On the wheel of progression, the Union Cabinet seals its approval on the largest grain storage plan in the global cooperative sector. This key decision involves an investment of around Rs 1 lakh crore. The central government’s move is poised to mitigate crop damages, circumvent farmer distress sales, and fortify India’s food security structure.
Unpacking the Essential Elements of the Grain Storage Plan
The grand scheme primarily targets the creation of godowns and allied agricultural infrastructure at the level of Primary Agricultural Credit Societies (PACS). This strategy aims to reinforce food security, diminish wastage and empower farmers. This project converges eight ongoing schemes from three ministries to fill the gap in India’s agricultural storage infrastructure. Ministry of Cooperation will steer a pilot project across at least ten selected districts.
An Inter-Ministerial Committee (IMC) will also be formed under the guidance of the Minister of Cooperation, with the involvement of the Ministers of Agriculture and Farmers Welfare, Consumer Affairs, Food and Public Distribution, and Food Processing Industries, along with the related secretaries.
The master plan is devised by the Ministry of Cooperation to boost the potential of cooperatives, steering them towards becoming profitable business entities; this aligns with the vision of “Sahakar-se-Samriddhi” (Cooperation for Prosperity).
Why PACS?
Having over 1,00,000 PACS with a membership exceeding 13 crore farmers, India’s PACS play a substantial role in the agricultural landscape. By creating decentralised storage capacity and other necessary infrastructure, the scheme intends to empower PACS. This transformation will amplify the economic viability of PACS and enhance the growth of the Indian agricultural sector.
The Multifaceted Benefits of the Scheme
The plan addresses the shortage of agricultural storage infrastructure by establishing godowns at PACS level. It provides scope for PACS to undertake diverse activities like functioning as procurement centres for state agencies or the Food Corporation of India, operating as fair price shops and setting up common processing units.
Guilded with these facets, the plan aims to reduce food grain wastage, curb distress sale of crops, enable better price realisation for farmers’ produce and significantly cut down on transportation costs of food grains to procurement centres and fair price shops.
An Insight into the PACS Structure
PACS form the lowest tier of the Short-Term Cooperative Credit (STCC) structure, topped by the State Cooperative Banks (SCBs) at the state level. SCBs transfer credit to the District Central Cooperative Banks (DCCBs) which operate at the district level, who then work closely with PACS, dealing directly with the farmers. PACS, established initially in 1904, primarily engage in short-term lending.
In line with this progress, the Union Budget 2023-24 announces an allocation of Rs 2,516 crore for computerising 63,000 PACS over the next five years. This move aims at bringing more transparency and accountability in their operations while also enabling them to diversify their business and undertake a wider range of activities.