LARGEST STORAGE PLAN IN AGRICULTURE – AGRICULTURE

News: PM Modi launches ‘world’s largest agri storage plan’; Rs 1.25 lakh cr outlay over 5 years

 

What's in the news?

       The government plans to set up a storage infrastructure of 700 lakh metric tons over the next five years at a cost of Rs 1.25 lakh crore.

 

Key takeaways:

       The Union Cabinet of India has approved the Constitution and Empowerment of an Inter-Ministerial Committee (IMC) for Facilitation of “World’s Largest Grain Storage Plan in Cooperative Sector”.

 

Aim:

       The new scheme aims to bridge the production and storage gap by significantly increasing storage capacity and reducing wastage.

       The scheme aims to expand foodgrain storage facilities in the country that will boost the cooperative sector.

 

Objective and Feature of the Plan:

1. Create 100% Storage Capacity:

       The grain storage scheme aims to create storage capacity for storing 100% of India's grain production.

2. Integrate PACS godowns with Food Grain Supply Chain:

       It aims to seamlessly integrate PACS godowns with the food grain supply chain, with a collaborative effort of NABARD and spearheaded by the National Cooperative Development Corporation (NCDC).

3. Convergence of Various Existing Schemes:

       The initiative is being implemented through the convergence of various existing schemes like the Agriculture Infrastructure Fund (AIF), Agriculture Marketing Infrastructure (AMI), etc. to enable PACS participating in the project to avail subsidies and interest subvention benefits for undertaking infrastructure development.

 

Target:

       With the current grain storage capacity at approximately 1,450 lakh tonnes, this scheme seeks to add 700 lakh tonnes of storage over the next 5 years, eventually reaching a total capacity of 2,150 lakh tonnes.

 

Budget:

       The government will make an allocation of approximately Rs 1 lakh crore for the scheme.

 

Methodology:

       There shall be establishment of godowns with a capacity of 2000 tonnes at the level of Primary Agricultural Credit Societies (PACS) in every block.

 

Implementation Strategy:

       Ministry of Cooperation will implement a pilot project in at least 10 selected districts.

 

Go back to basics:

Agencies involved in grain management presently are as follows.

       Food Corporation of India (FCI)

       Central Warehouse Corporation

       Warehouse Development Regulatory Authority, Railways

       Civil Supply Departments of States