Govt Grants Rs 1 Tn To Set Up World’s Largest Grain Storage System

Successive governments in India ignored the agriculture and put too much emphasis on industrial development. Resultantly, the country remained bereft of even the basic infrastructure required for the growth of agricultural sector. Reasing this policy paralysis, the present government is coming up with unique ideas that would give agricultural infrastructure in the country a major push.

In line with this, the government is embarking on a monumental plan to revolutionise its foodgrain storage capacity. The Union Cabinet recently approved a scheme that will increase the storage capacity by 70 million tonne (MT) in cooperative sector and has allocated a whopping Rs 1 trillion towards setting up the infrastructure.

The ambitious plan, which is set to become the world's largest grain storage plan in the cooperative sector, aims at addressing key challenges faced by the farmers and enhancing the country's food security.

The Cabinet has also approved formation of an Inter-Ministerial Committee (IMC) for facilitation of this project by convergence of various schemes of the Ministries of Agriculture and Farmers Welfare, Consumer Affairs, Food and Public Distribution and Food Processing Industries.

Storage capacity to cross 200 MT

The current grain storage capacity in India stands at 145 MT. Recognizing the need for expansion, the government plans to bolster the capacity by an additional 70 MT within the next five years. This will enable the country to go beyond the capacity threshold of 200 MT. This significant increase in storage capacity will play a vital role in reducing food wastage and facilitating better planning for farmers.

Co-op sector in the lead

One of the distinctive features of this plan is its implementation within the cooperative sector. This means that cooperatives will have the opportunity to establish decentralised storage facilities across the country. Notably, India has 65,000 agricultural cooperative societies.

By leveraging the power of cooperatives, the burden on the Food Corporation of India (FCI) will be reduced, ensuring smoother operations and improved efficiency in the storage and distribution of foodgrains.

Pilot project in 10 districts

To ensure seamless and effective execution, the Ministry of Cooperation will initiate a pilot project in 10 selected districts across States and Union territories. Under the plan, every block will have a godown with a capacity of 2,000 tonne. This will result in significant savings in transportation costs.

This strategic approach will provide valuable insights into regional requirements, enabling the integration of local needs into the nationwide implementation of the programme. By incorporating diverse perspectives, the government aims to optimize the impact of the storage capacity scheme.