World’s largest grain storage plan: benefits and challenges – Explained, pointwise

Introduction

India has embarked on an ambitious journey to establish the world’s largest grain storage plan, aiming to transform the nation’s agricultural economy. While the initiative presents numerous benefits, such as reducing post-harvest losses, enhancing farmers’ income, and strengthening food security, it is not devoid of challenges. Issues like ensuring the functionality of Primary Agricultural Credit Societies and managing the enormity of the project are substantial hurdles to overcome. This exploration will delve into the merits and potential obstacles of this significant plan.  

About the world’s largest grain storage plan

What is the rationale/need for the world’s largest grain storage plan?

What are the salient features of the grain storage plan when compares to other nations’ plans?

Scale of the project: The “World’s Largest Grain Storage Plan in the Cooperative Sector” is a massive undertaking in comparison to similar projects in other nations, aiming to augment India’s grain storage capacity from 145 million tonnes to 215 million tonnes.  

Note: USA, Brazil, Russia, Argentina, Ukraine, France, and Canada which have more capacity to store food grains than they produce. Against the total foodgrain production of 615 MMT, China has a storage capacity of 660 MMT.

Decentralization: Unlike many other nations’ centralized storage systems, India’s plan promotes decentralization, aiming to construct storage facilities in every block with capacities between 500-2000 tonnes.  

Climate consciousness: With the growing concern over climate change, this plan also seeks to create climate-resilient storage facilities, which is not a primary focus in many other countries’ grain storage plans.

Inter-ministerial coordination: An inter-ministerial team will oversee the plan, ensuring seamless coordination among various government bodies.  

Significant financial commitment: A budget allocation of INR 1 lakh crore shows a commitment not seen in many similar initiatives globally.  

What are the benefits associated with the world’s largest grain storage plan?

Prevention of food wastage: By increasing storage capacity, India aims to prevent food grains from being exposed to pest attacks and inclement weather, thereby reducing losses. For instance, the government has cited post-harvest losses in the range of 4-6% for cereals and 5-8% for pulses.  

Enhanced food security: The plan would strengthen food security in a country where millions still suffer from hunger, by ensuring a larger portion of the grain production is safely stored and distributed.  

Support to farmers: Farmers will benefit from better prices for their produce as the storage facilities will reduce the need for distress sales, allowing farmers to store their grains and sell when prices are favorable.  

Cost savings: The local storage facilities will help reduce transportation costs associated with moving food grains to procurement centres and then back from warehouses to fair-price shops.  

Employment generation: The construction and operation of these storage facilities could generate local employment, thereby boosting rural economies.  

Strengthening PACS: By allowing PACS to diversify their activities, the plan not only bolsters these societies but also increases the incomes of their farmer members. For example, PACS can function as procurement centers, fair price shops, or set up custom hiring centres.  

Better management of climate change effects: In view of the anticipated challenges to food production due to climate change, having robust and widespread storage facilities will help the country manage fluctuations in crop yields better.  

What are the challenges in establishing the world’s largest grain storage plan?

Revival of non-functional PACS: A large number of Primary Agricultural Credit Societies (PACS) in India is currently dysfunctional. For example, only about 63,000 out of 1 lakh PACS are currently operational in India. These societies need to be revived and made operational to maximize the potential of the plan.  

Ensuring fair implementation: The plan requires careful implementation across diverse regions with different requirements. For instance, the pilot project in a district with ample resources might suggest a higher storage capacity, but replicating the same model in a resource-scarce region could lead to underutilization or waste of resources.  

Financing and convergence of schemes: The plan involves the convergence of several schemes from different ministries. For example, the Agriculture Infrastructure Fund (AIF) from the Ministry of Agriculture might prioritize different objectives than the Pradhan Mantri Kisan Sampada Yojana (PMKSY) from the Ministry of Food Processing Industries. Coordinating these schemes to work towards a common goal of enhancing grain storage might present intricate bureaucratic challenges.  

Infrastructure and technology: Setting up modern storage facilities and implementing digital solutions for management might pose a challenge given the rural setting and the potential lack of technological infrastructure in these areas. For instance, a state-of-the-art godown requiring a continuous power supply might face operational issues in an area with frequent power cuts.  

Employment and skill development: The plan could generate local employment opportunities, but it may also require training people to operate and manage these advanced storage facilities, posing a challenge in terms of skill development.  

What should be done?

Revive and strengthen PACS: Many Primary Agricultural Credit Societies (PACS) are currently dysfunctional. For the plan to be successful, these societies need to be revived and operational.  

Develop efficient guidelines: An effective implementation methodology needs to be developed. This should involve robust guidelines that cater to the unique requirements of different regions in the country.  

Ensure timely implementation: To reap the benefits of this plan, timely implementation is crucial. This will require a concerted effort from all stakeholders, including the various ministries involved and PACS.  

Efficient utilization of funds: Given the vast sum allocated for this plan, efficient utilization of funds is necessary. Mismanagement or misallocation of resources could severely hamper the plan’s execution.  

Technology integration: Digital tools and technologies should be employed to make these storage facilities more efficient and to streamline the process of monitoring and management.  

Address climate change impact: Efforts need to be made to anticipate and mitigate the potential impact of climate change on food grain storage. This could involve incorporating storage technologies that are resistant to extreme weather conditions.  

Capacity building: There should be adequate training for the personnel involved in managing these storage facilities, to ensure smooth operation and maintenance. 

Sources: The Hindu Businessline (Article 1 and Article 2), Deccan Herald (Article 1 and Article 2), Live Mint (Article 1 and Article 2), Indian Express, PIB and Tribune

Syllabus: GS 3: Economic development – Public Distribution System- objectives, functioning, limitations, revamping; issues of buffer stocks and food security;