will even prevent distress sale of crops by farmers and enable them to realise better prices for their crops.
• Financial Inclusion: Farmers can get finance against their stored crops for the next crop cycle, maintaining cash flow and investing in the next planting season.
• Empowerment of PACS: The plan permits PACS to offer storage facilities, Fair Price Shops, and Custom Hiring Centers.
  • It strengthens the agricultural economic system and benefits millions of farmers related to cooperatives
• Global Recognition: India’s efforts in the direction of green grain storage will earn international acclaim.

Challenges 

• Infrastructure Development: Building decentralized storage infrastructure on the nearby stage requires substantial investment and coordination.
  • Constructing godowns, custom hiring centers, and processing devices throughout numerous areas poses logistical challenges.
• Implementation Complexity: Converging ongoing schemes from three ministries includes intricate planning and execution
• Regional Variability: India’s numerous geography and varying agricultural practices mean that storage necessities vary throughout states and union territories.
  • Adapting the plan to fulfill nearby desires at the same time as keeping uniformity is a mission.
• Financial Sustainability: The plan aims to reinforce Primary Agricultural Credit Societies (PACS), making sure their long-term economic viability remains a challenge.

Conclusion

• The World’s Largest Grain Storage Plan is a transformative step toward ensuring food protection, lowering wastage, and strengthening cooperative societies.
• It has immense potential to revolutionize food grain storage in India, reaping benefits for millions of citizens and strengthening cooperative societies.

Source: The Hindu

UPSC Mains Practice Question 

Q. In the villages itself no form of credit organisation will be suitable except the cooperative society.” – All India Rural Credit Survey. Discuss this statement in the background of agricultural finance in India. What constraints and challenges do financial institutions supplying agricultural finance face? How can technology be used to better reach and serve rural clients? (2014

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