WORLD'S LARGEST GRAIN STORAGE PLAN - GOVERNANCE

News: World’s largest grain storage plan: Centre to implement pilot project in 10 districts

 

What's in the news?

       The Union Cabinet approved a programme worth Rs 1 lakh crore aimed at establishing the largest grain storage capacity in the cooperative sector worldwide.

 

Key takeaways:

       Union Minister highlighted that while the country's food grain production stands at around 3,100 lakh tonnes, the existing storage capacity only accounts for 47 percent of the total output.

       In contrast, developed economies maintain storage capacities that exceed their output levels.

 

Grain Storage Plan:

Aim:

       To curb crop damages, prevent distress sales by farmers, and bolster the country's food security.

 

Budget:

       The program will commence with an initial expenditure of approximately Rs 1 lakh crore.

 

Features:

       A storage facility with a capacity of 2,000 tonnes will be established in each block, contributing to the strengthening of the cooperative sector.

       It will allow Primary Agricultural Credit Societies (PACS) to venture into food grain storage.

       Currently, there are around 1 lakh PACS in the country, of which approximately 63,000 are operational.

 

Storage Capacity:

       Currently, the total grain storage capacity in India is about 1,450 lakh tonnes. With the establishment of an additional 700 lakh tonnes of storage capacity in the cooperative sector, the overall capacity will reach 2,150 lakh tonnes.

 

Nodal Ministry: Ministry of Cooperatives

 

Inter-Ministerial Committee Formed For Facilitation:

       The IMC will be chaired by the Minister of Cooperation, with the Minister of Agriculture, Minister of Consumer Affairs, Food and Public Distribution, Minister of Food Processing Industries, and relevant secretaries serving as members.

       The committee will modify guidelines and implementation methodologies of the respective ministries schemes to facilitate infrastructure development, such as godowns, for agricultural and allied purposes at selected viable Primary Agricultural Credit Societies.

 

Pilot Project:

       To ensure timely and uniform implementation of the plan, the Ministry of Co-operatives will initiate a pilot project in at least 10 selected districts across different states and union territories.

       The insights gained from this pilot project will inform the nationwide implementation of the plan, taking into account regional requirements.

 

Significance:

       Creation of decentralized storage facilities at the local level, which will reduce food grain wastage and enhance the country's food security.

       It will significantly reduce transportation costs incurred in the movement of food grains to procurement centres and subsequent transportation from warehouses to ration shops.