India's Grain Storage Plan

What’s in today’s article?

• Why in News?
• Why does India need a Grain Storage Plan?
• Present Food grain Storage Capacity in India
• Global Scenario
• What is the World’s Largest Grain Storage Plan in the Cooperative Sector?
• How will PACS function?
• What are the Benefits of the Plan?

 

Why in News?

• The Union Cabinet recently approved the constitution of an Inter-Ministerial Committee (IMC) to facilitate the world’s largest grain storage plan in the cooperative sector.
• The IMC is to be constituted under the Chairmanship of Minister of Cooperation with the Minister of Agriculture (MoAFW); Minister of Consumer Affairs; and Minister of Food Processing Industries, etc., as other members.

 

Why does India need a Grain Storage Plan?

• India is the most populous country in the world, accounting for 18% (1.4 billion) of the global population (7.9 billion).
• However, it accounts for only 11% (160 million hectare) of the arable land (1,380 million hectare) in the world.
• Also, India runs the world’s largest food programme under the National Food Security Act, 2013, that covers about 81 crore people.
• Therefore, to ensure food security of a billion plus population, a robust network of foodgrain storage facilities becomes essential.

 

Present Food grain Storage Capacity in India:

• At present, India has a food grain storage capacity of 145 million metric tonnes (MMT) against the total food production of 311 MMT - leaving a gap of 166 MMT.
• This means, India has a storage capacity of 47% of its total foodgrains production.
• At the regional level, only a few southern states have the storage capacity of 90% and above. In northern states like UP and Bihar, it is below 50%.
• At present, multiple government agencies, like the Food Corporation of India (FCI), Central Warehouse Corporation, Warehouse Development Regulatory Authority, Railways, and the civil supply departments of states are involved in grain management.
• However, that has not yielded the desired results and in the absence of sufficient storage facilities, foodgrains are sometimes stored in the open, which results in damage.

 

Global Scenario:

• Several countries have better storage capacities. For instance, against the total foodgrain production of 615 MMT, China has a storage capacity of 660 MMT.
• The USA, Brazil, Russia, Argentina, Ukraine, France, and Canada have the capacity to store more food grains than they produce.

 

What is the World’s Largest Grain Storage Plan in the Cooperative Sector?

• Under the new plan, the Ministry of Cooperation aims to set up a network of integrated grain storage facilities through Primary Agricultural Credit Societies (PACS) across the country.
  • A PACS is a basic unit and smallest co-operative credit institution in India that works on the grassroots level (gram panchayat and village level).
  • There are more than 1,00,000 PACS spread across the country with a huge member base of more than 13 crore farmers.
• Spread over 1 acre of land, the integrated facility will be built at a cost Rs 2.25 crore - Rs 51 lakh will come as subsidy, while the remaining will come as margin money or loan.
  • The integrated modular PACS will have a custom hiring centre, procurement centres, primary processing units for cleaning and winnowing, a storage shed and container storage and silos.
• Though the plan does not have a separate Budgetary allocation, it will be implemented by the convergence of 8 schemes. These schemes are -
  • The MoAFW’s Agriculture Infrastructure Fund (AIF), Agricultural Marketing Infrastructure Scheme (AMI), Mission for Integrated Development of Horticulture (MIDH), and Sub Mission on Agricultural Mechanisation (SMAM).
  • Two schemes of the Ministry of Food Processing Industries: PM Formalisation of Micro Food Processing Enterprises Scheme (PMFME), and PM Kisan Sampada Yojana (PMKSY).
  • Two schemes of the Ministry of Consumer Affairs, Food and Public Distribution: allocation of food grains under the National Food Security Act, and Procurement operations at Minimum Support Price.

 

How will PACS function?

• The new storage plan is based on the hub and spoke model with a grain storage capacity of 70 million tonnes.
  • Of the 63,000 PACS across the country, 55,767 will function as spoke and will have a grain storage capacity of 1,000 metric tonnes each,
  • While the remaining 7,233 PACS, which will function as hubs, will have a storage capacity of 2,000 metric tonnes each.
• The plan is multi-pronged, which aims to -
  • Address the shortage of agricultural storage infrastructure in the country by facilitating establishment of godowns at the level of PACS,
  • Enable PACS to undertake various other activities, viz: Functioning as Procurement centres for State Agencies; Serving as Fair Price Shops (FPS); Setting up custom hiring centers; etc.
• The IMC will modify guidelines/ implementation methodologies of the schemes of the respective Ministries as and when need arises, within the approved outlays and prescribed goals.

 

What are the Benefits of the Plan?

• The modern silos will have the facility of computerised real-time monitoring systems.
• It would reduce post-harvesting losses.
• It would bring down the food grain handling and transportation cost.
• Farmers would have a choice to sell their produce depending on the market conditions, and not be forced into distress sale.

 

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Q1) What is PM Kisan Sampada Yojana?

It is an umbrella scheme incorporating ongoing schemes like Mega Food Parks, Integrated Cold Chain and Value Addition Infrastructure, Food Safety and Quality Assurance Infrastructure, etc., to supplement agriculture, modernise processing and decrease Agri-Waste.

 

Q2) What is the Mission for Integrated Development of Horticulture (MIDH)?

It is a Centrally Sponsored Scheme for the holistic growth of the horticulture sector covering fruits, vegetables, root & tuber crops, mushrooms, spices, flowers, aromatic plants, coconut, cashew, cocoa and bamboo.

 

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Source: What is the massive grain storage plan the govt has unveiled, how it’ll help farmers