Pilot project launch in Balaghat
Balaghat Selected for Cooperative Grain Storage Pilot Expansion: Balaghat district in Madhya Pradesh has been selected as the pilot region under the World’s Largest Grain Storage Plan in the Cooperative Sector. A modern 500 metric tonne godown has been constructed at Bahudeshiya Prathamik Krishi Saakh Sahakari Society Maryadit, Parswada. The facility was officially inaugurated by the Prime Minister on 24 February 2024, marking a major step toward decentralised agricultural storage.
The godown is operated by the Madhya Pradesh Warehousing and Logistics Corporation (MPWLC). This pilot initiative aims to strengthen rural storage capacity and improve access to scientific warehousing at the grassroots level.
Static GK fact: Madhya Pradesh is known as the “Soybean State of India” due to its highest soybean production.
Strengthening PACS level infrastructure
The plan focuses on empowering Primary Agricultural Credit Societies (PACS) to create storage infrastructure at the village level. PACS play a key role in providing credit, input distribution, and procurement services to farmers. By adding storage facilities, PACS can become multi-functional agricultural service centers.
Decentralised storage reduces farmers’ dependence on distant warehouses and ensures faster procurement. It also strengthens the cooperative sector, which forms the backbone of India’s rural credit and agricultural support system.
Static GK Tip: India has over 1 lakh PACS, making it the world’s largest cooperative credit network.
Scheme convergence and financial support
The storage plan integrates multiple government schemes, including the Agriculture Infrastructure Fund (AIF), Agricultural Marketing Infrastructure (AMI), Sub Mission on Agricultural Mechanization (SMAM), and PM Formalization of Micro Food Processing Enterprises (PMFME). These schemes provide financial assistance, subsidies, and infrastructure support.
Under the Agriculture Infrastructure Fund (AIF), PACS receive interest subvention on loans for building warehouses. The repayment period has been extended from 7 years to 10 years, improving financial feasibility.
The AMI scheme provides direct subsidy support for warehouse construction. This convergence approach ensures efficient utilisation of public resources and faster infrastructure development.
Enhanced subsidies and incentives
Financial incentives have been significantly improved to encourage PACS participation. The subsidy has increased from 25 percent to 33.33 percent, strengthening investment capacity. Construction assistance has been revised to ₹7,000 per MT in plain areas and ₹8,000 per MT in northeastern regions.
The margin money requirement has been reduced from 20 percent to 10 percent, reducing financial burden. PACS also receive additional subsidies for infrastructure such as weighbridges, internal roads, and boundary walls, enhancing operational efficiency.
These reforms improve accessibility and accelerate infrastructure expansion across rural areas.
Improving food security and farmer income
Decentralised grain storage helps farmers avoid distress sales during harvest periods. Farmers can store produce safely and sell when market prices are favourable. This improves income stability, especially for small and marginal farmers.
Scientific storage reduces post-harvest losses, which remain a major challenge in India’s agricultural sector. Improved warehousing strengthens supply chains, enhances procurement efficiency, and contributes to national food security.
Static GK fact: India is the second largest producer of food grains in the world, after China.
National expansion and cooperative empowerment
The Balaghat pilot is expected to serve as a model for nationwide implementation. It demonstrates how cooperative institutions can modernise agricultural infrastructure. Strengthening PACS aligns with India’s broader goal of achieving self-reliance in agricultural storage and logistics.
This initiative also supports the vision of improving rural infrastructure, enhancing farmer welfare, and strengthening the agricultural economy through cooperative-led development.
Static Usthadian Current Affairs Table
Balaghat Selected for Cooperative Grain Storage Pilot Expansion:
| Topic | Detail |
| Pilot District | Balaghat, Madhya Pradesh |
| Scheme Name | World’s Largest Grain Storage Plan in Cooperative Sector |
| Storage Capacity | 500 metric tonne godown |
| Implementing Body | Primary Agricultural Credit Societies and MPWLC |
| Key Supporting Scheme | Agriculture Infrastructure Fund |
| Subsidy Increase | Raised to 33.33 percent |
| Major Objective | Decentralised grain storage and farmer support |
| Key Benefit | Reduced post-harvest losses and distress sales |
| Target Institutions | Primary Agricultural Credit Societies |
| National Goal | Strengthening food security and cooperative infrastructure |
