Decentralised Grain Storage Plan in Cooperative Sector

Key Highlights:

• The Decentralised Grain Storage Plan in Cooperative Sector was launched as a pilot project on May 31, 2023.
• It aims to improve storage, processing, procurement, and distribution systems through Primary Agricultural Credit Societies (PACS).
• As of July 2026, godown construction has been completed in 313 PACS, creating over 1.80 LMT (Lakh Metric Tonnes) of storage capacity.
• The National Cooperative Development Corporation (NCDC) is the implementing agency for the plan.
• The initiative adopts an integrated approach by converging various existing government schemes.

Detailed Insights:

• The plan addresses India's expanding foodgrain production (376.563 million tonnes in 2025-26) and the National Food Security Act, 2013, covering 80 crore people.
• Its objectives include reducing foodgrain wastage, minimizing transportation costs, and enabling farmers to avoid distress sales for better price realization.
• It integrates schemes such as the Agriculture Infrastructure Fund (AIF), Agricultural Marketing Infrastructure (AMI), and Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME).
• Key facilities include Custom Hiring Centres, Fair Price Shops, primary processing units, and procurement centres with silo-based storage capacities.
• Financial support includes an enhanced AMI subsidy (33.33%), reduced margin money (10%), and a 1% effective loan interest rate for PACS through NABARD refinance and AIF subvention.
• The Food Corporation of India (FCI) provides assured hiring of eligible godowns to enhance project viability for participating PACS.
• Quality standards mandate compliance with Warehousing Development and Regulatory Authority (WDRA) norms and uniform branding for the storage infrastructure.

Key Concepts Involved:

• Primary Agricultural Credit Societies (PACS): Village-level cooperative institutions providing credit, financial services, and now integrated agricultural infrastructure.
• Agriculture Infrastructure Fund (AIF): A central scheme providing financial support for post-harvest management infrastructure and community farming assets.
• National Food Security Act, 2013: A law providing subsidized food grains to approximately two-thirds of India's population.
• Warehousing Development and Regulatory Authority (WDRA): A statutory body that regulates and promotes the warehousing business in India.