World’s largest grain storage plan in the cooperative sector
Bасkgrоund:-
- PACS (Primary Agricultural Credit Societies) are the smallest part of the Short-Term Cooperative Credit (STCC) system in India.
- The STCC structure is headed by State Cooperative Banks (SCBs) at the state level.
- Credit from SCBs is transferred to District Central Cooperative Banks (DCCBs), which operate at the district level.
- PACS work directly with farmers and is involved in providing short-term loans for agricultural needs.
- They were first established in 1904 and have been serving farmers since then.
- Farmers rely on PACS for credit at the beginning of the cropping cycle to finance their requirements, such as seeds and fertilisers.
- The Union Budget 2023-24 has allocated Rs 2,516 crore for the computerisation of 63,000 PACS over the next five years.
- The aim is to bring transparency and accountability and enable PACS to diversify their business and undertake more activities.
Linkage:
- India has over 1,00,000 PACS with a vast membership base of more than 13 crore farmers.
- Given their significant role in the agricultural and rural landscape, the plan seeks to empower PACS by creating decentralised storage capacity and other necessary infrastructure.
- This transformation will enhance the economic viability of PACS and contribute to the growth of the Indian agricultural sector.
Current News:
- The Union Cabinet has given its approval for the establishment of the “world’s largest grain storage plan in the cooperative sector” with an outlay of around Rs 1 lakh crore.
- The initiative aims to curb crop damages, prevent distress sales by farmers, and bolster the country’s food security.
- The plan aims to create godowns and agricultural infrastructure at the level of Primary Agricultural Credit Societies (PACS) to strengthen food security, reduce wastage, and empower farmers.
- It is a comprehensive project that combines eight ongoing schemes from three ministries to address the shortage of agricultural storage infrastructure in India.
- The Ministry of Cooperation will implement a pilot project in at least 10 selected districts.
- An Inter-Ministerial Committee (IMC) will be formed, chaired by the Minister of Cooperation, with the participation of Ministers of Agriculture and Farmer’s Welfare, Consumer Affairs, Food and Public Distribution, and Food Processing Industries, along with the concerned secretaries.
- The rationale behind the plan is to leverage the strength of cooperatives and transform them into successful business enterprises, aligning with the vision of “Sahakar-se-Samriddhi” (Cooperation for Prosperity).
- The focus is on establishing agri-infrastructure, such as warehouses, custom hiring centres, and processing units, at the PACS level.
- With over 1,00,000 PACS and a membership base of more than 13 crore farmers, the plan aims to empower PACS by creating decentralised storage capacity and necessary infrastructure.
- This transformation will enhance the economic viability of PACS and contribute to the growth of the Indian agricultural sector.
Impact:
- Infrastructure Shortage: The plan establishes godowns at PACS level to address the shortage of agricultural storage infrastructure.
- Diversification of PACS Activities: PACS can now undertake additional activities like procurement centres, fair price shops, custom hiring centres, and processing units, benefiting farmer members.
- Reduction of Food Grain Wastage: Decentralized storage at PACS level reduces grain wastage, ensuring better food security.
- Prevention of Distress Sale: The plan offers farmers options to avoid distress sales, enabling them to get better prices for their produce.
- Cost Reduction: PACS-level storage facilities reduce transportation costs of food grains to procurement centers and fair-price shops.
