Lok Sabha Question No. 2586 (UNSTARRED), answered on 2023-12-19
Subject: World’s Largest Grain Storage Plan
Ministry: COOPERATION
Asked by: Sunil Baburao Mendhe, Kanakmal Katara, Gyaneshwar Patil, Pushpendra Singh Chandel, Vivek Narayan Shejwalkar, Pradeep Kumar Singh, Kotagiri Sridhar, Shankar Lalwani, Bharatiben Dhirubhai Shyal, Manoj Kumar Tiwari

## GOVERNMENT OF INDIA MINISTRY OF COOPERATION

## LOK SABHA UNSTARRED QUESTION NO. 2586 TO BE ANSWERED ON 19/12/2023

World's Largest Grain Storage Plan

## 2586.  SHRI SUNIL BABURAO MENDHE:

SHRI KANAKMAL KATARA:

SHRI GYANESHWAR PATIL:

SHRI KUNWAR PUSHPENDRA SINGH CHANDEL:

SHRI VIVEK NARAYAN SHEJWALKAR:

SHRI PRADEEP KUMAR SINGH:

SHRI SRIDHAR KOTAGIRI:

SHRI SHANKAR LALWANI:

DR. BHARATIBEN DHIRUBHAI SHIYAL:

SHRI MANOJ TIWARI:

Will the Minister of COOPERATION ( सहकाįरता मंũी) be pleased to state:

- (a) the details of the World's Largest Grain Storage Plan in Cooperative Sector approved for construction of godowns including its primary objectives, current status, the advantages it aims to deliver and the manner in which it fulfils the food security need of the country;
- (b) the  expectations  from  this  initiative  to  alleviate  the  issues/problems  surrounding  with  the foodgrain storage in the country benefiting both farmers and consumers;
- (c) the  measures  or  strategies  outlined  to  ensure  transparency,  accountability  and  timely execution of this initiative within the cooperative sector;
- (d) the benefits likely to be obtained at panchayat/village level due to the said scheme;
- (e) the manner in which the farmers are likely to get fair price on their yield on account of the said scheme;
- (f) the  various  benefits  to  be  availed  by  the  Primary  Agriculture  Credit  Societies  (PACS) getting these godowns/storage facilities through the said scheme; and
- (g) whether the economic condition of PACS will be strengthened through the said scheme and if so, the details thereof?

## ANSWER

## THE MINISTER OF COOPERATION सहकाįरता मंũी (SHRI AMIT SHAH)

(a) to (g): In  order  to  address  the  shortage  of  food  grain  storage  capacity  in  the  country,  the Government on 31.05.2023, has approved the 'World's Largest Grain Storage Plan in Cooperative Sector', which is being rolled out as a Pilot Project in different states/UTs of the country.

The  Plan  entails  creation  of  various  agri  infrastructure  at  PACS  level,  including  setting  up decentralized  godowns,  custom  hiring  center,  processing  units,  Fair  Price  Shops,  etc.  through convergence of various existing schemes of the Government of India (GoI), such as, Agriculture Infrastructure  Fund  (AIF), Agricultural  Marketing  Infrastructure  Scheme  (AMI),  Sub  Mission  on Agricultural  Mechanization  (SMAM)  Pradhan  Mantri  Formalization  of  Micro  Food  Processing Enterprises  Scheme (PMFME), etc. Under  these schemes,  PACS can avail subsidies and interest subvention  benefits  for  construction  of  godowns/storage  facilities  and  setting  up  of  other  agri infrastructure. Further, NABARD is also extending financial support to PACS by refinancing them at  highly  subsidized  rates  of  around  1  percent,  after  incorporating  the  benefits  of  3%  interest subvention under AIF scheme for projects up to Rs. 2 Crore.  Therefore, the plan aims to strengthen the economic condition of PACS by diversifying their business activities and giving them additional sources of revenue thus improving their financial sustainability.

The  Pilot  project  is  being  implemented  by  National  Cooperative  Development  Corporation (NCDC)  with  the  support  of  NABARD,  Food  Corporation  of  India  (FCI),  Central  Warehousing Corporation (CWC), NABARD Consultancy Services (NABCONS), National Buildings Construction Corporation (NBCC), etc. in different States/ UTs. Consultancy support is also being extended to PACS through these agencies under the project.

In order to ensure accountability and smooth, effective and transparent implementation of the plan, Ministry of Cooperation has constituted an Inter-Ministerial Committee (IMC), which is authorized to modify guidelines/ implementation methodologies of the schemes identified for convergence, as and when need arises. A National Level Coordination Committee (NLCC) has also been constituted having members from Ministry/ Departments, Central Government agencies concerned to steer the overall implementation of the Plan and reviewing the progress of implementation, etc.

To  monitor  the  implementation  of  the  project  and  to  ensure  its  seamless  integration  with  the existing policies/ programmes at State level, State Cooperative Development Committee (SCDC) at State  level  and  District  Cooperative  Development  Committee  (DCDC)  in  each  District  of  the State/UT have also been constituted.

Further, an MoU has been signed between Ministry of Cooperation (GoI), Department of Food and Public Distribution (GoI), Food Corporation of India (FCI) and National Cooperative Development Corporation  (NCDC)  to  ensure  full  capacity  utilization  of  the  storage  capacity  being  created  at PACS level under the Project. This will facilitate hiring of godowns constructed at PACS level by FCI, integration of these godowns with the supply chain of foodgrains, thereby providing requisite forward and backward market linkages to PACS.

States/  UTs  and  National  level  Cooperative  Federations,  like  National  Cooperative  Consumers Federation  (NCCF)  and  National  Agricultural  Cooperative  Marketing  Federation  of  India  Ltd. (NAFED),  have  identified  1,711  PACS  for  creation  of  storage  capacity  under  the  Pilot  Project. Presently, construction of godown is going in 13 PACS of 13 States/ UTs under the Pilot Project.

Establishment of decentralized storage capacity at PACS level would reduce post harvest losses by creating sufficient storage capacity in the country and strengthen food security of the country up to

Panchayat/village level. It  will also prevent  distress  sale of  crops  by farmers  and enable them  to realise better prices for their crops. Since PACS would be operating as procurement centre as well as Fair Price Shops (FPS), the cost incurred in transportation of food grains to procurement centres and again transporting the stocks back from warehouses to FPS would also be saved.

The project will also provide various benefits to the farmers, including the following:

- i. Farmers will be able to store their produce in the godown constructed at PACS and avail bridge finance for the next cycle of crop and sell the produce at a time of their choice, or sell their whole crop to the PACS at Minimum Support Price (MSP), which would enable them to avoid distress sale of crops.
- ii. They  will  be  able  to  get  various  agri  inputs  and  services  at  the  Panchayat/  village  level itself.
- iii. Through  diversification  of  business,  farmers  will  be  able  to  get  additional  sources  of income.
- iv. Through integration with the food supply management chain, farmers will be able to expand their market size and realize better value for their produce.
- v. Creation  of  adequate  food  grain  storage  capacity  at  PACS  level  will  help  in  reduction  of post-harvest loss, thus enabling farmers to earn better prices.
- vi. In addition to the above, this Plan would help in ensuring food security at Panchayat/ village level across the country, thereby benefitting the consumers.

*****