Cabinet Approves Constitution of Inter-Ministerial Committee for World’s Largest Grain Storage Plan in Cooperative Sector
New Delhi, May 31: The Union Cabinet, chaired by Prime Minister Shri Narendra Modi, has granted approval for the establishment of an Inter-Ministerial Committee (IMC) to facilitate the “World’s Largest Grain Storage Plan in Cooperative Sector.” The committee will bring together various schemes from the Ministry of Agriculture and Farmers Welfare, Ministry of Consumer Affairs, Food and Public Distribution, and Ministry of Food Processing Industries.
The Ministry of Cooperation will spearhead the pilot project’s implementation in at least 10 selected districts across different states and union territories. This initiative aims to ensure uniform and timely execution of the plan in a professional manner. The pilot project will provide valuable insights into regional requirements, which will then be incorporated into the nationwide implementation of the plan.
To oversee the plan’s implementation, an Inter-Ministerial Committee (IMC) will be formed, with the Minister of Cooperation serving as the Chairman. The committee will include the Minister of Agriculture and Farmers Welfare, Minister of Consumer Affairs, Food and Public Distribution, Minister of Food Processing Industries, and relevant secretaries as members. Their role will be to modify guidelines and implementation methodologies of the respective ministries’ schemes to facilitate the creation of infrastructure, such as godowns, for agricultural and allied purposes at viable Primary Agricultural Credit Societies (PACS).
The plan will utilize the available funds from the identified schemes of the respective ministries. The following schemes have been identified for convergence under the plan:
(a) Ministry of Agriculture and Farmers Welfare:
- Agriculture Infrastructure Fund (AIF)
- Agricultural Marketing Infrastructure Scheme (AMI)
- Mission for Integrated Development of Horticulture (MIDH)
- Sub Mission on Agricultural Mechanization (SMAM)
(b) Ministry of Food Processing Industries:
- Pradhan Mantri Formalization of Micro Food Processing Enterprises Scheme (PMFME)
- Pradhan Mantri Kisan Sampada Yojana (PMKSY)
(c) Ministry of Consumer Affairs, Food and Public Distribution:
- Allocation of food grains under the National Food Security Act
- Procurement operations at Minimum Support Price
The plan’s benefits are multi-faceted. It aims to address the shortage of agricultural storage infrastructure by establishing godowns at the PACS level. Additionally, PACS will be empowered to undertake various activities such as functioning as procurement centers for state agencies and the Food Corporation of India (FCI), serving as fair price shops, setting up custom hiring centers, and establishing common processing units for agricultural produce sorting and grading. Furthermore, decentralized storage capacity at the local level will reduce food grain wastage and strengthen the country’s food security. The plan will also prevent distress sales, enabling farmers to obtain better prices for their crops. It will significantly reduce transportation costs between procurement centers and warehouses. Moreover, by adopting a whole-of-government approach, the plan will enhance the income of farmer members by enabling PACS to diversify their business activities.
The implementation timeline and process are as follows:
- A National Level Coordination Committee will be formed within one week of the Cabinet approval.
- Implementation guidelines will be issued within 15 days of the Cabinet approval.
- A portal linking PACS with the Government of India and State Governments will be launched within 45 days of the Cabinet approval.
- Implementation of the proposal will commence within 45 days of the Cabinet approval.
The Prime Minister of India has emphasized the need to leverage the strength of cooperatives and transform them into successful and vibrant business enterprises to achieve the vision of “Sahakar-se-Samriddhi” (prosperity through cooperation). In line with this vision, the Ministry of Cooperation has devised the “World’s Largest Grain Storage Plan in Cooperative Sector,” which
