Cabinet approves Constitution and Empowerment of an Inter-Ministerial Committee (IMC) for Facilitation of “World’s Largest Grain Storage Plan in Cooperative Sector”

Source: The post is based on the following articles

“Cabinet approves Constitution and Empowerment of an Inter-Ministerial Committee (IMC) for Facilitation of “World’s Largest Grain Storage Plan in Cooperative Sector”” published in the PIB on 31st May 2023

“World’s largest grain storage plan: Centre to implement pilot project in 10 districts” published in The Hindu on 1st June 2023

What is the News?

Union Cabinet has approved the constitution and empowerment of an Inter-Ministerial Committee (IMC) for the facilitation of the “World’s Largest Grain Storage Plan in Cooperative Sector.”

About the IMC for World’s Largest Grain Storage Plan in Cooperative Sector

Chairman: IMC will be constituted under the Chairmanship of the Minister of Cooperation. Other Ministers will be part of the IMC.

Aim: a) To facilitate the ‘World’s Largest Grain Storage Plan in the Cooperative Sector.’ b) To address the shortage of agricultural storage infrastructure in the country by creating infrastructure such as godowns, etc. for Agriculture and Allied purposes, at selected ‘viable’ Primary Agricultural Credit Societies (PACS).

Mode of work: The IMC will work on the convergence of various schemes of Ministry of Agriculture and Farmers Welfare, Ministry of Consumer Affairs, Food and Public Distribution and Ministry of Food Processing Industries.

Implementing strategy: Ministry of Cooperation will implement a pilot project in at least 10 selected Districts of different States/ UTs in the country.

What are the benefits of creating the World’s Largest Grain Storage Plan?

The creation of decentralized storage capacity will reduce food grain wastage and strengthen food security of the country.

It would prevent distress sale of crops by providing various options to the farmers. This enable the farmers to realise better prices for their produce.

It will reduce the cost incurred in the transportation of food grains to procurement centres and again transporting the stocks back from warehouses to FPS.

The Plan would strengthen PACS by enabling them to diversify their business activities, thus enhancing the incomes of the farmer members as well.

Host of other benefits: The plan will address not just the shortage of agricultural storage infrastructure, but also enable PACS to undertake various other activities. Such as, a) Can function as Procurement centres for State Agencies/ Food Corporation of India (FCI), b) Can serve as Fair Price Shops (FPS), c) Can set up custom hiring centres, and d) Can set up common processing units.