Government’s new grain storage plan to be executed by cooperatives

Source-This post on Government’s new grain storage plan to be executed by cooperatives has been created based on the article “Express View on government’s new grain storage plan: More in store” published in “The Indian Express” on 27 February 2024.

UPSC Syllabus–GS Paper 3– Storage, Transport and Marketing of Agricultural Produce, Issues of Buffer Stocks and Food Security.

News-The article discusses the importance of cooperatives in storage of food grains.

What is the state of food grain storage in India?

The Food Corporation of India currently has a storage capacity of 361.62 lakh tonnes and state government agencies have capacities of another 400.74 lakh tonnes.

What is the world’s largest grain storage plan?

The pilot project will be carried out in 11 states by primary agricultural credit societies. The government aims to build storage capacity of   700 lakh metric tons which is almost double the existing storage capacity in the country.

A detailed article on World’s largest grain storage plan: benefits and challenges can be read here.

What are the benefits of an increase in storage facilities?

1) It will cut down losses due to lack of adequate infrastructure.

2) It will enable farmers to sell their output at an opportune time in terms of prices.

3) It points towards the increasing emphasis of the government on cooperatives.

What is the importance of primary agricultural credit societies?

1) Large network of societies– As per Reserve Bank of India’s report, there are 1.02 lakh societies in the country at the end of March 2021.
These societies have a sizeable presence in the western part of the country, serving 13.7 crore members and 5.4 crore borrowers.

2) Empowerment of small farmers– The data shows that small and marginal farmers and others accounted for 81 per cent of these 13.7 crore members. Around 60 per cent of lending of district central cooperative banks is through these societies.

3) Collective Strength-They operate through group/collective strength ensuring that no one is left behind. For ex: Amul and Lijjat Papad

What are the steps taken by the government to promote primary agricultural credit societies?

1) Establishment of new cooperatives– The government aims to establish two lakh primary agricultural credit societies (PACS) and dairy and fisheries cooperatives in the country.

2) Modernization of PACS -The Union Budget 2023-24 has started the process of computerization,63000 PACS with an investment of Rs 2,516 crore.

3) Creation of separate ministry– The government has created a dedicated ministry namely Ministry of Cooperation for promoting cooperative societies in India.