- With a population of 1.4 billion, India faces the problem of guaranteeing food security for its residents.
- To address this issue, the Centre has authorised the formation of an Inter-Ministerial Committee (IMC) to aid in the implementation of the “world’s largest grain storage plan in the cooperative sector.”
- This article examines the plan’s primary components and their likely influence on food security in India.
Need for Grain Storage Network
(1) Population vs. Arable Land
- India’s 18% global population requires extensive food-grain storage facilities.
(2) Current Storage Gap
- India’s 145 MMT foodgrain storage capacity faces 166 MMT storage gap, causing damage due to inadequate facilities.
(3) Global Storage Capacities
- Countries like China, USA, Brazil, Russia, Argentina, Ukraine, France, and Canada have better storage capacities than foodgrain production.
(4) Regional Disparities in India
- India’s storage capacity varies across regions, with southern states having higher capacities.
Understanding the ‘World’s Largest Grain Storage Plan’
(1) Role of Primary Agricultural Credit Societies (PACS)
- Ministry of Cooperation plans to establish integrated grain storage facilities using PACS, leveraging existing network with over 10,00,000 societies and 13 crore farmers.
(2) IMC Composition
- IMC, chaired by Cooperation Minister, will modify guidelines and implementation methodologies for storage plans.
(3) Budgetary Allocation
- Implementation of plan involves combining 8 existing schemes, eliminating separate allocations, under Agriculture, Food Processing Industries, and Consumer Affairs.
Grain Storage Plan Advantages
(1) Multi-Purpose Benefits:
- The plan aims to establish godowns at the PACS level, enabling them to serve multiple functions:
- Procurement centres for state agencies and Food Corporation of India (FCI)
- Fair Price Shops (FPS)
- Custom hiring centres
- Common processing units for agricultural produce
(2) Other benefits
- Post-harvest losses are being reduced.
- Foodgrain handling and shipping costs have been reduced.
- Farmers’ market flexibility has improved, and distress sales have decreased.
Key issues addressed
- Infrastructure Address: By establishing godowns at the PACS level, India’s foodgrain storage capacity will be increased by 700 lakh tonnes.
- Diversification of PACS: PACS will be empowered to engage in a variety of activities such as procurement centres, fair pricing stores, and the establishment of custom hiring centres, thereby increasing farmer income.
- Food Grain Wastage Reduced: Decentralised storage at the PACS level will reduce grain wastage, contributing to enhanced food security.
- Farmers can store their food in PACS facilities and obtain loans of up to 70%, preventing distress sales and enabling better prices.
- Cost Savings: Local storage facilities will greatly reduce food grain transportation costs to procurement centres and fair-priced retailers.
Design and Features of Integrated Storage Facilities
(1) Facility Layout
- Modular PACS on 1 acre features hiring center, multi-purpose hall, processing units, storage sheds, and container storage.
(2) Financing and Capacity:
- The facility costs Rs 2.25 crore, with a 51 lakh subsidy and remaining amount as margin money or loan. The PACS model will generate Rs 45 lakh annually, with 63,000 PACS serving as spokes and hubs.
(3) Technological Advancements:
- Modern silos with real-time monitoring systems available for FCI and private agencies.
Conclusion
India’s cooperative sector grain storage plan, facilitated by IMC, aims to bridge storage gaps and ensure food security for its billion-plus population. Implementing integrated storage model and reducing losses, transportation costs, and distress sales.
Source: https://www.hindustantimes.com/india-news/pm-modi-led-cabinet-approves-rs-1-lakh-cr-grain-storage-program-to-build-world-s-largest-storage-plan-in-new-delhi-101685559140633.html