Cabinet Approves Inter-Ministerial Committee for World’s Largest Grain Storage Plan in Cooperative Sector

New Delhi, May 31, 2023 – The Union Cabinet, chaired by Prime Minister Narendra Modi, has given its approval for the establishment of an Inter-Ministerial Committee (IMC) to facilitate the “World’s Largest Grain Storage Plan in Cooperative Sector.” This plan aims to converge various schemes of the Ministry of Agriculture and Farmers Welfare, Ministry of Consumer Affairs, Food and Public Distribution, and Ministry of Food Processing Industries.

To ensure timely and uniform implementation of the plan in a professional manner, the Ministry of Cooperation will initiate a pilot project in at least 10 selected districts across different states and union territories in the country. This pilot project will provide valuable insights into the regional requirements of the plan, and the learnings from it will be incorporated into the nationwide implementation.

Implementation

The Inter-Ministerial Committee (IMC) will be chaired by the Minister of Cooperation, with 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. The committee will modify guidelines and implementation methodologies of the respective ministries’ schemes, as and when required, within the approved outlays and prescribed goals. This will facilitate the creation of infrastructure such as godowns for agriculture and allied purposes at selected viable Primary Agricultural Credit Societies (PACS).

The plan will be implemented by utilizing the available outlays provided under the identified schemes of the respective ministries. The following schemes have been identified for convergence under the plan:

Ministry of Agriculture and Farmers Welfare:

• Agriculture Infrastructure Fund (AIF)
• Agricultural Marketing Infrastructure Scheme (AMI)
• Mission for Integrated Development of Horticulture (MIDH)
• Sub Mission on Agricultural Mechanization (SMAM)

Ministry of Food Processing Industries:

• Pradhan Mantri Formalization of Micro Food Processing Enterprises Scheme (PMFME)
• Pradhan Mantri Kisan Sampada Yojana (PMKSY)

Ministry of Consumer Affairs, Food and Public Distribution:

• Allocation of food grains under the National Food Security Act
• Procurement operations at Minimum Support Price

Benefits of the Plan

The plan has multiple objectives. It aims to address the shortage of agricultural storage infrastructure by facilitating the establishment of godowns at the PACS level. Additionally, it will enable PACS to undertake various other activities such as functioning as procurement centers, fair price shops, custom hiring centers, and common processing units for agricultural produce.

Moreover, the decentralized storage capacity at the local level will reduce food grain wastage and strengthen food security in the country. By providing farmers with various options, the plan will prevent distress sales and help farmers realize better prices for their produce. It will also reduce the cost of transportation for food grains and enhance the incomes of farmer members by diversifying their business activities through a whole-of-government approach.

Time-frame and Manner of Implementation

Within one week of the Cabinet approval, a National Level Coordination Committee will be formed. Implementation guidelines will be issued within 15 days of the Cabinet approval, and a portal for linking PACS with the Government of India and State Governments will be rolled out within 45 days. The implementation of the proposal will commence within 45 days of the Cabinet approval.

Background

In line with the vision of “Sahakar-se-Samriddhi” (Prosperity through Cooperation), the Ministry of Cooperation has formulated the “World’s Largest Grain Storage Plan in Cooperative Sector.” This plan aims to transform Primary Agricultural Credit Societies (PACS) into multipurpose societies by establishing various types of agri-infrastructure, including warehouses, custom hiring centers, and processing units at the PACS level. The creation and modernization of infrastructure at the PACS level will reduce food grain wastage, enhance food security, and improve farmers’ income.

With over 100,000 PACS and a membership base of more than 130 million farmers, this initiative recognizes the crucial role played by PACS in transforming the agricultural and rural landscape of the Indian economy. It aims to leverage the deep reach of PACS to set up decentralized storage capacity and other agri-infrastructure, empowering PACS to become vibrant economic entities while strengthening the food security of the country.