Background
India holds 11% (16 Crore Hectare) of World’s total Cultivable Area (138 Crore Hectare) and 18% (140 Crore) of Total World Population (790 Crore). This means that to meet the food requirement of the 18% of World Population, India only has 11% of Cultivable Land. Based on the FAO Statistical Data 2021, total Food Grain Production in India is 311 MMT and total Storage Capacity in India is only 145 MMT, i.e, there is a shortage of 166 MMT od Storage. There is surplus Storage capacity in other countries 131%, while in India there is a shortfall of 47%.
Recognizing the significance of cooperatives as a potent force for economic growth, the Prime Minister of India Shri Narendra Modi has emphasized the need to harness their potential and foster their evolution into thriving business ventures, embodying the vision of "Sahakar-se-Samriddhi" (Prosperity through Cooperation). To drive this vision, the Ministry of Cooperation has introduced an unprecedented initiative—the 'World's Largest Grain Storage Plan in Cooperative Sector.
This visionary 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. Recognizing their pivotal role in shaping the agrarian and rural landscape of the Indian economy, and capitalizing on their extensive outreach to the grassroots, this initiative seeks to establish decentralized 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.
Implementation Plan:
An Inter-Ministerial Committee (IMC) has been formed under the leadership of the Minister of Cooperation. The committee include the Minister of Agriculture and Farmers Welfare, Minister of Consumer Affairs, Food and Public Distribution, Minister of Food Processing Industries, and relevant Secretaries as members. Their role is to adapt guidelines and implementation approaches of respective Ministries' schemes, as needed, within approved budgets and set objectives. This adaptation aims to facilitate the realization of the 'World's Largest Grain Storage Plan in Cooperative Sector.' This initiative involves creating infrastructure such as warehouses for agricultural and allied purposes, primarily at selected viable Primary Agricultural Credit Societies (PACS) in 24 States /Union Territories.
Expected Benefits of the Plan:
The plan has dual objectives. Firstly, it addresses the lack of agricultural storage infrastructure by establishing godowns at the PACS level. Additionally, it empowers PACS to engage in other roles:
- Acting as procurement centres for State Agencies/ Food Corporation of India (FCI).
- Functioning as Fair Price Shops (FPS).
- Establishing custom hiring centres.
- Creating common processing units for sorting, grading, and more.
This decentralized storage will reduce food grain wastage, enhancing national food security. Farmers will have options to avoid distress sales, leading to better prices. This approach minimizes transportation costs between procurement centres, warehouses, and FPS. Employing a 'whole-of-Government' strategy, the plan strengthens PACS by diversifying their activities and increasing farmers' incomes.
To learn more about the Storage Structure and concept of Grain Storage as a whole, please click on the video link below:
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