To address the challenges of inadequate storage capacity of foodgrains, skewed distribution of godowns across states the Union Cabinet has approved constitution of Inter-Ministerial Committee (under Union Minister for Cooperation) for World’s Largest Grain storage plan in cooperative sector:
Modify guidelines of agricultural warehousing schemes of various ministries for facilitating creation of storage infrastructure (godowns) at selected viable PACS.
No extra budget but utilising available outlays in existing schemes for promoting storage under Ministry of Agriculture & Farmers Welfare (MIDH, Agriculture Infrastructure Fund etc.), Ministry of Food Processing Industries (PM Krishi Sampada Yojana, PMFME) & Ministry of Consumer Affairs, Food & Public Distribution (Procurement under Food Security Act and Minimum Support Prices).
BENEFITS OF THE PLAN
- Creation of decentralized storage capacity at local level reducing food waste, ensuring food security and preventing distress sale of produce by farmers and better prices and incomes for farmers.
- Reduced cost of transportation of foodgrains to procurement centres and again transporting stocks back from warehouses to FPS.
- Benefits to farmers credit cycle:
- Farmers can sell their crops to PACS by receiving some advance payment at MSP and get the balance after PACS sells foodgrains in the market.
- Farmers can store crops in warehouses managed by PACS and get finance for the next crop.
- Farmers can sell their entire crop to PACS at MSP.
- Strengthening of Primary Agricultural Credit Societies (PACS): Not just addresses shortage of agricultural storage infrastructure but would also enables PACS to undertake other activities such as:
- Functioning as procurement centers for state agencies/FCI.
- Serving as Fair Price Shops (FPS).
- Setting up custom hiring centers.
- Setting up common processing units for agricultural produce.
- PACS are important pillars of rural economy and this move will enhance incomes of farmer members of PACS and transform them into multipurpose societies.
Thus, the above plan can help address the rural economy, ensure better incomes for farmers and strengthen the cooperative sector.