The goal of Prime Minister Narendra Modi’s pilot project, which was unveiled last week, is to establish the largest grain storage facility in the world in the cooperative sector. It is anticipated that the project, which would increase capacity by 70 million tonnes of food grains, will be finished in the upcoming five years.
With the assistance of Primary Agricultural Credit Societies (PACS), the pilot program is being implemented in eleven states. The approximate cost of the scheme is Rs 1.25 lakh crore. Currently, the Food Corporation of India (FCI), the Central Warehousing Corporation, and other government organisations handle the storage.
In many ways, improving the storage facility is crucial. Although India produces over 311 million tonnes (mt) of food grains annually, the country only has 145 mt of storage capacity. While many nations have excess storage capacity, India, one of the top producers of grains, is far behind its requirements in terms of storage.
Source: Business Standard
Approximately 22% of the nation’s food grain production is thought to be wasted. With enough storage facilities, this enormous loss can be avoided. Public procurement is now restricted to wheat and rice. The absence of storage facilities is a major barrier to boosting the acquisition of agricultural crops.
With more storage space, purchases can be expanded and diversified. By offering storage space, the proposal also aims to assist farmers by easing the pressure on them to sell their goods as soon as it is harvested. The cost of transportation will also be decreased. Sufficient storage facilities can contribute to a stable price regime, food security, and a decrease in the volatility of food grain prices.
Source: WION
Larger storage facilities are advantageous to consumers as well as farmers. Through primary cooperatives, the government intends to carry out the strategy. The nation is home to 65,000 agricultural cooperative societies. Two lakh PACS and cooperatives for dairy and fisheries are to be established by the government.
The project’s participating cooperatives will be able to take advantage of interest subvention benefits and subsidies for building infrastructure by combining and utilising certain current agricultural infrastructure and marketing programs. Godowns will be established by the PACS, giving farmers the capacity to store food and obtain bridging finance for upcoming crop cycles. The proposal calls for the construction of a 2,000-ton godown in each block. It is anticipated that the program will also result in more job possibilities.
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