World's Largest Grain Storage Plan in Cooperative Sector

1st June, 2023 Economy

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Context

The Union Cabinet has given its nod to the formation of an Inter-Ministerial Committee (IMC) to facilitate the implementation of the "World's Largest Grain Storage Plan in Cooperative Sector."
This transformative plan aims to converge the schemes of the Ministry of Agriculture and Farmers Welfare, Ministry of Consumer Affairs, Food and Public Distribution, and Ministry of Food Processing Industries.

Background

The Prime Minister of India has observed that all out efforts should be made to leverage the strength of the cooperatives and transform them into successful and vibrant business enterprises to realize the vision of “Sahakar-se-Samriddhi”.
To take this vision forward, the Ministry of Cooperation has brought out the ‘World’s Largest Grain Storage Plan in Cooperative Sector’.
The plan entails setting up various types of agri-infrastructure, including warehouse, custom hiring center, processing units, etc. at the level of Primary Agricultural Credit Societies (PACS), thus transforming them into multipurpose societies.
Creation and modernization of infrastructure at the level of PACS will reduce food grain wastage by creating sufficient storage capacity, strengthen food security of the country and enable farmers to realise better prices for their crops.
There are more than 1,00,000 Primary Agricultural Credit Societies (PACS) in the country with a huge member base of more than 13 crore farmers.
In view of the important role played by PACS at the grass root level in transforming the agricultural and rural landscape of Indian economy and to leverage their deep reach up to the last mile, this initiative has been undertaken to set up decentralized storage capacity at the level of PACS along with other agri infrastructure, which would not only strengthen the food security of the country, but would also enable PACS to transform themselves into vibrant economic entities.

Scheme Details

This ambitious scheme intends to construct grain storage facilities in the cooperative sector. Every block will have a dedicated godown with a capacity of 2,000 tonnes.
This endeavor aims to revolutionize the storage and distribution of food grains, ensuring their preservation and availability across the country.
The project's implementation will be overseen by an inter-ministerial committee that will work towards the effective execution of this visionary plan.

Implementation

The Ministry of Cooperation will take charge of the time-bound and uniform implementation of the project, commencing with a pilot phase in 10 selected districts across different states and union territories.
An Inter-Ministerial Committee (IMC) will be constituted under the Chairmanship of Ministery of Cooperation.
Ministry of Agriculture and Farmers Welfare, Minister of Consumer Affairs, Food and Public Distribution, Minister of Food Processing Industries and Secretaries will be other concerned as members to modify guidelines/ implementation methodologies of the schemes of the respective Ministries as and when need arises, within the approved outlays and prescribed goals, for facilitation of the ‘World’s Largest Grain Storage Plan in Cooperative Sector’ by creation of infrastructure such as godowns, etc. for Agriculture and Allied purposes, at selected ‘viable’ Primary Agricultural Credit Societies (PACS).

Schemes identified for convergence under the Plan

(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:

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

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

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

Benefits of the Plan

The plan is multi-pronged – it aims to address not just the shortage of agricultural storage infrastructure in the country by facilitating establishment of godowns at the level of PACS, but would also enable PACS to undertake various other activities, viz:

Functioning as Procurement centres for State Agencies/ Food Corporation of India (FCI);
Serving as Fair Price Shops (FPS);
Setting up custom hiring centers;
Setting up common processing units, including assaying, sorting, grading units for agricultural produce, etc.

Further, creation of decentralized storage capacity at the local level would reduce food grain wastage and strengthening food security of the country.
By providing various options to the farmers, it would prevent distress sale of crops, thus enabling the farmers to realise better prices for their produce.
It would hugely reduce the cost incurred in transportation of food grains to procurement centres and again transporting the stocks back from warehouses to FPS.
Through ‘whole-of-Government’ approach, the Plan would strengthen PACS by enabling them to diversify their business activities, thus enhancing the incomes of the farmer members as well.

Time-frame and manner of implementation

National Level Coordination Committee will be formed within one week of the Cabinet approval.
Implementation guidelines will be issued within 15 days of the Cabinet approval.
A portal for the linkage of PACS with Govt. of India and State Governments will be rolled out within 45 days of the Cabinet approval.
Implementation of proposal will start within 45 days of the Cabinet approval.

Closing Remarks

The "World's Largest Grain Storage Plan in Cooperative Sector" aligns with the Prime Minister's vision of transforming cooperatives into successful and vibrant business enterprises.
By leveraging the strength of PACS and establishing agri-infrastructure at their level, the plan aims to enhance the agricultural and rural landscape of the Indian economy while ensuring food security and better prices for farmers.
With over 1,00,000 PACS and a massive member base of more than 13 crore farmers, this initiative will empower PACS to become robust economic entities and drive positive change at the grassroots level.

READ ABOUT PACS: https://www.iasgyan.in/daily-current-affairs/primary-agricultural-credit-societies-pacs

PRACTICE QUESTION

Q. Consider the following statements:

1. Primary Agricultural Credit Societies confer equal rights to all its members without considering their holding of share and their social standing.

2. PACS provides long-term loans to its members.

Which of the above statements is/are correct?

(a) Only 1

(b) Only 2

(d) Neither 1 nor 2

Correct Answer: (a) Only 1