The National Level Coordination Committee (NLCC) for the government’s  ambitious grain storage project, chaired by cooperation secretary Ashish Kumar Bhutani, held its inaugural meeting in New Delhi on June 3.

The committee reviewed the progress of the pilot project launched last year in 11 states. 

World’s Largest Grain Storage Plan

• India holds 11 per cent (16 crore hectares) of world’s total cultivable area (138 crore hectares) and 18 per cent (140 crore) of the total world population (790 crore). 

• This means that to meet the food requirement of the 18 per cent of the world population, India only has 11 per cent of cultivable land. 

• Based on the FAO Statistical Data 2021, total foodgrain production in India is 311 MMT and total storage capacity in the country is only 145 MMT, which means there is a shortage of 166 MMT for storage. 

• There is surplus storage capacity in many countries, while in India there is a shortfall.

• The ministry of cooperation has introduced an unprecedented initiative — the ‘world’s largest grain storage plan in cooperative sector’.

• The Plan entails establishing diverse agricultural infrastructure at the level of Primary Agricultural Credit Societies (PACS), encompassing warehouses, custom hiring centres, processing units, and more.

• By elevating PACS into multifunctional entities, this strategy aims to reduce food grain wastage through enhanced storage capacity, fortify the nation’s food security, and empower farmers to command better prices for their produce.

• India houses over 100,000 PACS, boasting a substantial membership exceeding 130 million farmers.

• Recognising their pivotal role in shaping the agrarian and rural landscape of the Indian economy, and capitalising on their extensive outreach to the grassroots, this initiative seeks to establish decentralised storage facilities at the PACS level, alongside other agricultural infrastructure. 

• This endeavour not only bolsters the nation’s food security but also empowers PACS to metamorphose into dynamic economic entities.

• The pilot project has been implemented by National Cooperative Development Corporation (NCDC) with the support of NABARD, Food Corporation of India (FCI), Central Warehousing Corporation (CWC), and NABARD Consultancy Services (NABCONS) in coordination with states/UTs concerned. 

• Further, the pilot is being extended in 500 additional PACS with the support of state governments, NCCF, National Buildings Construction Corporation (NBCC), etc.

• States/UTs and national level cooperative federations, like National Cooperative Consumers Federation (NCCF) and National Agricultural Cooperative Marketing Federation of India Ltd. (NAFED), have identified more PACS for creation of storage capacity and other agricultural infrastructure under the project.

• It will also prevent distress sale of crops by farmers and enable them to  realise better prices for their crops. 

• Since PACS would be operating as a procurement centre as well as Fair Price Shops (FPS), the cost incurred in transportation of food grains to procurement centres and again transporting the stocks back from warehouses to FPS would also be saved.

The project will also provide various benefits to the farmers:

i) Farmers will be able to store their produce in the godown constructed at PACS and avail bridge finance for the next cycle of crop and sell the produce at a time of their choice, or sell their whole crop to the PACS at Minimum Support Price (MSP), which would enable them to avoid distress sale of crops.

ii) They will be able to get various agri inputs and services at the panchayat/village level itself.

iii) Through diversification of business, farmers will be able to get additional sources of income.

iv) Through integration with the food supply management chain, farmers will be able to expand their market size and realise better value for their produce.

v) Creation of adequate food grain storage capacity at PACS level will help in reduction of post-harvest loss, thus enabling farmers to earn better prices.

vi) In addition to the above, this Plan would help in ensuring food security at panchayat/village level across the country, thereby benefitting the consumers.

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