India’s Cooperative Model Powers Massive Grain Storage Drive

India adopts bold rural storage strategy

India’s Cooperative Model Powers Massive Grain Storage Drive: In a historic move, India is implementing the largest grain storage program globally within its cooperative sector. This transformative effort focuses on developing grassroots-level infrastructure to strengthen the nation’s agri-logistics and ensure food security in rural regions.

Plan enters pilot implementation phase

Cleared on May 31, 2023, the program is being launched as a pilot initiative targeting a set of identified rural societies. As informed by Minister of Cooperation Amit Shah in the Lok Sabha, the project has already begun in 11 different states, where initial infrastructure has been completed.

Diverse states onboarded for the rollout

In its early stage, godowns have been successfully built in Primary Agricultural Credit Societies (PACS) across Maharashtra, Tamil Nadu, Rajasthan, Uttar Pradesh, Gujarat, Madhya Pradesh, Karnataka, Telangana, Uttarakhand, Assam, and Tripura. These units collectively offer a capacity of 9,750 metric tonnes for food grain storage.

Static GK fact: Rajasthan and Maharashtra have some of the largest numbers of PACS engaged in agri-trade and storage across India.

Multi-scheme convergence enables execution

The implementation uses a convergence model by integrating funding and assistance from several central schemes. These include:

• Agriculture Infrastructure Fund (AIF)
• Agricultural Marketing Infrastructure (AMI)
• Sub-Mission on Agricultural Mechanization (SMAM)
• Pradhan Mantri Formalization of Micro Food Processing Enterprises (PMFME)

This approach enables comprehensive financing for equipment, storage, and processing infrastructure.

Static GK fact: The AIF was introduced in July 2020 to facilitate post-harvest infrastructure through a financing facility of ₹1 lakh crore.

Building stronger rural institutions

Besides warehouses, the initiative empowers PACS to run custom hiring centers, food processing hubs, and Fair Price Shops. These multipurpose centers are expected to reduce wastage, support local agri-processing, and make farming more profitable.

States leading with cooperative participation

States such as Uttar Pradesh, Gujarat, Tamil Nadu, Rajasthan, and Maharashtra are showing strong participation with a higher number of PACS already onboarded under this project. Their early adoption serves as a model for replication across India.

Static GK Tip: Primary Agricultural Credit Societies (PACS) were established in 1904 under the Cooperative Societies Act and form the foundation of India’s cooperative credit system.

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India’s Cooperative Model Powers Massive Grain Storage Drive: